south there including looks like g.c. h.q. or n.s.a. they've been forced out of the dark by edward snowden and they're after only a little bit. people who put it that the time clearly here. there we go we started the show in november of two thousand and nine four years later we're at the five hundredth episode and you know i'm going to go over some of the topics the things that we've seen over these years and where we have arrived after four years of this show now the most remarkable is the aftermath of the financial crisis and one graph you see the blue line is financial profits are up fifty nine percent since the beginning of the financial crisis the red is corporate profits up forty two percent green is the s. and p. and that is up eight percent and purple is employment which is down seven percent the crisis was created by over financialization of the economy in the u.s. and around the world bet is to say that the business of the u.s. and the u.k.

became the business of printing lots of bonds and then manipulated those bonds using derivatives derivatives market got to be six hundred trillion in size on a global g.d.p. of about sixty trillion then you have the crash of two thousand and eight which was a crass of financialization securitization to get out of that crash the government decided along with the treasury and the federal reserve bank to increase financialization which increased the profits of the people who caused the crash to begin with and as we've said on the show along stacie people are not needed in an economy where the top two or three hundred people can just get money for free from the fed similar to saudi arabia they don't need the citizens of saudi arabia they just they just pump more oil and there is incredible poverty in saudi arabia in america now there's incredible poverty because the people are not needed their jobs are not needed their tax revenues. non-native because the bank of america the

federal reserve bank just prints money and therefore it just creates a suit of wealth and income gap actually i'm going to skip ahead to a headline i have there because you mention the derivatives use of derivatives as a what form of wealth confiscation and wealth transfer schemes the typical american family makes less than it did in one thousand nine hundred nine in one thousand nine hundred ninety median american household me fifty one thousand six hundred eighty one dollars in current terms that means that twenty four years ago middle class american family was making more than a middle class family was making more than a year ago which is fifty one thousand one hundred seven now if you look at the chart you can see the past twenty five years that it rues under median income rose under clinton but then what happened at the end of clinton administration max we had the repeal of glass steagall and we had the commodities futures trading act which enabled derivatives to go global they had the reclassification of derivatives as gambling instruments to legitimate instruments of finance as part of the global

financial ization of the economy most corporations by the way are in the business of finance they're in the biz of lending famously g.-mac general motors except as a corporation makes most of the money and not for that g.m. not making cars a day that's just one example there are many examples but just take a look at the last ten years as what happened to one portion of the american population the black population they were told to buy houses under bush they then got caught up in a subprime scandal which was a manufactured crisis they've had the biggest wealth confiscation in their history going back to slave days and they are now feeding into america's person system which is owned by the same financialization the same securitization the same banks on wall street so the black americans have gone from slave to middle class back to essentially imprisonment and that's all served to the purposes of the top one percent of financialization eyes or so you meant. one percent and of course the

ninety nine percent live and the occupy wall street happened since we began the show we've covered that we were right there covering occupy wall street from the very beginning now here's a headline from forbes on the two year anniversary of that give back yes it's time for the ninety nine percent to give back to the one percent and they say imagine the effect on our culture particularly on the young if the kind of fame and adulation be the lady gaga attached the more notable achievements of say warren buffett or if the moral priest showered on mother teresa went to someone like lloyd blankfein who in guiding goldman sachs towards billions in profits has done infinitely more for mankind well this is a market fundamentalism just like america is now hiring al-qaeda in syria to make way for a pipeline for saudi arabia then forbes magazine points to a financial terrorist like warren buffett who's in the securitization business financialization business who has done more to destroy the american economy than almost anyone except for lloyd blankfein they've all been caught and gazed in

massive fraud they've had to pay small civil fines as part of rigging the judicial system and the legal system with the money they make in this financial life ponzi scheme and forbes magazine is a shameless promoter of market fundamentalism or market terrorism this is an article that said in pinion piece a commentator an outside commentator who posted this on there he's an iran fanatic so he's looking at the profits the so-called profits that lloyd blankfein has stolen from the rest of the population through fraudulent warship mortgage backed securities to front running markets through high frequency trading and he's saying that this is in an absolute objectivist fundamentalist way that the profits are all that matters and the fact that he stole it from you from your granny tough luck that's that's capitalism and his version of it well we've seen this with other fascist regimes and as the wealth confiscation gets more pronounced those who are doing the stealing whether it's the nazis in. thirty's or warren buffett in the

