woman she shows a start the red line is good producing workers the wages of goods producing workers and the orange line going up is their major sector put activity productivity as you can see is rising rising rising but something happened she said in the mid seventy's if you zoom in on her chart and we sort of do that zoom in on a piece of paper and it doesn't work yeah that's right you're part of the i phone generation lost often action to reality now you try to pieces of paper in ways that are impossibilities. well so that is about one thousand nine hundred ninety two of course from august one nine hundred seventy one i think is the reason why you see the divorce between wages and productivity usually when productivity went up you know you're producing more for the same amount of work or time or effort put into the product and you know people used to share in the gain and the productivity but

now workers no longer do i think a lot of it i know obviously correlation doesn't necessarily equal causation but in this case i think there is some role to play and the fact that we went off the gold standard in one nine hundred seventy one and one nine hundred seventy one so i think that has and they did do it off the gold standard you say off the gold standard one thousand seventy one reduced people's purchasing power of the money they were earning and the government was free to create trillions of dollars of the fear out money reducing purchasing power and creating a wealth of income gap as financialization enrich the top to put it to the top and top of that sympathy to say. in opposing barry go ahead shoot it i don't know how long you're going to speak like this in a very weird way but who will say whenever you mention the seventy's of course it takes me back and the problem that you speak is disco disco and then m.t.v. it was a one two punch disco of course put

a work on the rock n roll mindset that was a post-war chart very rock n roll elvis presley and then some guys from europe like to be annulled. bringing together the rock aesthetic that made the economy boom and disco came around and yeah i don't fortunately a diminishment in the work ethic because people were at the disco studio fifty four . writing your suits is left over from your days that city this is what my promise and i were in one thousand and seventy eight with the veronica bodhi was you know not enough to wear white after labor day i am max kaiser this labor day somewhere if not in this galaxy than some other galaxy so they got chorus you know the segue to the eighty's got even worse with m.t.v. because. rock n rollers who are unattractive became rock n rollers to have sex but then m.t.v. came around and you had to be beautiful to be a rock n roll star and that like groups like steppenwolf those guys never had sex

ever again ok well those are crazy theories this is sky's report markets finance scandal i'm going to talk about the markets and the market was that we became unlinked from gold there was no longer a global gold standard the u.s. could therefore just export all your jobs without any sort of concern whether or not they we ourselves here in america were producing any goods in order to keep our balance of trade in such a manner that we weren't shipping all our gold to france i mean we were sharing is absolutely true but the reason why it falls on deaf ears is because if you listen to what say national public radio or n.p.r. this is the left wing mouthpiece of america and you try to explain to them that money is important but figure out money diminishes purchasing power and creates all the problems they are trying to solve by raising the minimum wage raising the minimum wage doesn't make the money any better it just makes it easier for the ruling class to exploit everybody else but you never hear about n.p.r.

or the new york times or you know washington post talking about gold in the gold standard of why that was the era in america the highest productivity in wages ever experienced exactly you certainly never even have them suggest that perhaps like what happened at that moment they never suggest that as a possible reason they come up with in fact this woman said it's because personal computing started in one nine hundred seventy two seventy three i don't think so that was like fifteen years later ten fifteen years later before everybody started getting personal computer computers became a factor in the eighty's wall street bankers could have spreadsheets on their desktop and be leveraged buyouts take it down to mike milken and that's a barn. bear and raise all the money they needed to take companies over during the hostile raiding era of the gogo nine hundred eighty s. that's when to puter became a factor in the one nine hundred seven days the fears were not but again so here we

have a situation where you know it's a mystery people are confused they're a mystery they can't understand it and relates i think to gold is another headline about the mystery that is gold gold is shaken by a mysterious two million ounces trade so this happened last week but they important thing about this as not a headline from data it's not a headline from any of the gold bugs it's a headline from bloomberg news and this was the day that janet yellen was like twenty minutes away from speaking at jackson hole and she obviously might have leaked something to one of the participants there because so much for a quiet friday and late august after weeks of relative slumber gold traders were rudely awoken to a surge in volume and volatility in the span of one minute gold futures contracts equaling more than two million ounces traded about twenty minutes before the

federal reserve chair janet yellen was to address a gathering of policy makers in jackson hole wyoming so a mysterious trade you know usually the gap to like people will say this is manipulation it could in this case be insider trading but certainly gold had kind of soared right before she spoke and then it came crashing down really hard with this huge sell order. this is a mystery it does happen in the gold market somebody is often willing to lose a lot of money on their gold trades by putting not like scaling their large sales like not averaging out but they just dump it all at one go like here is three hundred tons you know kind of like a gordon brown of traders as in there perhaps it is gordon brown let me explain something about the gold market the gold market is a funding currency what it was i mean like the japanese yen of the swiss franc you

