his on off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. this is says harlan kentucky. over all of this move the voice to the border industry. a ko money since he was almost no coal mines left. the jobs are gone all the pay was to. live to see these people as survivors of disappearing before their eyes. i remember thinking when i was younger that if anything ever happened to the coal mines here that it would become a ghost town but i never thought in

a million years i would see that and it's happened it's happened. america has a welcome to the kaiser report prepared to be in the late. plays well we're going to continue a bit on this whole united states of inequality and the preparation as we head into the midterms because a lot of data is now coming out about twenty sixteen elections there's micro data that new york times came out with and it's really quite interesting but one thing i've really noticed and this goes with the data i'm going to look at this billboard this says colorado billboard replaced is zero in g.o.p. with soviet hammer and sickle and this is from a democrat

a resistance hero and he is posted this in colorado and i responded to that with this tweet and yet with this command and control monetary policy and state subsidized banking system and mortgage market it is the us which is far more communist than the russian federation even the i.m.f. agrees as we had just recently spoken about in our report where they i asked had said well actually the russian economy monetary policy is way better than us policy welcome to talk of your theory about data versus ratings go ahead honey this is your show ok but before that let me just comment that i've been saying this for quite some time that the u.s. and russia are two ships passing in the night with america becoming more soviet like and more good stop zero stasi like and russia becoming more free market like and we're seeing that trend play out down twenty eighteen in a big way but to the idea of data versus ratings so the people who put up

billboards like that are part of the core poc arcee they're part of comcast minions on m s n b c. ratings by sensationalism and propaganda the other side of the political spectrum the trump camp uses data they just look at data and that's how they want to twenty sixteen that's how they're going to do great in twenty eighteen that's either going to win in twenty twenty because they're not ratings driven trump is. data driven and so in toll the democratic side figures out to look at the data hillary spent billions on data and famously chose to ignore it she thought her instincts were better than the data and that's why she lost we'll get into that another episode but i do want to mention that the democrats are the ones that enabled the all of that enabled google and facebook to capture such a large share and not basically break them up via anti-monopoly anti-trust laws so they're the ones that allow them to collect so much data and yet that's part of the

reason why i think they have this sort of mental breakdown where they have become the republicans of the one nine hundred fifty s. and now in fact what the data the actual results of twenty sixteen show is that america's factory towns once solidly blue are now a g.o.p. haven a generation ago democrats represent and much of the country's manufacturing base now it is in g.o.p. hands a swing remaking both parties the republican party has become the party of blue collar america this is from the wall street journal and they say after the one nine hundred ninety two election fifteen of the twenty most manufacturing intensive congressional districts in america were represented by democrats that was during the clinton era today all twenty are held by republicans the shift of manufacturing from a democratic stronghold to republican one is a major force reshaping the american economy it's an politics so this is bill

clinton's it's the economy stupid and it's very interesting quadratic phase shift and let me explain that more you know the democrats versus republicans republicans used to be the party of wall street and big business and the democrats were labor under trump trump as a republican is now the party of rebalancing the global economy and getting into trade wars and fighting for main street fighting for the worker. the democrats now are left with fighting for wall street and monetarism and money printing and the federal reserve bank and lawrence summers and all the group that robert ruben rado's are going to need that. deferred to when he came into office instead of fighting for the individual all the debtor member obama bailed out the creditors they bailed out wall street and now trump is doing the opposite so the worker senses this and supports trump so again twenty sixteen was a radical break from history this is partly why there's that breakdown.

and what's going on with the conspiracy theories on comcast cares m.s.m. b c there is a breakdown you have to anybody from objective lee can see that there was a break there was a break in the working class the working class is now in the g.o.p. remember those areas hillary called bucket of losers and baskets of deplorable zx well those sort of insults worked for her precinct data shows rich white neighborhoods flipping democratic in two thousand and sixteen will it last republicans have been the party of the rich and democrats the party of the poor for about as long as political scientists have collected data on american elections that might not be quite so true anymore at least among white voters hillary clinton won the nation's richest most exclusive neighborhoods by

a wide margin in the twenty sixteen presidential election according to an analysis of election results. of washington state university and census data and donald j. trump fared significantly better than mitt romney and the white districts that were the least affluent and least educated so again you always think of the very very wealthy and this is what it households above two hundred fifty thousand dollars income they basically voted for hillary clinton and this used to be the classic republican voter but now there are democratic voters so whatever happened something radical has happened and the radical results were most apparent in two thousand and sixteen right well trump is took a calculated risk if he knew he saw that there's an enormous constituency of workers and the disenfranchised were under serviced by their longstanding party the democrats and knew that by co-opting bernie sanders policies he would win the

