the u.s. and south korea fired missiles into the sea of japan in a show force against north korea it's in response to the latest misselling task on tuesday we spent pentagon has confirmed it was an intercontinental ballistic missile. russia and china called for deescalation and talks with north korea during president xi jinping and today visit to moscow. is various mass protests against the g twenty missing work using water cannons. and donald trump who will have his first face to face talks with lateral putting at

the g twenty summit on friday with the one of the most anticipated meetings of the year now confirmed. or will return in about an hour with the full news bulletin but up next an hour to international as the kaiser would pour. guys are this is the kaiser report love the charcoal it you know chocolates mexican so why is it marketed by the swiss company what the going on there should be paying royalties to mexico to market any chocolate swiss company. oh. actually you know we had dinner with john mill ackerman at a place called as little condesa and it was really good but they actually had me

making a caesar salad and i think there's some video of me doing that maybe and the other thing is that we learned is that they caesar salad was actually invented in tijuana mexico at least according to the legend at this restaurant on the fourth of july in one thousand nine hundred eighty four caesar salad invested in invented until one last two things incredible that i learned last night number one that caesar salad was invented until i want to mexico and number two you can cook and i didn't have to actually cook anything i just mixed all the lettuce and you know we need to go there ok fair enough they don't use any sardines or anything salty like that so it's not as salty is actually was much better than a western caesar salad i loved it so i want to talk a little bit about rationing here we've just entice you with the you know major a little bit hungry with the chocolate and the caesar salad but we're going to talk about rationing the first we're going to talk about rationing of capital of money

and this is a tweet from eli durata oh he says one thing i see oh show this is initial coin offerings for sure is that for better or for worse u.s. securities law deters a lot of investment yes this is a very good point and i tell you why this is an important point because when i was working on wall street it is beginning a financial engineering creativity. bear came out with the junk bond market and they came out with collateralized mortgage obligations securities credit default swaps derivatives there's tremendous innovation in the financial space that violated all s e c laws at that time. one of the financial innovation of the past twenty years was compliance with s.b.c. law but they said we are ahead of the f.c.c. we're innovators they then went to back and they changed the law to fit what they

were doing on wall street asteroid blancpain as jamie dimon they changed a lot of fit what they did already on wall street remember when citibank bought traveler's insurance that was a violation of the law that precluded under glass steagall this type of combination but what the citibank management did was convince the government to change the law so the initial point offering is got a lot of heat and people are saying you're not complied with as you see law that's right the f.c.c. needs to get these to get it with it they need to change the laws and that's what the i.c.a.o. market's doing that's what good court is doing that's why these critics of big quote a cryptic way in a say oh you the government's going to wait to know if you have the market you change the law exactly but i do think a lot of these i suppose will end up being scams and everybody will lose their of their money. but what this guy is saying is that for better or for worse that

this is there's obviously a lot of demand for investment content and material that is not being met by the current markets because of so much as they see regulations about going public for example or for raising funds so it is what he's shown demand but the other thing that he says is shows and this brings in the rationing another lesson of i.c.'s don't ration through queuing what can be rationed by price so you know you will be able or you know you talk all the time about the fact when you worked on wall street you guys would have the i.p.o. shares for yourself and you would build them out to. good clients that you life you would give them. early shares before the i.p.o. pot and i saw that sort of thing doesn't sound like it's completely open now where they would ever have said anything like that so at the moment we have a rationing based on standing in a queue waiting to get the first share available here he's saying you can ration it

by price and this is what i see a market is showing well it's the trend has brought paris with is i see others doing over the course of a year or so he's doing it i think in a way that is more egalitarian if you will are fair to the market and remember when google went public back in the late ninety's they tried doing a reverse auction. to go public at that time and bypass the wall street mechanisms of my own hollywood stock exchange that i created back in one thousand nine hundred six created a way to price discovery to take movies and stars public on the exchange based on my own patented algorithmic price discovery mechanism so this is a non going to bait this new i c o bank or it is it says that it is basically price discovering in a new way that allows for currencies to be better represented in the market so that large dominated forex currencies like a euro or

a dollar is kind of on equal footing with a less dominant forex represented currency like a ruble and so it makes sense on paper you need a good management team you need a good market for it doesn't mean it's going to be successful but these guys are approaching the problem with solutions the recent crash of the theory of price shows that the demand for i.c.a.o. is outstrip the market making capacity of the exchanges to make markets in the i.c.'s so what does that mean it means i suppose or bad no it means the market making technology for theory needs to be improved you can borrow from my pad go ahead i don't own or anymore so take it steal it i don't care it's owned by some wacky wall street bank that i hate now. you know in terms of bank or i do want to say i've read. basically experts security experts code writing experts who have now looked at the code and say there's actually back doors in it and they can cut you off from the grid so they could they could basically delete your currency so that is in their their technology their algorithm whatever their i.c.a.o.

