listen you know you know i've ended up my son i guess i'm in a lot of class and i want that. they had a lot of the options to stay in the country with donald trump in the. movie political rivals. to be about to be. said see struggles of many couples. to which the putting food in spawn who both of you out to a few of the folks of the. i this is max kaiser there's the guys report later on the program i will not be talking to later not a cabrio of bruce willis. yes we are still in hollywood this is downtown los angeles california it is now become not so much just skid row it's also hipster

hill you know everywhere there's skid row in and the west coast of america you also have. seattle silicon valley and downtown l.a. you know one of the guys leading the whole silicon valley wave of hipster mills's google's eric schmidt accidentally discovers labor unions so you remember last week eric schmidt c.e.o. of google he tweeted let's find ideas that can increase the wages of one hundred thousand low and moderate income workers by at least ten thousand dollars delighted to support call for ideas for a unicorn for the middle class j f f's one billion dollar wage gain challenge now it's interesting because of course google and silicon valley exist due to government subsidies government subsidizes all the preliminary the primary technology that goes into an apple component or darpa of course is the basis for

google and so these guys are riding on top of government subsidies government essentially has provided this guy's with a guaranteed wealth and now eric schmidt thinking that he has invented this somehow magically from the unicorns out of the lollipops is talking about well how do we create that's like a union they're collectively got to sit down in a room with the president and negotiates basically you know cushy jobs for themselves because she contracts right now the word for that would be cartel this is attack cartel and no less punish just then the opec energy cartel like another way that you can rectify the situation is that everyone's got a social security number in america simply put one percent of all funds that are. underwritten wall street all stocks all bonds all currency swaps into social security and give all americans a chance for just being in the economy that they themselves are building and paying

for through their taxes why should americans work after taxes stall and obamacare stall and that have through the central bank that money transferred into the pockets of a few cartel members to create wealth and income gap social unrest social cohesion risk and wide scale poverty why should that happen doesn't have to happen use your engineering skill to do something aside from lining your own pocket in an ugly self-interest and selfish way eric schmidt is eric schmidt one of the leaders of the resistance we saw the videos from google after chunk was elected like how horrifying this was but here they are working with china on an acting authoritarian dystopian future policy and they're happy to do that so it's like well even if we have the principles or we don't so either you shut up about authoritarian ideas in one country and if you do if you are happy to facilitate them and another eric schmidt is addicted to spying you know stone is an alcoholic or a threat to doug's drugs they're in denial right they they are they don't see

themselves as having a problem eric schmidt has a very deep rooted psychological problems addicted to spying on people and he's trying to be in denial by saying he's justifying it and saying somehow he's not he doesn't have this problem and he's a social pock pock marks on our society and he looks at it is look at the guy and you can see that this guy is a blister an open sore on the american economy and he's a bull glistering plus phil nightmare nobody is. you know extracting from our public debate sadly and then finally when i look at this one bit of the story that is remarkably so we're able to say oh my god this is poor fighting that this happens in china but the exact same thing happens here paulson said that the dragon-fly system that google is developing for china. contained code to ensure only chinese government approved air quality data would be returned in response to chinese use or search the country's authorities have a history of manipulating pollution data raising the possibility that google would

provide chinese citizens with false information to downplay the amount of toxins in the air so look at what happened with fracking so in north dakota for example you have to dispose of the fracking water and the fracking water has is highly toxic you produce four gallons of toxic water for every gallon or every barrel of oil produced you produce four barrels of toxic water well once there's so much nuclear waste in there that radioactive waste that they basically just deep hold memory holds the information they just they got rid of the laws against it so they just said ok we'll allow it so i'm just saying we have the similar laws we just disappear in memory hole facts that are you know contrary to profits we have to corporate profits so we're saying well ours is capitalist authoritarianism there is communist but it's a classic example of somebody you face and tell you it's raining all right well

much more coming your way right after this break don't go away. the idea of freedom of speech is under threat speaking your mind can blind you into serious trouble now you are presumed guilty and must prove your innocence the herd moves and the sovereign individual has cowed into silence speech has been redefined as purchasing.

