the join me every thursday on the alex salmon show. and i'll be speaking to guess in the world, the politic sport business. i'm show business. i'll see you then. in the reports of injuries and frances rallies against culver restrictions turned violent with police deploying tear gas and pepper spray and don grenade to disperse. crowds of enraged protests. give 10 months, said $25.00 days on which is american legacy. they're stronger than sabotaged equipment. a country brought to ruined at steel in control of the law. exactly 20 years after 911 and the start of its subsequent war on terror,

america has fled up gannon stand in disgrace and defeat. as our corresponded describes, the conflict failed to achieve its goals. but left behind a trail of destruction. horrible smell that smelled like, i mean, i don't, i can only describe it as metal and flesh. i was angry. excuse me. and remembering the worst terror attack and modern history, the world commemorates the victims of $911.00. amid the 20th anniversary this weekend, we talk with individuals who suffered during this tragedy and its aftermath. you can watch those interviews info on our key dot com. that's all for this. our thanks a lot for watching and we hope to see you again to

the via mass taiser. this is because the report today marks the 20th anniversary of the 911 attacks. we're going to take a look at americas terror, industrial complex stacy. right, and this is actually from a wall street journal. we're going to look at some data there about the surveillance state, the terror industrial complex that has built up and the kind of positive feedback loop that has been nothing but negative for the domestic population. so the whole terror industrial complex started with the objective that they sold to the american people who are financing this is for international terrorism. for overseas, it's not for domestic. now it's domestic, right? we're already seeing that sort of roll out of like stopping domestic terrorist

stopping that maga or any deplorable sort of people here. but the headline here in the wall street journal reads the business of homeland security thrives and the 2 decades since 911 after the attacks federal policies swelled a defense sector of that has reshape u. s. surveillance, as well as northern virginia's suburbs. and then we're actually going to skip ahead to this map here of the northern virginia suburbs there just outside of d. c. and you can see the explosion in size, the density between 20012021. and you'll see that there's a lot of defense contractors, they're making a lot of money and they're doing well. the reason why that's a bad bad news is not only is, are they scooping up so much of our tax funds, but they're living very close to our elected politicians. and when they live very close with that much money to our elected politicians and literally only takes

a $5000.00 cocktail party to impress that politician and get them to give them even more millions or billions of dollars and funds for this cara industrial complex. yeah, exactly. they are the what i think about it in terms of the show and what we've been talking about for so long is that we always say that the only answer any policymaker has in washington dc with any problem is to print more money. whether it's an infrastructure problem or it's social and equitable problem theory, have the $911.00 tragedy. the answer, one of the hyper drive to print more money. and we know that the ability to distribute the money is inefficient in america. we know that it goes to banks 1st, and so they were, that's how we got all these billing our classes as now. jeff bezos made $200000000000.00 out jim cook is worth hundreds of billions of dollars. that's how eli mosque is worth a $100000000000.00. is because after $911.00, that money printer go, bird went into this hyper drive. and of course those folks you know how to game the

system where they're with their buckets. you know? gimme gimme, gimme gimme gimme. and now you know, the, the problems are really quite astronomical. so, and you can kind of tie their fortunes to the tragedies and the feedback loop, the positive feedback loop that happens with not only are politicians, but also the cable news. so in the peak of cable news and the peak of political, you know, fortunes, the post 911, he saw a member liked it. cheney and george bush all are there. favorability ratings went up. the ratings for cable news went out, and then there was a bit of a down period, and now we're turning that around for more terror threats, more mostly domestic now. but having to ramp up the military spend. so in the data they looked at in the decade following the terrorist attacks military spending more than doubled an absolute terms to $700000000000.00 or about 20 percent of

total government spending. and 2011, the nation's military spending peaked at 19.6 percent of total federal outlays, and represented about 4.6 percent of g. d. p. by 2020, it had fallen to 11 percent of total federal spending and represented 3 and a half percent of gdp. now our guest micro hudson of course, disagrees with that number that had ever peaked at 20 percent. that's because if you're only looking at the military part of the budget, not the whole apparatus and their surveillance state of the intelligence community of the cost of the veterans administration and low cost of caring for other wounded soldiers and stuff like that. so i think he would probably say it's, it's even higher than 20 percent of government outlays. that was the military at the peak. right. well, all that money had to come from somewhere and you say that in a societal breakdown. you see that i just saw video philadelphia,

