welcome to the kaiser report imax kaiser fake it till you make it the phrase a similar to aristotle's notion that acting virtuous will make one virtuous and according to wikipedia it is often recommended as a therapy technique for combating depression in this case the idea is to go through

the routines of life as if one were enjoying them despite the fact that initially it feels forced and continuing doing this until the happiness becomes real this is an example of a positive feedback loop now america is trying this as a policy technique to combat economic depression the only problem is that this economic depression is not a state of mind but a state of fact states max america's going to try to fake manufacturing until they never really quite make manufacturing the first headline let's just pretend we didn't offshore manufacturing so federal agencies grouped under the bland sounding economic classification policy committee e.c. p.c. are proposing to radically redefine u.s. manufacturing and trade statistics this is just a proposal and it's on their website you can go to they dot gov website and look it

up but under the proposal u.s. firms that have offshore their production abroad like apple would become quote factory list goods manufacturers the foreign factories that actually manufacture the goods like the notorious i phone producing foxconn factories in china would no longer be manufacturers but quote service providers for the rebranded manufacturing firms like apple yeah you know it's like falling off a cliff it's only the last couple of feet that hurts now in other words the u.s. economy has fall off a cliff and on the way down there are. deciding to really gauge or recalculate what it means to be falling off a cliff at first it was just hey we're falling off a cliff and we're approaching the valley of our demise but then during the flight down they'll say well no actually gravity we're going to redefine what gravity means or we're going to redefine what the rotation of the earth means in relation to our collapsing into the pit of a manufacturing of best and they do this all the way down into all such time as oh

my god actually hit the floors so to speak and all of us to just go mirage all of us to just call re calibration is for not you cannot pods you can't taper apologies game here you cannot recalculate your way out of what is just a cli an economic collapse on the manufacturing base so let's see how this proposal if it became fact what it would entail what it would mean so you know how foxconn creates all these i phones well the proposal would treat some goods exported by foreign factories as u.s. manufactured exports take a scenario which apple ships i phone parts to china that are assembled by foxconn and that shipped to the e.u. currently apple's exports of parts to china counts as the only u.s. export in the scenario but the e.c. p.c. proposal according to officials of the c.p.c. member agencies what does that count china's export of the fully assembled i phones to the e.u. less the cost of any import of parts as u.s.

manufactured goods exports so china sends to the e.u. i phones and we would count that in america has manufacturing in exports so if the p.c. is really smart sonic b.c.p. . easy p.c. storing p.c. pete they need to get off the p.c.p. and start to look at the economic rail to be good not open them so actually europe is not part of the u.s. a court of the game so by simply shuttling from let's say los angeles to obama or paris. that's just an extension of the american trade zone that's part of the manufacturing base in america a court is a new version yet it's kind of like that whole enron model where you know before enron people come to the stacks they have to find in send and ship oil and deliver energy but then they just turned into a derivative and said we'll just make like we're doing that just trade contracts but not actually do it here america is the same thing it's like they'll suddenly

overnight become a manufacturing powerhouse like germany so what happens when you go off the gold standard you know back in i think seventy one the u.s. kind of went off the gold standard and as a result since there's nothing that's in the economy that represents i think a tangible value that people can look at and weigh and all that it has real intrinsic worth it all because financial lies and then here we are forty fifty years later after the going off the gold standard in the financial ization. charade as reached is a pos theosis where now is simply a matter of statistically recalibrating how you calculate what is in the nether world of virtual manufacturing as a determinant of whether later economy is growing and on and as a result you will either raise or lower interest rates which themselves are tied to a series of accounting fraud perpetrated by central banks and this is how they adjust their salaries and bonuses to account for this massive fraud accordingly going off the gold standard was the original fake it till we make it so they were faking it and saying like one day we might make it and you talk about salaries

