question. here and i. meant. what. about. in light of these facts the united states today declares it has been russia in material breach of the treaty and will suspend applications as a remedy effective in sixty days unless russia returns to pull and survival compliance. the united states issues an ultimatum to russia saying moscow has two

months to show its complying with a key cold war era nuclear treaty before the deal is stitched. the case prime minister responding we hate to she kickstarts five days of franks at debates in the house of commons and looks to secure the backing of m.p.'s for head deal head of a crucial votes next week. it's off to nationwide protests in the most violent riots in paris and half a century the french government knew suspending the controversial field tax hike to six months. you can find those stories in full and not small there on our website we'll be back with the world news update in an hour's time right now but it's the kaiser report. plan my studies are this is the kaiser report to show you simply can't look away.

how do you of course not look the way for the past few years you would have known this long before bloomberg wrote this headline from jonathan tepper competition is dying and taking capitalism with it we need a revolution to cast off monopolies and restore entrepreneurial freedom first of two excerpts from the myth of capitalism so this guy jonathan tepper starts with that story of remember that guy who got dragged off that united airlines flight and it was a huge scandal in the news and tabloid press and everybody thinks likely the new yorker did a cover story on it and they show the guy being dragged off in his face it looks exactly like me look it up on search the story on the new yorker magazine you'll see my face but in the olden days that would have caused the shares of the company to fall. in fact research analysts dismissed the incident saying quote consumers might not have much choice but to fly united airlines due to airline

consolidation which has reduced competition over most routes on my new sites healthfully explained what had happened with headlines like quote airlines can treat you like garbage because they are an old galbally once investors started focusing on unite as dominant market position the stock price in fact went up so that's true i mean you have concentration in the corporate. like robber baron like concentration that we haven't seen in over a hundred years in america and it was brought about as we've been saying on the show for a while but the ease of money from the fed that allows you to buy up your competition for no money when jeff bezos bought a whole foods it was a multi-billion dollar acquisition his stock price went up because his cost of funding was zero so as a creative everything that whole foods is making went right to the bottom line there was no cost whatsoever associated with that so there's no cost for mergers and acquisitions and a zero interest rate world and yet you know milton friedman use have a t.v.

show called free to choose that americans were free to choose yes that was our freedom is that if if united airlines you know hits you over the head and drags you down the aisle because they want you off the flight and that guy by the way was a doctor who had some surgery to perform the next morning so he needed to stay on a flight you know the old way of being would have been like well just you know don't fly united flight delta but in fact they mostly control sometimes over half of all the takeoff and landing slots at a particular airport here we're not free to choose the many aspects you know are you free to choose in north carolina say if you're on obamacare there's only one provider blue cross blue shield so like if they stick you with the bill every time in this you're not free to choose you can't just say well i'm going to go to your competitor because they'll say yeah go try to find a competitor. there is one noticed a style of economics has been tried before it's called the soviet union and that in or you know when you have only one player in each industry and they're setting

prices and there's no more market setting the price you have market failure and you what happened to sell you the union and ironically the soviet union now russia is moving toward where america was the one nine hundred fifty s. with putin more like eicher eisenhower and now you've got the current administration moving towards soviet union with trump behaving more like you know. but going back to this article here about the lack of competition in the u.s. markets even the fed you often hear these headlines just in the past week drone powell was confused about why. incomes are not rising he can't figure out why incomes are not rising and yet here it points out in this article jonathan tepper says rising market power by dominant firms has created less competition lower investment in the real economy lower productivity less economic dinon them with fewer startups higher prices for dominant firms lower wages and more wealth and quality the evidence from economic studies is pouring in like

a flood the profit margin for the s. and p. five hundred firms was up over twelve percent this past year why because they don't have any competition and they can charge whatever they want and then take risks if they have any externalize risk like the energy industry they just dump it into the public domain and taxpayers pay for or the medical industry like they just raise obamacare cost and those guys make a ton of money we pick up their cost speaking to competition so trump wants to get into the business of creating state sponsored media he says that he's not happy with the way c.n.n. is perceived overseas you want to create america television and so he's entering into global english speaking news and commentary show which is my territory the highest rated business and from a commentary show in the world and i invite him to compete with me if he can create a show business news and commentary that gets higher ratings to compete with you donald trump purely on. ratings if you get one that's higher ratings than me ok i'll betcha a million dollars coin you can't do it in the next six months and that's mano

