this is miss talk talking about a wall street journal headline china no longer needs u.s. parts in its phones american tech companies are getting the go ahead to resume business with chinese smartphone giant while weight technologies but it may be too late it is now building smartphones without us chips while ways latest phone which it unveiled in september called the meat 30 with a curved display and wide angle cameras that compete with apple's i phone 11 contained no us parts according to an analysis by u.b.s. and for more hot technology solutions japanese technology lab that took the device apart to inspect its insides now going back to apollo 11 in the space program we had industrial policy in america which was over there in california the xerox labs where they developed a lot of the technologies that apple used in the i phone like the cursor and all the micro circuitry and all these things that are the parts that go into an i phone

were developed by the u.s. government thanks to the tax payer as part of an industrial policy called the space race and now you've got an industrial policy in china to beat us technology to beat apple with a huawei next generation phone and it looks like they're succeeding and there's no parts in the phone and the us is being going to be sputnik and left on the roadside while china and the technology in 5 g. go into the future all they have are terrorists and set of being able to compete i think bell labs was in it they did it on the last big part of 00 they had a big. research parked in steve jobs open openly said that they stole a lot of stuff from there they were the best at stealing they have from the technology from the u.s. government this story actually hits here in north carolina while way long relied on suppliers like corvo incorporated the north carolina maker of chips that are used to connect smartphones with cell towers and sick. i work solutions will burn

massachusetts based company that makes similar chips it also used parts from broadcom incorporated the san jose based maker. chips and cirrus logic incorporated in austin based company that makes chips for producing sound they've replaced all the ships with their own or other alternatives now well i'd love to see america get back in the race but you'd need entrepreneurial ism and you would need. this aeration scorched earth tearing down of all the zombie banks that are there only because of cheap rates right and they suck up 3040 percent of the g.d.p. of the economy of the united states of america so there's no room for entrepreneur alyssum anymore not a not on a world class basis i mean you have people coming up with you know great ways to you know pocket fisherman or something like that you know novelty products that we sell out here in the u.s. but nothing serious in fact nothing serious is in this next headline again ray dally you know and i believe he's been watching the kaiser report because i notice they keep on coming out with statements or newsletters or blog posts or

conversations on stage that basically just steal our stuff and i'm pretty sure he's doing that so send us a signal next time like blink 3 times fairly fast or send an a u.f.o. going fast you in the background because you have always are always good for ratings really here's a headline and paul tudor jones back ray dal you and paul tudor jones warn we will kill each other if our broken economic system isn't fixed on stage i think it was in connecticut and said because the world is looking for yield companies can sell dreams rather than earnings the number of companies that produce earnings is the lowest since the dot com bubble in terms of their need because you can sell a dream as a result of the accumulation of the money at the top in technology we have a situation where naturally those who have a lot of money also have a lot of money in credit but it doesn't trickle down and as a result we have a situation with a large wealth gap just a. placed on for me from just

a few shows ago i explained how stories sell and in the case of we work the story was we're going to have a certain percentage of the global real estate market and there's so much credit free credit out there you can get a few billionaires to market the value that story or green at $48000000000.00 but it's actually there's no revenue there's no earnings it's there it's a complete ponzi scheme so that's a problem we have identified when you have unlimited trillions available to folks that are board like in connecticut or a dahlia and paul tudor jones are board billionaires paul tudor jones well paul tudor jones there would be no raid eliot paul tudor jones invented the modern hedge fund the modern approach to trading at the. rate dahlia now capitalize on and makes a big fund out of it but when you have board billionaires in connecticut who are lounging around on their yachts or at the bell haven club sipping my ties and they

have nothing to do they have like i heard a story about a company that's going to take over a global real estate or you know i heard a story about you know some guy who's going to launch satellites out of his pocket using a cheese grater you know give a $1000000000.00 whatever we have to many billions because we get it for free it when the cost of monies are 0 the value of money is there oh if the cost of money is negative then the value of money is less than 0 but he's agreeing with you right now is a great what he's not suggesting they raise rates though he doesn't make that suggestion he's unwilling to make the proper response to his comment and simply quoting me on his newsletter is not enough he also needs to offer a solution as well you can't just if the guy you 1st of all he's overrated is performance is horrible and he just gets a lot of cash because he rips our stuff off well he's kind of suggesting m.m.t. like a quantitative easing for the people i think that's kind of a suggestion because he. as there are 3 things that exist today that haven't