that's in this next bit be guarding this leisure demain of turning you know factory at least good factory goods into manufacturing well the proposal would spur a disingenuous overnight increase in the number of us manufacturing jobs as white color employees and firms like apple now rebranded as factory less goods producers would suddenly be counted as manufacturing workers this change would also create a false increase and in manufacturing wages as many of the newly counted manufacturing jobs would be designers programmers and brand managers actory list goods producers like apple apples feeling guilty because they have billions of dollars offshore that they refused to bring onshore onto america because they'd have to pay the taxes so apple's a tax scofflaw fair there are tax avoider they feel bad about that they feel bad about the suicide deaths around the factories or in china where kids routinely

commit suicide to avoid the slave labor conditions to build apple products so apple's trying to figure out how can we make it look like we're doing something good without actually spending a penny well i know we'll reclassify all these jobs as manufacturing jobs this will satisfy the government and any law maker trying to come down on us for being a merciless slave master and accounting fraud perpetrator of course it'll work because they're accountants of the same account. that accounts for them for a lot of the u.s. government now i think it also could be signs of america wanting to come to terms with having an empire again they don't like to publicly admit it but they do have an empire and here they're like well china is part of our empire where they empire we run the world so any goods manufactured anywhere overseas all the stuff manufactured in germany we should count that on the u.s. g.d.p. as well because this is our empire well you know dinner is like the enron accounting methodology where they simply decided that everything off the balance sheet had nothing to do with them there is no risk whatsoever anything that they made on the balance sheet they considered to be profitable by to the extreme amount

because they had no risk associated with that financial fraud assembly line that they had built down there at the enron headquarters of apple was to become an iran of handheld devices essential if they want to excel and fraud i remember after nine eleven the apple executives reprice stock options in a way that benefited from the nine eleven catastrophe that's where the mindset is of people like tim cook currency and the apple management system no tragedy is great enough that they won't try to cash in so here they fake it till they make it and how however when everything is fake everything is fraud everything is a derivative how do they know when they've made it well you can possibly look at the real world and see whether or not there's any science there that you're making it fracking boom has provided only a modest boost to u.s. manufacturers the fracking boom has driven down natural gas prices but it's having a relatively small impact on u.s. manufacturers on the author of a two to three percent boost and activity across the sector according to new

research from the federal reserve so mostly all this cheap gas natural gas that they have in america because of the closed market of natural gas inside america. it's not boosting any manufacturing and why is it not boosting any manufacturing perhaps because they actually don't manufacture anything there in particular are they saying that it has an increased jobs at. as an added anything to jobs despite natural gas prices and because of the fracking going on since two thousand and six despite that we have eight years now of nothing actually happening so that might be a sign that all that faking it you're not making it well this is how stupid these people are you go to a dilapidated car factory in detroit that has been abandoned for twenty years and you show up and you say we've got finally a good deal on energy. all the workers are in jail as part of the it prison and duster complex the factory is all rusted out and got it and everyone smoke and

crack and you're saying but we've got cheap energy to do what to do the whole thing collapsed thirty forty years ago buddy but of course they don't but they'll book that delivery of that gas that will go and do nothing as of course the as a bonus payment and the shares will go up because a they will book that delivery even though it never makes it to a shop floor or ink improves manufacturing or exports in any way nothing like that as far as the real economy will grow one iota but that contract which is spuriously created fraudulently concocted and miscellaneous lee a sign suddenly becomes a basis for uptick and some but executives bonus because they put this deal together. now of course there was a large impact of these natural gas prices felt over in places like north dakota where there's been an energy prostitutes are sitting on the prostitution market in north dakota skyrocketing lap dances are dropping in price and they're cheaper you

get a lap dance cheaper north dakota than again in seattle washington which i didn't think was possible then the five dollar lot that's in seattle you know my slab dances but now north dakota i think it's like for two bucks fifty you can get like a slam and lap dance and that's what i call progress in america but on top of that it's also enabled a cheaper fertilise. and junk to be thrown into the environment the effect was large most energy intensive fields such as production of nitrogen based fertilizers but across the manufacturing sector as a whole represented by the weighted average responses the effects are quite modest with capital expenditures increasing no more than ten percent production increase in less than three percent and import employment creasing less than two percent now of course when they talk about fracking coming here they talk mostly only about the jobs oh you peasants out there you know if you allow us to tear up your your land and your water supply we'll give you jobs but the impact here studied by the own the federal reserve who as far as i know is not in the pay or the payroll of russia