borrow against gold to go put on profitable trade somewhere else it's the gold is used as they funding currency nobody buys gold because they think it's going to go up people sell gold for the proceeds and then use that money that they get from selling the gold to go buy something that will go. ok that's what's called that's called a funding currency and this is the problem with the gold bug community is that they are creating an insatiable demand for gold i mean moment is not going to buy gold indian people buy gold by the tons one hundreds of tons people buy gold gold gold buy gold there's always people buying gold and the professional marketeers understand this and when the gold price goes to a certain level they bang it down with short sales they're selling the gold make it or they're just selling it they're just doing short sales are not losing money they're just selling the gold short and then when it gets down to a certain level they can cover those shorts at a profit that's how short sell works you're buying back at a lower price for

a profit and that's the problem with gold it's a market that's completely beholden to the cartel and same thing for vix which is the volatility index is completely beholden to the cartel it doesn't trade freely same thing with the end same thing with the swiss franc and of course you know hate to be the bearer of bad news but the only market now that's free to trade without this influence is. the cryptocurrency market employed going for the gold bugs don't want to admit that they think that gold is intrinsically worth going to turn thousand because i serve so no it's being winepress being abused like you know some poor dog just being bitten by the curb side every single day and you're sitting there looking like oh yeah it'll get up and run away decile they said no it's deed to death just like the first headline the woman did not. ask any further questions

or if she just like she what happened i don't now hear the same thing bloomberg keeps on saying that it's very mysterious we don't understand this no explanation for in fact that quote a guy who says if you look at the chart it just exploded to the upside peter thomas senior vice president as inner group said a copper trading on friday because that also happened in copper a few minutes later we came right back down it was insane everything isn't it it looked at all crazy kind of like your suit nobody understands it no sale now stana like you're wearing i mean do you remember the comic strip peanuts i mentioned the peanuts when i mispronounced that the x. ray version but peanuts and remember lucy would take the football away every time charlie brown came running down the field and this is the gold market every single time he takes the ball away and charlie black charlie brown kicks it and falls on his back and he gets up and he goes try again i'll try again sam received

a nose this bloomberg knows the only way a frickin idiots on the sidelines who are there pushing the price up to be scoped out every single day let's count more traitor scout the traitor think the money i'm sure the people selling gold short or buy good point that's where the money's coming from from the fricken root ridiculous folks on the gold market so here's another headline about how mysterious seem confusing we don't understand them it also involves gold and it also involves a guy who's in intelligence and piecing together the sort of things who as. it's an intelligence and legal sort of mind and this is from jim records weird things are happening with gold so he mentions the fact that the bundesbank has received turned repatriated its gold three years early then he mentions the fact that steve minutia the treasury secretary of the united states and mitch mcconnell who's a senator from from kentucky where fort knox says they were pictured going into fort knox a new member statement issued his hole in those bars of gold well he's asking like

why why now why are they there and like treasury secretaries never go to fort knox they don't ever want to be pictured holding gold because that might so the seeds of doubt into the minds of global investors the answer may lie in the fact that the treasury is running out of cash and could be broke by september twenty ninth if congress does not increase the debt ceiling by then but the treasury could get three hundred fifty five billion dollars in cash from thin air without increasing the debt simply by revaluing us fold to a market price u.s. gold is currently officially valued at forty two dollars and twenty two cents per ounce on the treasury's books versus a market price of one thousand two hundred eighty five so he thinks this could magically increase it's kind of like that platinum coin that a lot of the democrats were hoping that obama would issue to annihilate the debt ceiling we'll hear this one of those very valid it's about russia will back the ruble with profound ok i'll make that one hundred thousand dollars bet to ten records it was like in colonial williamsburg you know you go there and people are

dressed up like in the eighteenth century there's general records he looks like ben franklin talking about oh the loose of the gold standard meanwhile it's the forty first i got to go through your jungle break the back don't go away. they're not ones out to feel shuffling off to let down what might have been a tough the definitions of i'm bad. when seeking i mean south. taken in equal city south. into my doc to get the gun and then you're just going to bring the only thing i'm.

young movie right now i think. i'm going to know when the beach. south. to the next guest feeling if one means a leftist i know the deep. to face them tokyo find it is going to go. like. this one was because did a piece of dancing girl cultural shift from the grammys. i am. here's what people have been saying about rejecting the night with the sixties full on awesome well the only show i go out of my way to launch you know what it is that really packs

a punch oh please yeah mr john oliver of marjorie america is doing the same we are apparently better than food nothing that i see people you've never heard of love attack to the night my president of the world bank very critical of many serious like send us an e-mail.

