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tv   Going Underground  RT  September 2, 2023 5:30am-6:01am EDT

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the in the culture as we sure the respect each other for sure. the respect to the i to additions all for now, but coming up a professor and member of the un high level advisory board discusses how corporate profit tearing. not that you create a proxy conflict is what's behind the food prices. that's ongoing underground sound so far the matchers on see and welcome back to going underground rule. gusting all around the world from dubai. in the u. a. e. economy is presided over by washington and the arguable vessel states of western europe fighting the proxy war new craner on given,
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lee and crisis has billions of given wages. lensky. 40000000 in the usa cannot eat tonight without federal age and the form of food stamps. germany, the east pa houses in recession and in brittany dances. move in, u k. g d p, for the 1st time since 1961. this old, while the global south is beginning to organize a new global architecture away from the dollar and for some even away from a brutal new level model that has impoverished, killed, wounded, or displaced hundreds of millions. joining me now for new york city's award winning university of massachusetts. i'm us professor jackie. gosh, thank you so much for of as of are coming on, you know, if you shoot into circles corporate uh, mainstream meet here in the nato nations. they say the food crisis is to, is russia. i mean, it's a, it's a russia to blame in ukraine. the grain deal in the bread basket of the world. that's a story on the media. is that the whole story, or is the $783000000.00 hungry tonight?
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not about supply, just so i would say it's not even part of the story. i would say that's what's going on. in fact, in the global reef markets and the green market is much lot to do with profiteering by logic business, a speculation in the financial markets. because if you look at the buttons of demand and supply and even changed over 2022, you find that there's no real global change. in other words, yes, there was a decline in production in the ukraine, not really so much at all in russia. global exports have gone up to the production has gone up and global demand, which is, well, just utilization. the difference between that is around the same. so it's really, that's the fact of the ukraine war and the fact that russia and ukraine such a logic sport to us, was made into this big thing to terrify everyone and provide a very convenient cover for other businesses to raise the prices. it is also meant
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that especially in the busy between february and june 2022, there was a massive increase in financial speculation and product markets and we commodities to adjust. this happened in the us in chicago. it happened and that is the lead exchange is the biggest one in europe. and you'll find all kinds of financial play, of hedge funds, pension funds, getting big done into these and leaving often. so it's important because they knew that in fact, it isn't really a big shortage in supply. and so by on september the price is a back to the pre war levels in the week markets in the futures market. but developing countries fast, much higher prices, because meanwhile, currencies have depreciated and they are facing really a major crisis. i know you know, and advocating profiteering, but there is lots of money to be made is, is hey, in the short selling and long selling. but then why is,
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is that people don't actually know around the world where the prices for breads that they eat come from. i mean, how, how does the media manage to distort the mechanisms of the economies is something to do with it? is for universities, you teach and universities? is it something to do with the trickle down economics theory? what i want to just go trickle down economics, where do you say it's a v? i didn't mean to trickle down economics. is it where i'm in the ferry, is it coming down from the academy? yeah, yes. you're right. the series are coming down, but i would say that this is not really a box theories. it's taking a basic idea that everybody knows demand and supply, right? the do mind, if advises and supply doesn't change, then prices will go up on a supply, falls and demand doesn't change, the price is gonna go up, right? that's a basic thing. everybody understands. it states that and then taking any unexpected events to claim that this is going to dramatically affect one of the 2. so this
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actually happened already. we've been to this particular we've had the best movie script play out already in 2007, 2008. when there was another global sold crisis. at that time everybody said, oh it's because demand has increased, china and india are growing and they're eating much more. i mean, they basically pres, made out that it was because supplier of the same. but the southern increased demand from china and india that causes the prices to go up. but in factory no, but that didn't happen to be increasing demand from china and india was the day it was just going to be the same rate as it always go in the last few years. it wasn't, there wasn't knowing balance. and then they said, all the houses traded in canada, the australian wheat crop is affected. so they, they bring out the news as if it's going to be a big, massive impact on the bill the supply. but the thing about something like we, it's produced all over the world. so if there's
