or to influence the rules of the game rights in galleys in the real world firms have such power i argue that the more firms have market power the more they have the ability and the need to gain political power thus market concentration can easily lead to a mid vicious circle where money is used to get political power and political power is used to make money so you obviously see that across america now you see these giant corporations spend enormous amounts on lobbyist but they spend even more enormous power amount on funding campaigns funding super pacs citizens united the supreme court allowed for these corporations to spend unlimited amounts of money and why do they spend why are they spending more and more money in america well because the likes of occupy wall street because of all these activist groups because of people starting teachers striking across america as they're starting to strike and protest against the monopolistic pricing power that many many

corporations in the telecoms industry in the health care industry and the pharmaceutical industry have and the stress the ordinary population is enduring you're seeing that they're rising up and getting politically active and casting their votes for anybody who will destroy the pricing power of these monopolies and the monopolies therefore to protect themselves poor more and more money into buying the politicians who won't listen to the people and i guess the question is is it inevitable otherwise ok the media the family was engaged in massive political financial corruption which led to a concentration of wealth and ultimately the downfall of that country so in america a similar corruption playing out we call it money in politics and people try to get rid of the lobbyists and this cycle is being played out all over again and so the question is is inevitable the u.s. will. was created with the toward separation of powers and i toward distribution of

power and trying to mitigate against the risk of wealth concentration lasted quite a long time but now these lobbyists have come in they've changed the constitution they've changed the bill of rights of the end run around the bill of rights i'm thinking about this whole net neutrality debate that's clearly a violation of speeches first amendment and so you have a repudiation of the basic concepts of the founding fathers due to this cycle or corruption but is it inevitable i mean it just seems like there's nothing to stop at the moment it seems like this is how we're feeding as an empire is partly because of this and you can see how it happened back then ok so that would be chief family should they have been compensated for the first to basically market and create a lot of wealth through using double entry bookkeeping should they be penalized for that they were the first to figure it out but at a point where they've bought and you know they become very wealthy they become very

close to princes and other leaders at the time they then start having so much wealth that they create great works of public art the likes of warren buffett and bill gates today they publicly very publicly give huge amounts of money on paper anyway they say that we're giving billions of dollars to fight malaria we're giving billions of dollars to all these good causes and it does work you see a lot of people feel like warren buffett is caught only in a nice guy and why would you have any problem with his you know even he by the way his wealth he himself he states that publicly he said it in his shareholder newsletter that he looks for companies that have monopoly pricing power it just emerged for example that he tried to invest through. billion dollars and what is

seeking by losing money big time right now is they're seeking to destroy all the competition in order to have monopoly pricing power ok but who care the wealth was . a family or was it the artists of the renaissance so the artists of the renaissance created a distribution of power away from the feudal lords of the middle ages and so they had wealth distribution then the medicis came in and they reimposed the wealth concentration so to try to avoid a populist uprising in the pitchforks they throw a few bones at a couple artists and say we love your work here's some shekels to go build some more i have this they did finance some of the most spectacular is devin she was one of the greatest artists of all time and he would relied on them with the family for a lot of his funding so it's not like they didn't participate in that but in terms of what's happening in america and how the process happens zingales and this is

actually a piece from constantine there are also some metric incentives for the firms to engage in rent seeking as in galleys notes if the ability to influence the political power increases with economic power so doesn't need to do so because the greater the market power a firm has the greater the fear of expiration by the political power this sounds extreme but it is quite intuitive as a firm gains market power its prices rise above the marginal cost yielding abnormal economic profits to the firm at the expense of consumers the governments can and do claim political mandate to limit these profits by taxing the market dominant firms profits either through regulation or direct taxation thus express in part of the abnormal returns i want to point out that you know trump is a business guy first and now he's president and you know you saw that tweet trump says major drug companies to announce massive voluntary. price decreases in two