oh you made it back that's right guys report we got a great guest for a right now its name is miss shad lucky's in chicago you can just google mish and my ass h. and there he is just bigger than life right in your computer you can't get rid of these like it's own little computer virus they miss welcome back pleasure repack out to show me actually you're doing pretty good with your reply yes thanks mess i have to reciprocate in tech yeah for so called pizza as you call it in chicago in new york we would call that quiche but anyway let's move on this markets continue hitting all time new highs consumer confidence is booming and now it's being reported that u.s. g.d.p. is soaring by three percent are things really this great in trump's economy miss well that's the average three percent in one point two percent this is the we're

muddling along here right around two percent which is better than what i thought we would be doing at this stage actually. housing report today was pretty weak actually existing home sales down four out of the last five months i believe i'm just struggling to see where the auto is going down an alley going down a out us economy can keep on rolling but somehow we keep going through here as apt to act and the fed keeps hiking the way little by little by little well seriously get another one to max i counted out well you got to contributor sara one day what's happening in distant korea paul krugman of the new york times these kinds of disasters the best possible thing for the economy that will boost g.d.p. rebuilding and buying body bags of burying a lot of people and of course the opium epidemic in america is boosting g.d.p. as well a lot of dead americans there adding to the economic growth lestat with the program now let me ask you this story about warren buffett. oh there berkshire hathaway

america's shirley temple of wall street he said to see n.b.c. that he does not feel like it's a three percent g.d.p. economy so he's not fail and the joy what's he talking about mess i don't know maybe he's got some insurance problems i'm not looked into his ollie's i well but he has big insurance i don't know whether he got it by the bye bye this used to thing or not as an heiress or gore here are some comments on twitter today oh so it came out and it actually is a good greenwald of the intercept you know up i like these guys but they're really miss the big picture some guy who are you know the government could put three hundred thousand dollars and who said well i don't know if three hundred thousand dollars would have prevented it you know you're probably one of those wasted three hundred thousand dollars but my big question is there why should the rest of us be bailing out people who voluntarily choose to live in her can flood zones if they

don't have insurance and they choose to live in the zones should this be your problem should this be my problem well it's because insurance companies don't bail out mess there's no moral hazard in wall street in the financial market let me talk about warren buffett is one of the biggest if not the biggest shareholder wells fargo wells fargo now caught stealing from three million customers yeah the word is well worth warren buffett on this he's enabling the same kind of serial disaster that insurance companies like it is our neighbor laying in flood zones like houston so he's making money on dead bodies let's be honest mash and meanwhile the furniture just a couple months ago janet yellen came out and said the phillips curve is alive and well. and interesting thread study came out not that we needed another one on this matter because the filter is already been disproved about a half a dozen times already i have i'm not mistaken some people even won

a nobel prize for despair. some of these economic models and she's out here praising these things the central banks believe what they want to believe to get their message across wherever it is and. it's it's really tiring here max their credit these bubbles they don't even see the bubbles that they have created yet they're clear and obvious just as the housing bubble is clear and obvious when it turns out no max i don't know. but i think you are saying is a bit of an illusion going on here now a topic you've been covering for a few years now i think you were the first in the blogosphere to really take your sink your teeth into this topic as to the robots when all the truck drivers and all the minimum wage workers are replaced by robots g.d.p. could bloom you know actually so booming g.d.p. doesn't necessarily mean a country will experienced ability or safety of the for the few who are enjoying

the gains mess in other words robots superficially could add to g.d.p. in another a limited jobs your thoughts this is what the first brought upon themselves by loosing money they made it cheaper and easier for companies to. invest in robots and replace workers who want to drive up the minimum wage will driving up the minimum wage is going to do nothing but try and get mcdonald's and and grocery stores and everywhere else to get rid of workers i was a meyer food store here i don't know if you have it in your area and they had twenty four like i was shot it's a fourteen life excuse me and. a lot of them were automated so that they were offered to try to you know check themselves out quite amazing there's there's a star going up a soap box they're calling this going to actually sorrow a t. shirt for thirty two cents so rather than ship these t.

