art i'm preparing my initial point offering the ice you know for a new crypto sensation much as fisher magic you know so many bankers are jumping off buildings and jumping off beers of the world is being crushed by a group of merchants fisherman dick you can fish with these good burgers or you. did big get a good look at this debate right here and you can go fish or dead bankers i see you know if it will broadly rose one hundred fifty or two hundred fifty million dollars for the station i'm giving you precisely you know coins eighty nine percent discount when you think why eighty nine percent oh i have to share some of brock and this is the deal he negotiated with well i have a headline here and it doesn't have anything to do with your i.c.a.o. but it has to do with that dead banking system based on debt debt debt too much debt and this is the only thing that have the only way to wealth is through debt and i'll tell you why because it's time to call the housing crisis what it really

is the largest transfer of wealth in living memory this is from open democracy and they're looking at the data that the o. and the mass the office for national statistics in the united kingdom released recently and what they found is the office of national statistics released new data tracking how wealth as evolved over time on paper the u.k. has indeed become much wealthier in recent decades net wealth has more than tripled since one thousand nine hundred five increasing by over seven trillion pounds this is the equivalent to an average increase of nearly one hundred thousand pounds per person impressive stuff but where has all the wealth come from and who has it benefited just over five trillion of that seven trillion pounds in increased wealth since one thousand nine hundred five or three quarters of the total increase is accounted for by an increase in the value of a dwelling another name for a u.k. housing. stock yes it's

a wealth transfer mechanism enabled by the bank of england and other central banks around the world how does that work well households in order to wealth quotient at all would be engaged in something called savings what the result of having a wage that was war their costs but because of the scandalous crash in the banking system and the response from social banks to bail out the creditors by bringing interest rates to zero we had this magical wealth transference where anyone who had savings got wiped out anyone with a job got wiped out anyone with a house or an asset or a stock or bond was given hundreds of billions a trillion pounds in free money as long as they kept the current status quo in place and voted for stupid things like that and that's what happened so the other interesting thing about this data is that for the first time they actually stripped out the data for land value and dwelling value and this is the remarkable

thing that they have done because this is a way to put into context what is actually the national wealth the land value and what is the housing stock so it's actually the land value that is increasing you can see that you k. now this is their chart and the big most valuable bit is the land value has increased in just two decades the market value of land has quadrupled increasing recorded wealth by over four trillion pounds the so member and since one thousand nine hundred five wealth has increased by seven trillion pounds so four trillion of it is just land value the driving force behind rising prices and the u.k.'s growing wealth has been rapidly escalating land prices and those are concentrated in two or three areas pretty much one area and that would be if you lead guitar the princes buy buildings in london for multi hundred billion trillion pounds then yeah the value of that land goes up. really but with it being shared amongst the population

a large so should you let foreign dictators influence your elections as foreign countries influence elections in britain to lead foreign influence change your economy as britain allows foreign money to change their economy is britain basically vassal state of cutter yeah do you want the change well if you're not part of the princeling class or an aristocrat of course you do you have agency in britain no you don't because your to your also you know here back to this article here about the data about national wealth and the united kingdom of course that adam smith who was originally from scotland you know he always he advocated for a land value tax instead with the united kingdom has is the consumption taxes but also wealth to income taxes and that is considering that jobs are more more precarious there are fewer and fewer people actually working because so many people have this rising asset price so they don't need to work in fact they break down

that data here for those who own property this increase in land values has provided enormous benefits according to the resolution foundation homeowners born in the one nine hundred forty s. and fifty's gained an earned windfall of eighty thousand pounds between one thousand nine hundred three and two thousand and fourteen alone and the early two thousand house price growth was so great that seventeen per cent of working age adults earned more from their house than from their job so remarkable misallocation of resources and well right here in london and you time your mortgage to your bank account then you have the magical money tree because the value the house or the apartment or the flat in london goes up by eight hundred pounds a day and the cost of servicing or the cost of maintaining that the bank is five pounds so you're making met over you know seven hundred ninety pounds a day by sitting there and doing. absolutely nothing and money is given to the dead