existed since the 1930 s. a wealth gap that's driving populism on the left and right the absence of effective monetary policy and an emerging world power china challenging an existing world power the us and i think that last bit is the most important that's always the most important because no great power want to give up their power they always turn violent and we saw that basically all these world wars that we've had in the past century are a result of that he said that in my opinion we're in the end in the late stages of our riga serve currency system it's a monetary system not only do we have negative rates but we're going to have much bigger deficits and that's not half the story because the larger story is unfunded liabilities those are pension liabilities and debt liabilities so he believes the dollar is that end of the u.s. reserve currency status around the world and of course he can still that from us ok so why is this significant aside from the pilfering going on by rate dahlia of our

content it's because c. has a was a $200000000000.00 fund something enormous. here is actions move markets right as george soros would would refer to as a reflexive. city reflexivity you know your actions will create prices you know you're not falling prices are creating prices and so that's why this is significant if he believes this to be true and he were to suddenly go well i understand he did make a very large bet on a negative bet on the s. and p. futures i think he put one or 2 percent of his portfolio in denies that he just says it's a had rights as the rest of his sport ok fine enough but on the margins you know as a hedge you know that's where he has the biggest hedge fund right about where you are he could be building a position right so you're putting on also he can't tip a san and say i'm going negative because then he was going to front runner a dahlia right so he's going to say well it's ahead at 2 percent if that could. the

position he's building could be 10 to 20 percent negative this time next year if that's the case then he by virtue of his actions yes of people be down that's the problem with the one percent that actually the 0 the top 0 point one percent taking away all you know running away with all the wealth is that when you have like j.p. morgan for example it's a massive bank like it dwarfs all others and one of the theories about the repo market is that is them having all the liquidity that caused the crisis they're here . saying yeah there is a large bet relative to everybody else in the market that the s. and p. $500.00 will crash but it's only a small small tiny percentage of my huge largest hedge fund in the world and we're just heading our position but just his tiny percentage of his wealth could distort the entire market but if you want to go 1020 percent negative in the fund he couldn't do it all at once you know what the size of the fund he's got to take steps he's got to build his position over time so it's going to be a lot of fake news coming out or a dell you know and he loves to be transparent so-called with

a huge reports and is book of theories and facts which is like hundreds and hundreds of rules of great value which can be summed up in to simply buy low sell high that's the entire rate of any money manager that's ultimately all you need to know and so he could be building a huge position but he's like a tell us because he has customers as clients that he has to serve not us his solution is kind of quantitative easing for the people which steve keen as presented on this show and the other thing that steve king has always said is a government deficit is on one side of the balance sheet and it's the benefit of somebody else as an asset for somebody else on the other side of the balance sheet usually the population the households in that economy but again when you have a oligarchies cup soccer see and a corrupt system here it goes to the top 0 point one percent and paul tudor jones mentions that he insists it's not markets that it's not just the markets that are running away but it's the 5 percent by. deficit in the u.s.

that has caused us stocks to outperform he said clearly asset prices today whether it's us stocks or it's interest rates or it's the dollar is all priced off of in my opinion a 5 percent budget deficit with this incredibly overly stimulative fiscal policy combined with overly stimulating monetary policy is creating this u.s. exceptionalism that one day like if we normalized our deficit to levels more popular in europe where they have 3 percent a budget deficit we see completely different valuations of the stock market the dollar excess play out something we've pointed out on the show is that the banks are making junk loans and for corporations to consolidate and to create these a behavior of some private equity firms that are taking the world private and eliminating public markets and for their sins the central bank absolves them by printing more money so remember back in medieval days if you committed the papacy you could buy your way out of going to the netherworld by giving the pope some

money and you could with an indulgence write you paid your indulgence and you could buy your way into heaven all these people are trading financial center in america can buy their way into having a private jet. on the tab of the u.s. taxpayer by making an indulgence with the federal reserve but the dollar currency money a supposed to irrigate the entire economy is supposed to nourish the entire economy and this is what you have when you have a corrupt system is not only does monetary policy that does the spigot go directly to the very wealthiest but if it appears also fiscal policy is that's all we know is to give money to the top one percent and hope it trickles down but it never has trickling down the simple solution for this obviously is to a let some of that money trickle to wages but they won't if you eliminate wages and you eliminate organized labor then you will only have money flowing into the oligarch class says if we don't fix. you're going to have

a revolution and we're going to kill each other right that's not a populist movement if you want to say that's populism then so is the declaration of independence the constitution of the bell of rights right what country are you living in you for a composer all right we're going to take a break and when we come back much more coming your way. in the troubled 19 seventies a group of killers rampage through parts of northern ireland that was coordinated loyalists attacks a population of tens of thousands are forced to flee their homes come up with strike can put these attacks was a p.r. you see the police actually took part in the attacks so instead of preventing it they were active participants in the burning of the streets in belfast. more than a 100 innocent civilians women. as the review can seniors and we found out more i