weeks this is part of that fear of these pharmaceutical companies who have intellectual property they have the department they have the whole government on their side to enforce the strict intellectual property rights and to jack up prices one hundred percent to ensure percent three hundred percent a year and their life saving drugs and a lot of people you saw this in the twenty sixteen election you saw in the two thousand and twelve election you saw the two thousand and eight election president after president you know political candidate after political candidate claims that they're going to fight this one issue that americans are really against or against the banking monopolies and they're against the pharmaceutical and health care monopolies that are imposing so much severe cost on their basic necessities of life and they keep on to stop this monopoly pricing power as trump is recognizing here but of course he's not doing it through regulation and he's not doing it through government diktat he's just asking them for a voluntary price decreases allowing them to remain the storage of you know power

centers to refer to something in the text that you're reading there they are talking about a normal rate of return so the business community which is owns the media and they own most of the government would argue there is no normal rate of return or a milton friedman type argument would be that our only responsibility is to create a maximum rate of return and it could be an infinite rate of return and there is no excessive rate of return that could be considered deleterious to society at large and my view is that of trying to establish what a normal rate of return is there should be more of a competitive environment yet by introducing competition in two ways let the interest rates in the economy be set by the market in the poll of bureau the stasi that is the central bank and. reduce universal basic unco and or fun the arts and

entertainment way to create offsetting. competition to reign in this predatory monopolist they do point out in this article and too long to go into it but they do say the abnormal rates of return happen only when there's no competition that happens in an absence of competition because if you could dig a rock out there and sell it and you your profit margin is one hundred percent usually competitors come in and say well you can make so much money doing that and it drives the the the return down to just basically a little bit above the market business cycle yeah that's capitalism that's what you'd expect but you're saying that they're destroying their own position the revenge or their competition so we've seen that of course with bank they do as you pointed out this ended up destroying italy having this very family they were great guys perhaps and they and they helped a lot of the arts and they were nice people incredibly perhaps like warren buffett we don't know but the fear is of what i call a vicious circle it which money is used to gain political power and political power

is then used to make more money and the case of medieval italy it turned florence from one of the most industrialized and powerful cities in europe to a marginal province of a foreign empire at least the mid-east period left some examples of great artistic beauty in florence i am not sure that market capitalism of the twenty first century will be able to do the same and they need a new renaissance to weed out the potentates in aristocrats during the middle ages created the lords and serfs in the dark ages and then of course triple entry bookkeeping with crypto community and that is the new renaissance otoshi is the new dimension and where patrons of the new renaissance of art like alex shaffer who's burning down the banks on canvas you know as a representation of what needs to happen to stop this vicious cycle. but without being paid. and isaac they don't go away much right michael hansen will

be in the secular don't go. to church secret indeed just like priests accused of sexually abusing children can get away with it literally i like to call this the do graphic solution so what the bishop needs to do then he finds out that the priest is is a perpetrator is simply moves him to a different spot were the previous standards not the highest ranks of the catholic church conceal the accused priests from the police and justice system to that end of themselves and as the i intend. to do.

this. is felt. for a world cup twenty eight team coverage we've signed one of the greatest goalkeepers of all time but there was one more question and by the way was going to be our coach. guys i know you are nervous he's a huge tournaments and the huge amount of pressure you have to go i mean eight percent of the poll with you and you saw the all the great the british you are the rock at the back nobody gets past you we need you to get the ball going let's go. alone. and i'm really happy to join the fall of two thousand and three in the world cup in russia meet the special one come on top of. me to just take the rio p.r.t. teams will they just. should make up

a bigger certainly better jersey look. at. the events of april twenty eighth one thousand nine hundred six in the historic town of port arthur tasmania for ever change the course of history here in australia for thirty five souls lost their lives to a gunman's mad massacre was the catalyst for the australian government's win at massive sweeping changes to the laws regarding ownership buy and selling of firearms maybe it's time for the united states to start looking for help. for maneuver sitting in a car when the phipps gets shot in the head. all for different versions of what. one of them is on the death row there's no way he could have done it there's no possible way because the lists do

not shoot around a corner. well go back to the guys are a part time max kaiser time now to go to somebody who will explain how in fact the world got so in the same way day the expertise the deep thinking and the renaissance like mindset of dr michael hudson welcome to the kaiser report good to be back next i just heard some rumor you were in china ok break it down for us what's happening there trade talk trade wars how stropped impacting that country well it wasn't much struck at the trade war there was much struck about whether it's going to go off privatization route you remember last year the last two years actually there was a big fight against corruption and the government's response to corruption has been