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a harvest page or something like that, as it could be compensated for by an increase production somewhere else. and that's really the story of what's happened even in 2022. obviously, all these news organizations deny their being controlled. and so i'm styling this couple involving profiteering hedge funds and private we companies are saying that showed, i'm saying i'm saying that it's the simple answer which is strange to them, including buy agribusiness. you know, if you're a good reporter looking at the week market, of course you wouldn't talk to some of the big green changes. and they will say, oh my god, it's a mess. you know, i mean ukraine is love exploding. it's a disaster isn't going to mean a 20 percent rise in prices, so they believe it. well, russia is saying that it's uh, the goal of the deal was to head off of the food crisis. it's ready to supply nation's free, but the u. s. is given quarter $1000000000.00 extra does the landscaping loss of most of exports. so maybe it wasn't about poor people at all. you written the
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lesser or you signed the lesser, along with 236 other economists to un secretary general antonio gutierrez and the world bank was a banga. i don't know how it goes down to the world bank or the i m f. tell me, i'm have this letter that you signed, co signed. so this is, this is actually the, the immediate context is the fact that the u. n. is in the process of a mid term review of the sustainable development goals. okay? and going number 10 is reducing any quality. so we have been on doing that. it's good to hear that. that's the goal that has been marginalized completely is really the often child of all the s d t is there is nobody taking that out, but emphasizing it. and yes, we've seen a professor just eclipse and now we were involved in failing to atlanta. we've via that if you do not actually address any quality, you're not going to meet any of the other goals. and to address it equally,
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do you have to begin by measuring it proper properly? so our letter saying, well look, what a problem with this goal is that you have the wrong measure. the measure is what is called shed prosperity. loved to do right? and if looking at where the bottom 40 percent of the population is going faster than the average g d p. so if that's the case, then they say, oh yes, fine shed prosperity and no, not looking at any of the any quantity indicated. but in fact, we know in countries that you really have to look at the genie go efficient, you have to look at, let's say, the bottom of a show, which is the ratio of the income of the top 10 percent of the population to the bottom 40 percent of the population, if it gives you a kind of, you know, the rates, what does the book relative ratio. and you have to look at these indicate just forgot just income, but also went because we know where the qualities exploded. so what we're saying is, listen, you cannot go by an indicator that doesn't tell you the real estate of any quality
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. they are claiming that more than half the countries are showing progress. but if you look at the genie or you look at the bottom ratio only about 20 percent of the country that's showing progress. in other words, 80 percent of countries are regressing by getting less on these out there to indicate just, well, i don't know about you, but i mean, when you go to all these conferences, i live there big management consultants. they're advising developing nations. they're talking not about of those kind of go officials. they're talking about reversing a statistical analysis to be talking about absolute poverty and getting away from even in poverty at all in the face of a i think you probably describe a as a catastrophe for the poor as people in around the world as well. yes, you know, i mean these global consultants, so as you perceive, rushing around the global advising countries and multinational institutions are, i would argue, or v a, b to any kind of progressive economic ideas. my friend,
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money i must have got to having to do it in the past. has written a recent book about this that's called the big gun, which is looking at the consulting industry and the role that they play. but. ready i think the real point is best, but you know, when you get extreme and qualities like this of cost, relative measures are very important. but they in eventually also needs to absolute increase in poverty. and that's what we're seeing today. and yes, being the rest of the top 10 percent exploding. and yet more people in absence number forwarding into poverty. and especially after always, we've actually seen more hungry people, the number of hungry have increased by more than a 120000000. according to the fios estimation, i mean, i want to get back to those consultants in the 2nd, but you wrote the letter to the uh, well, bank is partner institution. obviously dominique stress khan and christine the god uh where i am f managing directors guilty. uh con for rape. the god for uh,
