broker you don't want to see on your desk a memo saying your client d k's the stray so she dk the trade and she went to court and she want to settlement which is very very rare because typically when you sign onto a new account form you go to arbitration which is staffed by a panel of brokers and bankers and very very few dollars are clawed back from this type of scandal and the but there was so egregious and so rotten that this grandmother finally did get some money back but you're right j.p. morgan kind of sets the tone of america business mores and there are crummy well when you look at the economy and you try to ask yourself well how did this all happen how do we have mass homelessness how do we have all these bubbles all over the place out how is the structure they conned me so financial ised and then you're just hoping that you know somebody is nice to you that some somehow somebody is

going to come in to rescue the system when over and over we've seen especially since 2000 they come in to rescue j.p. morgan and j.p. morgan and banks in general are filled with people like this who will literally built their grandmother rather than not get their christmas bonus so we're going to look at some data you know when i saw a lot of people tweeting that story. it's a recent story so it made me think of what lynn alton who is a financial analyst was recently looking at terms of macro economics and the situation in america whereby you know we have a problem with the voters the deplorable people in this country who keep on voting for a populist you know sort of politicians that they want well here's the data she points to to say well perhaps we need to address these issues and that might get rid of the need for a populist you know politicians over the past couple decades the u.s. labor share of g.d.p. has decreased to being well below trend while u.s.

corporate profits as a percentage of g.d.p. have increased to being above trend so here those 2 trends labor share. as you see has plunged since 1952 all time lows during you know that it's after the financial crash then in the jump administration but last year it did jump a bit with all that stimulus that was given out and then enhance unemployment benefits and we see of course especially since 2000 corporate share of g.d.p. is in terms of profits has absolutely soared so these are 2 trance going on especially since 2000 right so this is real graphic representation and evidence that american economy is very similar to that of saudi arabia writing but not pumping oil they pump cash they pump money out of the free money printing machine down the federal reserve banks they don't need workers they don't need

labor and labor has no rights and workers don't get anything the people who are pumping the money down there the fed and their friends they just get more and more of a percentage of the g.d.p. and a strong buy we have that all of arks of america they've got the princes they've got a certain philosophy about life and liberties such as america it's called advertising and rachel maddow well of course you do as we recently covered yet too many elite and you see that in saudi arabia with you know people like prince are. being hung from his feet and the ritz allegedly and his fortune taken the same thing as essentially going on versus fox versus m.s.m. b.c. they're fighting for the decreasing remnants of of an empire like what they get exorbitant privilege but you know 2000 is quite important because of course we went to the gold standard in 1971 and that set in motion the possibility for what happened in 2000 which was that president clinton as he left office 3 things he did

he got rid of the classical act he also got introduced the commodities futures modernization act those 2 helped the banks plunder. like j.p. morgan banker plundered his grandmother we helped banks plunder the productive capacity of the economy and then of course that couldn't have happened however without somebody being able to produce all or goods that the wealthy need and that is china being elevated to the w c o n favored nation status right the charge effect of december men of the american middle class thanks to bill clinton and we're living with the consequences down because the society in the us is irreparably crushed by these oligarchs running the show and the social unrest is growing and there's really nothing to stop it anymore yeah and there's supposed to be this notion of an

invisible hand and the invisible hand is that you know your nation and the economy will take care of itself like there it will all not do like with that a few more can bankrupt it to build here grandma like they're supposed to be like that tenets of this capitalism are supposed to be based on that sort of notion you're not going to bilk your grandma you're going to you know your individual self interest is supposed to help everybody and. it here like what we saying as you mentioned the oligarchs like the elites that that the set up of the system once they got rid of classical once they insidious the commodities futures modernization act and once china became part of the deputy oh then really you got the exorbitant privilege that went to like you mentioned like it's like pumping oil they get to print credit and credit and credit and credit and get whatever they want from the rest of the world you don't need the domestic population any longer the thread continues from len in addition to being partly due to technology and automation another part of you know the decline in labor share of g.d.p.