election because he knew bernie would beat both trump and hillary so he said you know what they're going to write. they're going to throw bernie overboard i'm going to take this calculated risk i will be bernie you know sanders with crazy hair and i'll win the presidency and he was absolutely correct you know as far as g.o.p. madness and the democrats having the red scare you know i did see some courageous behavior by hollywood liberal elites like alec baldwin who has come out and said that any money made on this movie mission impossible in distributed in russia he's going to give that to charity any of the money made by distributing this film mission impossible ball is going to give his portion to charity wait a minute that's not going to happen because he's afraid well speaking of red scare here is the district wide detailed map of america and this is from the new york times they've just collected all the data they can two years from since the election to gather all the data so you can see all of the deplorable and losers and

make up much of the country according to the democrats according to m.s.n. b.c. according to c.n.n. according to hillary clinton lovers those people are losers here that the blue areas i want to focus in on north carolina this is where we're not in the deplorable zone losers apparently hillary clinton things where winners so we're in the blue area there but yet the breakdown they also showed unique to twenty sixteen election versus other elections was that there were basically they each won by landslides in their respective districts whatever the county district they won by a landslide which suggests more polarization hyper hyper polarization and hyper partisanship that is getting worse and worse and more and more determined and the new york times analysis suggests that that's even beyond gerrymandering it's like

the opinions are forming and it's changed a lot since the ninety's of course when. rupert murdoch entered the us with fox news fox news won the ratings race by hyper partisanship and m.s.m. b c nationally followed so m.s.m. d.c. has their competing conspiracy theories to fox news's conspiracy theories and it's hyper and. all sorts of studies have shown as once you embrace a conspiracy theory is no amount of facts in fact if you are presented with facts to the contrary that prove disprove your wacky conspiracy theory you're more likely to believe it even harder so i think we have these two competing conspiracy theories there they're very popular there i mean that's how alex jones has had so many millions of viewers and dedicated listeners throughout the years as if you have a conspiracy theories people love it and they will just keep on tuning in to get it confirmed over and over and its planes read so much oh yeah she's got her because apparently there is trying to grab alex jones as market and our show is being

phased out of social media because rachel maddow is the chosen one she's the conspiracy theorist that we must all listen to but you know the point about murdoch's a good one because murdoch represents the age of big media ratings driven political manipulation that's fading yes and trump is really the new era of data driven artificial intelligence driven political policy driven long driven by tweets tweets and social media this is part of it's cut out murdoch it's cut out so does the m.s.m. b.c. and i think that's part of the reason why the likes of rachel maddow are struck so you know vocal about getting facebook and twitter to shut off the voices that they don't like to hear in their heads. yeah well put and then we call rolling with this no also i want to quickly turn to another headline from the u.k. and this is u.k. household debt worse than at any time on record brits are living beyond their means like never before twenty seventeen each household spent or invested about nine hundred pounds which is one thousand one hundred eighty seven dollars more than

they received on average which is twenty five billion. dollars in total according to an article published this week britons were previously net borrowers in one thousand nine hundred eighty eight the height of the credit fueled economic boom generated by the chancellor of the exchequer nigel lawson but even then the shortfall is just three hundred million pounds here's the financial position of u.k. households the chart and since the financial crisis and since the bailing out the banks since the basically free money for the top the socialism for the top and their their unfettered capitalism for the bottom well it's led to the only way to even sustain the data also shows that these people these people aren't like living the high life they're basically borrowing in credit cards or buying their food paying their rent paying for electricity on their credit cards right so austerity measures that were brought in simply means that the government was going to go into debt but the consumer did you know the consumer is suffering well we had

a guest steve keen on kai's report and he did say he did predict this would happen as soon as the government stopped spending that the household would have to start going into debt instead exact. it was up and whether or not it's stable i don't know but i doubt it is only throwing gas on the fire you know the u.k. is like the appendix you know you can take your appendix out your body and the body continues on it's just an appendage. so this is what people don't understand is that the u.k. leaving the e.u. the e.u. continues on great but if you take the appendix out of the bodies it's going to wither and shrivel and die because it has no body to exist anymore and this is what's happening in the u.k. and it's going to be a lot of fun to watch because there's been living beyond their means for so many years now and now it's all coming home to roost germy. anyway we got to take a break and when we come back a lot more coming your way don't go away. with

hopes and. put themselves. on the line. to get accepted or rejected. so when you want to be president injured. or something i want to be rich. that's a going to be for us to see what the flag tree in the morning can't be good that. i'm interested always in the laws of our. city. the border. first.