it's become literally zombie land in chicago, just there are more murders in chicago now than couple. so that's where the money comes from. they came, it just came from the hundreds of millions of people living in the states and how you calculate g d p. as we've said on the show, many times the calculations for g d, p or inflation. the other government issued numbers is plastic. the serbs or whatever purpose you want it to be, it's not forensic a spot analytical, it's not accurate in any way. right, well of course the d o d budget is also opaque completely. nobody can see inside it . and of course, as michael has some point that it is cost plus, so there is no containment of their costs. it's like whatever they want to charge, they get to charge and where it's going, according to the wall street journal, is much of the money flowed to the private sector. as commercial firms bid on huge new contracts to develop the next generation of security capabilities and 2001,

the defense department had $181000000000.00 and contract obligations to about $46000.00 contractors according to a center for strategic and international studies. estimate by 2011. when war and security spending growth reached its apex, the department had 375000000000 and obligations to more than a 110000 companies. right, well, it's everything is now seen through the lens of panic and fear. i think before 911, there are still some kind of you out of eve. let's call it. there is still some america had a character to it. after $911.00, the had the death of satire. we had the death of culture for the most part and the creeping surveillance day. and that's really expensive and, and it's, it's become

a fed that state of affairs. of course, whenever we have panic, cable news ratings for when they're soaring. then you see the raytheon, the lockheed martin this very military industrial complex start to take out more and more ads on the panic driven episodes of the matter report or of like chris hays shows or cnn the they'll take out as against the panic signaling to the population support for war support for this the we're taking care of you. this is what i'm talking about about these feedback loops. as you had that event of 911 and 20 years later, it's still rippling through. and the ripples are getting wider and wider, bigger and bigger, like capturing and not only more of the domestic population under the surveillance they, but victims of it. but also the, the, the swamp as it is, you know, this is the deep state people. they're not so deep state, they're pretty out and open. you can see them on

a satellite is whether living and the huge amount of money they're getting from the taxpayer. but the tax there will only give that money with favorable ratings if they're scared. so if they're scared, they've got a tune into cnbc might not say, well sam, b, c, f, there's a market crash or cnn, or amazon b, c, or fox. have to be scared. have to want, take all my money. stop this like stop my pains thought my fear stop this. so that's what i'm saying is like these feedback loops. the fact that these guys are so close to living right, where our politicians are, who dole out these billions and billions and trillions of dollars. we don't know, speaking of the pig black books of like, we don't know how much these, this war entire has actually cost us. you know, we don't know. right, well, ok, so an 11 marika was stacked by fanatics. and it gave rise to a new breed of american fanatic. these are the money printing. fanatics. these are people who are on hinge who are worship the greenback, the,

the dollar is their god. and they're, they've got their fingers on the printing press without any accountability. so their, their money fanatics, and that's cause the collapse of society in and soviet union like way that we're experiencing now. and i don't think anyone really who, who looks at this picture with some degree of sanity will refute that. they have a quote here on the wall street journal, which is a pity mises at all. there were there speak to this woman who's the ceo of beacon interactive systems that used to be like a software company that provide a software solutions to people. and then her quote is 911 is what made us turn our heads to the defense market place. you know, the thing about software developers and the sort of their, they turn it to the marketplace. right. and they have solutions that maybe weren't in that are still in search of a problem. so they have to create

a problem like, right? so if we're wrapping up afghans and we've left afghanistan, no matter what the disaster is, you've got these people living all around. are politicians, they surround them like they're surrounding are politicians. they're going to have to pitch them. they don't want to lose their business, right? they need to pay for all their yachts, all their big homes or vacation homes. they're going to pitch them on something else in terms of how much money they've been making it's federal contracting to private companies in or around the city i d. c. so roughly a 15 percent average annual increase between 212011. while the federal workforce payroll in the region grew by only 1.5 percent a year, according to government spending data, largely as a result, washington's regional economy was the hottest in the country between 212011. some people rakes in an and this aftermath the past 20 years. and i think we have it part of what you're seeing with that whole societal breakdown you're saying like

not only that, the despair, death to despair, but also that the weird hyper part isn't ship and hatred, absolute hatred for you know, the other side. right. you know, it's, it's a great business to ban and more people are getting into that business. and especially when the, our people with lot of calls, dad are mortgage that, you know, the siren song of getting into the terra business, working for american terrorists in d. c. is compelling, right? so i don't see any end to this anytime soon. right. and it's also important to note that in those 20 years you've seen just check out old footage versus now of m. s m b c of cnn and stuff that all the same defense contractors. they're regular, the regular co host essentially on these news programs. and it's not often disclose

like their role and pushing that panic. pushing that fear, pushing the continuation of the pork barrel sort of money of this free money that they're getting to swap up and the fact that those same news programs then no longer examined it. they don't do investigative journalism. they don't ask questions of their good friends there, co host their co presenters on these programs. now 1st fun. absolutely not. and things are looking to get much better anytime soon. we're going to take a break and when we come back, dr. michael hudson don't go away. that's a positive feedback loop. the me rather driven by adrenal shaped person. those with me