twenty thirteen period they scapegoat the losers so the losers are being scapegoated i've already mentioned the black community americas being in prison a record amounts to prison population america's the fastest growing population the prison population in absolute terms is higher than any other country in the world and that forbes is assisting in this scapegoating of and pretty soon prisons become concentration camps and they become extermination camps that's the final solution to the debt bomb created by the federal reserve bank mark my words you'll see it america in the next five years the other thing that we've been covering is the global insurrection against banker occupation but of course that is nothing has been able to stop the rise of the banks or class it was as we see in the numbers that we just cover the median household income is down the wealth and profits of the fate of the financial sector is up lehman's legacy of inequality james saft of reuters when lehman went down five years ago it set in train forces which could

easily have led to the failure of many financial institutions face of the possibility of take a large sways of the banking system into effective government control first the bush and later the bomb administrations chose instead to shelter institutions and executives from the consequences of their actions that involved creating a variety of policies which subsidize large banks and helped to dig a moat around the businesses this went hand in hand he said with monetary policy and put this in the context of the guy who wrote a commentary on forbes dot com where he's saying that lloyd blankfein his profits make him a holier than the ninety nine percent when as james saft envoy here is pointing out is government policy it's manipulation through the fed that is giving the it that has built a moat around goldman sachs and enabled them to profit at the expense of everybody else but with this is a failure of a market signal due to market fundamentalism the collapse of lehman was a market signals that should should have alerted the government and everyone participating in these markets that there. massive reform was needed but instead

they interpreted that market saying bill as a way to make the situation much worse again i made the comparison to theocratic fanatical religious extremists who misread their fundamentalist texts and everything they read suggest that they should blow themselves up and other people same thing as lloyd blankfein and warren buffet everything they read says i should blow everything up i should commit mass terrorism that's the message that they get from the fit from the price signals that they receive it's a breakdown in capitalism unfortunately and that's predictable because unfortunately the price of money is close to zero and access to money is ubiquitous by the stock receiving america ruled by the least qualified not to mention the kleptocracy on wall street this is again what they point out is that there's a huge subsidy that has worked in the last five years since we started doing the kaiser report there's a massive subsidy and that these banks goldman sachs j.p. morgan any of the other surviving banks they know the investors know that they have

a guaranteed subsidy is that the government will bail them out no matter what and he points out we also have an effective subsidy or rather multiple subsidies to an industry which has proved itself remarkably immune to the power of technology to bring down costs and improve products despite what the guy in forbes said it's not bringing innovation and efficiency to our economy as actually slowing it down it's going king up the wheels of capitalism well our frequency trading which is a technological innovation finance is used to steal money from the new york stock exchange you put a computer colocated next to the floor they stock exchange algorithmically a front runner trades on the exchange and that money goes into the pockets of banks like goldman sachs with zero risk that's siphoning cash from the economy had zero risk so naturally people are increasing the rate of poverty there's an increase the rate of poverty in america if you have a bank that's actually got a computer parked next to the exchange that siphoning off them funny then you're going to have a lot of poverty out there. of course you have to add let's scapegoat the people

that were victimizing to make it a true fascist trifecta thank you lied like like so finance went from fifteen percent of g.d.p. in one thousand nine hundred to twenty two percent today and so they are able they're too big to fail they're able to get away with massive crimes and and why is why are they able to why are they able to scapegoat people and part of it is the media because you can't have these crimes without propaganda and i saw a tweet this past week from dennis kneale a fox business and he says hey guys another day another fine on j.p. morgan what's bugging me tweet us is the government's assault on j.p. morgan going too far is the government assault on j.p. morgan not the j.p. morgan's assault on the american population the global population to libel rate rigging to municipal bond rate raking through the collapse of jefferson county through the front running of markets through manipulation of silver gold energy markets no j.p. morgan financial terrorist embraced by fox and c and d c just like they now embrace

al-qaeda to fight their wars and in syria you know twelve years ago it was bad oh nine eleven blew up other bad now they're out there a lovely friends we want them there on that i'm still not surprised at all i want these guys to run the bank the federal reserve bank just go out and hire a terrorist out right drop the facade hire hottest to run the federal reserve bank of america warren buffett you've got influence all right stacy ever thanks much for being on this very special five hundred episode of the kaiser report five hundred more max. all right states over the second half a lot more. technology innovation all the developments from around russia we've got the future covered. the crew of the eye could face many challenges.