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negligence. uh, actual crimes. uh oh. the gods. uh uh, negligence was, uh, she didn't take up a one year prison sentence, but you know, as an institution, a $155000000000.00 is owed to in the countries do take the i m f. seriously. how do you characterize the i m f, and i don't know whether you want to give advice to any will need is a developing countries about what to say in a meeting if they have one coming up with an i. m f representative to renegotiate their loans as well where it just stopped. so, you know, i think it's now fairly clear to most sensible people that these global institutions i no longer fit for purpose. they were created in a very different world with very different deal political circumstances with very different politically got me would very differentiate as of economic follow up. and the world has changed very dramatically, but the i m f and the world bank persist in is structure. that is,
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does not represent the was as it is today, or the global economy. and that gives disproportionate power to the u. s. and the european countries, which they have not used in the most desirable ways. so they're also very clunky institutions. they take forever to do anything useful. they are supposed to provide b, i'm f, as in jobs are providing typically we have a debt crisis by their own admission. more than 70 countries. i mean, what severe or multitude in stress, they do nothing for. yes, i mean the countries that approach them for the different day 3 years before they get get a result. and the doctor really is so niggling, it's so stingy that it amounts to, you know, it actually doesn't really have the so off to the treaties. but examples i'm, yeah, has just managed didn't agreement in zambia and so you don't got to be sent to jump to i. mr. payments are going to continue to pay spot due to 50 percent of the
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budgets on deck street on deck servicing. this is off to the so called relief. so you can see how these are institutions, but i'm not really taking the concerns of different countries serious to prevent the driving. gosh, i'll stop you. the more from the renown professor economics at the university of massachusetts that i'm has after this break, the the the
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the welcome back to going underground. i'm still here with professor drive. he goes, professor regional makes at the university of massachusetts that i missed. we were talking about a v i m f in alarming statistics like 50 percent of developing countries, been type budgets being paid in the debt relief. ukraine actually said the item that we use that service thing. i mean, you said the slow, they give $10000000.00 to your grain quite quickly, arguably. do you think the one psychological emma element in the war is that uh, they don't seem to be any war bonds, any war taxes have to pay?
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i mean, previous was the populations of gets tired of having to pay for was there seems to be an unlimited amount of money in your up in the united states. and where's the money coming from as the your gives it away in the united states because of the way, you know, one of the biggest joke that is in so many of these rich countries is that there is no money we have seen. but when they want, they can produce money out of a hat, right? during coleridge, the us spent an additional $50000.00 book god protect. we're talking to use of dollars. just imagine suddenly to be for the go with the package. it's ok. your opinion, fatty very large increases. i mean, all the rich countries increase the deficits additional spending by between 10 to 30 percent of the the, the ok. by contrast, 1000000 don't countries, low income countries, they can bury the country, spent about 5 central to be low income countries to percent or to to give you the
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difference. the us spends $2000.00 additional money up us. the low income countries spent $2.00, but the additional that's what kind of defense we're talking about. but the point is that when are these countries won't be, can spend money, they can simply print and produce and spend the money. and they've done that during the pandemic. they've done that for any further stimulus packages. they've done it for the green war. it is very, very large bill is going to a relatively small economy, massive amounts of defense spending going to ukraine. they've done that to save their own backs and they can work on the weekends and be very flexible if it's something like silicon valley bank cost and to get bank that does that stay southern and you find no rules, always nothing. the same thing in europe when it's a pretty sweet switches at stake saturday, they will go back on everything the all the regulations,
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but they have declared well in, you know, inviolable. and they will provide relief and assistance and come to a team over the weekend. a country like gone, i've got 2 legs on the country, like all the countries, jobs that are distorted for that to be a waiting. yes. i mean, to jump through endless hoops before they gets even able to actually go all some money. well, if the money is being recycling through items, companies and so on, and it's being printed, why is it that the bank of england, the fed these, if you don't think it, they don't think about inflation, is inflation pos of this? because why is it, say food inflation say the past month or so in britain is 20 percent food inflation in india or it's only 5 percent in china, one and a half. so that for good. okay, 11 brazil, 6 percent. why is inflation for food going up in the countries that are at war and ukraine and not so much for the global south?
