never really quite prepared for that everything is devastated and a lot of people like paul krugman will say well this is great it's disaster capitalism with all sorts of you know booming economy because everybody down in houston for example after hurricane harvey thousands and thousands of cars have been destroyed so thousands and thousands of cars will have to be bought and that's supposed to be g.d.p. booster so in terms of infrastructure spend however that is now in sort of beyond disaster capitalism in america we have a sort of private equity vulture fund model whereby everybody just wants to extract all the equity so it seems like both the public and private sector with these headlines i'm going to go into here have basically given up on building anything for the future they don't see any sort of long term future here and like china with their one belt one road policy across asia they're investing

a trillion dollars because they see that it will add even more value to them in the future america is like seems to be contract and the data going to turn to is from doug henwood and he looked at the national accounts the national income accounts actually get this data first on public spending and then we have another section on the private spending and infrastructure why the usa is falling apart if i were debased purveyor of click bait i call this everything that's wrong with america in two charts but i'm not so i won't but still the series is a net civilian public investment from the national income accounts net means after depreciation aka wear and tear public investment means expenditures on long lived assets like schools and roads prisons are in there too if we took those out the numbers would be slightly lower though not profoundly so because most of the costs of maintaining the car several states come from day to day operations ninety six percent. according to this estimate not from building new prisons so here is net

civilian public investment as a percent of g.d.p. is the first chart by year with trend line you see the trend is down and he starts one thousand nine hundred fifty because between the great depression and then world war two those were two huge anomalies that made the series look different but as you see from one thousand fifties percent of g.d.p. devoted to infrastructure spend as gone down it was like three percent through the sixty's and now it's point five percent of g.d.p. well muscle building versus parasitical behavior you know muscle building you know you if your muscles you know you must them up and then they got to grow back bigger the a bigger muscles but the parasite it just hits you from the inside and. kills you so you have a banker class that's parasitical over and muscles no muscles being built those things that could be rebuilt to take the hit take the economic hit to rebuild stuff

and it comes back bigger than ever you know the american the interstate highway under general eisenhower and improved commerce and g.d.p. growth even though it cost a lot of money you got one one road in asia china russia all participating sure cost money but then the benefits are you get more economic activity america seems to think that you don't need to spend money to make money they just want to be extraction extracting money like parasites used to be the model america pursued around the world in latin america south america asia south these days over there which is extract well take money take my take money but they read out of countries i would put up with that so now they're doing it to themselves so they're extracting oil from themselves you know the only time that infrastructure spend has been less as a percentage of g.d.p. was during world war two in the united states and that's because the entirety of us into. manufacturing was devoted to the war effort we had rationing here we had

everybody working on the assembly line all the women working on the assembly line so it's we're at war who see you know where or who is the who is the enemy here i'm not quite sure it might be the majority of the people but the other thing is of course. there's vast areas of america the fly over states which are just like a band there this is part of the absence of infrastructure spend is there's no real convenient way to do business with them and the only way to access any economic activity in america is to move to san francisco new york washington d.c. or los angeles or chicago can you afford the first and last months the deposit on a rent rental unit there that's going to be like four thousand dollars a month. and if you have kids to move the kids there and put them into the schools are that all like so expensive probably not so we have these abandoned rust belt

states with opioid epidemic sweeping the country and i think it's part of this you know this this notion of spending for the future is for chumps goes back to two thousand eight hundred bamma during the global financial crisis we said on the show at the time the obama had two choices he could bail out the debtors or bail out the creditors he just he just sided to bail out the creditors and said of the debtors throughout history going back to ancient times in the bible all wise leaders bailed out the debtors you would have debt holidays in the bible every seven years or so but for some strange reason obama said you know what we're going to bail out the creditors we're going to bail out the banks on wall street and what do they do with the money that was given to them by obama they levered up their empires of debt another ten fold and they extracted wealth on an even more aggressive schedule and they're setting up the economy for an even greater collapse so that's