church secret indeed carefully priests accused of sexually abusing children can get away with it quite 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 doesn't do that it does no good as the end then i include at tuesday's out in. this. case both. welcome back to the kaiser report imax jazzers i'm not certain ellen brem author of web of debt and she's also a public bank activist who is part of

a much larger group of activists with a success story right here in los angeles own brown welcome back thanks max all right this is a fantastic suggestion up on what's up winning here in los angeles voters will get a chance in november on the option of having a public being. about the measure ok well i'd say it's actually a measure to get a charter amendment a city charter has a provision that says that the city may. be french and municipal corporation that goes back to one thousand thirteen except if it wants to do. something for a commercial for commercial enterprise they have to get permission from the voters right so if the owners of the city create a purely commercial enterprise thus amending the city charter this changes stuff right what sort of activity do you see emerging out of this well we would argue

that we could actually have a public bank at west center commercial enterprise they would just be a public utility but if they wind you actually. credit into the local community which they can do so be good for business for students good for infrastructure all that sort of thing then apparently they need to get voter permission other cities don't have that restriction so that's what we're doing but the problem is the city council put that measure on the ballot themselves and joe i and it was just a total surprise to us and so we just tomorrow we had six weeks left and the groups that motivated this it's a very active young people route there. that is mostly million there were down there every day and city hall trying to get them to divest from wells fargo and the city city council agreed but then the question was where do you put your money

another wall street bank which is sort of defeating the purpose so they got the idea of the public forming a city bank and that and the city council got behind that which is great where we're excited that they're behind but it's short and probably bank out this group has no money so just the hoops you have to jump through to do political things here every campaign committee is quite a bit is a lineal as they got disgusted with wells fargo because wells fargo been doing some it shows just things all across the board they spectacularly. unbelievably bad so then they're thinking well you know we don't want to go into another wall street banks so we'll do you know is there another option and then they discuss this public bank idea in then they found alan brown in the words you've been around doing this for a while how did how did you get in yeah well a year ago they had it when i mean one person that was involved with them knew

about public banking and they had an event and they had me speak and they had some other probably people speak and that generated interest. when someone else are saying these are twenty year old twenty twenty the twenty nine or thirty five hundred thirty. so this is all new to them of course you've been writing about this for years and so do you feel you know having seen this evolve for a while that this is going to finally be a push toward this very very necessary public bank facility opening up well and we definitely need the pressure on the ground from the grassroots and that's that's what they're bringing i mean we've had been we've had over thirty bills that have been brought by one sort or another in cities and states across. country by the way you need is a constituency that really wants it because you can always the legislators can always find a reason to say no but what's impressive weight is when you come up with some legislators that will say yes we should do this and what motivates them to do that

is is that true it's really pushing it so yeah from my point of view it's like thank god big troops arrived three but we're going to have this for a long time and now we actually have a groundswell from the bottom so people are starting to understand that concept like cut out the wall street with middlemen and you save a lot of money i mean it's just i.b.s. that if we do it ourselves it's like a cooperative that if we do our own banking which is not that complicated these days and talk and pewter eyes then you can share the profits among the owners and your interest and most interested parties should be the citizens of the us and not only do you save money but you get back in power you get back control over who gets credit and who doesn't that are their money going to hedge funds and not going to local business you can direct there where your city needs it or you can just refinance your own private debt and the savings can go to other things like affordable housing i guess affordable housing number one right now i know they for

what voters are worried about you know when that's an important point to make is that it's not about being a bank it's about being predatory banks the function of the bank it's as you say it's like a utility it it it keeps money on deposit at a certain interest rate a lens at a different interest rate and they make a sprint and that spread should be in keeping with good business practices and that's since it that's what a bank does is no more no less what's happened is that. in this country the wall street banks as you point out have been able to co-op in an excess of all of the banking facilities all over the country and use those deposits to make incredible risky bets and when those bits go bad they get the government to bail them out so. then we get messed over in many many instances so having a public bank would be great as the bank is also would provide competition right because now those banks like wells fargo and others who are just engaged in the