welcome back to the kaiser report i'm max kaiser a time that i got a nice spell florida as speak with carl advantage or a market tech or that's a market hyphen tech or dot or a car welcome back and thank you very me on the x. carl down to the corporate media is up in arms about trump's trade war with china and a visitor to your site might get a hyphen ticker dot our i will say that you however thank it's not necessarily a bad idea how can a trade war be good car all well when you have trade that hasn't been free for a long time but you've been selling it to people is free then making it actually free theran open is positive and if you have

a ten percent tariff going one way and ten percent tariff going the other way that's free and fair right i mean you know it's everybody everybody's equal the only reason we've had the kind of trade in belle's we've had united states over the last thirty years whether it be a good p.n.t.r. it was granted to china or will it be now after is because corporations have exploited what amounts to slave labor environmental destruction policies in other countries which you can't get away with in the united states we were told would never was passed that the four dollar an hour our early labor cost for manufacturing mexico would rapidly rise to near parity with united states so that ours might come down a little bit maybe from thirty dollars an hour or twenty five but then there is would rise from forty twenty to life and here we are a couple decades later and the our early labor cost for manufacturing labor in mexico still four dollars an hour so obviously that was a lot and the same thing is true with the chinese but of all over now

china is even seeing some pushback and so now you're seeing labor you know are good but mean like how much clothing is made trying to. right los it was meant places like bangladesh and vietnam because china actually got too expensive for them so they want sixty cents a day just so close and you know three bucks so i mean this is this is nothing new and correcting nuestro is a good thing the other thing into remember mannix that goes with us is that it is always most efficient from a operational perspective to business point of view to manufacture things close to the point of consumption because shipping is not free and so the only way that does not work out their way is if you're exploiting somebody so where. so if i want to consume a car in mexico i would be best advised to build that car in mexico own a consumer card china would be best advised trying to want to consume a car united states best advised bill that you know states and the same thing is

true for the components of arts and whatever have you the only time that's not true is when somebody is getting screwed and so what we've had for the last thirty four years is a lot of people getting screwed a lot of people that have been getting screwed because their jobs have been displaced but americans i get that point and now that the u.s. has been able to outsource and environmental degradation and you know capitalize on what have effectively been slave wages and now it's company office this is reversing and now we're seeing a lot of reversals out there we're going from quantitative easing a quantitative tightening a guy from globalization to i think what you could call the globalization if in fact trump keeps down this path and goes after a completely different trade relationships with countries like china what happens domestically to the u.s. i mean some say that ok the cost of building factories hair in the u.s.

would actually be compatible with china is that part of the a mix going forward will we see more factories being built here because it. m.r. competitive carl yeah you will but you're also going to see some some rather interesting things happen the margins. and this is of course why you have so many people screaming about this year you look at apple for example they make i phones they get about a forty percent operating margin making my terms of gross selling price versus cost . the reason it's forty percent is because the screws that go into the frame internally are made malaysia by people that earn fifty cents a day or slates they're brought over illegally and then essentially have to pay bribes in order to stay in the country and so those screws cost much less well what happens if you stop all of that abuse and you bring that labor back in united states. if apple could charge one hundred dollars for an i phone start files and if you do it right now if g.m. could be charging six thousand dollars more for car they do it right now i mean

that's what capitals do right you charge as much as you possibly can given the realities the market so if you stop that what happens is apple still charges a thousand dollars for i phone but their margin on the i phone goes from forty percent to twenty five and that has a rather interesting effect on the stock price sounds like inflation so you know that that is obviously not been discounted in things like the bond market. and now we can see how that's going to play out going forward but i want to kind of skip along here to some other points and then is ok or thoughts on it the g.d.p. numbers came out last week and the u.s. economy is allegedly growing and over four percent what it what you're thought their own no it's not. in the last four months june thirtieth to june thirtieth the united states treasury emitted approximately one point three trillion dollars in new treasury bonds that's money into the economy d g.d.p.

expanded by approximately one trillion dollars during that same period of time all of the one. three trillion immediately went into the economy got spent so you have to subtract that off the g.d.p. expansion or when you do that we actually have a negative g.d.p. number but of course nobody does this that scheme has been going on for a very long time and you have a new show nitro been larry kudlow you know we won't get into what i think of him. i want to say how wonderful this is but the truth is that it's not that the country has been running a negative g.d.p. number in terms of actual real output for a very long time and it's continuing to do so because if you have some number of units of cars and t.v.'s or whatever and you double the amount of currency or money just is flowing around by them you haven't changed the amount of outward by one bit and yet g.d.p. will double mathematically ok so you have to state g.d.p.

