scary dramatic development is only going to resist i don't see how that strategy will be successful very critical time time to sit down and tom. and everybody time once again for the big guys a report. saying hey max we're going to follow up on that ray dahlias story you mentioned re dahlia is a multimillion billionaire he i guess he basically finances all of connecticut and their bankrupt state he's a connecticut hedge fund guy he just donated two hundred million dollars the largest donation ever to connecticut for their education system but he was also in

the news because of course he did recently declare that hedge fund billion or a dahlia says capitalism is failing america and we need to take five specific actions to save it or a dally you know in a linked in post analyzes the ways america's economy has been failing the majority of its citizens and places the current environment in a global perspective he wrote that he's seen capitalism evolve in a way that is not working well for the majority of americans because it is producing self reinforcing spirals up for the haves and down for the have nots oh yeah i read this all right dahlia it's a good analysis of why it system is not working but his conclusions about the solutions. he favors the benevolent dictator that's his number one solution we need strong leaders to impose a top down. you know change and of course that's what got us into the problem to

begin with you have the neverland dictators running the central banks and re dahlia one of the biggest beneficiaries of socially having central banks stuffed 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.i. 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 dahlia oh that connecticut is a democratic state a blue state re 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. 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 he's a 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 re dahlia re dahlia he's not mentioning money gold. or interest rates in his solutions at all that's well for ignorance he knows in his heart of hearts that the problem is the money itself

the us dollar is trash it's garbage it's no good it's not a store of value it's not a medium of exchange it's it's a it's a yuppie free ticket tickets you know it's a common wall street when i was working i was true to call them yuppie coupons you know they're just they just pour out of the bank essentially you know you don't work for him at all they just put your eight car in the machine and these twenty dollar bills pour out we 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 a willfully ignorant to ignore the true cause of all the problems that he articulates and i suppose he's trying to create a most you know around himself from the masses and with the burning torches when they come after people like ray dahlia always try to say no don't go shoot me so let's again go into more of the details because he's saying education it's 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 is the carried interest and the fact that their tax rate is way lower than some joe baggett donuts or would i call or jane pocket of chris packet chris ok they have to pay taxes a tax rate much higher as a percentage of their income than the likes of rate ballio who get to live you know off earned interest a lot of 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. complete lack of empathy this is been proven in study after study

after study rebellion has no consideration about the effect he's having on society and the room the ruination of the lives that he's contributing to by being a leech on the system with his hedge fund that's a lack of empathy. that takes 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

a 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 you know 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 the recession happens right now the u.s. has been 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 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's 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 what america's had is 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 say 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 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 their egos are 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 by 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 that you end up with countries run by in. your words

therefore to understand the psychology in the ego driven machinations of the. gives one an insight into the trends of the global economy 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 take a break and when we come back much more. after the previous stage of my career was over everyone wondered what i was going to do next the multiple different clubs on one hand it is logical to go from fields where everything is familiar on the other i wanted a new challenge and

a fresh perspective i'm used to suppressing. one on t.v. . i'm going to talk about football not for you or else you can sink i was going to do. by the way what is it that slide in. the business model of facebook is to pressure people to continue communicating through facebook and giving facebook personal information this is what makes facebook a surveillance monster show facebook does not have users facebook has used its people that facebook use its. welcome back to the kaiser report i'm max kaiser we're going to return to our

conversation now steve king he's the author of deep on economics he's got a patriotic count now that is superb people i know check it out tell me it's the best thing out there i'm 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 but i have my my show and i pick his brain right now you say. steve welcome back well thank you thought was very glad to be our rights. to carry on with our conversation. billionaire rebellion 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 just 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 common by just energy inputs all that sort of stuff will be like a militarized 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 and i think i think we do size that fight it can omics generally deals with scarcity and money tends to deal with commodities that are scarce and we're currently living in a war all of zero scarcity there's no scarcity of money there's no scarcity of the environment nope 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 to happen all of them are a deli i never mentions any of this he simply says you know you need to go to an ivy league school all learn how to do a carry trade from japan get some free money and then pontificate endlessly and sixty minutes and never work a day in your life that's right dalyell 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 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 in a gobbling up dispensed in time in thailand and when shopping in so many of the public stalls 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 across 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 that capitalism stays anon but because everybody has fundamentally profits off their profits and socialize their losses for those social out of those losses into the a sphere and we coddle of that to go on indefinitely it will have no economy so yeah we're in for a serious proposal energy rationing the thing and basically that would dominate the economy. and to 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 cain the third 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 they're a silly idea when the whole idea of negative rights as economists think the people holding money and therefore if you might get expensive development you'll 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 the 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 decay and the answer i think would be no because you want money to circulate the thing about the functions of money one of the fundamental fronts the 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's slowing down because of his monetary system and i would rather have a monetary system where the money to carry it in the sense that because 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 as alien system if i was advancing a law 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 of why she could stop from a blank slate the way ireland that there might be another benefit hair to carry this on a little bit. distance not to have 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 indebted 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 going 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 saga says with the private financial sector the turn of a trillion dollars a year which is more than five percent of the american jay 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 wall straight when his main street is to be rebuilt not wall straight so i think it about q.a. . trump's billion dollar infrastructure. yes the american news infrastructure spending i know you had a few bridges fall down recently you go to massive hurricane damage coming you know i and many many sites your road system sucks you don't have the hospital china has a high speed route so there's usually a structure 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 right down with the growing new deal but i can see some need for

the 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 this day what are your thoughts on that well i guess going to happen next i don't know that saudi right is going to have the to do it frankly i think they'll probably back out because they as much as that got america 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 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 os 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 just saudi arabia without the take a lot of gumption. to go against the tide for dollar relationship but. the fact is that they're already moving away from it they've got a great ship with china now and it konami so it suggests that the path of least resistance would be to get out of the us dollar petro dollar relationship it just seems that 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 like a slow drip rather than a dramatic shift they can handle once you will trade contracts they can do some bottle ranchman's and stuff like that they can do various swaps that end up being another currency so yes i think it will 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 in states 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 stale and i don't say that lightly if you want to catch us on twitter it's kaiser report until next time. i think more do good it's an outstanding person because he took on the most powerful agency is tony for you to state this you look at it from the board now and see. mark was the day that when he was five but the lie gets mugged are going to

spin the show to some of this contentious critics say he is the first time i noticed something wasn't right into these were pretty much when he first started the corruption in palm beach county is not something that you can smell it seems like it's a nod and a wink wasn't what i wanted to deal. we've had more in this county then some states have. begun featuring. the sheriff's wife and. you know i wish you'd stop when you said the end of life and stuff i believe what i'm doing ok you know it's your funeral. critic. of the united states. into russia. political.

men they know. what's. going to happen. with hundreds of leads. to. see if it was. supposed to focus. on off people's music and nobody knew because. she's going to live for the smear. job you. know post someone.

a stylist you have to wait for the chief. to in the song. in the u.s. with conspiracy to hack government computers the issue of his alleged links to russia are once again being raised in washington. police used tear gas against protesters in the twenty second consecutive weekend of demonstrations against the government. and seventy people have reportedly been killed in libya in a week is the international community remains split over how to deal with the country's escalating conflict.