a mano that's not i'm not giving up the charity or anything so you're going to give it to me directly because you are not going to be able to compete with me this is my territory now get out we don't want you're not capable of it you're incompetent in this area go away max they already have voice of america you are already competing with us right and they have never hears about exactly how to paint them a zillion to one so i mean that's why i'm so very confident that you know only a million dollars. ok i don't even know this information about lack of competition in the united states here's a tweet from david leonard of the new york times and one industry after another the biggest companies have increased their market share over the last fifteen years as a major reason that income growth has been weak and entrepreneurship has declined this is very interesting dominance of corporate behavior since the combined market share of the two largest companies in many industries have grown in recent years often because of mergers as you mentioned technology shares by the way are the ones with the most market dominance in terms of operating system you either have the i

phone or android and they control ninety percent of the market just those two social networks they control is increased up to eighty percent by the top two but in terms of the space it's hardware stores the top two now control eighty percent of the market versus in the early two thousand they had forty percent of the market now that's something you and i in terms of speaking about soviet if you go into those two hardware shops and that's all you can find if you need any hardware products for your home oh my god like the paltry. quality of service like people don't know a single thing like you can't even go in there because you can't you can't get anything nobody knows. it's not a total waste of like soviet era times we moved into a new place where we had to. buy stuff like we don't go in there anymore because it's just like the most depressing you know just degrading experience that you

could ever feel when you go in there and nobody knows anything you can't find anything nobody can help you find anything nobody can give you any information about anything at least if you go on an online retailer i won't name any of them but if you go on there at least there's some reviews from people who actually use that and say whether or not the product is good and that online retailers just deal with the pentagon yes right and they just moved into new york and washington and they're merging with the federal government that's called wait a minute wait for it wait for oh fascism corporatism there really. is a corporatist i mean like mussolini who would have ever have to do the work really did we roll into oh. well that's the that's the danger of the sort of concentration because they get more and more wealth more and more power they control more and more of the politicians here is that one story however looking forward because right now many of the. the biggest monopolies in america are in the tech sector so

they are very openly pro democrats so they will never have any pushback from the democrats however newly elected republican senator could be google's fiercest critic there's growing appetite among republicans for regulating big tech companies missouri attorney general josh holly's defeat of democratic senator claire mccaskill in the two thousand and eighteen midterm elections earlier this month was a big deal from almost any point of view missouri was a pivotal swing state in the battle for the senate and all these victory helped republicans expand their slim senate majority but holly's victory is an ominous sign for one company in particular google hall he campaigned as an antagonist to big technology companies in general and google in particular so a lot of the base of conservative voters feel like they're being targeted. by the social media and tech giants and the fact they point out that. heads of google and apple openly support. you know they openly supported hillary clinton for example

they feel like they're being targeted plus the republicans tend are not victims of financial illiteracy like you find often in the democrats and so they are sensitive when they find capitalist anomalies like concentrations of power that are undermining free choice and and undermining the free enterprise so they want to attack google on those based on the basis as well as the other monopolist that are destroying the american economy and the democrats are typically financially illiterate so they have some superstar on the far left and democratic party this woman in the bronx who makes sweeping generalizations about the economy that could be counter argued by a six year old mean to complete financial literacy which is good for the populist uprisings and whatnot but is completely unsustainable because it's based on ignorance so here they look at the republican base and what they want and what they