trapped in pack ice in extreme conditions. always comes up with surprises you have to keep your eyes open because there's always something going wrong the ship carries huge reserves of water food fuel. and people able to survive extreme conditions they're ready for anything even. she's real credible ship calling all antarctica this is academic a field of radio check please respond. to building. tombs mission to teach me to create. this is why you should care

only. welcome back to the kaiser report imax kaiser with this five hundredth episode of markets finance and scandal so i'm out to go to ecuador and speak with professor steve came who was on our fourth episode of the kaiser report so it's time to check in with professor king welcome back to the kaiser report server makes a lot of being able i do this is still to grow the most popular show on the finance and growing around the planet professor cain has been five years a sense lehman brothers collapse are we any better off today is the financial system more stable no way no way or the great tragedy of this is that this would have been a final soft blowing the debt bubble and i mean private they primarily message for

the global economy when the crash happened and because the politicians become so i walked out on the belief that yukon to have a viable economy to shoot out a lot financial sector they spent is fine reviving the financial parasite rather than reviving the economy to parasite it actually brought to its knees so in fact we've now got a sow's back on another unsustainable trend probably of raj going private new america for a while feeling the same sort of thing with that would be first i go to the sale i will see that go forcing it another bubble i did it the same apparently happening in the striker just recently of low interest rates so that blowing bubbles one small and the system is much more fragile was a scary much of a lodger level a good wife and it was before the us process began ok now you mentioned something there that we stacey and i talked about the first half that is that the lehman brothers collapse is a price signal and if the capital system were working normally that signal would have been separated as we need to reform the system but instead that price signal

was attempted as we need to double down again on fraud correct i think it's correct and it says ruefully. i often blame the private sector if it is follow but i blame the thievery the public sector fool not doing what it should have done and saying will you guys you could use french or use a word starting with as many would be. the economy and it's now time you try to prosper doing it your way you walked out you know a real one holes go your paper you post oh and we're going to put gold like on you and what if you were in jail for through it was cleaned it had to be involved in what you did none of that happened i became totally psychic fanfics of the financial system so i just talk about the military industrial complex aching over america i would actually happen is the politicos financial complex the second i have not just america but been taught climate imagine that you blame the private sector more than the public sector the public sector of course being the government now when you hear debate about this on the mainstream media you see it area here

a lot of finger pointing so the private sector will say look we wouldn't be engaged in this massive fraud if the public sector or the government didn't didn't allow us to engage in this fraud in other words if you want to stop then you need to pass laws to stop us then the government or the federal bank reserve bank in washington will say well we can't stop the fraud because if we do it'll cause a problem in the private sector all the banks will collapse so we have to keep the fraud going with artificially low interest rates and quantitative easing and keep this ponzi scheme going so there is this figure pointing by the way everyone in government is getting fabulously rich everyone in congress has participated trading on inside information the net worth of the average congressman senator every one of the administration has doubled tripled quadrupled every other bankers in the private sector same thing their net worth of doubled tripled quadrupled everyone's

making money in this unholy alliance this fascist alliance between government and wall street and the one holding the bag of course. are the average person who's not part of the kleptocracy but they believe they are participating through the housing market particularly here in britain where george osborne believes that by re-inflating the speculative housing bubble he will bring social economically back to the economy of britain is this a good idea professor steve cain it's long so you know we're going to show time this is a great tragedy max because as you say it's obviously the politicians and the finances have made the biggest bottle out of this process where when the profits if you get sucked up by the housing bubble they think they're getting better off because only those who got houses were to go to the guy and you're coming out ahead what you get is social division coming out of this and ultimately that lisa's social breakdown as well so it's a short term tactic it fools you for a while and it collapses in a heap of a later stage and we're back in the same bloody stock again so it is