was just so you know so don't go out and buy bank or just because we've mentioned it try to get in on that but speaking of rationing i want to move on to another topic this is again in the united states and. you know. first of all there's a rationing of time there's only so much time that the news king has has twenty four hours and what it all the minutes within those hours to cover any news they feel fit to fill that time for the u.s. audience sixty five percent according to a harvard harris poll say that they want. the news and they want congress to move on from these russian conspiracy theories sixty five percent of americans say they're sick of these this their airspace being filled with this and they want instead to hear about economics they want to know about health care so you know we've had that we had the senate health care bill their version of trump care the

age ca written in secret and then it was revealed and it's just as horrible as it were it's actually even more horrible than the republican congressional version and those are a little bit worse than a ca so i have this headline here from matt bruning and it says how many people will obamacare and h.c.a. killed and he's saying both of them are killing people because center for american progress you know that predestiny finance group neera tanden runs and they're part of the resistance so the ones pushing all these stories about russia gate and russia conspiracy theories all five separate people were by line down the center for american progress post about how many people. will kill this post is quite long but all the authors really do is to take the c b o estimates of how many people will lose coverage under eight h.c.a. and then divide that number by eight thirty they do this because there is a study that shows that one person dies on necessarily for every eight hundred thirty people who lack health insurance so he did it for all of them single payer

and it is that down of the bottom zero deaths due to not having any coverage that is obamacare the one that everybody is fighting to defend to the death all the left wing the liberals have been co-opted into and you know. supporting a program written by the heritage institute a very far right wing economic think tank and it's a little bit you know. obamacare is not quite as bad as trump care but they both kill well is obamacare a term care designed to kill people because it is doing its job just like the architects of the growth all tower of london and the folks that put up the flammable cladding did to kill people that's their culpability in that the people who designed this health care are doing so to kill people that's their culpability in it the capitalist system in america iterated by the current regime of kleptocrats things killing people is necessary to make payments in greenwich connecticut yes and they say that under

a child care nearly five hundred forty thousand people will die in the next decade versus obamacare it would be three hundred twenty thousand deaths due to lack of access to health care so i want to turn on to in the last three minutes here i want to move to mexico because there's also a rationing story here trumps russian scandal pales in comparison to what just happened in mexico mexico's latest disgrace involves alleged spying by state and journalist an activist with spyware from israel but more importantly with the article in terms of this rationing they talk about the corruption problem across mexico and that that annually between two percent and ten percent of its g.d.p. reduces foreign investment by five percent and wipes out about four hundred eighty thousand jobs due to corruption but a lot of it is in the individual states and the governors and one in particular they mention is the former vera cruz governor harvey a day also of the p.r.i. party the pre party that runs this government run the state as a personal cookie jar tracked down to guatemala and april and duly arrested duarte

is accused of skimming hundreds of millions of dollars from public funds is plundering of his own state left in their rooms of has come to symbolize the current culture of corruption that reigns in mexico and one scam has become emblematic of his greed allegations that children battling can. or in his state were given water instead of chemotherapy drugs so that he could keep the funds meant to pay for their treatment for himself so right now there are no fewer than sixteen former state governors either in prison waiting to face justice or on the run but here that guy with the you know the news is saying this guy is obviously evil you steal water you do you give these little kids not chemotherapy drugs but water i mean how is that any different from obamacare or trump care well it's a very different than flint michigan being forced to consume lead laced poisonous toxic life killing water right it's an industrial death policy brought

on by corporatist and cup the krauts again going back to the news media in america time is rationed they only have so many minutes between commercial breaks to give the news to the american people and it's all russia russia russia they want to stop hearing about this they want to know they want some of that ration the time to be devoted to health care policy to the economy to corruption to competitiveness to these sort of issues that actually matter to the individual down on the ground but the corporate media will tell you the way they see it is that there's only so much news they can force feed in between commercials exactly right that the commercials are what they're there to serve not is live for us it's good because we are so successful our network and our show because people do there is still demand for it just that they're you know the likes of m s n b c ration their time devoted to economic issues and policies that matter to the ordinary person fair enough that's

beautiful but we got to talk about so don't go away stay right there. yes there's a saying. i think they're going to be cheap. and then prove all that come true so let's ideas they're right let's go through this country he said if we give them everything they do to bust. this country. this is what we don't understand how we are in such a country. and there are certain elements of the same time. similar. to the us if you feel.

