he's socially having central banks stuff money into his pockets for years now we haven't worked a day in his life yeah i mean one of the solutions that he offer is warren buffett offers that bill gates offers that jeff bezos offers the every single billionaire america says what we need is more education better education. but it is education really when you have china you know with one point four billion people or india with one point three billion people and india they all speak english fluently so they can do any job that we can do for much less right. here and he's again here's what he identifies as the actual problems the numbers that if you look at it these are the problems he says dahlia listed reasons why capitalism isn't working as it should in the us one there's been no real wage growth adjusted for inflation for their majority of americans since one thousand nine hundred eighty

the income gap is high as it's ever been and the wealth gap is this high as it was in the late one nine hundred thirty s. ahead of world war two three two thirds of the bottom sixty percent have no savings and economic mobility has been declining for forty years and for about seventeen point five percent of children live in poverty and despite some outliers america's public education system as among the worst in the developed world you won't hear rachel maddow or m s n b c talk about this they'll keep on parroting the line that hillary said of america's already great so when donald trump identified that america is not great anymore re dahlia oh that connecticut is a democratic state a blue state dahlia is saying exactly what donald trump said on the campaign trail essentially as the majority of americans are in this situation the majority of americans are not in a situation of hillary clinton or her friends or a dahlia and warren buffet and bill gates they're in this situation where they're

suffering and you can either admit this and then address it. or you could just keep on blindly pretending where already great and if you listen to rachel maddow and you know things will be great well there's ignorance and there's willful ignorance so when you have rachel maddow she's just ignorant she doesn't know anything about economics either financially illiterate same thing with a lot of people on the left like amy goodman in a democracy now is never had a report on the economy that made any sense in the twenty five years she's been on the air then there is a willful ignorance and that would be ray dahlia so great value he's not mentioning money gold. or interest rates in his solutions at all that's well full ignorance he knows in his heart of hearts that the problem is the money itself the us dollar is trash is garbage. no good it's not

a store of value it's not a medium of exchange it's it's it's a it's a yuppie free tickets you know it's a common wall street when i was working on wall street was to call them yes be coupons you know they're just they just pour out of the bank essentially you don't you know you don't have work for him at all they just put your card in the machine and these twenty dollar bills pour out when you don't work for it that's right dahlia but he's billions of dollars of pouring out of the a.t.m. called the central bank so it's willfully ignorant to ignore the true cause of all the problems that he articulates and i suppose he's trying to create a most around himself from the masses and with the burning torches when they come after people like great value always trying to say no don't go shoot me so let's again go into more of the details because he's saying education you ordinary people who are just too stupid to compete with me we live in a meritocracy after all he's continuing that lie that we live in

a meritocracy if only you got more education you could be as brilliant and rich as i am he's not talking about of course these hedge funds in connecticut where they all live there it's the carried interest and the fact that their tax rate is way lower than some joe bag donuts or would i call or jane pocket of chris packet chris that they have to pay taxes a tax rate much higher as a percentage of their income than the likes of ray dalio who get to live off earn interest part of being willfully ignorant is also being willfully stupid and willfully and educated so there are millions of people in america and around the world who are better educated than ray dahlia but in order to succeed on wall street you need to have a complete lack of empathy this is been proven in study after study after study re value has no consideration about the effect he's having on society and the rule the ruination of the lives that he's. tripping too by being

a leech on the system with his hedge fund that's a lack of empathy and there are a certain kind of myopia and stupidity to work yourself into the state he you know is just benefitting from the system just as donald trump said he gave money to hillary clinton because he knew the system is rigged he could give one hundred million to her and get benefits the same with rate alue but they keep on saying it's just you have to get education it's not just the tax system it's not the cantillon effect it's not the fact that he gets money first from the fed he gets access to zero percent money and you don't it's not the fact that you know going off the gold standard we have no way to know what the value of any money really is like there are thousands of reasons that it's not hillary clinton's husband bill you know him getting rid of the glass steagall act and the commodities modernization few futures modernization act in two thousand and that we got to like basically defraud everybody through credit derivatives it's none of that and of

course the role of the dollar and and that's my final headline here because this was a remarkable story that again got overlooked by you know m s n b c which is supposed to be the channel of the cable news channel for the working class for helping out the ordinary person exclusive saudi arabia threatens to ditch dollar oil trades to stop no pac so saudi arabia is threatening to sell its oil in currencies other than the dollar if washington passes a bill exposing opec members to u.s. antitrust lawsuit three sources familiar with saudi energy policy said now of course you know since we went off the gold standard in one nine hundred seventy one we've been on a u.s. dollar standard that's been you know it's always treated as a conspiracy theory that it's you know we basically back it by saudi arabia's oil but the fact is to have the dollar as a global reserve standard requires massive trade deficit and so at the end of the day you have to recognize that that means you the american worker. lose you can't