a great tragedy to get a chance to reform the financial fraud of capitalism which senator wyden might make more money out of the financial form of capitalism and to even further involved in the finances in the process well we've seen over the past ten to fifteen years a global bubble and bust economy driven by low interest rates we have the asian financial crisis we had the dot com blow up we had long term capital management we had the housing bubble sub prime bubble and burst now we're into what looks to be a sovereign bond government bond bubble but there is a a rotating a musical chairs a bubble and bust and we've talked before about the real estate market in australia and the real estate market in canada it looks like mark carney is old country canada is either it right in the middle of or about to experience a major real estate collapse or thoughts yeah i think it's sort of it's good to go and that's the bubble looks like a good bit of extra makes them a lot some of the debts are been moved it numbers it was still dropping process off

. when you when you look at the level they've reached a kind of years now and we've gone from being. why would you country and over just to a to a medium to high did country and over the years and you always have a boss at some point they can risk you again as they've refused the american dollar what's now rising once will but you have to have a crash and they certainly have been trying to push a while ago and you know it's a skyscraper and crying and crying country so in a sense that having developers that massively go canadian all competing to be the first officer over the front tool and i think that if they want to be the last one to have to arrive in the door of the bank and said i think of us walk or david it may be quite another year ok let's talk about one of your favorite economists i mean minsky and i should point out your book debunking economics is a must read for anyone who wants to get a good picture a good view on exactly all the dimensions that are contributing to this massive global fraud but let's talk about i mean minsky for a second because i'm an immensity of course the minsky moment is something that he

came up with and it has to do with the self referring bubble mentality so we see it right now in the u.k. because house prices are up the people who are part of the bubble believe it's being due to their own ingenuity and genius b.a.v. or they buy into the bubble this is part of the minsky moment this self-referential what i call financial narcissism where it becomes patently obvious that the bubble must be real because i'm part of the bubble and this is part of what contributes to and there's different levels of those different parts of the minsky moment cycle i wondering if you could review that for a moment so we can have an idea of where the u.k. is now in this delusion or if there's a good wife putting it next because one thing we see spike about right wing is what he called euphoric expectations and he said if you have a capitalist economy it's always going to be cyclical nobody wins they'll be boss even without adding the finance sector on top of when you do have the finance sector on top people get to you know good might borrow too much money they've got

to repaid some of the during a slump so the economy slows down and listens totally instrumental slump like a great depression or government comes in and does this ridiculous spiral out of the financial. what they've done this time around because i'm the only stossel studied the laws because of the study the last people stop as they get the previous process so they're willing to borrow money on small so the bubbles out cycling off once will and once the dollars what's actually drawing and quartering out is the rising level of the day and everybody who is dropping by selling assets on a rising market cools by rising dead as you cite financial noncitizen not because they will a genius that does it is really the fact of what is borrowing money and buying second as well for each other the drives the process up so they have to decide to completely euphoric and they guys have absolutely total rage and in the ivory coast many of the profits they take on are actually losing money and then what happens once they saw some lose money they're going to borrow money just tight to have to stave off bankruptcy making keep on doing it one of the sides is going to be for someone to go slightly too long they miss one and bang that bankrupt and the whole

thing comes crashing down once more and that's the world that the politicians in the financial sector are giving us a lot of the night and sixty's when we were talking about taking off to the moon in rocket ships we're not taking off to the moon in day. yeah i saw an interesting statistic today and i will quote this paraphrase it a bit but the house price average house price of the u.k. is increasing by one hundred pounds a day whereas the average median income in the u.k. is roughly eighty eighty pounds a day excuse me but you see right there a huge disparity the house prices are moving up quite a bit more rapidly than what people are being paid on a daily basis additionally i saw an interesting statistic that said that in the u.k. over the past several years you've got your ten thousand dollars a year you have in the bank has lost purchasing power down to the eight thousand pound level just over eight thousand pounds so once again they say there's no