money it's dead as dead as that bait is to be part of this eye so you can put this dead money into the ice so you know it's a good as you increase the value of this ice you know it started that just one hundred fifty million dollars but i reckon now we can raise three hundred million we just have some flats from london and now it's worth three hundred million pounds we add the mortgages or the land value on paper because of course this as headline points out is just redistribution of wealth it's not new wealth you're not adding wealth you're just redistributing wealth that seven truly is a four trillion dollars that was transferred to land value could have been put into productive businesses or industry or creating new wealth or have i'm going to loan it big trick can you see the wire this is wealth creation this is wealth creation we've closed it we can go to goldman sachs we know collateralize used to be in for like a billion dollar big collateralized bond offering and then put them into crypto and then by china. so you know speaking of taxes and trade and all this sort of

stuff nafta you know the fifth round of those nafta talks as renegotiation talks are happening and. you know even mexico's trade minister is saying basically it looks like it could be dead so here's a headline from wall street talking about what that will mean for mexico because nafta remember the promise of nafta when that was signed back in the early ninety's is that it would increase wages of the average mexican worker rises up to american worker levels and that would be a leveling of the playing field in fact i'm going to cut a head to this chart from also from wall street and what it shows is that the average hourly labor cost for auto workers around the world germany being the number one twenty six dollars to twenty five cents u.s. number two at twenty three eighty three canada spain japan south korea brazil china mexico so mexico mexico workers make on average auto workers three dollars and

twenty nine cents an hour versus china which is five dollars in one thousand sounds so that never happened but if nafta if they lose nafta this sort of bet on low wage low income sort of working manufacturing as the only nafta outlet for mexico they could lose big time uncertainty hits american farmers and mexican consumers so the biggest problem for mexico's economy is the sheer scale of its dependence on trade with the u.s. eighty one percent of its exports go to the u.s. and about half of its imports come from there so mexico is deeply integrated into the u.s. supply chain. but more importantly is the basic food staples things like corn which is a maze it's a you it's a mexican product and it's now they import so much of it the last twenty two years since nafta was launched mexico has become unhealthily dependent on heavily

subsidized food imports from the u.s. the u.n. food and agricultural organization f.a.o. estimates that the threshold at which a country becomes what it calls food vulnerable is when as much as twenty five percent of his food supply comes from abroad and twenty sixteen mexico imported forty six percent of all its food and imported about thirty seven percent of its food from the u.s. or some seventeen billion dollars. autocracy versus entropy autocracy would be the medieval kings ruling over us before the enlightenment and the idea of market economies and democracy entropy is obviously the nature of the universe spinning out of control seeking chaos. and driving a fine line between these two is a civil society mexico with enough to deal is entropy you're allowing things to spin out of control to be the lowest common denominator and now you've got mexicans

having to buy subsidized corn from america and that same subsidized corn from america by the way is making america obese a nation of fat yucky pig right through me ask you obesity ok i just i decided i was called gay so that's ok so what i thought are saying is in germany germany is saying you know what we believe we can manage our society in such a way remember i think there's proof of war world war one eighty percent of all technical texts in the world were written in german they have the percentage of engineering. autarky they know how to run a society so there of course they're making sense out of all this because they recognize that good design is worthwhile versus the us which is like you know what i believe it is not a capitalism or it's going to look for chaos reign and look what happens is total dirt oh well by the way you know you have your little i.c.a.o. happening to us here's another way to add another hundred fifty million right now