the middle of not that got. to the phone the couple that with the plane. would come back to the place story you have to see. the best. keep you moving. the income inequality wage stagnation gerrymandering of political districts polarization you know the lack of effectiveness in congress there are these are well documented trends going back decades and now they're really acute and manifest to the point where people describe the system is being seized with a kind of paralysis.

welcome back to the kaiser report imax guys are loving it in mexico yeah i would like to resume my conversation now with columnist and economist alexander and i don't know welcome back thank you very much all right we were covering the entire rebel mexican economy a stagnating we talked about why the previous episode you know the money is doesn't seem to drop to the bottom line it goes off shore basically spirit of corruption the panama papers reveal that. it's worse than that i mean you have a policy package that conspires against growth and you've been implementing the sponsored purpose for three decades if you consider that the main priority of the mexican policymakers since one thousand nine hundred eighty two was to control inflation. then you will have the explanation of why the mexican economy's things because how do you control which the mexican palsy maker following the i.m.f. or the world bank of the russian the consensus said it's very easy we will control

aggregate demand how do you do that compressed wages if you look at wages and makes you think we just have stagnated in the u.s. they were in europe since the one nine hundred seventy look at the mexican data and you will it's really amazing this is really the average is ok so you repress wages you restrict public expenditures because this is a major component the package at the moment so you restrict. expenditures you increase interest rates and you use the exchange rate as an anchor for the system of relative prices in mexico to control inflation all of these things combined give you a clear message of this economy is not going to grow ever and this is the policy because that is crystallized and fixed in by nafta so this is why i say we need to get rid of nafta we need to recover space for economic policy the. the world has changed we're not living in one thousand nine hundred two we need different

objectives it's not like we're going to use oil as a lever for you know a lever for development look at the world today look at the amount of oil we have left that's not going to happen we need new projects both at the macroeconomic level but also at the secular liberal we need to recover our good at the agricultural sector has been devastated by nafta for example so this is a lot of homer we need to do but the basis is we need to change this policy package that is a perverse system of. should i say forces. came in as a. it's. an ism if you want to say that but it's you know it is really a combination of instruments that represses growth employment and fiscal revenue so if you have a package for mexico. economic policy has really. led us into this. morning of stagnation ok so on protesters around the strait they're

saying the reagan factor as i'm the monitor is ation of the economy the financialization the nail liberalization started in the eighty's the early eighty's and that period talk about the devastation is done to america and the united kingdom include mexico and that analysis neoliberalism financialization giving banks the wherewithal to run roughshod over the entire economy and the name of some economic policy called aggregate to master me elation which is fed by debt aggregation debt aggregation only thing is that you are the main call was you know we will control inflation and if you deregulate markets you will have growth in the stability and drops and everything will be stimulated through allowing the debt to increase no users you honor but you fight inflation by repressing ways. the wage the real wage level in united states thank made it since one thousand nine

hundred eighty three that was growing after the war and then you know you see the curve the historical perspectives and i mean seventy three it flattens in a never comes back again what increase was invented this ok so i just said that yeah absolutely ok so lately though my point the senate under so far gone with inflation and deflation is that the definition excludes wages in other words you have zero after the stock market makes goes up one hundred percent sure a great success so people look at that now say it must be great the economy is great everyone's great national poverty everyone's rich and you have terrible flows and you have a serious and central bank and we persist so it's fine to do this you guys have one hundred forty billion reserves in the world and the central bank so you must be doing fine and i hear those numbers so you guys both start praying because the next crisis will start you know it can start tonight or tomorrow is a bank of mexico central bank oh i mean the financial sector hook let me say now

who's running it world it's not it's a it's a but it's a consortium of banks it is has funds it's the guys that brand the global financial system this is not a well we've got market oriented mark carney in eyes. you've got janet yellin in the states you've got my a dragon ball you mean you've got your old or your pant ok so you've got carson's here or the. car since augustine carson there shows about the crowd is the guy that came from my your math etc always and i have copped a crash not only that they use a macro economic model that is totally worthless you know it is so the problem is not who wrote this this thing is not an independent entity this is a crucial thing that because the central bank you know this idea became so popular in the eighty's and ninety's we need a low tone to me and independence for the central bank well from the government yes but he said when we look at the banks i see. ditto if you think posters everywhere get to spend ditto says carson's garson so it's

a bandito that's right he's in bed with the global banditos course like all of these guys are is ok exactly so he goes to martin in the market says you're not given good price discovery because you're increasing debt using financial engineering destroying wages that's not good for the regulations and the laws of nature don't don't don't suggest that you could conduct yourself in this way and he says laws we don't need no stinking laws ok i'm of course i'm referencing the treasure of sierra madre possibly the greatest film ever made with software bogart i'm sure you watch it here and i write you're smiling some man is smiling that's right of course yes these. data absolutely yes so you have this mantra about free markets and the stability of free markets and make believe prices and balance budgets and all these things this is what's running the mexican economy this where you have the complete chaos and then you know