a box on obama speaking of obama remember he had this notion that claim that he had what he wanted shovel ready projects to invest in infrastructure because that's for the united states did after the great depression and i'll show you the data the facts on that because he didn't increase spending on infrastructure anywhere near what we did during the great depression net civilian investment was point five percent of g.d.p. in two thousand and sixteen preliminary numbers for twenty seven thousand suggest it hasn't budged declined during the great recession and its aftermath and is now less than half of two thousand and seven one point two percent of g.d.p. the contrast with the great depression a stark net civilian public investment rues from one point nine percent of g.d.p. in one nine hundred twenty nine the year of the crash to three point two percent ten years later for the full decade of the one nine hundred thirty s. it averaged two point six percent the same as the one. hundred sixty s. of a time of dramatic expansion in the public sector since then it has been mostly downhill

of course back in the one nine hundred thirty s. there weren't these vast multinational. politically connected sort of robber barrons of public building i mean sure the railroad guys made a lot of money from the government but right now any time you see any of these contracts that are public offerings public bids for contracts it goes to a politically connected firm who then subcontracts it to another firm who then some contracts it to another firm and then another and another and everybody takes a cut until there's just a few pennies left for the shovel ready project and of course they can only find people who are being paid five dollars an hour with what's left of the dregs after it goes down to through multiple subcontractors and it seems like every time. it disheartens any taxpayer it's even want to do any of this stuff because it all just gets eaten out by the bankers the contractors the lawyers all the consultants and blah blah blah and you end up with projects like remember this stuff from

afghanistan and iraq we sent hundreds of billions of u.s. taxpayer dollars there to rebuild and then a few and surprising journalists to go out and actually look at the projects and it's like a rock rickety old shack. allegedly a school that cost one hundred million dollars to build and anybody you know could have built it for one hundred bucks there's two prevalent economic models driving domestic policy in america one being the banks where you bail out the bad actors and you increase moral hazard and you increase therefore throughout society looting and thievery and criminality then the other major model the policies are modeled after are is the pentagon and the model of cost plus so all infrastructure projects are done as the pentagon builds bills. america they charge exorbitant cost plus contracts where all profits essentially are are are

discords don't front and then there's no incentive to deliver anything and but they charge more for anyway so those two americas become a militarized kleptocracy and the other argument has been for and from neo liberals like get you know the public out of investment and infrastructure in the private sector all of miraculously appear well they haven't appeared according to his next headline follow up being on following up follow up ng following up on his headline about public sector rot he says private sector angle and this is net fixed investment from the private sector this is net depreciation so as you see the trend since the fifty's is also down the exact numbers are that at two point one percent of g.d.p. in two thousand and sixteen total net fixed investment is just over half of its one nine hundred fifty to two thousand average of three point eight percent at one

percent of g.d.p. investment in equipment is more than a third below its average over the same period of one point six percent trust us so this private sector hasn't stepped up but he also points out in this chart in terms of investment and infrastructure is intellectual property and this is rent extraction and he looks at those numbers too because he reckons this is worth going into as well and so actual property investment deserves a few words it's been rising as a share g.d.p. but it remains a tiny point five percent of g.d.p. when it comes to its social benefits it's a mixed bag about half of it forty seven percent to twenty sixteen is accounted for by software both commercial and custom made a bit less forty two percent last year is research and development some r. and d. produces useful products but an awful lot of it is just the. of rants from branding and patent scheming so this is the entertainment industry but it's mostly

pharmaceutical industry and as we know that's also depleting the public of the resource the resources to even pay taxes to fund the health care system which then goes and to the pharmaceutical industry which drains the whole system based on the private sector and like free markets the government protected cartels we've got the entertainment cartel which is the copyright incentivised to you the medical cartel insurance cartel and right down the list of all business activity in america is controlled by a cartel government enabled government financed government protected well he actually mentions that the pharmaceutical are indeed is actually almost entirely funded by the public sector anyway because they comes via universities and government contracts to to the universities to investigate things and then they get to take it and capitalize it and charge rents and create obamacare for us well fortunately on this show we have freedom of choice it's

a free market for eyeballs people watch our show because they hear about it and they think oh my god these people are so great i love the show so much and stacy is so attractive and max's obviously not to be tangled with because of the probability of a massive max attack and after the break we're going to continue more don't go when i stand right there are you know this ok.