so it started one hundred fifty million now it's three hundred million now here's a way to increase it to four hundred fifty million dollars value because of course we're saying that their food vulnerable mexico of course the notion is you give a man a fish and he eats that day but you give him and you teach that man how to fish. that nation how to fish and then they can build wealth and feed themselves for their life that's right that's a quote from. in the white paper he said that and he said stuff about love and the romans are no good. well just so you know i want to give a little bit of the details in the last minute here about how much mexico imports from the united states and i'll some details as a third of the corn it consume is from the u.s. or some two point three billion last year between thirty to fifty percent of its beings and up to eighty percent of his rice eighty percent of the rice from mexico comes from the united states you would think the climate there is better that's what i would have thought i don't know i don't know about i guess is nick to force

another country to buy subsidized goods it's a occupation and it's like our first headline as a redistribution of wealth it wasn't any generating new wealth or new sort of industry or efficiency or anything like that it was just redistribution of wealth exactly all right well that's very interesting details about the dead fish mac specially i.c.a.o. are available maxi fishy i see. intergalactic fare if you want to find a we got to take a break. over back right after this break. it's all to see we have a great we need to strengthen before the free float world cold and you're better than a legend to keep it so it's at the back. of. the

nines you know i do too the most qualified for the european championships at the very last moment no one believed in us but we won and i'm hoping to bring some of that waving spirit to the aussie team. recently had a lot of practice so i can guarantee you that peter schmeichel will be on the best form since my last will call him the stories are. both in the euro zone. i fly strike strike left left left more left ok stuff that's really good that. this footage is unique because the zoe tribal lands are normally off limits to the public eric's allowed in because he's listened to his personal doctor. and people here know him simply as dr eric he's rich and famous some always on the move

sailing yacht some flying aircraft that. he's considered one of the best neurosurgeons in brazil. that's happening amazon. how are you so sis going to visit you and nothing's going to get to the population nothing is going to people from momma's on .

welcome back to the kaiser report imax has a time now to talk with charles hugh smith his web site is called of two minds dot com charles welcome back thank you max always a pleasure to be on the program all right you know you talk about the republican tax plan or you call it the fetid swamp of tax reform why so fetid well actually i think there's a reason why it's so fair it is it's a political swamp and other words we talk about taxes as an economic issue and they are really all the oh the dirty work is political over political favors being bought and sold and being expressed in lower taxes on billionaires it doesn't seem to translate into anything that would be a sustainable economic model to simply slash taxes without the context of having a viable economy but nobody seems to care much about it because they won the be

part of the stock market and of course the few change anything stock market's going to go down because it's built entirely on scandalous under fraud and stuff so even people you know there are your it's bribing them with stock prices charles yeah everything's good because diet craze just keep going up wiped out. yeah well taxes taxes matter to goes of us who pay them people to say that oh the top x. percent pays most of the taxes but that's only on reported income we know that of the top one or two percent most of their income is unreported and that creates a twenty to thirty trillion dollars slush fund held offshore that's not taxed but it is a way to finance speculative bubbles and stuff that these people own like chalets in aspen or fine art from france so they've created a parallel economy built on fraud easy money no accountability whether there's a tax plan to tweak the tax code one way or another they're not going to change the

interest the job market at all the trend of shipping all the jobs overseas particularly to china has already it's already done they know that that horses left the barn they're never coming back from that you would you agree with that charles yeah absolutely max and you know what it was interesting in the tax. to be your so-called reform is the way it is now most of the tax the income tax is paid by the wealthy not the billionaire class people who are meeting a quarter million dollars three hundred thousand euro small business entrepreneurs professional class technocrats these people don't have lobbying power in congress you know if you make three hundred grand you're going to pay a lot of tax because you don't have three hundred grand to give your favorite congressperson to get to buy a tax break yeah i think we need to be clear that two hundred fifty three thousand dollars a year is not wealthy when you're competing with people making thirty forty fifty sixty million dollars a year like the head of