they're saying that it actually has not added any jobs as a negligible amount within the probably the margin of error and it's only increased the use of fertilizers because it's become so cheap to create these toxic waste that you know is destroying the economy in the environment that no fracking in the u.k. makes no economic sense they're going to through if they rebranded as pedophilia because pedophilia in the u.k. sells like hotcakes whether it's all the politicians the royal family corporate leaders they can't all media titans they can't get enough of this pedophilia scandal so few brand fracking as pedophilia then the queen will sign off on a david cameron so i don't have a george osborne's on it because they look at a billion this country they can't get up and fill in this country brand front because pedophilia and britain will sign off on it yes that's true there's a lot of paedophilia scandals here but i wanted to say in the last few seconds here that i was stopped on the street by a fireman who wanted me to give this to you and it's called we rescue people not banks stop the cuts there's a big strike across the u.k.

for many days coming up thank you fire person and good luck thank you stacey thank you max stay tuned for the second half a whole lot more. with the economic downturn in the final. days. and the rest because i take it will be a prickly. many people in russia to believe that that the reset was essentially and never an aim that improving their relations it was rather a neighboring be

a grand jury and foreign policy of the united states one year a poll in free the phrase of george h.w. bush in one thousand. migrated during the course of the clinton administration the george w. bush administration and finally through the obama administration into a mishmash of ideas about expanding american idealistic intentions of expanding nato right up to russia's border. welcome back to the cause a report i max kaiser time now to turn to robert david steele author of a new book the open source everything manifesto transparency truth and trust stales

a former u.s. marine cia officer and co-creator of the marine corps intelligence center robert welcome to the kaiser report glad to be there are let's talk about what is open source everything and let's start with your field of expertise open source intelligence. well the bottom line is that really big decisions decisions that are cost effective and sustainable have to be me with the public in mind and with the public as a complete participant secret decisions are generally wrong because they're based on the wrong intent and the wrong information so open source intelligence which is part of a larger open source ecology is really about public intelligence in the public interest it's about hybrid governments in which you don't allow a badly informed badly organized government to make decisions on its own that turn out to be bad and also it's about not allowing the city of london to make decisions

based on its own interests rather than information that is in the public interest now robert this is by definition you could say the definition of anarchy and let me explain what i mean by that and a in a centrally controlled system or a you know a dictatorship system or the decisions i hierarchical they're at the top and they are they opposed to everyone else based on just a few people's expertise that's one way to get what you're describing is really adequate and in the sense that on the periphery on the open source periphery on the on the edges of the network is where the intelligence accumulates and it informs the whole as such i mean you could look at programs like the linea ross outfit or go ahead. pan or starts with a p. pattern is the opposite of anarchy pattern. is when

everybody who has something to contribute in the way of information or perspective . it is part of the discussion what panicky really means is that the indigenous native forebear concepts that were alive and well in england before the enclosure of the commons in the united states before the wars against the indian american and the native americans. everybody comes together everybody has to say it's not anarchy is that every individual is not allowed to be a free right or it's tatar key is that it is self governance is a wonderful book by. a woman who got a nobel prize. by showing that governing the commons is something that is best done by all those who are part of the commons precisely because they can not only create rules that make sense they're also there to do the monitoring in the enforcement as you go forward so strike the word anarchy from any connection to open source