in me dares thing. we dare to ask me. own drugs started as a way to come back, a great problem. what's the one? it's part of the attitude of the nation, not just of north dakota, and it got to be something that you could get elected. this time, the fight against drugs took a tragic, told us that andrew was competing insurance form. this is way too dangerous for him to be doing. clearly they put him in harm's way. a rural college student does interest get shot in the head and found in

a river like that. something else had to be happening. the me when i go back to the kaiser report, i'm at kaiser time out of turn dr. michael hudson pick up where we left off, of course, is classic super imperialism 1st published in 1972 as baskim out as the 3rd edition. looking forward to that, you've got another new book, michael, the destiny of civilization. what's that all about? well, basically it's about how economists work and how, what people's thought was in capitalism is turned into something quite different. finance capitalism. instead of expanding like industrial capitalism, those look more and more technology and more and more capital investment rating, productivity rating,

wages and the positive feedback. financial capitalism is just the opposite of cannibal lives, industrial capitalism. and instead of creating products, people use it, creates depth and monopoly, right? so under the finance capitalism, the united states and europe have today learn more of american income, has to be spent not on goods and services, but on rent or on mortgage interest. they can absorb 43 percent of the borrower, resent them with government guaranteed 18 percent. but you will be is medical care for the medical insurance about 10 percent taken off the top for that social security. and if i see a wage withholding and basically 7 percent of the american gd faith

is completely fictitious financial category called homeowners imputed rent. and its the rent the homeowners had the rent their home themselves much were they charging that 1st? since rents went up 20 percent last year, homeowners would charge much more money to themselves for rent, even though no payment occurs. and so gdp appears to be going up. but when you take out the finance insurance and real estate sector, the fire sector is actually gone down. so my book describes how the fire sector is the antithesis of industrial capitalism. is everything that the classical economists of the 19th century and earlier 20th century wanted to do away with adam smith, john stewart mel, and the others wanted to get rid of land grants and monopoly, rent, and financial rent. and to them, a free market was a market. it was free of all of this unearned income and rent. but under finance

capitalism, it's all about then as you talk on your show up and then up, it's all about creating and expressing interest and capital gains and income that has nothing to do with trading goods and services for people. so i was asked to write a series of lectures to serve as a textbook for chinese, so that they wouldn't have to be sent to america, to study economics and economics departments and universities. which really isn't about how economies work. it's about textbooks work and it kind of parallel universe as if everybody were getting richer, industrial capitalism instead of looking at that and the buyer sector and what actually happens under finance capitalism. and the intention is to show chinese what to avoid, how to avoid the american trap that is shrinking the american economy and loading

it so the china can prevent this. monopoly capitalism prevent finance capitalism. finance housing, a price is going up and create a socialist economy. so it shows that the destiny of industrial capitalism was really social, isn't supposed to be socialism, but it ended up in finance. capitalism and the world is breaking into 2 parts. us dollar sector, which is finance capitalist and china, russia and the dollar arising economists that are trying to focus on industrialization and raising their own living standards specialist people on it here, a siren in the background. you of course, are in new york and at the classic new york sound in the background. so i, thanks for that little ambience. all right, let's talk about. so china, of course, is launching the belt and wrote initiative which is sounds like what you would

describe as goods and services, goods, capitalism, as opposed to pure finance capitalism. and give us an idea of where we are with us in china because the dynamic there and what looks to be a classic 3 cities trap where you've got potentially china rising up as the new dominant world. economic power in the u. s. taking a backseat. is that actually happening and what, where are we in that cycle? how? where are we with china right now in the us? the idea of facilities is a trivial ization. people who describe us is that it is prep talk as if the us as an industrial rival of china. and we're both playing the same game and people are somebody's going to win this game. who can export more, grow more. that's not what's occurring at all. and it's not what occurred between

athens and start the studies completely destroyed the american idea of acidity. threat. you made it very clear that the fight between athens was, between a democracy, athens and oligarchy. far to there was a conflict. the economic system. it wasn't a rivalry to see you could export more, because the spartans in produce exports, they were a military countries. they, they conquered penetration support of oligarchy. well, that's the same. what america is, you can say, is like athens in florida. you have america, is the oligarchy. supporting oligarchy, abroad and fighting against democracy, whether it's a democracy in venezuela or china, or cuba or russia, and it's installing dictators. it supports people that have caused democracy, but it turns out to be an jelly, it turns out to be the latin american dictators. it turns out to be the honduran,