years ago i traveled across the united states exploring america's deadly love affair with the. bad guy trying to get to my family member as he would have better . inheriting whenever my. book was published in the year two thousand. million americans have been killed in the us. this is a middle school we go through drills we put ourselves in real scenarios it was interesting to see. him. return to the subject to track down. those years you go. but we are.

well known by. the martial. islamic states claims it was behind the manchester terror attack by the. front so kill the priest every time a terrorist attack happens all these people are out there screaming i says so bad someone needs to do something for me. why don't. you. go. to the local. police.

oh welcome back to a part imax hazar time that i got of like a crater of liberty blitzkrieg dot com like a lot the back and ask to be back with you it read something very interesting i want to get into it google has become a major threat to democracy tell us more michel so this is actually a topic i've been writing about for a long time now. and it goes back to that sort of core problem i think we're having is as an american public if there if there is this unity that i hope still exists as far as you know what the real threat is right as you know that republicans tend to think the big threat is large government that democrats tend to lean towards they think it's large corporations and that's just a perverse problem it's both and the key issue is power it doesn't matter whether it's corporations that have power governments have power too much power and you've

got problems and that's just the tail of history and so google has really come up to the forefront this year and sort of it's coming out party with the james to more firing and now the essentially the kicking out of the barry lynn's open markets group from within the new america foundation so that's what that's what sparked this latest post that i wrote and it has to do with barry lynn is running this group of about ten people called open markets with in a think tank that's heavily funded by google and eric schmidt and and they've been very good at the forefront of anti-monopoly research and time monopoly conferences and really getting the message out there about in particular these platform anomalies which you know are essentially facebook google and amazon and how they pose a how they pose a threat to not just you know competitive practices within the business is that they dominate but within the larger political context and so barry and his team socially being forced out of this think tank because they annoyed google shows you

that google is at this point very much using its money and power to stifle ideas that could spread its platform anomaly and once you have. that you start to get into a point where you know who can actually go up against google if this you know dominates so much of how you interact with its search where it's you tube which they own is how we get our videos most people buy watch this on you tube for example and and they're and they're cracking down on that too so it's google dominated so much of our lives and they're now and they have a narrative that they want to push and they're economically threatening the livelihood of people who go against them you've got a serious problem with democracy the stunt knew in america. the. position of industries before over the over the errors over the hundred years or so and just putting on you know looking at the other side of the story hair when google obviously they've been not doing this by accident they have had staff meetings

about the size of a sleigh eric schmidt these guys have sat down and decided the yes we want an op lies a synastry yes we want to go anti american yes we want to undermine democracy of course we do because our power thirsty and our psychopaths do it what is what is their rationale for this what do they think that they're doing something that they're they're not software enough to know that they are psychopaths oh no i actually don't think they are so who are enough to know that their site about to me i just happen to think eric schmidt in particular and i do like to point this out because i do think he's sort of the mastermind behind all of this i think he's the one that's really a power hungry control freak and he loves the idea that google's now in bed with government and he can sort of influence geo political events as well so i actually think he's part of the problem but of course it's the bigger power. that is the problem i think it's pretty simple actually i mean google is a company and google consists of people that run google and people have narratives people have ways they see the world and then they have their own personal ambitions