is due to structural us trade deficit the u.s. exported large portions of our supply chains overseas and foreigners took those dollars and reinvest them back into u.s. equities so here's a chart showing the u.s. trade deficit so flat while we're on the gold standard of course because you do not want to have to have a trade deficit because you can send your wealth overseas and then of course it started to wobble once france asked for it it's gold back and then the and then the united kingdom it in and then we shut the gold window and this is in the ninety's but from 2000 through that huge explosion in the trade deficit that is jobs being thrown overseas this is this is what is happening there and the dollar has become a genuine world reserve currency off and they exhibited privilege however has gone exclusively to the top one percent who own the majority of equities which were

bought with all that money from overseas so it drove up their wealth wrestler's age a schism in american society due to financial engineering because you can essentially outsource your jobs to china while simultaneously having china buy stock in your company that you've enabled the outsourcing of those jobs to china. and so that mechanism is rewarded by trillions of dollars worth of ill gotten wealth this is wealth that's effectively been stolen from the middle class from labor from the average american and put into the pockets of the kleptocratic class that now rules america america's role by plutocrats and kleptocrats and we have a a bit basically a feudal system and the there's nothing like representational democracy anymore that's clearly dead well there was a study i think us from princeton a few years ago it's like 1015 years ago where they show that the ordinary citizen

has no almost no input on an actual legislation so that obviously that legislation that passed president clinton back in 200-199-2000 what he passed was was written by robert rubin and bankers essentially got rid of glass steagall and introduced the commodities futures modernization act and you know that elevating china into the deputy chair those very specifically done for a certain group of people and these are the consequences 20 years later 25 years later 22 years later so since the top one percent own 53 percent of u.s. equities and the bottom 50 percent own less than one percent of u.s. equities and many of them had jobs and wages impacted by offshoring and automation this trend of declining labor and increasing profits valuations has favored wealth concentration and you show that at the chart that everybody knows the gap between what the the bottom 50 percent used to be paid went all the way to the top the top

one percent gathered that and they also 4 she also points out that now the trend is because u.s. equities are so high they're at all time high what are these foreign nations doing they're buying up the housing stock so you're much more more likely to be renting your landlord is likely to be you know these huge funds from overseas where we've sent all are jobs and all are in. you know there's that as well neal futile global neo feudal class essentially yeah i think that will be an interesting new chapter in all of this is that after all the jobs have been shipped to china the majority of american landlords will be chinese and some most people will have lost their jobs from china they'll be addicted to fence and all shipped in probably from china and paying rent if they can afford a house to someone in china the point is that these were choices deliberate choice yes that had to be debated in congress and the senate passed those 2 bodies and

were able to change the system whereby now you're seeing the demonization of china coming from the biden ministration for the very thing biden was in power he was in the senate at the time and these 3 things passed to cause the situation so you know now there of course. like pretending that they had nothing to do that were late it's that classic month to strengthen going on on the stablished burner gambling whatever it is to be clear i'm not blaming china yet if i were china i would do the exact same thing if some one country like america is going to ship you trillions of dollars shipped you hundreds of millions of jobs and open the floodgates to you reversing the opium or and doing offense in a war back to the us of course are going to do it and as you point out this was the choice made by america's politicians chief among them of course was cio to well this is again these are deliberative structures the j.p.

morgan banker he deliberately built his grandmother he had a choice not to build his grandmother the legislators and the politicians at the time 20 years ago you could see a few debates like the likes of light hisor in the new york times argued against doing all this stuff and he said that he warned that he warned that suge a trade deficit with emerge and jobs be sent overseas and everybody mocked him and laughed at them and ridiculed them and they did the smug stuff but we were now at the situation where everything that was predicted by a few individuals back then who are ignoring is now coming true so again i'm just saying that i think it's probably a better idea to look at what we did ourselves rather than just like start a war with china oh that he is sucking sound you're about to hear is a brick that we're going to take and when we come back much more coming your way.

it's been decades since the fall of spain's fascist regime but old wounds still haven't healed. me from you know. me on the bus at us as mean older than just the same question which we know. of

newborn babies were torn from their mothers and given away and forced adoption i don't know. to this day mothers still search for grown children while looking in hope for their birth parents. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. very dramatic to follow only. i don't see how that strategy will be successful very. time to sit down and talk. about.