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it's very much to do. this is all retailing station, this as a whole. there's the money that consumers face in the shops and that, you know, there's a very long distribution chain. so the real story here is, it's not because of what's happening to the global reach price. it's really about what's happening in that distribution chain. so when i say that, i mean, you know, governments, it's in the, in funds i've got to have to, i think, the, the boss that companies, all, you know, the companies that produce all of those basic basic food items. because they are charging excessively high price, is even one that has nothing really in terms of the costs to justify that. so a lot of it has to do with the distribution change. okay, well as soon as i know what you're here on, this will go mainstream media from the economists and the economies that are being shown in 3 digital britain, i should say, add to it, saying is, may have to reverse. and a lot of these saturated privatization is, i mean, the main big is watered company in london times water might have to be naturalized
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. they've obviously like, uh, in europe and in the united states, it's a nationalized bank stuff, the 28 crisis. why is it developing countries are still being advised and it relates to what the i may have presented. we say is part of that conditional am if a loans and loan servicing, why are they still being told to privatize even here in the u a. i mean, every country the in the developing world and emerging economies, those big consultancies are hired and so on to privatize not democratize. yes, and in fact, the advanced world is recognizing more and more that you need the public sector that you need to probably control over critical institutions including and find that, but also in a whole range of utilities and other things. however, bad big business still wants to make money out of all of these things in the rest of the world. and the reason why it's and got his daughter allowed is because it, it actually is extremely profitable for global big businesses,
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especially the multinational, based in the us and europe and japan as the way to actually make money from these privatization. so a lot of this reflects being just a big business. i love being conspiracy theorist. i'm not saying that they are sitting in the back room and say, oh let's do this. i'm just saying that the whole process works out in such a way that the major beneficiaries are in fact, big business. i want to emphasize to the, you know, people in the rich countries are generally ignorant about all this. i don't think that people would actually be supporting these kinds of things big. they don't realize what's going on. big are often this idea of private sector efficiency. they also fence the idea that bureaucracies in the global south of bloated and they're all these people sitting around in offices picking their noses and not doing any work. and so they feel good. yes, it's ok to privatize because it would make them more efficient. people actually feel this, they are not informed about the actual processes that are going on and what it's
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doing to living standards. and actually just a 5 or a whole many people in, in the global majority. i mean, currently is don't conspiratorial. i mean, idea, logically it's taught at business schools and it to universities to the leads. but why is it that governments in the global south haven't gotten onto what people in the developed world already know? i mean, i can understand zelinski selling to black rock and jp morgan, most of ukraine or was of ukraine. but why is it the global south, the still enjoying the delight, z y k b m g p, w. see the big for about how to change their entire economies to make them better. according to them, you don't. government in the developing was also are very complex creatures. they'd be reflected particular political economy. and often they reflect the interest on their own edits. and sometimes those are, these are what we used to in the old days called comfort, or that is that interest tied up with multinational capital as well. so it's not
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that the governments are representing really the interest of the people. i would say that's true even in the globe or not. i mean this whole thing about giving so much file as so many subsidies and been power to pharmaceutical companies that produce the vaccines entirely above the cost. but then we're allowed to judge really privy to prices and retain the benefits that didn't tend to benefit anyone other than the phone companies and the finance companies that had invested in them . it didn't affect it, didn't benefit ordinary people in the, in big goal does not. but so governments also now producing ways, but don't reflect the interest of their own people. and it's not being transmitted to the people, even as they suffer through this. that's right. i have been i, i'm teaching in the us. no, i'm stunned at the nuns about this. even in a, in a university down in the progressive body of the us be most of the don't know,
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they're all the big finalized me. they live with extraordinary high gusts of drugs . i mean the insulin essential life saving drug for diabetes is actually prohibitively expensive. and you'll find the instance of the old people going without it. because if they can't afford to have more than a few dozes among consort. yes, all of this is somehow accepted and i find that extraordinary because it's a real lack of knowledge about how governments have created the regulations that will benefit large companies rather than the people that i remember. one doctor saying that in the develop world things are bad, but developing well there things are bad, but there is hope i don't know after having and what 35 years experience teaching in india versus these are you in the united states? is it some of the levels apology, i know in india they have the same amount of poverty as the whole of our and ever got put together. but there's hope in the developing world, where is it with develop? will they have it? and they, they have