win in that situation yeah true but i mean what's the question the question is why is static arabia threatening the u.s. or is why is the u.s. dollar such a weak currency i mean what's the i mean yeah saudi arabia threatening the u.s. is obviously. something that when you put it in the context of the last two and a half years of the russia bashing that's come out of m s n b c washington post new york times a complete fabricated nonsensical story versus an actual of the existential threat called saudi arabia then it's sad because they've spent all their journalistic firepower on a non-story in lieu of a real story as far as the dollar yeah it's backed by. countries saudi arabia so i mean that's not a great currency situation either things work for a while until they don't

a business cycle is booming for everybody until it's not and the recession happens right now the u.s. has bet on the u.s. global u.s. dollar standard since one nine hundred seventy one and that worked brilliantly while the debt went up and up and up and up and the average ordinary worker had to lose because you needed to send more dollars overseas which means you need to import more than you export right so we come at the end game of that and what has that has arisen is that china is a much bigger importer of oil than the united states so saudi arabia is biggest client is china china wants to pay them in un because they don't want to have to pay real money for the oil they want america's had its fake money they get to print money they un and pay for this oil so china has. provided basically competition but think of the concentration of billionaire sea of us saudi and china so the petro dollar the start of the early seventy's you had

a lot of us billionaires become billionaires in the banking sector and also in the technology sector but the relative strength of the saudi billionaires was a lot stronger the saudi billionaires around it's now multi-trillion dollar behave myth and so those billionaires have been getting billion area richer faster than the us billionaire so saudis been happy because they get the you know it's all about ego right so there you go for a stroke bigger than the americans oligarchs then the chinese oligarchs enter the picture and they say wait a minute we want to have our you go strong in a credible way so the saudis are saying well ok we're the king of the roost our billionaires are the biggest billionaires of all let's try to squeeze the us in favor of china and again it's not like that they're not an ally i think that would be a mistake every single nation on earth. every single nation is run that's what happens power corrupts and absolute power corrupts even more but so we're not talking about

that we're just talking about that the actual facts and what is happening and the likely cycle and in the unlikely event riyadh were to ditch the dollar it would undermine the status of the dollar as the world's mean reserve currency reduce washington's clout in global trade and weaken its ability to enforce sanctions on nation states those are the words of reuters saying that it's not as it's not you know gold bugs or anything like that they're saying just the facts and i think this is reflected on cable news as reflected in ray dal you know they see what's coming but they don't want to address it because there's no solution other than to like go on global s.t.r. or gold or another standard which is inevitably coming and they're scared well and all they're showing is competition from capital and that's a raid ballio is saying ok you end up with countries run by in. your words are there for to understand the psychology in the ego driven machinations of the. gives

one an insight into the trends of the global economy and it's not a fact based it's ego based it's freud in has been is will continue to be unless there is true competition i have to take a break and when we come back much more. but i can. see. you didn't do you manage to do. with hundreds. that you'll see this who do. you think it was national guard. at the base. of the.

supreme push from. there to pull supports these projects one of these with you because the. machine you do might have to be smeared. all over the you. still if you were to eat. after the previous stage of my career was over there. one wondered what i was going to do next the ball different clubs on one hand it is logical to stay in the home

field where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to surprising people and i saw one alter if you think. i'm going to talk about football not for you or else you just think i was going to go. by the way ways of that slide here. the rules of the gate have to be changed and we are still living with a historical legacy sophie doesn't see most of their most a legal frameworks in investing but all of them are designed for industrial face of a stick watch and now we are moving ahead and and i think the problem is that our concepts are lagging behind.

bests drugs were cocaine as were four bucks for the under fifty to everybody use cocaine crack cocaine you can smoke it this is worth fifty thirty. twenty. came to this is about a fifteen people smoke this one go figure so. you can find these drugs in any city in the united states that you walk along as you want to get it about the. make money. and that's what a day everyday. welcome

back to the kaiser report imax kaiser we're going to return to our conversation now steve k. he's the author of deep on thing economics he's got a patriotic town now that is superb the people i know check it out tell me it's the best thing out there are patriotic i myself occasionally hack my way into the it and read it myself i don't give steve any money because i'm too cheap to have my show and i pick his brain right now you say. steve welcome back well thank you todd was very glad to be all right so to carry on with our conversation. billionaire or a dahlia was on sixty minutes last week warning of the revolution because capitalism has failed do you agree what do we do well i think capitalism can file in the risen it comes back to the climate change which new the fossil fuel