a health care industry who's pushing heroin and turning millions of people to drug addicts and killing people these the genocidal maniac being paid sixty million dollars a year now you outline the four distasteful realities of taxes in the u.s. what are they well number one is that we have to be. political auction system not be representative representational democracy right in other words the only votes that count are the votes that wealth casts and of course those votes are cast in favor of whatever the wealthy wanted in terms of tax benefits the second one is bad you know the technocrat professional class we're talking about pay most of the taxes so if you're going to cut taxes well guess what those tax cuts go to the wealthy because they're the ones who are going most of the tax so that that's a dead end to say we're going to cut taxes. the other thing is that tax benefits

are just auction off you know like in it what happens is some wealthy corporation or financier gives a huge donation and then buried in the two thousand seven hundred pages of the congressional tax code there's a special tax break or subsidy for them so and that's hidden inside this huge nest of complexity and in the fourth thing is that this complexity imposes a huge tax on the rest of us you know never mind with the tax rate is where there's twenty five percent or fifteen percent we're all paying hundreds of billions of dollars in accounting income and compliance fees trying to trap all this stuff so if we got rid of twenty seven hundred pages we'll get a tax break simply because we didn't have to pay all the all the recording and tax preparation things so the amount of lost productivity from running a massive bureaucracy i've said on occasion that america and russia are two ships

passing in the night russia is trying to move away from the bureaucracy of communism toward a more entrepreneurial country and america thing to be heading in the opposite direction they want to bring in a soviet style bureaucracy through our innovation through our entrepreneurial ism keep people. all paying been in amounts for bureaucratic gate keeping and is that a fair characterization when you think all the wealthy and all nations have the same as you say the same off shore wealth in other words they're not paying taxes in in russia or britain the us or china everybody's got their wealth i had a billionaire class protected from pay taxes right so you're in hawaii and i must ask a bit of a make a bit of a digression is it true that one of the staples of the hawaiian diet is spam spam in a can like we have from in america oh absolutely and yes that was that was our favorite food because in the one nine hundred twenty s.

and thirty's in the plantation economy that's what our that's a form of meat it could be transported over months and still you know be good to eat so it's the apple of the us military introduced spam to the island of hawaii and it's become a staple ever sense and it's a huge huge demand for spam in hawaii but you're a bit of a gore monogram a sona grows their own food i would imagine you stay away from the spam and you're more into some natural food what do you have over there well we have coconut trees so we can you know sharks are killer going to get that and then there's a lot of fruit you know mangoes i. bet and i was and stuff like bread fruit and taro so a lot of fish so you know spam is a guilty pleasure oh i fair enough so let's say is we're going to flash forward and charles you spread this down running the world running the perhaps running the united states what would you think about in terms of real tax reform what would it

look like under trials use meth out what i would do is i'd get rid of the whole income tax thing and i'd get rid of the whole payroll tax which is the medicare and social security tax that all of us who are wages paid and ape. said of us pay more tax in payroll tax than we do in income tax myself included so get rid of the existing taxes and then have two new taxes what is a transaction tax which would be a small fee on every transaction and this isn't a sales tax it would be a transaction tax which means everybody that bought and sold a stock like a high frequency trading then bait they'd have to pay a transaction tax on that and every financial transaction within the banking sector and with and finance your class would also be taxed that's a lot different than just a sales tax at the dollar store so we only paying a little tax at that at the dollar store but we'd be skimming in huge amount of

taxes from the financial sector because it right now all of their transactions are tax free a second part of it would be to put a tax like we do on property taxes you know you never never mind where you are or what your nationality is are you still have to pay your property tax if you own land in america right so why don't we just do that for all well if you have one hundred million dollars of u.s. stocks and bonds then you should pay a net and so then this would get rid of the whole tax evasion offshore wealth scam because that's all about income if you own if you own any assets in the u.s. then you pay your fair share that would be one way to get to the billionaire class what you're describing there is similar to a tobin tax that's been described before you know strengthening charles that during the forex market rating scandal it was discovered that the trainers were tacking on