probably the only response it's going to take in and that's your office it's. your oxys really tightened up the government budget and. universities i'm a professor at university and so they look for more and more partnerships with the private sector even for large conferences like i do that they needed private sponsors they know the airfare and bring people. business classes that are regular class so there's a running reliance on privatisation as the alternative to corruption so what that does of course is privatized corruption and the big debate is over whether to let private banks into china the american administration has been pushing to let the banks that go up and this goes hand in hand with what their real economic tensions

and that the real estate prices their real estate prices continue to go up almost entirely because of bad. and what i was trying to say and what my friend david already was driving to say was to say you guys are marxist politically but how about looking at what marx wrote economically volume three of capital where he talked about the self expanding tendency of credit and if you know that american banks then how are they going to get this they're going to get business by lending to real estate just like chinese government banks to private lenders but they're going to try to make it easier terms easier credit lower down payment and the effect is going to be that bit of posing prices all the more and you're going to have what happened in the shanghai property market a current beijing shenzhen one and other chinese cities and this is going to create a bifurcated society if we're going to raise your housing prices and undercut your

long term competitive position because you can say internationally you know prices are a reflection of wage levels and wage levels are what it costs to buy housing and pay the banks the mortgage necessary to get a housing then you're going to fall for the western finance capitalist. this well are the arguments didn't get all there that far but the response we've got regarding from the women and the women all said in china if they're going to get married they have to find a guy whose family is given him in the apartment to start carrying the women can get it's very hard room and they get salaries to pay so i can see that china is following the asian route of women getting paid much less than men and that actually is the key to their export competitiveness because if you look at the

assembly lines and korea or china you find the export industries that are women they're not. so you have a man having a high salary i'm the apartment and able to sleep for a wife or i women at a very earnest such a low income comparatively because of the inequality there the export competitiveness they export intended this is based on male supremacy you could say that's one problem the second problem is that china wants to avoid a rural exodus into the cities it doesn't want the kind of overcrowding that has led to slums in latin america africa and other countries so what it does in order to live in beijing jen or other cities you have to have a passport for that city meaning you pretty much have to be born in that city well that means that the students that base in university come from outlying areas rural

that breaks once they graduate they can't get a job in beijing or an apartment they have to either go back to their cities of origin and so they can. beijing nates other way or they go to work or a institution like the university that has housing for its own employees like. a college or a high school that provides housing where it is so very much like the old soviet system used to be where every company would provide housing for its workers entertainment workers and you're having this kind of segmentation of the economy taking place and the question is how are they going to break it. they haven't sold that yet but that is the main problem that they're working on that china of course enter a world trade organization under clinton and sense the economy has

expanded magnificently they've. transition from essentially communism to capitalism with that dale and they fatten uninterrupted run of growth and what you're suggesting and what i'm reading is that they're now trying to figure out how to handle a contraction to that growth and they've playbook of course in capitalism the system that they're emulating is to let the losers die and don't bail them out a hell of. a peer a capitalist society of course you don't see that america anymore about in the purest of a capitalist notion whereas in communism of course that would not be the case so it seems like there's a split philosophically here now that they've had this big run this enormous g.d.p. expansion thanks to inclusion in the w.t. you know now they're facing a huge

a different problem in their history modern history i see you're shaking your head so my off base what what do you have to say that i don't think is the w.c. you know real trade organisation is bringing them china's has been development so far is almost identical to the american development in the nineteenth century and the german development and that of anyone before is a mixed economy and the key to its mixed economy is the government's has to control the infrastructure and provides basic infrastructure services like education roads transportation either really or do last is the look of infrastructure that made america so competitive in the late nineteenth century and early twentieth century now the real trade organisation is basically milton friedman. margaret thatcher privatized everything you can't have a mixed economy only the united states can have a mixed economy and mixed economies going to be basically military now let's say

and monopolies to manage china and other countries and. so china. has no intention of letting america dismantle its economy and right now you have the ideological attack from washington saying you've got to privatized your schools so that your students will have to take on the student debt just like american and us to privatized your education so you can have as rotten an expensive transportation system as one but. you can just as actually commit economic suicide what you please do that and. join the west and china has no went to china says there was a lot of discussion about we don't want to do what the russians. have because the russians have never read marx they didn't understand capitalism and had no idea what was in store for them when they let neo liberals plan their economy in the one