everything well i you know advocate is a word whereas patrick king is something he just made up i mean i don't let us try to impose i don't either airy fairy longtime. but they they traditionally matter certainly nothing to be scoffed at mean if you look at for example all of i was talking about a moment ago there rise of open source software and let's say linux which was a actually killed microsoft in many ways that was an example of why you're talking about your opiates and thoughts is called open source where you are essentially allowing for all those and the network to contribute to the betterment of the whole how does a square with your former life as a cia. officer officer oh well first off let me go back and point out to you that line expose the hierarchy it was a hierarchy of merit in which every individual voluntarily conceded that the person

in the next level was superior to them with their skills so it was a community. now as far as the cia goes the cia model from john is the truth shall make you free and of course that model is dishonored every day my own motto is the truth at any cost lowers all other costs the connection between what i do today as a public intelligence officer and what i did in the cia has a clandestine intelligence officer he set the truth is a sensibly the objective in the former and has absolutely the objective in the current and this brings us back to true cost economics and holistic analytics there isn't a bank on the planet that is making decisions on the basis of true cost economics they are all privatizing profit and externalizing cost and critically cost in relation to child labor on water usage toxins put into the atmosphere

these are true costs and these are costs that are going to come to bear on future generations so i'm after the truth and the reason the truth matters to banks and to corporations is because if you look at the five billion people who have a in aggregate income of four trillion dollars which is more per year than the one billion rich the only sustainable profit the only scalable profit is profit it is great solicit analytics and true cost economics and that has to be open ok i want to get some perspective on the dow jones industrial average is currently trading at around seventeen thousand if you were to suddenly force the s. and p. five hundred to apply true cost accounting and not externalized all their risk whether it's labor asgari environmental risk cetera what would the dow jones be trading for today that's a good question because essentially the dow jones is a crapshoot. it is it is

a massive fraud on the public the banks and the corporations make their money on the i.p.o. was. friends and family they then dump all of that risk to the public what i think is beginning to happen is a move to a word locally based currencies locally based stocks locally based trading locally based you spatially rooted. it's right but my point is robert that if in fact you used to cost accounting on the s. and p. five hundred the dow jones would probably be closer to three thousand not seventeen thousand and so the u.s. economy would not be a seventeen trillion dollar economy it would be a three trillion dollar economy or a four trillion dollar economy which in the long run is probably a fantastic thing because it shows that the economy is not aggressively impeding into what you might call the public domain or the commons accent or a but how are you going to transition to a model where tens of trillions of dollars are going to be sucked out of the pockets of the club the crowd of bankers and the corporate c.e.o.'s that are taking

advantage of this clearly of the system right now that's unsustainable and damaging max you're asking an extraordinarily intelligent question and the way that open source intelligence works is that a guy like me recognizes the value of a question from the guy like you and then commissions a crowd source answer we actually go out and we ask not just the public but academics civil society commerce of course of the media and non-governmental to nonprofits and we do what the danish call the citizen wisdom council just as iceland was the only country that responded properly to the massive fraud by the banks so also can i think we get a proper answer to this question of yours i don't know the answer but i think you know let me get rich and frost and robert let me let me let me put this out there you know there are what you're describing is what someone like kim dotcom in new

zealand was pursuing and the open source space and the democratization of information. and the m.p.a. here in the united states and chris dodd who was running the m.p.a. states aswat invasion of his estate in new zealand so they reacted with a military operation that's how they're going to react so how do you stop the militarization of the protection of these monopolies from his acting out in a military sense i understand you're saying we're going to crowd source intelligence but they're not looking for intelligence they don't want the smart grid they don't want to do it in a smart way they want their of clip to chronic profits and if you get their way they're going to you know pull out a gun and shoot you that's been the history. well you're right and when you look at occupy which which was a movement that failed seven thousand people were arrested from occupying the united states over seven thousand and no bankers of significance of gone to jail yet you're absolutely correct when you say that the government at this time is a protective service not just for fraudulent bankers but for paedophilia as well

