just completion so drastically seems to it now i think. for a typical situation for present the moon because the situation now on one hand the americans one tool can't dismiss all along just to call in seoul and china is being. cut in china it's now deploying similar cantante sound system near the north east asia and also will deploy in contact right the system there now if the situation continued to escalate i think it just moves be the people who are watching out international thanks been with us this evening mornings and often it.

does it this is the castle report you know america can spend money on infrastructure projects before things get blown up you know you don't have to wait for let's say. buildings to get destroyed by bombs before you do infrastructure projects you can anticipate that the infrastructure might be collapsing that you need to do stuff right. so you say well of course the hurricane hit and one can never really quite prepare for that everything is devastated and a lot of people like paul krugman will say well this is a great 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 equities so it seems like both the public and private sector with these headlines are 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 ing 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 cars. sorel state 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 the world war two those were two huge anomalies that made the series look different but as you see from one thousand fifties the 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've got to grow back bigger the a bigger muscles but the parasite is just the choose from the inside and. 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 structuring 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 wealth take money take might take money but they read out of countries that would put up with that so now they're doing it to themselves so they're extracting well 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 u.s. industry 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 if we're at war. 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 . this 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 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 decided to bail out the creditors instead 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 leverage 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 too prevalent they could nominate 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 the policies are modeled after are is the pentagon and their 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 in infrastructure and 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 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 to trust 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 of 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 their 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 copyright incentivized you've got 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 when 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 away i stay right there are yes ok. years ago i traveled across the united states exploring america's deadly love affair with a gun if a bad guy tried to get to one of my. he would have better. than her. book was published in the year two thousand more than hoffa million americans have been killed by the forums in the us. this is

a middle school we go through drills and we put ourselves in real scenarios it was to see who hit. me. i decided to return to the subject to track down who i'd met and photograph those years ago. but we were not. medication is widespread on the us market frequent cause of death at that point in my life i just felt like everything was ashes my family was literally coming unglued i had actually planned. to commit suicide. all who presents so commonly used we were doing what the doctors told us to do we were being responsible and what the real side effects. was. what i did was done on

a cocktail of legal drugs. just because something is legal doesn't mean it's sick. oh welcome back to the part i max has or time that i got of like a trader of liberty blitzkrieg dot com michael welcome back to masquerade to be back with the of 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 or governments that power too much power and you've got problems not just the tale of history and so google has really come up to the forefront this year it's sort of it's coming out party with james to more fiery and now the essentially the kicking out of the barry lynn's open markets group from within the new america foundation 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 and 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 by 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 heirs over the hundred years or so and just putting on you know looking at the other side of the story hair when google

obviously and 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 are psychopaths but just what is what is their rationale for this what do they think that they're doing assuming 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 so i just have 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 it's really a power hungry control freak and he loves the idea that google's now in bed with government and you 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 hate 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 simple as that 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 it's interesting that they are monopolizing thought in a lot of ways instead of let's say going back to the robber baron period of

a novel as in 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 and sell roll cigarettes the the company that came up with that under priced their product to the point where they put everybody else out of business etc but these are physical objects we describe in hair and we saw it during the leading political campaigns is the ability to influence people's thoughts on an industrial scale using all manner of neural long list of programming and subliminal advertising and algorithmically driven crafting that essentially. the american public the american public thanks to google has been collectively love 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 that 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 their regime 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 away should they want to do that and what we've seen a rule as 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 beat her 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 we'll 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 loss 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 des moines 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 twenty twenty. five a sleek kompas of well experienced 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 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 good 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 they 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 spring 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 awfully in the tech sector rice is one of the things that a lot of people pointed out which is really important from the 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 products so when you end up with is you end up with these. norma's entities that are just consuming to innovation and and then be directing it to their own purse so google it see it wasn't allowed to make all the acquisitions that it has been making and dominate so many various important fields in the unit us economy a lot of these companies as independent companies would probably create a much more dynamic independent entrepreneurial environment too that we would exist in but with these platforms not least are no longer innovating it's sort of like the banks i did they don't do any they don'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 he's got 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 get bought out you know what our show here at kaiser report you know where we're can't 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 this is becoming an increasing problem like with you tube google didn't say your band 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 narrow goes against our narrow 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. and again you know i know you love big queen forever and so why that's a good part of the solution you know that they're trying to they're trying to cut people off from having you know opinion and using the money system you know meeting sure 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's proposition of it anyway right i permission was not a transfer that is the she had is what quote unquote the killer app of declared 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 max keiser and stacy i would like the guests michael krieger of liberty blitzkrieg dot com if you are a just on twitter it's kaiser report intellect.

for a single. training very young. eight months of intensive school. reps. and they save lives.

as one of the base. to drive an economy but it can also lead to tragedy i did. just i can't be god and the debts time i came to and. many have been broken believe excessive to the banks got you into trouble. but i didn't think of. the. people seen the future. you know you become ill. your relationship breaks down you become a casualty is. the way those are surely going to bed. just

before cisco. today north korea threatens the united states and your piano this as the leader of south korea's opposition party tries to get washington to send tactical nuclear weapons to seoul while the latest. plus the fight against isis we have the most recent updates on how russia and the united states are combating the terror group. then picking up the pieces president from visit florida residents affected by hurricane earl.