thing that it's china has maintain a. dual income it's a mixed economy with the public sector so it's going to continue to do this and as you can see with the fight over. ip. technology right now it wants to be free of america's ability to create a technology monopoly to make it dependence and so you're having this this tension political tension there of wanting to sort of. avoid having a military like that with the united states libya style or russia. while it's still trying to maintain the export markets to get enough money to buy the technology and the raw materials that it needs to continue to grow its i didn't say all right let me jump in or because you're you did say though that the government have come down on corruption which in turn have. decreased the

g.d.p. growth which as that. inspired the government to do sco to the private sector and invite privatization and we're saying of course then you're just privatizing the corruption i get that so but why would you then make be a next step and say that they have a political philosophical ideological problem here because they have not experienced a wholesale collapse not sense the nineteen thirty s. maybe has there been a huge collapse in china you know and so how do they get if the people are in revolt and they have a history of revolting i mean how they're going to calm folks is the trick question next the slower the g.d.p. growth the faster the economy grows because the g.d.p. is a fake measure the g.d.p. doesn't measure growth it measures how in all the growth in america g.d.p. since two thousand and eight has been the banking sector the fire sector finance

insurance and real estate it's fictitious growth in the west china has avoided fictitious wrote and it's pursued the kind of growth that doesn't show up in g.d.p. namely low cost services provided by government investment that isn't counted in in the g.d. a so to china does not follow a statistical measure of growth like the west in china statistics that are talking about real growth their growth is continuing is not taking the form of a construction life as it was or is not taking the american form of increasing banking is not them taking the form of increasing debt service life in america but i can assure you that the economy is continuing to grow just as it was before but this doesn't show up in the g.d.p. statistics because they don't follow the g.d.p. statistics that are designed by the financial sector to celebrate itself ok let's

look at the other side of the equation or let's look at america eve of course. super a period lism many say that the us empire is honest last legs we've got a study out the top ten percent of americans are the new aristocracy controlling huge vast sums of wild life expectancy in america is down in from a terrible the op student debts over a one and a half trillion looks bad what so how it we only have about a minute but how would you characterize the american empire at the moment fighting desperately to keep its control over other countries and try to say that all the growth of other countries and the united states is trying to do this by. placing the old round of colonialism with a monopoly it wants to monopolize all the high technology all the finance everything that other countries need for essentials in its own hands so that it can

statement on their growth doing so and other countries are breaking away china is breaking away. russia doesn't know which way it's going to go and we're seeing the tensions playing out in europe right now in america so i don't buy cheap russian gas buy expensive american gas and the germans whatever you say and english say ok so. america if it sounds like a good joke is in there somewhere we're got to do that the next time dr michael hudson thanks for being on the kaiser report. and that's going to do it for this edition of the kaiser apart with me banks kaiser and stacy herbert like to thank our guests dr michael hudson and generates on twitter because a report until next on bio.

i think the last of the interventions military interventions. did. be to listen to. the receiver change will suffer from upset and take iraq with saddam hussein take a leave i think. we should we all should tell you go talk to these nation listen to me she changes build those who should accept our limits but i think the ideal for regime change military into the shoes from outside this is mostly all that.

sort of.

radially reinforced rammed earth bricks is what they really are. there's more than seventy houses about one hundred forty people with families living here. it's really a way of forming. their sons coming in and heating their house and being stored in massive walls. sagebrush is the natural environment here but as we're containing the sewage and using the plant stuff to process the sewage we create our own little way says here.

from the world cup to world war three foreign policy the spotlight for domestic issues during that imitates in the sixteenth. with the public. also the u.s. congress debates a new war frys ations bill introduced by some of. his critics would significantly expand the president's power to launch military operations. we've gone through seventeen years of war. you would drop this proposal will have one hundred seventy more a loaded gun in a desk drawer of the president ready for him to take it out and shoot it whatever it was. i'm like up call britain's of the parliament the house of lords the right to die for members for his sleep during sessions we get to it we get reaction.