find is that conservatives once viewed silicon valley company as this poster children for free market capitalism but as the political landscape has become more polarized and silicon valley leaders have become more open about their own partisan leanings google's eric schmidt actively supported both barack obama and hillary clinton for example many conservatives now view silicon valley companies especially google and facebook as combatants and the culture war and so there's a danger now for google because they do control a huge percentage of the online advertising market and they have been finding that the likes of google and facebook the two of those facebook and google captured something like eighty five percent of all new online advertising spend and the past year or two so there's no room for any competitors it's a sign that there are no competitors but there are also. no signs that they are favoring certain corporations especially in this sort of era when the atlantic

council you know which is financed by the saudi government and nato are intervening to determine whose voice is allowed to be heard which which you know a lot of voices and using facebook or google are independent media and so those people are being destroyed by the same oligarch list who are friends with other oleg op lists and other industries including the media so if m s n b c is also financed by lockheed martin them and raytheon which takes ads out on rachel maddow show they find that raytheon and lockheed martin also finance atlanta council which is in charge now of determining whether or not a media voice is allowed to be aired on facebook which now controls much of the social media market you know we have a scary situation in terms of what sort of totalitarian economy we have like if it's only controlled by certain people and companies and voices are we getting the

best of what there is possible yes it's out terrorism is a good word in this instance you know there was a lot of concern last year in the twenty sixteen election interference from foreign countries and those countries how they treat their journalists in particular was not seen as particularly cocksure but in the last few months of course we had a situation where the dictator over in saudi arabia. a lesser value arabian turned up and melted the guy yeah journalist yeah and then the same democratic folks in america who were concerned about the role of journalists have said nothing and except for one interesting cartoon where he had the trump talking to a saudi prince and he said hey prince i got this ago named jim acosta oversea and maybe you can. take care of all well that sounds to tell a tarion as well so people like everybody becomes fascist and that's that's that's what the what happens is everybody becomes more nasty and brutal than the next it's

called moral relativism look it up hey we're going to take a break come back much more coming way down go away. i've been saying the numbers mean something they matter us is over one trillion dollars in debt more than ten dollars more in tamping this. eighty five percent of global will you want to be rich eight point six percent market saw thirty percent from your home with four hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar ai industrial park but don't let the numbers

overwhelm. the only number you need to remember is one one business show you can't afford to miss the one and only. what politicians do something. they put themselves on the line. to get accepted or rejected. so when you want to be president i'm sure. more some want to be rich. have to go right to the press this is like the full story in the morning can't be good. i'm interested always in the waters about how. this should all. welcome back to the kaiser report max keiser time now to return to chris martenson of take prosperity dot com chris welcome back mick stacey good to be with you both

already us pick it up from where we left off now over there pick prosperity dot com you quote a say promise of gains is over and we're headed to a period of the primacy of income what does that mean well look you know every great bubble needs two things you need a lot of credit and a good story right so netflix perfect example here's a company got a good story and they're able to go out to the capital markets and raise lots and lots of debt and equity because they're just cash burning machines they are not a company that's focused on the primacy of income right we want to see those positive cash flow so listen we had our stories in two thousand we had him again in two thousand and seven a you know they're not making any more land whatever you always have a story with a bubble this bubble has gotten really far ahead of itself we think that people are going to want to be seeing actual legitimate earnings oh my gosh don't even get me started on the price earnings ratios and how stretched these markets still are in terms of overall valuations compared to historical norms so that's what we're

talking about you're going to want to see income going forward is the company making money that's a simple story we're going back to it and yeah you would think that that would have an impact on valuations whether or not the company actually has any kind of revenues down on your website pick prosperity dot com you wrote a piece called thoughts from the precipice what sort of precipice are you talking about is there anything to prevent us from falling over it i'm looking at a pretty wide angle lens view of things here and this includes the economy yes i focus on that a lot i can talk about interest rates all that i also look at energy markets where we really are in the energy story and then as well the environment and the amount of flashing red lights on our current global dashboard is just astonishing right now and when we look at things ecologic. we you know we just can't keep the growth model going anymore that's the prime thing we're doing at peak prosperity is really raising that flag carrying that standard other people have done it in generations before it's like look sooner or later you gotta stop growing growth becomes your