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a crisis of malnutrition and lack of food security without any seeming hope to eradicate it. well, you know, no, i would disagree. i think the degree of poverty in the developing world, and certainly in india. and so i do show that it does not seem to come back in the us. yes. but it just o d b s that is hung up and does not interested into us. but the level of destitution that you find in india is way beyond any of that. that's why the u. s. has a snap food stamp program to protect the 40000000 guys who can't afford to eat tonight then. yes. so you know, the us does programs which objects to other countries doing it, so it's it brought to jason the w t o against the indian national forest to get it . yeah, we just just providing for the green to the board are still in the book. what is they have a food stamp program, which is w t o compatible, simply because they made the w to a rules in a way that would make it compatible. i mean,
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it's really shocking that we find such egregious examples of the not pushing policies but been, would never apply in their own countries. course, there are some of the say the w t o is on the way out now, and that the error of the video from you can jot the timings from the seattle riots and uprising to, to now, what, how tricky will it be for developing countries to the dollar eyes, the couple from new liberalism in western europe, in the united states. i mean, they come, they have investments in dollars. they have solving wealth funds. uh, what's the future going to be like as they try and i've asked themselves of a connection to the united states in europe and become independent future will be messy. the future has got to be extremely messy because as you said, that so many lakes also because let's face it, the needs in all of our countries are very closely integrated with the us in europe
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. and so they want to keep all those things as well. so it's going to be very complicated and messy, but i do. the process has already started. i mean, you've gone tab, i think the global not, and g 7 in particular. they don't really, if you like the extent to which the rest of the was lost, faith lost draft of defend demick was a real eye opener for many countries, especially in africa because it was so blatant self. interest was so exposed the nationalism in terms of the vaccine grabbing the resistance to having eclipse weavers in w. d. o to allow other countries to produce the offer of vaccines when the 2 weeks before the expiring date so that they can be used. and then all of that is classified as for an aide. all of these have been such a extreme itself was a betrayal because very the trust and so bashful when the us and you're surprised that, oh, why isn't everything mr. quoting us about that you paid was the initial be because
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most countries now feed with these a not visit g 7 does not need to. so the well they need as of themselves, and they will only push that on the interest. so why should the rest of the was going on with them on everything they want? well, so it will look sort of set silicon valley very powerful. we go out and multiple platforms, some of them don't mind, but others even raising the question of profiteering over the vaccines in the, the iniquity of the whole co, with crisis, is enough to get them from binding a sense of the country like the united states or or in west new york, just quickly the only environment because they talk a lot about the environment in the you and in washington, we had see more financial and talking about the by the ministrations of destruction . the north stream pipeline la, just as a means a mission events, a man made in history. so is the environment and leveling the practice gas now being sent to your how seriously do you think the west some countries are taking the wisdom of leads a, taking the environmental crisis, had
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a comp $28.00 here in dubai. you know, i am in despair about the environment. i really feel that the needs across the was not just in the west and it's across the world and not taking this time of crisis seriously enough. and everybody's persisting with more force and food investment. and most of the few subsidies, the direct and indirect subsidies given to fossil fuels where the estimated not by me by the i mass right at about 6 to 5 on each trillion and 2020. since then, we know they've gone out, but because of the ukraine war. so in fact, we are getting an extraordinary persistence of fossil fuels, which we know opening the cabinet. whatever green investment is coming is really at the margins. it's slight increase, as i know, pushes a child that's probably the most advanced and pushing towards renewable. but across the world, better still heavy reliance supposed to sealants and the new gold investments which
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are coming up in menu in the country. so i am really in despair about the lack of any realism forget, you know, that this genuine concern, they just, that's just unrealistic about how they're approaching. but like with drop, the price of china goes, thank you. thank you. and that's it for the show. keep watching, going on the ground every saturday and monday. you can keep in touch with us while i roll out social media. if it's not senses in your country and had to channel going underground tv on normal dot com to watch new and old episodes of going underground. so using the,
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the glazing interference, major slammed statements by the french presidents as a bad sanctions and a possible intervention in the country. while the frenchman us defense ministers urged a diplomatic solution to the price of the thousands of demonstrators led to the new syrian capital, calling on french troops to leave the country. as france refuses to recognize the new military government, we hear from locals voicing their discontent with french policy through all lands that belong to these generates then on the french and scope to the visit were really respect.

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