shirts over from china to vietnam where they're coming from right now. it costs money to ship them should you alone and everything else i'm loading the dock in and transporting them everywhere i'm creepy sure it's right here in was it was out of nebraska i think it was for thirty pretty cents apiece it's going to create out of max or underage jobs and they're going to great twenty four million pieces a year amazing this stuff is coming through fred has been about wanting to see improved productivity well this is going to do it driverless cars are going to do it but this is all of the place where these are priced deflationary measures so you got the fed trying to force prices up you've got globalization robots trying to push them down the fence fighting a losing battle and blowing bubbles doing it and when the boat pops that's going to

be deflationary to max well it's a lot of t. shirts and of course time is a lot of cotton and america is going to raise and cotton pickin cotton jodan turn around pick a bell a cotton it's one of the songs of the south that made america great again a couple hundred years ago so what about slave labor i mean they legislators and congress have made it possible now to hire prisoners to work on cotton plantations as slaves and there's a big demand for slaves not america and nobody seems to think that's a bad idea and the cops are told to go arrest people put them in jail and the privatized prisons. i've been telling congress we'll run your prisons if you send us more prisoners we don't care if they're guilty or not just send us the prisoners because you need cotton complext for automated t. shirt machines wow doing what they did why are we growing there yeah if you do a little bit of research on this hemp was outlawed marijuana was outlawed you know

not because of because it was a drug but rather because it's fibers are softer than cotton it doesn't have to be replanted every year you cut it down and it grows back you know if we want to do something here it's environmentally grainer you know why don't we just legalize and do away with cotton ashley. i mean that's an interesting point michele had really thought about that so let's explore that a little bit in other words the hemp. many growers obviously don't have the lobbying muscle in washington that other agricultural players like cotton growers might have but if hemp were allowed to be cultivated as a crop a cast crop i guess you could call in america it would introduce. a bit of an environmentally more sound industry and agriculture product into the economy and

my question is for those states right now that are licensing and legalizing medical marijuana and there are few of them now isn't much of a stretch to consider that those states with medical marijuana now legalized could just take the bull by the horn and start growing hemp when you think of that i would hope so max by the way it wasn't the cotton industry the blood of the demise of this it was it was the du ponts the dialogues the artificial fires that depend on patrol in they're the ones actually that were the initial driving force behind getting. now. you know the more money you have obviously max is you know the more influence in washington do you say you can buy you know that full well that excellent point so i guess we should take a bit of a digression here and ask what your thoughts are and all of this do you have in your mind any possible solution i know could be a bit like

a big one like considering gold again versus the money but yeah many ideas about possible solutions mesh to what you see is these problems are we just basically doomed the solution is pretty much no free market i'm a big free trade advocate trump is not he wants to build a wall the wall is a symptom of a problem that we're giving free handouts to be able and over mexico can come over here get jobs free benefits free bash free housing free medical and free free. medical aid. that's the driving force so building a wall is attacking a symptom of the problem not the real problem which is free handout we need to get it back to free our economy and fortunately trump has embraced they war in afghanistan after resetting would not a very disappointed that mack i'm pretty certain you were too and the other needs dead done recently. he has just come out he was pounding the table and i

mean it oh i'm terribly i understand this mr trump you on terror well a lot of the rest of his teams does or does not want terrorists but we're at a risk here right now china slowing down u.s. housing is slowing down. they will occur is actually going down here interest rates are falling you know. we're signaling here a slow down and be able to look at one month's worth of worth of good g.d.p. data and say if the economy is back calming and inflation is just around the corner i do. agree and if we have to slow down and try exasperates out. a global trade war the global economy is really going to soccer for a couple of years max good point and i want to talk to you a little bit more on your comments about free market and how that works sense of

the picture as a possible solution i think some people would argue that that's the problem but i think that they don't really understand necessarily the debate and all of it and its fullness and all and all the considerations that need to be plugged in to come up with a reasonable conclusion and i'm just looking on my directory air and . right i'm going to vamp that out for a few seconds and sell it because we've got to go so i get bison so you can stick around for us it's not the segment can you miss oh you got it let's let's continue this part two ok i get enough well that's going to do it for this edition of the kaiser report with me max kaiser and stays ever like to thank our guest nish i'd like you can find him at miss talk dot com you can find us on twitter a kaiser report you can find this white suit at a major retailer near you until next time by oh.

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russian president vladimir putin says north korea will not abandon its nuclear program unless it feels safe and she spoke to the media during the final day of the break some north koreans would rather eat grass think give up on their nuclear program. also to come this hour the syrian army backed by russia moved to within a few kilometers of ice from stronghold india resort we look at the recent battles to retake the city for the first time in three years and r.t. speaks exclusively to the deputy chief of the lebanese military group hezbollah are on its battle against terrorists in syria.