was surprised about the extent. to which the inclusion was involved in some of those cases the killers would lead to be named. i think it went to do very very top i think it is. the water where all the patients you know on the go ahead. is you'll media a reflection of reality. in a world transformed. what will make you feel safe. isolation community. are you going the right way. are you being

led so. direct. what is true watch is great. in the world corrupted you need to descend. to join us in the depths. maybe in the shallows. i had a spiritual experience. and i had the little girl that died in the fire sent their colonies. to save money their lives on order looking for a kidney reaching them off 54 years old age but 21 years on good role model. for a crime i didn't commit. my own stupidity was innocent doesn't read the newsgroups but nobody would listen. you know you're not on.

trial was pretty much a farce. they are ahead i'm building a new tour that will. tell you nobody. caught. was. not truthful you will learn it all. through through to me hasn't forgiven himself for something. i knew she was in there and i knew exactly what i was doing. people life. and sometimes there's no explanation. welcome back to the kaiser report i'm max keyser time now to return to our

conversation with dave column he is a professor of our data chemistry at cornell university we're talking to him about his year in review newsletter he puts out a very extensive very pithy very insightful year end review that's full of nuggets of wisdom dave welcome back i think i will be back you used the phrase quote a rolling lone gathers no loss now that we are near 0 rates some much lower do you think us rates can go and michael hudson who don't know if you know michael hudson very respected economists been on the show many times he thinks predicts a negative 25 percent on on rates if the intention is to bail out creditors what do you think they've column i pray he's wrong. but they're trying to set us up to go for it or try to soften a target for negative rates i think they're trying to soften the target for our for massive q we. no matter what the fed will never admit they've just blown it and so

to speak doing weird stuff. yeah. i count to 3 quarters of us gold homers are going to do really well if they drop their rates down there you're a chemist over there at cornell university a professor and you must have some instinct for the laws of nature and what do you think of time having 0 value or less than value any value if we see negative interest rates time has less than 0 value with a negative interest or a stay of calm how does that how you're a physicist area chemist how does that work seem stupid to me i can't imagine why you would lower money but that the credit markets now are so messed up they're no longer about you know creditors and borrowers meeting to haggle over price and so i . you know if if the fed's going to provide all the capital and whatever needs they don't need my capital so they know i don't need an interest rate. i parried don't

need to retire either as a separate issue so. i think they're screwing up the system i think i think the central bankers are so too big for their britches they believe the blowing they skew i want to say ah i think i'm smarter than i am by recognizing that i don't know what i'm doing now but if time has a negative interest then we're going backwards in time is this so banks on wall street can go back in time and steal from customers from decades past because they've already looted every customer they possibly can goldman sachs and others been caught looting from their own customers their own customers or have been bled dry they want to go back in time and loot from the customers in the past is that what negative interest rates are all about to scientists to explain this to make. yeah maybe i have disappearance or needs it. if there are people who are paying interest on loans to get to buy debt that they have to pay interest

on it that. they can sell it to some other india i think that's the system or if that is got to be happening with all those negative interest rate loans if there are people on the margin who by the bye debt that's that's returning negative numbers take the square root of negative one for all i care right it's just stupid and i think it will destroy the banking system i keep hearing the bank system start by the low it low negative interest rates then why are they if the banking system starts i do believe the transition back to normal going to be a bloodbath so i think they're afraid of that yeah i think the reason they do it even though it hurts them is very simple it's an example of suicide capitalism and we've been saying this develop over the past 20 years where the terrorists there their theocratic fundamentalists or their wall street fundamentalists they're both looking to blow themselves up for their ideology one follows

a religious ideology and one follows a misreading of adam smith but they're both terrorists now michael bloomberg was worth $30000000000.00 in 2008 now he's worth 52000000000 dollars 10 years later he's running for president to stop people from taking all that free money the fed gave to him through asset price inflation do you blame the population for being angry about the unfair redistribution of wealth to the top in here dave you've got a lot of students i would imagine you who are actively are the other students beginning to realise that their future was robbed from them by the likes of michael bloomberg i guess i don't know if they know who did what but you could walk into the satellite and find a person who feels like it and rob and so i don't know if the students realise a bit of rob because they haven't yet found themselves unemployed. and so i don't know if they're aware 'd. you know you you you manger and it's social justice. and you somehow think some employers going to actually hire you what employer would