capitalists are trying to convince us doesn't exist and those are worse we were staring down massive climate change or else in the planet in that situation if we actually find holy hell we are destroying the planet. it was restoring our capacity to live on the planet how do we reverse it that will involve a watch on this and that wall time if it will have rationing of energy will have every if you go will amount of energy being devoted to creating on carbon based energy inputs all that sort of stuff will be like a military was a version of capitalism which we had back in the second world war it's still capitalist but it's so far from the free market and funny i think i think we do size that fight the konami generally deals with scarcity and money tends to deal with commodities that are scarce and we're currently living in a world of zero scarcity there's no scarcity of money there's no scarcity of the

environment. no major corporation no oil company prices in. peak oil and by peak oil i mean the price of extraction keeps going higher and higher or in the case of fracking it's a ponzi scheme that never was profitable from day one and without these scarcities you can't have capitalism rebellion never mentions any of this he simply says you know you need to go to an ivy league school learn how to do it carry trade from japan get some free money and then pontificate endlessly on sixty minutes and never work a day in your life as ray dell the solution but never the less your point is well taken that the climate. change is going to force rationing effect of lay and we're going to say the price of stuff reflect the reality pretty standard that would be a gas in america at nine ten eleven dollars a gallon or higher that would mean prices moving higher so we have

i do believe it would be stagflation right it would be a dick anomic collapse with higher prices steve king your thoughts possible maxima nothing wanted more lother to happen is that when we realize we're going to drastically reduce our energy footprint on the planet that means less energy being available to frivolous activities and frivolous meaning you know gobbling up dispensed in time in thailand and when shopping in so many department stores care about the number of fancy pfizer's also for the back of austin's uncountable. energy rationing will strike at some point it will be a question of dividing up the building alternative energy inputs they get about your consumer goods forget about this forget about that it won't be so much a process walk as a whole lot of stuff that used to be viable isn't available anymore if you go back to the second will will find anybody old enough to remember what it was locked to

have to buy to drink coffee and those does it when drinking coffee or drinking chicory what shape substitute to make it possible to have something resembling that sized when the stuff itself wasn't a viable i think a small lockley our future but end when you have a rationing system opposed it's very hard to call that capitalist so i think very deli goes right in one sense on that the capitalism style is a non good because everybody has fundamentally profits always their profits and socialize their losses but those social out of those losses into the a sphere and we coddle of that to go on indefinitely and we'll have no economy so yeah we're in for a serious proposal energy rationing the thing and basically that would dominate the economy. and you use your analogy would be a basically on a a war type economy where it's really i guess you could say dire in many respects now steve keen the fed has recently indicated that they will go negative

on rates should the economy falter negative rates in europe not encourage banks there to lend to the businesses while they work on the u.s. steve now there are a silly idea when the whole idea of negative rights is economists think the people holding money and therefore if you might get expensive developmental spend and said that will stimulate the economy it's not hoarding of money that's caused it it's too much debt too much of a debt of and that's why people aren't spending the negative rights will encourage people to take their money out of banks this is one of the risen a lot of central banks are talking about eliminating cash so that they can therefore impose negative rights because it has no with your money other than an electronic bank account i think it's one of the most dangerous ideas possible because i don't want people who don't understand something even right to control it in my shoe at central banks is the place haven't understood money because that stopped by my instrument columnist who would have a clue what a monetary system is and yet they're trying to control our access to money so i'm very much against gutter of abolishing cash and i think negative rights are

a stupid idea that shows how little economists know about the real world well out an idea for a i think i'm out of the box there get your thoughts on it what what about idea of money that's like a frequent flyer mile and that expires if you don't use it that expires yesteryear if you want to design a monetary system from the scratch would you design one which has money that doesn't it and the answer i think would be no because you want money to circulating about the functions of money one of the fundamental fronts in front of the trip functions of course is transactions that encourage you to spend now one of the other fundamental functions a store of value those funds if you're not spent and because one has such an accumulation of dead people looking more about. not spending side accumulating this wall of cash rather than the spending so actually had that whole dynamic of a badly designed monetary system meaning that the economy slowing down because of this monetary system and i would rather have a monetary system where the money to carry it in the sense that there's all spoke

about if you didn't spend it there was an unknown transactions execution tax imposed on your account that would encourage you to do that so i'd rather have the money to k. i'd rather have it is alien system it was advancing along must about the monitresses of the mas and twenty thirty of the engineers of exhausted their central planning then i'll go i'll go for it is alien money system which would mean nobody could accumulate enormous fortunes on mas but have to be spending the money they've got and most of have a you know booming economy using that as an example a place you could stop from a blank slight the way i live that there might be another benefit hair so to carry this on a little bit. a distance up of eyes to issue bonds with ten twenty thirty year maturities if you will expire before people had a chance to pay the interest of the principal of those bonds so you would have less and debt of this right here that you would have listened at and should have less asset inflation i think a huge amount of energy intellectual energy and is going into financial engineering