the day or thinks. we dare to ask. welcome back to the kaiser report imax keyser time medica to charles 2 smith the name of his website is of 2 minds dot com charles welcome back thank you max always my pleasure all right in out in everett to paste about america's quote fatal synergies what does this mean ok that's a phrase that i borrowed from a historian who looked at the 1600s which was a century of just an indian war or conflict revolution uprisings you name it from asia to china i mean from europe to china so he was trying to figure out why

societies fell apart and of course part of it was there was a kind of mini ice age where you know the weather cooled off and and there were disruptions and agriculture but he identified other issues that that caused some societies to collapse and he called these fatal synergies and the other on the other end are what he called the 9 synergies where the society kind of has the resources and and cultural values to pull together and get through the crisis so it seems to me that america's got a preponderance of fatal synergies you know like. a totally rapacious over controlling elite you know a government that only serves financial elites and you know so on. right and you know they fail synergies same to pile on i mean every day you're

reading about it for structure collapse political gridlock and social on rast and inflation same to be raring its ugly head as well so all these things are coming at at the same time you know united states benefited from. a bit of a quirk of history and that they land masses between 2 oceans and it was easily defended and it was rich in natural resources and then the us was victorious in world war 2 and we had this industrial powerhouse than the american century so things have been but the question is. are we reverted to the mean in other words the united states is spent on a 200 year lucky streak is that of a is about the role snake eyes i think that's an excellent summary really that it's been a lot of luck and we've we've conflict at these ideas of american exceptionalism

and you know manifest destiny and all these kind of reasons why we've. become a dominant power but it really was as you say the luck of having a a super resource rich continent i mean you know we have to recall that the united states was a saudi arabia of the world all in the early 20th century you know the largest oil producer and we've sort of either depleted or squandered depending on your point of view many of our resources and so now we depend on the rest of the world for. rare minerals we're no longer energy independent despite claims to the contrary and so that's created a situation where we've got supply chains that when they break well then we get high inflation or there's simply no access to essential and so that's that's part of why we're in this this blind is we're no longer producing wealth we're create

you know printing money and then acting like that's wealth and i think the world this is coming to the realisation that you know printed money is not the same as actually producing wealth so and joe biden says you know we're going to electrify our car market entirely and makes a grand proclamation. but doesn't take into consideration that the cobalt is analysis manufacturing it comes from the congo and africa which is not accessible really and so that it there seems to be a major disconnect in other words we're still living under they propaganda of american exceptionalism and but they facts on the ground are suggesting that that's long gone when does this when is the rubber at the road one day when there's this one is that the same like the social unrest all over america is is is joined at with this underlying theme whether they ran it differently and different groups but

the underlying theme is there's a growing sense that we're about to head a serious wall yes and so let's look at that wall and you just touched on a critical element of it which is that the powers that be our however you want to describe them are substituting public relations for actual solutions right so like every time there's a people face up to there's being a problem like where there be climate change or or supply chain destruction or you know wages stagnating for decades on end then answer isn't like a solution because that doesn't seem to be possible within you know our status quo so we get we get more p.r. you know we get you know these kind of glorified statements about how great everything's going to be and we're just going to print some more money and spend it but the problem one of the problems is we think of waste as growth right and that was ok when you have a surplus of resources but it's like all of our whole g.d.p.

has as as you've discussed it many times it's just like well if we waste something then that's considered g.d.p. growth and use only if you're building your society on how much you can waste richly going to run out of stuff and that's the that's that's the wall we're at we've run out of the easy cheap stuff that we can use to build wealth and now we're now we're left with. what i would called and many people called the growth we're going to have to do much better be more efficient and make much better use of what we have and not just try to get more of everything and is squander it on you know sort of like consumer baubles or sitting in traffic for hours now to canton you on this thing you also write quote whatever problems the system is incapable of resolving have the potential to bring down the system once they interact synergistically elaborate on this a little bit yeah so i think what a crisis is and you just you just mentioned

a number of social crisis you know economic crisis political crisis. each one of these is like identifying a problem that the status quo you know can't solve because if they could solve it they would solve it and it wouldn't be a crisis so if we're looking at each of these crises even we we can identify what the status quo is incapable of fixing so you look at political up you know political polarization well if there was a solution within the status quo that it would already be manifesting so they don't have a solution to that it's just by polarization gets more and more extreme if there was some way within the status quo which has as we all know is dominated by the top 110th of one percent who have all the money and wealth and political power if they could solve the problem of of wage stagnation and declining real income they would have done it already but they can't and so this is why these