in some kind of unit that's not something it's temporary like there's like hours of effort or joules of energy i want jewels energy myself but nobody likes that because that would expose the truth. and so does numbers are all smoke and mirrors in the end can you make them go up an indefinite four basis you know or somebody within the restoration is running around saying that we could see eight or nine percent numbers well sure run a three trillion dollar budget deficit you'll see a nine percent number but then does that mean that the economy is actually expanded it nine percent oh it just means you put the money in the system this is a point we've discussed in the past they are the numbers that the government publishes are smoke and mirrors in a lot of ways and don't give a true picture one number and one trend that does resonate with the population is this waffen income gap the fact that so much more wealth is concentrated at the very top and people feel that they see that and they don't necessarily need to look at the numbers to try to figure that out then they see what's happening in the wake

of this we're saying a trend which is new and powerful it's called. democratic socialism so politically speaking i've got candidates than on the left wing of the left party who are making waves what this democratic socialism so if it tied to the economy car in other words the numbers are nonsense it's numerical propaganda but people now you know that they feel however that they're getting screwed so now that politically they're resorting to voting for socialism air thought all are going for getting screwed more i mean you know looks just to bernie sanders you know medicare for all promise that he has would put over two trillion dollars a year into the federal budget we're going to get the money the answer is he's not the reason that you have this problem and was mastered for all these years is the trade deficit when you know during obama years you ran

a trillion dollar deficits essential as far as the eye can see and trump last june of this year and there's one one point three in real deficit not what they report the six hundred billion but the actual number if you look at debt to the penny that's the numbers are right so when you do that the only way to avoid debt showing up immediately in places you don't want and having the fed react to it is to export it to places like china but when you export it to places like china or trade imbalance what you've exploited is the jobs. so the people get screwed one way or the other which way would you want to get screwed would you like to have prices go up or would you like to lose your job you lose your job you know already so you know tell me what the difference is we have to fix these imbalances structurally with our economy and turning to people like cortez who can't even answer the question where are you going to get the cash to put these programs into place. what little bit you know we do the baby bubble thing that at that point same

thing with sanders so i mean am i surprised that people are saying hey you know we're we're take. in the shoe and we don't like this we're going to go for something else. ok farai but be careful because what you're voting for is to swallow or grenade ok to take to your point on they are you willing to lose your job lot of people were willing to lose their job because prices for stuff play made in china was cheaper and they had the illusion of not having their standard of living collapse but now it seems as though the big cycle is reversing and we're seeing some action in the stock market and i want your interpretation of this because you've got facebook and twitter plunging twenty percent or more in a day facebook lost one hundred nineteen billion dollars in market capitalization one day that's the biggest hit in market history so the so-called fang stocks seem to be rolling over and i'm actually carl there's a price to pay for a smoke and mirrors and for

a massive money printing and for not accountability and so are we at an inflection point in the stock market or is quantitative easing going to make a comeback to save the day again as down forty thousand car off you know you know to be able to do that because we got the trade deficit is deferred was to try to do that you'd have ten dollars a gallon gasoline in about an afternoon so that's that's not going to happen. you know that you want to talk about you know cities burning in the outbreak of true unrest is because i was to try something like that you could get a result like they have in argentina where you look obviously neither of those so i don't see that in the cards at all what i do see is a shift of production back in the united states i see margins coming back into where they ought to be i see a lot of the smoke and mirrors companies cough cough amazon cough cough by the way has a you know across subsidisation model that i worked for

a long time i was lately legal you have facebook which is which makes all the money by selling data on you so that your insurance company can see. screw over another four dollars recorder surance. these these kinds of models will collapse and so will the value if you think about it max who does it hurt it hurts the guys you know that that's the income inequality problem right. zuckerberg loses twenty billion dollars a day well gee that helps income inequality right he's rich as he was before so that kind of thing goes already calling it what you know a realistic model for it actually benefits things especially a production comes back to united states another common person as a job and or a right in other words wall street is the big loser going forward and main street could be the big winner and that's the way markets go karl denninger thanks so much for being on the kaiser report thank you. my pleasure and that's going to do it for this edition of the kaiser report with me max kaiser and stacey everett i think our

guest karl denninger of market hyphen ticker dot org the place to go for data and analysis and get that niceville florida vibe if you want to catch us on twitter as kaiser report intellects time. russia is one of the countries that most by capacity and all the very high population does that mean russia does need to be concerned about sustainability i would say yes absolutely you aren't as lucky situation where you have a lot of farm per person so to say you know you have a lot of wealth ecological wealth and but the word is very scarce so that's a huge economic advantage as well and saying wow this is an amazing form let's look after it well because that's our asset that will enable us to live well the long run. of the people in you

know my experience of that. we were in. the all day spirit insists all of this. massive growth and. he would not outflank that.

this r.'s headline stories on our u.s. national security and intelligence chiefs doubled on on trying to tell a major foreign interference grow over the upcoming midterm elections. refugees in jordan are being required to handle for a biometric data in order to gain access to a. journalist from the redfish group investigate the ethical concerns around the. fundamental principle but we will bind is in full legal matter that we can do it but i've let it. go also ahead nato develops a game to teach clears how to spot fake news but critics say it's simply a propaganda tool.