enemy if you're just doing it for its own sake so in this story the precipice really is we're way over the tips of our skis and economically that's with debt levels and all of that but ecologically we've really hit the end of our rope in a couple of places too and then on the energy side huge story coming there about what we're facing over the next five to ten years from an oil standpoint we're running across the current on that one lot of people talking about how there's just too much oil or will face peak demand we're not in that camp we're still worried about oil and it supplies going forward you know tromp buried a government report which warned that climate change will soon start causing billions in damages annually. obviously playing with fire they're speaking ole. obviously playing with fire there speaking of fire itself directly you know the kinds of fires we are seeing across the world but particularly in northern california lately unprecedented you know we've never seen any quite this quite this bad so it's

a combination of heat dryness all kinds of things these are the sorts of things that are predicted to be a consequence of changing weather patterns which themselves are a function of that climate and you know there's other things though that are very simple very linear that we don't have to get any argument about like how much c o two is in the atmosphere great tell me the partial pressure of the gas will tell you how much of that in the sea more carbon dioxide goes in the sea guess what you have a higher rate higher levels of acidity we're seeing that really begin to impact marine life so we can we can track this very easily there are a lot of impacts the thing i track the loss of insects worldwide apocalypse is not too strong a term it's like there was a rapture but god took the insects instead of the humans they're missing. missing from all over the northern hemisphere in southern hemisphere it's just it's boggling at this point on yeah we just finished a cross-country trip driving and stacey pointed out like this though bugs splatter hump and somewhat crude observation but it's true i remember as

a kid whenever you're out driving you have bugs hitting the windshield it made us don't see that anymore there's just insects are gone and as you point out this is apocalyptic and its implications for the global economy now and i was a kid we had it and farms and you could tell quite clearly that the ems would die from their own waste it was right there in a little twelve dollar and farm and why is this point so hard for people to understand that earth's carrying capacity is you know limited you can't keep putting you can't put twelve pounds of garbage into a five pound sack you know it doesn't work why is that point so hard to grasp is it just is it just hubris is it just humans are are just not going to survive because they were poorly designed to begin with maybe they just don't have the intellect to survive this kind of my theory i don't think humans really are smart enough to survive another fifty sixty years that's it just wasn't in the cards chris you know

honestly we are smart enough that's the tragedy in this story we know better is just why we don't have the political and cultural institutions yet to go through that and honestly the reason that i focus on the economy to bring it back down to that level is that we have a money system that has to grow exponentially or it's threatens to collapse right so we're really being driven by the money system and i think that's a terrible idea but we're smarter than that like we don't have to have money that's issued by a bank or a central banking authority that's loaned out at interest because you own anything at interest over time you have an exponential system that's compounding right it's astonishing why don't we have a money system that works for the people instead of the other way around well that's because the money system we have is very very. good it rewarding a tiny a set of elites who do almost nothing for that labor of you know getting that money out and they love that system so they don't really want to change it but it's just we have a whole system that we're running right now isn't working for us anymore that's

what we're trying to point out at the prosperity like people already know it you know usually we don't tell people anything they don't already know because they took that drive they didn't see any bugs on the windshield and some part of them went oh that's not right i don't know a lot about ecology but maybe wiping out the bottom of the food chain is a bad idea i don't know right so these are things that we shouldn't have that hubris we should have the humility to say wow a billion years of finely tuned evolution let's run with that let's not disrupt it if we are disrupting it let's stop doing whatever we're doing france took the big step last week they banned a class of insecticides called me and a good ten points they said we don't need any more data these things are awful go france you know they got that part of the story right as far as i'm concerned but the key word there is humility i mean you've got a culture that lionizes the greatest latest a whiz bang technology avon mass putting a car into orbit right i mean this is what there's no humility and you know you