these synergies are fatal to the you know status quo or the nation state whatever you want to describe it as the economic you know financial system is because they're not solving the underlying problems because they can't you know because the system is set up to reward the top 110th of one percent and in that kind of system then you're not going to be able to solve these large scale problems right fails energy is an answer acting center testicle a is a fancy way to say if you're in a hall stop doing. ok let me just ask this stuff and our it's ordinary citizens ever actually now influence over what their government does any night of states according to a recent study this is becoming a bigger and bigger issue you're right that all the groups that are denied a voice and access to resources capital agency are in effect a sealed pressure cooker atop a flame that's your words so who are these groups tonight a voice and when there are many which ones are the most prominent are active or

obvious and. and start with the non elite i would say there's 2 large groups of people that have no real political you know representation or voice one is the so-called deplorable so you know the trump supporters and the people who felt like they didn't have any say in in the government and in the that's the so-called conservative or right side and on the left the true progressives have no voice either because all they are is they're just a group that's been co-opted by this status quo democratic party who gives them sort of you know platitudes like oh yeah we're really progressive but if you look at their policies their unchanged decade after decade right there is no progressiveness in our political system at all so there's these 2 camps left and right both of whom have no real voice yeah i see something developing and they progressive made in all media

a split between progressives like the young turks gent you and jimmy door who used to be with them and he split off and he's criticizing the left and as a result he's been ostracized by the last and made a non-entity by the left so the progressives don't really seem to have found their footing whatsoever and trying to battle back because they get continuously co-opted by the fake left wing in america who just throws money at them and tells them to repeat these talking points and they happily do that deplorable as you mention of course are the working class anybody who is a wage earner according to hillary clinton bill clinton the democratic party is a deplorable which is a remarkable considering that they used to be a time in america where wage earners were actually applauded as the backbone of the middle class that are considered to be deplorable and a huge threat but let's move on to another group to paris said dick elites. we've

got an overproduction of parasitical lates according to you i believe is a phrase is what is this talk a little bit about it ok so that's. overproduction of parasitic of beats is a term from historian peter turchin who has identified this. as a key element in social disorder that brings down you know governments and states and the way the way he describes it is. let's say that doug ivy league colleges as an example so it used to be that if you got. a degree at a fancy you know ivy league college you were set you know you were even if you were a mediocre student and not that bright you get a a great slide in the upper echelons of american society and economy well now there's so many people with advanced degrees from you know top universities that there's an oversupply of people with diplomas and credentials and there's fewer

there's not enough slots for all of them in the top you know 5 percent and so then these people who were promised an easy you know prosperous life right with great security and upward mobility now they're finding that they're adjuncts at some you know 3rd rate college earning like $25000.00 a year and there's no tenure track for them there's no top government slot and so they are becoming dissatisfied and because their expectations are so high they will make political noise you know they're the children of of the top 5 percent and they're dissatisfied they're going to create a ruckus and so they become a thorn in the side of the status quo right well that's really a repeat of the american revolution how thomas jefferson was a bit of an only guy anyway we're going to carry over to part scenario if that's ok but for now thanks for being on the kaiser report thank you all right and that is going to do it for this edition of the kaiser

a part with me max kaiser and stacy herbert why. thank our guest charles use that the name of his website is of 2 minds dot com and so next time by. the way. bandicoots will mukti it on. plus we've got to talk. to the mother disappeared to see the look of it and i'm pleased to learn and i think. this is the only thing that we do is music because everybody fights his way.

through our you can be found this most recently and you have given a lot of. what i think is this is the funds that is a compliment. is your media a reflection of reality. in a world transformed. what will make you feel safe. isolation or community. are you going the right way or are you being led. away. what is true what is faith. in the world corrupted you need to descend. to join us

in the depths. or inmate in the shallows. psychiatric drugs are essential for millions of patients rather they want that pill that they hope will take care of their problem thoroughly and rapidly in the short term they really work the problem is in the long term and mostly disastrous suddenly stopping a drug can cause withdrawal symptoms more serious than the condition it was meant to treat instead of the beneficial effects of these different medicines ending up to something wonderful very often or for a fix it up to something terrible can bill solve all ills we trying to medicate life itself i just think i was in like i was just scared me i was a scared little girl i was 24 and like. i didn't have to be so complicated.

we're. in the headlines this hour restricted shopping and tonight curfews protesters clashed with police as german lawmakers mull the government over ruling regions to force the even harsher lockdown. celebrities to seduce france and to saving potentially dangerous astra zeneca influences could reportedly be used to shift the unpopular.