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 spun in the and left on the road side 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 with 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 had 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 sky work solutions will burn massachusetts based company that makes similar chips it also used parts from

broadcom incorporated the san jose based maker bluetooth and 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 the this aeration in 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 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 noticed that keeps on coming out with statements or newsletters or blog posts. store

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 really fast or send an a u.f.o. going faster in the background because you have always are always good for ratings really here's a headline and paul tudor jones is back ray dal you and paul tudor jones warner 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 justify stolen from me from just a few shows ago i explained how stories sell and in the case where 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 dream $48000000000.00 but it's actually there's no revenue there's no earnings it's 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 ray deluge paul tudor jones invented the modern hedge fund the modern approach to trading as rebellion 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. like i heard a story about

a company that's going to take over global real estate or you know i heard a story about you know some guy who's going to launch title lysaght 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 money is or 0 the value of money is their own if the cost of money is negative then the value of money is less than 0 but he's agreeing with you 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 performances horrible and he just gets a lot of cash because he rips our stuff off 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 says 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 wants 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 he has a was

a $200000000000.00 fund something enormous. his 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 for 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 and he was going to front runner a dahlia right so he's going to say well it's ahead at 2 percent it could be a position he's building it could be 10 to 20 percent negative this time next year

if that's the case then he by the virtue of his actions yes and p. will be down that's the problem with the one percent that actually the 00 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 it's them having all the liquidity that caused the crisis they're here dahlia was 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 a hedge in our position but just his tiny percentage of his wealth could distort the entire market right but if you want to go 1020 percent negative in the fund he couldn't do it all at once you know with 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 his huge report. it's

on as book of theories and facts which is like hundreds and hundreds of rules or a dahlia which can be summed up in 2 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 asked to serve not us his solution is kind of quantitative easing for the people which steve kean has 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 oligarchic up takhar c. 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 budget 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 can with an indulgence right you paid your indulgence and you could

buy your way into heaven all the 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 it 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 it 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 bill of rights ray 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. facebook and google started with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very 1st character that you type into the search bar it will always be one dog food over another one comparative shopping service over another and one candidate over another. they can

suppress certain types of results based on what they think you should be seen if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more rope we give the sooner we are all. it. is you'll be via reflection of reality. in a world transformed. what will make you feel safe. isolation community. you going the right way or are you being that. way. what is true what is faith. in a world corrupted you need to descend. to join us on the

death. or a mate in the shallowest. during the great depression which i'm old enough to remember there was most of my family were unemployed or. other wasn't it was bed you know much worse objective listen today but there was an expectation that things were going to get better. there was a real sense of hopefulness there isn't today today's america was shaped by the turn principles of concentration of wealth and power. reduced democracy attack solid doubt engineer elections manufacture consent and other principle holds according to no on chomsky one set of rules for the rich opposite. that's what happens when you put her into the hands of

a narrow sector of will switch will is dedicated to increasing power for chills just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. join me every thursday on the alex simon show and i'll be speaking to guest on the world of politics school business i'm showbusiness i'll see you then. 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 art 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 would be back you used the phrase quote a rolling lone gathers no loss now that we are near 0 rates so much lower do you think us rates can go and michael hudson who was you know michael hudson very respected economists been on the show many times he thinks predicts a negative 25 percent. on rates if the intention is to bail out creditors what do you think they've column i crave he's wrong. but they're trying to set us up to go for it or try to soften target for negative rates i think they're trying to soften the target for our for massive q e. no matter what the fed will ever admit they've just blown it and so don't just keep doing weird stuff. or am. i count to 3

quarters of us gold homers are going to do really well 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 rates dave column 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 7 you know creditors and borrowers meeting to haggle over price and so i. you know if it's the feds got to provide all the capital and whatever needs they don't need my capital so they know i don't need an interest rate and i think i probably 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 blow and he they

skew i want to say 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 if a scientist explain this to me. 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 so take this where a negative one for all i care right is just stupid and i think it will destroy the banking system i keep hearing the banking system start by the low it low negative interest rates then why are they the banking system sir 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 a 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. i mean you know you manger and social justice. and you somehow think some employer is 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 do 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 it 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 it's flawed saw i think that we've missed price 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 poor 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 modulator speculation in the economy through easing they fall 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 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 a 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 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 eric or 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 these 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 and it doesn't have to even tax you and it has roots that go all the way back to you know ancient roman of 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. you're that there's sort of there's there's there's more nuts than then and . women too you were on a tried to give me a break but i can't they just reached out to people for help by that no one knows what they're talking about you're describing it is seemingly every moment they're

coming that's the key i wouldn't care if they were just some fringe groups willing who lay down in jonestown but that they're not they're 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 and which industries to deemphasize and and then empty should be used to combat climate change and things like that so the m.m.t. route really appears to me to be totally on 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 get selected 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 us is spent trying to stick with for 240 years now 7 many of the corporate media day of calm a 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. the link says central bank intervention around the world dave there's something about quote i find fascinating uh yeah that for several years now i've 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 if the fabric

coming back it's just bad smash about her having here but but i think we are destroying ourselves from where they did and i think if putin's doing things to us he is fostering now he has figured out how to get us to sell things like warnings. and sound to me it's not our biggest problem our biggest problem is lack of free press a biggest problem is it is it. is the lack of. lack of free markets and the big problem right now is are out of 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.

when else so seems wrong. why don't we all just don't call. me. yet to see. this day become educated and in detroit because the trail. went on many find themselves worlds apart we choose to look for common ground. so what we've got to do is identify the threats that we have it's crazy to confront ation let it be an arms race is all off and spearing dramatic developing the only place really i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk.

when there is only johnson. and i just got out of prison for. 41 years. i'm 72 years old now i got arrested for a term for something to. fill in on like just everything was taken out of. my work in the hospital i think it was. meant to snowman that looks a little bit like me. about. homicide want to. work hard tough you is doing that so you're going.

to go to stone. and i didn't do nun afraid to try to frighten. us no good suffering due to. no it. was a little bit. yes

. the u.n. accuses the chilean army of human rights violations it during a crackdown on protests we've spoken to a demonstrator who was severely injured. i was frightened because i couldn't see any couldn't think what had happened much most percent of. his britains conservative party sweeps into its biggest election victory in more than 3 decades the scottish national party also wins and by a landslide north of the border giving birth nude to independent calls. the u.s. and china announced the 1st phase of a new trade deal that aims to overcome their long running tariff war.