most heinous pilfering and larceny mean they would have to double check back and say maybe we can't just our business model can't be to just keep ninety cents of every dollar and fraud we commit pay ten cents and a fine right they've got to change their behavior. yeah and i think it's particularly where many cities have gotten. exploited by these interest rates wops which waiting for. the reason. we have to pay so much to wall street is because the federal reserve intentionally dropped interest rates to zero to protect the banks so the central bank is working for. like your and your insuring against an earthquake or sound right let's talk about interest rates lobster cyc and these sharpie bankers on wall street they arrive in a municipality many times like matt taibbi is covered in his excellent work for rolling stone and they'll say you know here's a product that will give you protection against rising interest rates and they're

like oh great if interest rates go up you know we're going to be protected with this great product but they don't mention is that you're not protected against interest rates going down and that you're going to pay more right now you end up paying more so interest rates low and behold they keep going down not because the market because of demand for credit still there it's because they're in cahoots with those proprietors who are putting out the interest rate swaps it's a complete racket great racketeering card. cartel and how do we break out of that i mean while she does control the country for two centuries their famous people have said that and we try to regulate and it doesn't seem to do any good so our on the real action is to just move out of that system and set up her system. that the same system is not a bad system banking is the way banks where it's a good thing it's just the fact that it's own trawled by. bread it's fine but it was full of toxic sludge it's ben i mean this just

a product is full of toxic junk north dakota is doing something as well a public bank initiative how is it different what's going on there at bank of america credit was established in one thousand nine hundred so it's one hundred years old i started writing it in late two thousand and eight because i knew they were the on the state they had their own banks so i was watching them and it was the on the state that escaped the credit crisis the on the state that didn't ever go into the red they had the lowest unemployment rate and the lowest for closure rate the lowest default rate the most banks per capita in any banks during the crisis so i started writing about it generated you know some interest. in what their model is by law. states revenues are deposited in the bank and then they use that credit to try to leverage into the local community but they actually

partner with the local banks it says right in their charter that they won't compete with the local banks they partner with them so the local bank is like a friend. it's a customer so one of many ways in which the bank oh and to make it is very profitable i mentioned that there was an article in the wall street journal and two thousand and fourteen that said they were more profitable than j.p. j.p. morgan chase and goldman sachs. so here you have an exemplary example of a bank doing what banks should be doing in north dakota and during the crisis it did not suffer it did not require bailout it remain it's up and running it is profitable so i guess your benchmarking amount as an example for the projects here in los angeles right where we get pushback on that because people if there is one hundred years ago and we had this matter north dakota etc but it's an excellent model and. you can like germany where that has the strong spark as and. half their banks are publicly are and are in the public sector and they hold that

one thousand forty five of their economy has absolutely crashed and now there's strongest economy in europe so how did that happen then they claim a lot of credit for that so many mouths china as a good model ok probably being talked about in them in a minute or so in here so janet yellen member former fed chair she's talking about the next big financial crisis she's just suggested when it happens the fed to start buying stocks in the open market. i guess what we've seen a switzerland in other places yeah it's all down this well it's shocking him by stacks and trap of the market first of op it makes their policies look good when we know that their policies really didn't do much because everybody points to the stock market is this is this is a measure of a good economy we are not allowed to buy or sorry our central bank is not allowed to buy stocks but the other central banks do many of them do and they're all in cahoots as we know from you know me but among others so and so the fact that they

are propping up our stock market makes our central bank but the whole concept is shocking because one of the biggest cheryl is an apple computer is the swiss central bank for example for example yes so and they can buy up anything they want in theory because they've got the power of the printing press and they have already declared their independence from government they're not working for us who are they working for them they're working for the banks and for this private international cartel. banking interest big interest which goes back to. carol quigley wrote about it in the sixty's the bank for international settlements was this cartel central banks and their goal was actually to. takeover markets infantry cruising on the international chemical weapons court. and we'll be back live in moscow next hour my colleague will be so you say we'll take you through the latest top stories just ahead it's called top tackling the

impact of the bread.