the government is a protective service for big crime at some point two things are going to happen the first is the public and the one billion rich. are going to start pulling their money out of stocks they're going to stop buying things like coca-cola nestle that sucks water out of the aquifers they're going to go rogue on wal-mart which has done some good things that by and large wal-mart chills every mom and pop shop for a hundred miles around. within the five billion for that's where i think the future of capitalism lies and with the five billion poor are going to do is never get into the stock market in the first place their refrigerator costs two dollars and it's a ceramic jar inside of another ceramic jar that you bury in the ground and it keeps me fresh for five dollars of course they're going to move much more beyond that but the bottom line here is i believe that the future of capitalism and the future of hope we can tell against is to be found in the south among the five

billion poor and i see nobody in the banking community that gets that yet well it appears that as long as interest rates are low and as long as they have some pay five hundred has access to unlimited credit and as long as any time they make a mistake they get bailed out always saying in wall street in a city of london attempt to take all these companies private in other words it's their stock market as we know it's not going to exist anymore anyway because through all the mergers and acquisitions and all the buyback programs like bed bath and beyond just about that other two billion dollar stock repurchase the cost of that is zero because interest rates are zero they're just taking it all private they don't want the public. have any access to this capital market whatsoever it's almost as if they want to go back to a feudalistic times where it's lords and serves its and now let me just jump ahead to a question i will have a minute left but you are saying that anybody in the ninety nine percent can put any business or corporation ad of business overnight explain. oh

how many i have to say since we have only one minute this is the book to buy. and to answer your question it's not any single person in the ninety nine percent it's all of them i really do believe that the federal reserve is going to be eradicated one of the states this is an area where i'm in absolute agreement with the libertarians the entire concept of a financial reserve and being allowed to create ninety percent credit out of nothing is an absurdity it is a violation of every possible commonsense governance principle. but i want to and by pointing out that open source is the only kind of approach to business and governance that is affordable interoperable and scalable there is an open source ecology that includes open cloud open software open hardware open

spectrum and then there's so many other opens including technology and open business open patents and so forth were to beginning i believe of a renaissance in human productivity we have slightly initialized everything to the point that it has become obscenely unproductive except in the false terms that the banks are using to define productivity today so there is a renaissance coming and it begins with the open source revolution all right robert we're going to have to cut it off there this this could have gone on for another forty minutes as les but we'll have to have you on again sam to continue this conversation thanks so much ray on a cause report it's my pleasure take care and that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert and i thank our guest robert david stale his book is the open source everything manifesto if you like that in times tweet us the kaiser reported the next time.

do we speak your language i mean some of the well i know at the end of. the news programs and documentaries and spanish more messes to you breaking news a little too negative angles stories. you hear. this choice all teach spanish find out more visit. tito it's cold. we never saw that coming. we had no idea or children. i would actually just at night pray to god you know me normal. they said you're a homo you're a homo and from that day in first grade i swear my life changed forever i became

like a what a cool down to get stop still to this day. well alabama and texas instructs school teachers to tell pupils young people that homosexuality is not an acceptable lifestyle and also instructs them to say that homosexual sex in private is a crime in those states if the church was going to fire me that's what they had to do but i was going to do this what it. does is what we do we kill people and break things. we can see something is simple as people playing soccer game you can see individual players and you can see the ball. you can only see is facial expression you can see he is an outspoken crying out. maybe cursed us or maybe he asked.

for forgiveness for. there must be near certainty that no civilians will be killed or injured. this is about making the business survive. the. corporations don't love the parishioners still hate corporations have no feeling. corporations don't care about you or me corporations will occur but often. people come to untouched for sins and leave massively in the sea come on. we're not going to quit we will not stop until it is done

what is more precious music more moving. iraq's us terrorists have seize nuclear materials in the country and could use them to make weapons of mass destruction. not till it got into. israel launches that lead us the cells on god's promise and the offensive air strikes have already killed more than seventy six palestinians since tuesday half of them civilians. at the grating spectacle and deeply shocking german politicians weigh in on the u.s. spy scandal that comes after a second government official is accused of border for what some senate with then a week this time at some of the ceremony.