one percent to trades and essentially absconding with that money and it was never noticed and other words if you were to put a one percent fee on to these transactions nobody is really going to notice who are doing the transactions that enter bank transactions they simply absorb that cost and they will. be completely on unnoticed and yet it would generate hundreds of billions of thought a trillion dollars of the revenue i often thought here's another idea that the american social security system would have an additional input of capital by simply putting a one percent tax on every single security issued on wall street whether it's a stock a bond a derivative you took one percent is taken into social security this way those who are not participating in let's say the stock market directly they're not being left out of the of the american economy because in their social security pot they have representation so it's no without representation there is no taxation we're familiar with that but it should be that if there's an allegiance to the american

flag if i'm going to put my hand over my heart and sing the national anthem i should be getting a percentage of the output of america which is the financial eyes output of america since there's no manufacturing output of america your thought brilliant idea max because no one's going to try to hire thousand attorneys to escape a one percent feat it's just not worth it so you know as compared to thirty five percent tax rate well then yeah it makes air go ahead you're motivating corporations and financier is to find tax events so a better one percent as you see it's our worst escaping it's like friction to the world and yet it would be as if you're very right exactly it's a de minimus unnoticeable bit of friction and it would mean nothing to them and i both think that if you allow americans to be vested in america there would be less social unrest there would be less risk of social cohesion problems as the economist

magazine would call it and there would be less violence on the street because they are letting americans participate in america instead of being bystanders and just watching the class of billionaires of which they get no benefits other than cheap stuff and wal-mart but they're not actually vested in the. americans have a. curious what you're thinking about this but americans have been divested from their own country and there's this is setting up an enormous problem your thoughts i think that's an excellent summary in fact i'm going to write that phrase down in and out forward for that my next essay because yeah we've been divested so no wonder we're i'm not sure why donald trump lose a business person you know maybe he understands this point maybe he doesn't understand this point his approach to the china relationship is to try to do more deals but it seems like what he's trying to communicate to the american people is look america is moving from a first world country to a second world country we need to manage that transition to make it as pain free as

possible but it's definitely unavoidable and that message should i think ring ring hollow should bring bells that if america must or want to become a second world country they they should do something right what would be a good first step is to just shred all two thousand seven hundred pages of all these tax breaks and subsidies for the super wealthy and just get a twenty page tax code. as you state institutes a very small fee on all transactions of all financial eyes transactions especially and that would be a huge step forward all right charles you spent thanks for being on the kaiser report thank you very much max always my pleasure and that's going to do it for this edition of the kaiser report with a b. nice guys or stacy i would like to thank our guests charles two smith his website is called of two minds dot com if you were to catch us on twitter at kaiser report like somebody else.

they call me a useful idiot i mean you called me a useful idiot a useful idiot useful idiots go expressing my opinions on the first two sins of us doing it behind his record is the same strategy we attack persons instead of talking about the org what's next why stop me from getting this close to the white house i'm with a group code pink why not ban the color pink one or scratch below the right i should be sent to the town one because i want to try to break me on the wheel but what a long time that this will come since you don't scare me and i'll continue to voice my opinion i'll continue to speak out in good company i'm in good company you're

going to be you want to do this because we'll freaking. welcome to the wonderful world of blood donation the out i come here every three weeks to get my transfusion to be specific i receive an email. that my body gets and some bodies that i cannot produce itself around the world giving blood is seen as a symbol of generosity no one does this because it helps people it's just that one of the side effects is that it helped this applies more burning people they put their money on your car immediately after you get done half of all plasma based drugs today come from private companies and are produced from paid plasma as well as compromise you know a motor car will give you one of the risks of a donation in it then it is proof that the frequency of pathologies is much higher

in paid donations and it. if i was mine when i. was over two years old he will go in the money using the drug and who runs the blood business. reporters without borders try to counsel the press events critical of controversial syrian rescue group the white tell me it's something slammed by the organizers as an attack on the free speak. very disappointing to see who would join it is the association asking for the kind of sense all she's. a former croatian general who fourteen poles near during the war in yugoslavia die is often taking poison in courts. all.