hire someone major in social justice i think that would be a toxic job applicant for me. somehow you know it's such a complicated story that again it keeps coming back to the central bankers who are the only ones who really have a financial so to be adults in the room and they've blown it and so they've they've handed over the control of the asylum to see to wild speculation and to blame the speculators for spotting opportunity and speculating and i'm not inclined to do i also would question the use of the word redistribution. i think it is the distribution of wealth that's flawed saw i think that we've mispriced capital when labor so so capital so cheap now that that labor's expensive relative way south i think that's hurting the system and i think if if the system was distributing

wealth correctly and 2nd to be fair and you going to poor people rich people but correctly you know optimally you wouldn't have to redistribute wealth and you wouldn't have elizabeth warren then you wouldn't have bernie sanders you wouldn't have all these on democratic hopefuls who were were proposal outlandishly ridiculous ideas so you're saying that you can't blame speculators when the fed gives them a lot of free money and yet the mandate of the fed is to modulating speculation in the economy through using the full crumb of interest rate policy that's the purpose of the fed so you're saying that the fed has renay and repudiated the purpose it exists by not trying to create the economic balance but by feeding the speculators who are engaging in acts of financial vandalism to put it in the terms of the economist magazine and others out. there who are now openly calling banks financial vandals so as far as those students of cornell university

not being aware of the economic machinations happening around them i mean what's the tuition at cornell this year and what was a total years ago and i don't know must be 657-0000 total cost to go to cornell. for your. 18 year old kid of course every 18 year old america has $70000.00 to spend one era car now and they don't notice it right so in other words who's bailing they're going into the debt market they're graduating with onerous debt and if they don't notice it then they should immediately drop out of cornell and get a frickin job because they're morons now let's talk about even the fed the minneapolis fed neil carr cash and cash carry he seem to be looking at the fed getting involved in this redistribution of wealth idea perhaps through modern monetary theory so

m.m.t. this is out of the academic circles of which i presume you are familiar what is it say can you explain it and is it any good i guess and one of the rope what few topics i spent and wrote the way an inordinate amount of effort to understand this year was empty it's this funny mix of. marxism and and socialism and i don't quite know what it is but the basic premises is that the government can keep spending any money it wants that it doesn't have to even tax you know and it has roots that go all the way back to you know ancient roman roman coin clipping and debasing of currencies or suffering. but some of the things they say are just outlandish and so if you and i write a pretty big chunk of that that will be published later. and when you listen to what they actually seem to say you've got a fair. there is that there's sort of there's there's there's who are nuts and then

. i've tried to give them a break but i can't just reach out to people for help like that no one knows what i'm talking about that describes it is seemingly i'm coming out that's the key i wouldn't care if they were just some fringe groups will include lay down and jonestown but they're not not on their way. right ok good point that it is get gathering a lot of traction and it seems to be essentially another version of centrally planned model where you've got a group of people who are going to determine how much cash is printed and if there's too much cash as i understand it they raise taxes and if there's not enough cash they lower taxes but there's still a central body so it is like keynesian in that respect it is like socialism in that respect it's actually worse max it's it's they think that the central group also i decide which industries to emphasize industries to deemphasize send and that empty

should be used to combat climate change and things like that so the m.m.t. crowd really appears to me to be totally one morning and you know stephanie count for example was burning. financial advisor in 2016 election so if by chance one of these extreme last candidates gets a life that's you're going to see empty in the cabinet to be clear it would be the opposite of the economic model that the u.s. is spent trying to stick with for 240 years now many of the corporate media day of calm are warning about populism rising around the world mostly they blame president putin and russia for controlling the populations of america south america europe and asia using insincere insidious meme me more fair but is it more closely linked to central bank intervention around the world dave there's

something about quote i find fascinating. for several years not written in support of putin not because i think he's a sweetheart but because i don't think he's our worst enemy i think the savak keep coming back it's just bad smash about her having here but but i think we are destroying ourselves from within i think if putin's doing things to us. he is fostering now he has figured out how to get us to cell phones like wotan's. and sound to me it's not our biggest problem our biggest problem is lack of free press our biggest problem and it is it. is a lack of. lack of free markets in the big problem right now is around the time dave cullen thanks for being on the kaiser report. 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 guest today a column of cornell university if you'd like to get in touch tweet us a kaiser report the next time by a. it's

a let me. ask i would him a. cake i could not predict that could not trouble getting loans to show money. can you love food you know mothers. tend to make it a c. because don't want to touch. the what do you have with the kook on the standards of the out not as you had done just. to clear. them with the

physical entity. i knew of those damone from the little known much of the sinister learning 12 phenomena so when you heard them and when he tried to use into a good. joke level. non non the. one on the media house on the net passing them.

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