and so whenever you get to such a degree of power and dominance in something in the fields of google happens to dominate. it's just sort of the natural human inclination to try to pound people with your narrative with how you see the world and then think that other views are you know either hate speech or or news or whatever and then you try to crack down on that so that you're narratives becomes the entrenched dominant narrative and so i think it's as it was out i think the people that run google how the narrative the way they see the world and they are now increasingly using their dominance in search and video and other things to ensure that they're rude use the dominant world you know nothing can threaten it and that again is a is a huge threat to us as a people and savior saying that they are monopolizing thought in a lot of ways instead of let's say going back to the robber baron period of monopolizing the railway or the steel industry the physical world by buying out

competitors in the tobacco industry for example when they machine was introduced to roll cigarettes the cell roll cigarettes the the company that came up with that under price their product to the point where they put everybody else out of business etc but these are physical objects just driving hair and we saw it during the leading political campaigns is the ability to influence people's thought on an industrial scale using all manner of neural in quest of programming and subliminal advertising and algorithmically driven crafting that essentially. the american public the american public thanks to google as a bank collectively bottom ised your thoughts yeah i mean i think so so back in the day all you had to do was as far as communications were concerned must be said by the newspapers so if someone william randolph hearst you know in the newspapers and dominate what people thought through those narratives then obviously with the

internet what was the big problem was always then you had all the rabidly guys getting out there starting a video channel starting a blog. roxanne and providing our own independent perspectives of how the world works how we see the world how we want to live so they have a narrative that they're reaching to purse to pursue and the problem is too many other people are getting their own opinions now google is in a unique google and facebook are in very unique position because they dominate things like social media again video in search where that's a way to essentially censor other perspectives the way should they want to do that and what we've seen of rules here too is that they absolutely do want to do that and they are doing it and i think the big issue the big the big a moment where they realized oh no we have to censor the rabble was when hillary lost because hillary wasn't supposed to lose she was the chosen candidate you know how could trump peter and the reason trump beer was because a lot of us could talk and say you know we don't like hillary and trump's not great either but you know it will take a chance on this guy and i think donna's the real wake up call and you know

executives at at facebook and google finally figured out this is and we've had enough we need to stop people from sharing their own narratives because we're losing control of the narrative thank you right that's what turk figured it was the the hillary loth and because remember she went in there with a billion dollar war chest with big data at her side where she was able to parse the data down to a micro level and figure out that someone in the moyo eating an avocado sandwich with more you know vote for her if she wore the color pink or something like that and yet it all came to naught looking add to the next big election cycle in two thousand and twenty. as of well experience marketeer knows what he's doing how is this memoir going to take place you know what can the what the trump camp come back with the fight the google propaganda ok so i actually think does all this is that's going on actually helps strengthen a major way because what's going to happen is there's going to just like trump was

a backlash to people's feeling like they were being force fed hillary clinton right now people are there's going to be a battle. people feeling like they're not allowed to say what they believe and they're not allowed to have a different opinion so what we could see again in two thousand and twenty depending on who is his primary opponent in the in the general is again people deciding you know what i'm going to stay home or i'm just going to vote for trump because i'm these people are trying to manipulate me too much it's the same reason why i'm so against the idea of calling any speech hate speech and banning it because as soon as you ban something you make it contraband or illegal if there's reasons that this stuff is festering in the first place it'll only become more popular you have young kids who are disillusioned they'll hear this stuff well i'm not supposed to talk about this or i'm not supposed to think like this so it becomes cool in a way so that's a real date problem and so again just could backfire against google and facebook and all these other people trying to control how we think in the narratives were

allowed to pursue could actually help trump so i think it's a really stupid strategy in addition to be undemocratic yeah it's remarkable that the standard bearer now for a spree free speech of america appears to be the nazis or the neo nazis but as you point out if people feel like they're really being curtailed in a major way they're going to get sick for an alternative and that alternative at that point will still be a trump even though pretty much i don't think of any policy prey election candidate trump is really follow through on in any meaningful way. what are the negative economic impacts of these tech monopolies. you know what if they didn't exist what would what would a look like michael if we didn't have this all of the awfully in the tech sector already sort of the things that a lot of people pointed out which is really important from economic standpoint is is yes you know in the in the beginning google certainly very innovative facebook is very innovative what they've been doing in the last many years is not actually