which is giving us a a stressed over indebted fragile social system rather than gone into real engineering and build a robust physical economy so i'm very much in favor of something that reduces the power of the financial sector reduces the amount of cumulation of monetary wealth and reduces the amount of debt as well living on a say he says got of her green new deal that's one for his two would be donald trump campaign. when he took on the campaign trail of a trillion dollar infrastructure spanned what would be better for the american economy or door number three. is another round of quantitative easing steve came there were the quantitative easing quantitative easing as being to the benefit of the wealthy it's being the government the central bank deciding to be on the boss sot of he says with the private financial sector the turn of a trillion dollars

a year which is more than five percent of the american jade a pay that money is being spent when the when the banks got that that money and replace the bonds they saw that the government they used that money to buy shares that drove this process of existing shiz rich people hold existing shares it's accentuated the inequality caused by the financial bubble in the first place and only a tiny trickle of that money has made it into the real economy so i think every trillion dollars in your model got two hundred billion dollars out of the for the main straight out of the old straight when it's main street is to rebuild not wall straight so if you get about q.a. trumps billion dollar infrastructure. yes american news infrastructure spending i know you had a few bridges fall down recently you can go to massive hurricane damage coming your why in many many sites your road system sucks you don't have the hospital china has a high speed route so there's huge infrastructure space and bending necessary but

there's also the grain you dale and i think on the on that too given where we are in the i think approach to a serious climate brought down with the growing new deal but i can see some nathan infrastructure spending as well so getting out geo political where the high level state according to reuters saudi arabia recently threatened to start pricing their oil in currencies other than the dollar there's a big one today what are your thoughts on that well i guess going to happen next i don't know that saudi right is going to have them to do it frankly i think they'll probably back out because they as much as they go to america are in their pocket they're also on america's pockets the threat to the bright that friendship could be disastrous for the saudis both domestically and. in they have in their political influence in their own sphere but certainly no china russia along with some european countries are looking at bringing about an alternative currency basco try to system and on its hook is looking at the same things that islamic countries

given the extent to which are trying to say use the american dollar as a weapon for his form of diplomacy so i think these osce eeriest rights will probably take longer to come into reality than any then then we expect i always find and decide these things to send in they happen in a rush later than i expect so i think maybe in the next decade it will happen i understand it just saudi arabia would have to take a lot of gumption. to go against this that's our dollar relationship but. the fact is that they're already moving away from it they've got a great ship with china now and economics would suggest that the path of least resistance would be to get out of the us dollar petro dollar relationship it just seems if they're going to ever do it the time to do it as it is now. so that could be a major factor stave i think that's probably a slow drip rather than a dramatic shift they can handle one and she will trade contracts they can do some

bought or arrangements and stuff like that they can do various swaps that end up being another currency so you don't happen slowly and gradually but it has to happen a huge part of the economy as a last seventy years have been because the american dollar was the reserve currency all right steve. thanks for being on the kaiser report thank you max thank you so sweet and that's going to do it for this edition of the kaiser a par with me max kaiser and states are like to thank steve and you absolutely must check out his patriotic town it's well worth whatever charging i don't know what it is but whatever it is it's a steal and i don't say that lightly if you want to catch us on twitter it's kaiser report until next time by i'll. do so but i can move. you didn't show the first one to the new minister who goes

from a three hundred. to listen to this who do. you think it was national guard. patrol a good job in. the party to. the u.s. . it's a little closer to the polls. there are full support school board of these products one of the ways of getting you to leave because the. machine and the wife to be smeared. all over. the post someone. has with us a style if you please eighty. u.s.

veterans who come back from war often tell the same stories. were going out for the people who were killing civilians they were not interested in the well being of their own soldiers either there already several generations of them so i just got this memo from a certain branches off that says we're going to attack and destroy the government and seven countries in five years americans pay for the wars with them money others with their lives if we were willing to go into harm's way and willing to risk being killed for a war and surely we can risk some discomfort or uneasiness

for. the headlines this hour i was given this song charged in the us conspiracy to hack government computers washington is now again raising the issue with alleged links to russia also to come live the steps and pay for the reportedly killed in libya in a week is the into. national community remains split over how to deal with the escalating conflict in the country the german justice minister is branded on after giving an interview to a party going chin which mentions close ties between berlin and moscow. getting involved and we maintain close ties with russia russia was and always will be our partner.