quote a plutarch's in the last episode if you go back to the classics and they go back to their literature throughout history they warned us about this over and over and over again and yet the warning has gone unheeded let's talk about some of the issues where politics and economics meet so medicare for all will that solve any other financial drains on the u.s. economy can it happen chris sure it could but you know it won't pass through because the united states doesn't have a democracy and by the way i always say that if your want to export something you ought to have some of it first so the united states attempts to export democracy are probably failing because we don't have one here in the united states we have a corporatocracy the will of the people does not factor into anything at this point time money rules everything. citizens united was the worst supreme court decision ever and it has some tough competition so with that i don't think that we're going to be able to get past the insurance companies they put way too much money into senate and congressional coffers to just simply go away but let's be clear by the

numbers the united states has on a dollar just a basis the worst health care system in the world terms outcomes for dollar spent so are the rooms for improvement in their tons we had medicare for all that would be a single payer system would be a huge step in the right direction but we probably would lose about half of our economy if we went down that because the united states spends eighteen or nineteen percent of g.d.p. on health care twice what other countries spend that would we could redirect that i don't know maybe into bridges that aren't falling down or a high speed internet or system that that serves everyone i don't know but for now our priorities aren't there yeah america is a hospital disguised as a country. it's a sick care system not help here it's the. antitrust legislation it looks like the republicans can start going after some of our biggest all accomplis in the u.s. economy in the tech sector what role has the concentration of corporate power

played in the ever declining real wages in the us is a time to start trust busting chris absolutely no question about it in or we've got to rewrite the laws either have a lozenge for some or don't up to you but the fact that amazon pulls all of its profits from its web amazon web services cloud service and uses that to subsidize its retail business which loses money pretty reliably that's the very definition of antitrust using dissimilar business lines to drive your competition out of business that's that's what amazon's been doing and don't even get me started on the overreach of facebook google and twitter and all those other ones in terms of shaping controlling an outsized portion of the overall web traffic and commentary out there it's too much too concentrated right now i make a point all the time about amazon they they have their amazon web services that they are in bed with the pentagon and the u.s. government with huge contracts and but they are taken

a hit on the retail side to put their competitors out of business and that is the very definition of anti-competitive behavior they should be broken up and but the republican the same a few of them anyway are stepping up to the plate now let's talk about finally fracking. the u.s. is turning to the largest oil producer in the world through fracking we touched on it briefly cress we've got about a minute let's go through the fracking scenario well it's not a forever story we've already seen individual shale fields producing shale gas past peak the last ten to fifteen years before they peak out that's cool the permian is an awesome basin very good but max we have not yet seen the collective shale industry comprised of sixty upstream oil and gas companies make money at this they're still. earning money there they've got over a trillion dollars of debt and equity that they poured into this who is going to get that money back not the people who invested in it it's just it's really it's the total definition of a ponzi scheme at this point i'd love to see them earn money but they haven't and i

don't see how they're going to at the current oil levels right now well let's look at the globe for a second in two thousand and eight the subprime bubble popped and that started really the avalanche that we know as the global financial crisis where will this bubble pop will it be japan will it be and only will it be brags that will it be the frack or what where will what's the pin in your view that's going to pop the bubble this time if you can make that guess everybody is just in search of a pin rising interest rates so that's why i'm watching the debt markets most carefully if people ask me what i'm looking for i actually i'm most interested in the junk debt so i watch credit spreads triple see a corporate stuff like that that's what i'm really looking at right now i think is going to be interest rates that are going to kick this off we're going to see some insolvencies and it's all going to go from there great every bubble is in search of a pin all right that's a great quote chris martin thanks for being on the kaiser report my pleasure thank

you and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guests chris martenson of peak prosperity dot com if you want to reach us on twitter it's kaiser report it's all next time. the way to the united states is dangerous for most of the illegal immigrants. just as they would a simple they want to become us and i want to ask some just about but if many of

them look for refuge in the so-called sentry sides the draft used to share information about undocumented migrants with federal authorities the best person to ask than. most you know know. that person i get i'm in a lot of class and they want that. they can watch as they all choose to stay in the country with donald trump in the white house for forty gobbles. the who to be about to be. a said sit struggles of many couples won't kill the chance of putting food impulse response both of you up with a few of hope of the. truths seem wrong. when all rolls just don't hold. any you get to shape out these days become educated and in detroit equals betrayal.

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