create a lot of successful products they're just going out there and buying companies up that are creating dynamic successful product so when you end up with is you end up with these. norma's entities they're just consuming to give a shit and then and then be directing it to their own purse so who will it say it wasn't allowed to make all the acquisitions that it has been making and dominate so many various important fields in the you know u.s. economy a lot of these companies as independent companies would probably create a much more dynamic independent entrepreneurial environment. that we would exist in but with these platforms not least are no longer innovating it's sort of like the banks i did it didn't do any didn't do any good other than gauging like paris that parasitism and rent seeking and now we're getting to that point where these tech companies that we used to view as innovative and game changing are actually becoming parasitic and rent seeking a lot of ways and so we need to wake up to that fact and need to get out his dream world where we think anything that just is technology driven in or out of silicon

valley is a good guys because you know google is become very useful i've noticed over the years anybody who really knows a thing about economics who can speak articulately about why let's say the right way their policies are anti-competitive an anti-democratic unfortunately they get bought out swallowed up or co-opted by the right way in other words if you know what's going on i can speak against it in a way in an articulate way but you're going to have bought out you know what our show here at kaiser report you know where we're can be bought out so we offer a probably the only contrast thing view to the main narrative on any major well in the world like oh no no absolutely and this is becoming an increasing problem like with you tube google didn't say you're banned to most people but what they did was were to monetizing your videos which is just a way of saying we will starve you to death if you if you don't play by our rules if you go if you're never goes against our now or so yes it's never been more more

important to be economically independent as much as possible because that's the only way you're actually can have free speech and you know because. again you know i know you love big point forever and sort of why that's a good part of the solution you know that they're trying to they're trying to cut people want us from having an opinion and using the money system you know maybe you can show they can earn a living so independent currency where you can fund people that way is extremely valuable is that now again that's that proposition of it anyway right i permission was value transfer that is the you got is what cortical the killer out of because her mission lost value transfer ok we'll leave it there thanks so much light of being on the kaiser report thanks max that's going to do it for this edition of the kaiser report with brain max keiser and stacy i would like the guest michael krieger of liberty blitzkrieg dot com if you are a just on twitter at kaiser report intellects i'm.

syria paradoxically. paddies and was a situation like israel and palestine is not a country where i meet a lot of people with told though everybody agrees. is a very serious situation people have been much more affected than in any other active conflict today. credit is one of the basic instruments to drive an economy but it can also lead to tragedy i did i took the whole gist i came to god and then the text i came to and inspire now. many lives have been broken except. the banks got you into trouble and all the big bankers come. from the government

the bank i didn't think of the ordinary men and. people see no future that face would have become ill to joe the relationship breaks down here become a casualty is a lifelong trauma or is there a way out of those actually going to bed. to ditch bill from so much discussion so much. global blog selling you on the idea that dropping bombs brings police to the chicken hawks forcing you to fight the battles of. the new socks for the tell you that every gossip the tabloids but most importantly. off the bat doesn't tell you on the cool enough and let's fight. the hawks that we alone that are worth watching.

they're bred for a single purpose. they have a superpower. they start training very young. they months of intensive school. rats. and they save lives. with this manufacture consent to stick to the public well. when the ruling classes protect themselves. with the famous go round to be the one percent. we

can all middle of the room sick. i mean real new. russian submarine strike targets around the syrian city of us moscow continues to support government forces in its campaign to liberate the country from extremists also ahead this or to use our officials prepared to launch a campaign for independence from spain and are met with fierce resistance from madrid which is threatening to prosecute hundreds of the region's members. plus telephone terrorism without sars russian authorities are calling a series of hoax bomb threats that led to months of i.q. ations affecting over one hundred thousand people spent.