a scene that we this is a wire economy after being bombarded government step away america come eric eric grab the alligator right there grin that alligator leader camera grab the alligator know step aside from your camera walk over what's your legs and grab that alligator say my spanish is not so great as it that's. going to get we get we got alligator this is for carson sir this is what we're going to do we're going to feed him to the crocodile because john john john. as you were going to do we think an idea he wasn't too happy about his sour didn't taste good. let's move on the paris climate agreement changing gears for a second it was only when trump bailed out of this non-binding watered down kyoto fake agreement that mayors and governors and other local governments bodies started actually doing something. well you say i was a big fan of the paris agreement but as everybody says it was the only thing we

have i mean i'm not a big fan of the president for one crucial reason all the commitments are voluntary non-binding ok that spelled really bad news but the i could picture this think came from the. i don't know what was that eighteen was in denmark in copenhagen that's when the you know that's when brazil the brics another fantastic story of the brics and but then trump in saying that this disagreement sucks especially he said it stinks it means calling the truth about it so well it's a bad thing you know i think he's saying i think he's you say this is a funny thing he's pulling out of that thing for for the wrong kinds of reasons ok if anything what you need to do with the president is let's say let's make sure that all of these are both very commitments independently stablished commitments by each country get employed actually implemented in the countries that we're going to cut emissions by forty five percent in twenty twenty five that you actually do the

list let's strengthen that agreement you don't pull out of a better agreement you know that is so important as a parent agree never disclosed talking shop santa do i think i mean trump said he's at a global if he's anti a new world order essentially because it by putting america first you create more competition what's happened is useful than a disagreement and you have corporations and countries competing with each other to bring in a better agreement and competition works instead of a global talking shop and nobody doing nothing well the thing is that i mean he's not putting america first he's going america way back also i mean listen if you want to develop where is where is the if you going to need. renewable energy and you going to change the profile of the energy use in the global economy. you want to be producing you want to be with the companies that are going to be producing solar and wind and you know the renewable energy industry what's happening in

mexico and well what's happened in the us is i mean you are you are giving you are you know this is not improving the situation of american companies mexico is you know we don't have an industrial policy so we have some investments in solar we have an advantage in solar as you can see right now we could use that a lot but we don't have an industrial policy that's what it is ok anyway no of all the encouragement knowing that it's not only incurring that's just beyond irresponsible for that's that's like that's like terrorism it's not it's not our fault i would say it's not our fault whose fault is it well we negotiated agreements that includes w t o that impedes the use industrial policy instruments like for example performance requirements for foreign investment you cannot do that anymore well we would like to use the purchasing power of the public sector you cannot use that anymore there are agreements if you look at w.t. oh look we have our hands up now though you theo today is

a minor player in the global arena because because of the financial crisis the real big tigers are the financial sector the age of the financial sector got about a minute left quickly i think i'm sorry i just want to cover this yeah china are they big in mexico are they what's going on if i think they're in it in mexico. getting bigger but they are not right now they are not let's say the central force that orients the mexican economy but i think as they are the fact that all over the world all they're investing and they're bringing the best but i think they are probably more active another latin american countries and mexico really doesn't like to think america will continue to meddle in mexican elections the way they have been for decades absolutely sure it's really you know need put in to to be accused of that i mean it's not of course these. guys have been meddling in elections not only in mexico but the world wanted to blatantly late night meddling

users so you're telling me it's true ok eric in a battle of mexican elections oh yeah you're the brother you know you would be fit through absolutely believe with metal that all over latin american social merican south america does get rid of they get rid of the demichelis elected leaders and stick in dictators and intended to delay and then did they do during the elections and then after the elections are you know they want to lose and then what happened as a russian ever meddled in the to your knowledge here in mexico i don't think so i mean i don't mean that. they were or weren't they were never at bush is very lovely but i've still got to go there thanks michel ok thank you very much specs are with us going to do if this edition of the kaiser report with me max kaiser stacy herbert snappy the alligator. got a good saturday happy he likes to eat central bankers. it's like gifty you even know that i'm your house and you all that america so i could do that all right the sooner it catches on twitter is kaiser report so next time by.

every once in a while crosstalk has a look at the big picture of a story in this case it is the middle east one of the current defining trends who are the winners and losers and how is this volatile and very dangerous region changing and as american influence the climate. chose seemed wrong. but old old just don't call. me old yet to shape out just because the educated and engaged with equals betrayal. when so many find themselves worlds apart. just to look for common ground.