but there is no reproach. so the fight is between america promoting this finance capital idea that other countries have to sell their industry to american buyers. it has to let americans buy control of their industry . so the other countries are karen and i kind of financial colony of the united states. the united states has managed america and some other countries against that are countries wanting to become self sufficient, independent for their own food, rely on their own technology and case. the economic assert was great at home to recycle as industrial countries are supposed to do. so the fight between china and america is a conflict between economic systems not for exports. after all,

they want to export industrial parks industry from cheap labor and china. so they, when people talk about the facility strap, they're trying to adjust the open up and a nationalistic form of saying it's us versus them without saying who is they asked us and what's america trying to promote and who is the them and what kind of society are they trying to promote? yeah, good point. you know, we've been using this saturday strap as that analogy now for quite some time. and you are putting it into context, given your expensive writing on these topics for decades. it's highly appreciative. now let's put this into contact with the what's happening in china. so you did a series of lectures. they wanted to know about how to avoid what i guess they perceived in the united states as being an over relies on the financial sector.

which put the us at a disadvantage in somebody in so many ways. so where do you think it's china is in the globe, a global economy now in relation to the u. s. what, what, how would you describe china right now? is trying to avoid having an oligarchy getting rich by controlling monopolies and controlling the bank. alright, right there. so in other words, when we hear news like they're cracking down on these big tech companies are cracking down on the various companies from going public. they're taking over all the bob. all right, so that's what's going on there. they're breaking up the oligarch police and they're bringing them where under more state control they're regulating not re understate control at all because they, they've rejected state control. what they want to do is prevent monopolies from getting economic rent, but enable the leaders large over the rest of the population. they can say alibi,

but we want you to be as successful as you can. but we're going to limit the amount of money that you can get, and we're not going to let you the 1st into creating credit and the become coming a was i back? all right, let me. yeah, let me jump in here since you're such a historian, a lot of people say, you know what, going back 500 years, i believe for the ming dynasty chinese burned down their fleet. they had a huge naval fleet all over the world. the new guy came in and he burned to the ground. the theory was that he didn't watch competition for merchants interviewing and interfering with what he had to do is there's a similar moment. yes, it is. today, the problem is and merchants and trade because the trade is sponsored, basically by the government they, their concern is the creation and the end of the monopolist were being subsidized and supported by the united states. the united

states went to try it out and said, a free market is letting a few rich people become graphs and privatize public wealth and become billionaires integrate monopolies. that will be great. companies that we americans can invest in and buy and we get rich off your stock market. that is created by an oligarchy that you will create, so that we end up with the money and you're all like arts are, are like arts are also becoming there's instead of the chinese people getting rich . let's, let's all get together with the millionaires of the world. and run the world by creating our own monopolies in our banks, and we can reduce the rest of the world. but your bill isn't the next question. what's trying to do with all the dollars they have? they've got over a trillion, they've got 3 trillion, i believe in their reserves. do they dump them on the market? do they keep accumulating? now, what's the strategy there?

they've been reducing their dollar reserves steadily and buying gold. and they may need reserves in order to stabilize the value of the exchange rate between the young and the us dollar. so they need these reserves in order to prevent united states from trying to crush the currency and doing the china. what did syria and other countries that don't follow america in directors? so the reserves are protection, financial protection, basic like you have a call on taiwan, there's gonna be some action there. i don't really think so because most of these want to invest in china. the question is the terms on which they will be allowed to invest in china and the reciprocity that the 2 countries are trying to develop together. right. all right, so dr. michael awesome. if i ever play the game of risk, which is a board game for world domination, i want you on my team to take over the world. i think next time i play a risk,

thanks for being on cause a report. it really going to be here. all right, and i was going to do it for this edition of guys are part with me. max guys are and stacy herbert want to thank our gas, dr. michael hudson till next time via the me . ah, it's an open secret that private military companies have been playing a role in complex worldwide. us government doesn't track the number of contractors that uses in places iraq or afghanistan, united states army and the military in general is so reliance on the private sector . i would call the dependency, but we don't know who's the on the ground presence of these companies overseas. we just don't out. the western private military companies can, in their turn, use so called sub contractors from countries with trouble past the piano. quite

good. that had also been soldiers. i think i was as i drove profession, i drilled, it went from the when the full moon wouldn't. wouldn't that look with no limit, malone as they were trying to be merciless killing machines. now they fight and die in other people's was people carol, lot one or a dead soldier or dead marine shows up in this country and we start to ask yourself, why did they die? why do? what were they fighting for? nobody bothers down to about the contractors. oh no, no borders and the number t's.