inflation they say they need to keep interest rates low they say the housing market is not a bubble and yet the average person is losing purchasing power they're not participating in the bubble and they're and they're creating social unrest so this is a recipe for i guess either as a societal collapse or societal of people where your thoughts. yes the trouble of our societies that is that we're known here is open honest as we used to be back in the not in thirty's and forty's because of this stuff that happened back then when you had strong trade unions and militancy in the working working class and you also had yeah let's listen security you couldn't afford to put up with it people would be on the streets to get actually political demonstrations against it these days in some ways social security that was the bottles as moscow to that level of political revulsion that people should have of what's happening right now so i think it over now is the politicians continue getting away with it the outcome ultimately i think is more like turning japanese without the benefit of being gentle nice so you stop getting out of

a stagnant economy because there's this process going to only work for a short while before it falls back into an all slot and you didn't have usually isn't possibly de guise of slow growth meaning people convert into the workforce in the first place they certainly combine a house and over already ready run out and you then get a depressed society that can generate depression i think is more the outcome rather than you know explosive reaction to it i would like to see the explosive reaction but the trouble is normally when those things come down consummate people they come from a fascist movement and i think when more and more likely to see that happen i have a sign and frankly this is the same way i could look kind of power back in the 1930's it just happened foster back then right well we're already seeing it in grace with the rise of the name of fascist party challenging the i.m.f. and other financial terrorists now i know you're working down in ecuador at the moment steve keen so your thoughts on emerging markets how how they've done in the past five years into this debt crisis and i've got about

a minute left. yeah they do some of the markets themselves appear to be getting back into a bottle again seventy shiners in a bottle would it has more of a capacity with the state's finances and it strikes at the city of the bubble going indefinitely so i wouldn't gamble on this one it will actually find pretty interesting progress to the country mary where there's still the stuff i'm trying to stop themselves being taken out of by the financial sector and doing a lot of attempts to build in a diety of genuine capitalism down here rather than the fraudulent stuff that's running and waste so there's some glimmers of hope in the do it in emerging markets but it's not gamble on it and let's get back to being a really productive industrial capital society one of these guys all right well save game thanks for visiting us on our five hundred episodes you were there on our fourth episode we've been tracking your work your career now for a number of years and it's great to have you back on the kaiser report. right she'll be in touch with you john so love you both you like and that's going to do it for this edition of the kaiser a four with me max geyser and stacy herbert i'd like to thank our guest professor

steve king author of debugging economics if you like to contact us tweet us at kaiser report and we're looking forward to another five hundred more episodes for you it's a lifetime backscatter saying by all. unexplored antarctica what is it in this i see expanse that attracts the people who come here . now i only go to the duchess. and enter into. a new generation of polar explorers is coming.

we have a new group of specialists here now all of them are young how are they going to get along with each other and i don't know. i used to be a bureaucrat. seriously. what adventures await in this mysterious land where do they live want to eat and what are the actually doing in antarctica. is probably the most complex of human. all of us are still locked up. in the phenomenon of friendly fire probably

extends back to the invention of gunpowder. just killed a bunch of people who don't know what their families there are of us people. reading. this summer shoots my brother in the leg not intentional because of it because it was night times four in the morning even the best given the mesh shoulders. are going to make mistakes this is this whole idea of brotherhood an author and camaraderie in this set that was in this context that has absolutely no place.

in effect that means you can jump in anytime you want. well if your whole life should be. the face your life you. should have you with us here on our t.v.

today i'm sure. the island is so small the burmese it's the center see the center of the universe. on a tiny island the size of a football field in the middle of a lake stanza ruined monastery forty years ago to lovers decided to spend their honeymoon here. they have no idea but the island would change their lives forever and that they would change the fate of the island. the least in the never seen anything like this before you begin to cover the costs. to the borders of ice is grown in just one hour and it's only the beginning.

israeli troops are under fire for roughing up foreign diplomats and preventing them from delivering aid to palestinians bedouins whose entire community was demolished . syria keeps up its chemical disarmament obligations by submitting an inventory of its toxic stop piles to me international . watchdog. and those germans prepared to vote in sunday's parliamentary election despite the almost certain return for uncle a merkel disillusioned remains over the growing income gap and tough job market.