tv Keiser Report RT July 2, 2017 12:00am-12:30am EDT
israel talking to syrian artillery mortar shell lands in the golan heights it's the fifth cross border strike since last summer. the crowds. prime minister to resign made to resign with the message not one. piece why maybe seventy people believing he is becoming increasingly more obvious to me since. she. splits public opinion with held across the country over the influx of refugees. before only stories do you have i would call next on the program lomax is in mexico talking about trump's wall and then after trade deal my colleague will be with you next hour.
i am ask eyes or this is the kaiser report as we've been saying for quite some time the problem with the really low interest rates engineer to move money from savers to speculators and bank bailouts is that it encourages all kinds of old gobblers to monoliths. activities right stacy well you kind of made up a new word there mana ballistic on the stick which sounds kind of like cannibalistic and monopolistic i suppose like a ballistic like a missile like a model ballistic is like the weaponization of monopolization either way we've come up with some ingenious ideas here and kaiser where we're still in mexico city and news continues to happen north of the border however and we're going to look at
some headlines from there and actually has one of your favorite words while we're down here in mexico and that is eat max loves to eat his mexican food he loves his taco. amazon eats up whole foods as the new masters of the universe plunder america unlike our old moguls the new masters don't promise greater prosperity but a world where most people are to be satisfied by a state provided basic income and occasional gig work so here you have amazon who is using its inflated stock price that got that way by being able to bully its way into a number of different markets and competitively under price the competition to put them out of business before raising prices here they want to get into the food business and when this announcement was made a lot of the food the supermarket stocks crashed even wal-mart had to pull back because you're taking a business model jeff bezos offering food at below cost to get more people on the.
ime amazon prime or some other service and he's already said or there's already been talk about getting rid of cashiers getting rid of a lot of jobs delivering food by drone using these whole food stores as socially drone launching pairs of warehouses to really enjoy near the food market in america but just like to actually drive a truck drivers cashiers these are the minimum wage or a little more than minimum wage jobs that are the ball work of the american economy to get rid of actually drivers with automated goobers and you get rid of truck drivers with automated trucks you know you're going to get really cashiers at whole foods and other grocery stores have to compete now with amazon whole foods you're going to put millions and millions tens of millions of people out of a job they're on to basic income as you say this is the likes of mark zuckerberg and people like that are coming forward and saying well maybe we need a basic income because they themselves don't want to give up their monopolistic
positions over eyeballs on the internet so for example i saw that something like four out of ten dollars spent on line is spent on amazon and they hope to capture even more of it it doesn't look like there's any sort of antitrust actions coming anywhere on the horizon and they say in this article they point out that with this thirteen point seven billion dollars acquisition of whole foods amazon's jeff bezos has made clear his determination to dominate every facet of mass retailing likely at the cost of massive layoffs and the eight hundred billion dollars super market sector but this if anything understates the ambitions of america's new ruling class almost entirely based in san francisco and seattle as it moves to take over industries from entertainment and transportation to energy in space exploration that once thrived in competed outside the reach of the oligarchs. the like saudi arabia especially princes who have access to cheap money like the princes of saudi
arabia have access to cheap oil they just pump oil and give themselves. the profits and the rest of the economy are slaves or serfs to the princes americans be turning into a serf and lord economy jeff bezos becomes a lord everyone else's they serve maybe they augment their income with a gig economy you know delivering locally a couple meals or they or hire to fix a plumbing job for ten bucks or something like that of course the basic income that is talked about by the likes of mark zuckerberg he's the guy they want to distribute the basic income if they come up with facebook coin her something like this they've got two billion users around the world they then become of the purveyor of the basic income so you're chatting on your facebook and if you click on a fat maybe you'll make five bucks yeah and of chorus amazon prime is now available to people on welfare in america cards could be so he wants to merge basically well whole foods go down market and to be available for those who are on state
subsistence to make some sort of. that capture this mark and i think probably to get state support for his sort of positions now the next section of this article they go into specific companies of these big five like the fang shares the emergence of oligarchic america the section is called this is founded two decades ago amazon revenue has grown eight fold in the last decade bezos now wants to reorganize the world as one tech writer put it as an amazon store front he has done this by convincing investors that despite scant profits the ample rewards of monopoly await kroger or the corner food store enjoys no such luxury with a seemingly endless supply of capital and the prospect of never ending expansion the silicon valley puget sound oligarchies now accounts for six of the world's thirteen richest people and virtually all billionaires who are not either very old
or merely and herod errors of course bezos also own the washington post which is a very important newspaper particularly in shaping the conversation on the cable news or the nightly news or in the halls of congress so they shape the opinion of this world that bezos wants to turn into an amazon store fronts well typically when a company acquires another company you would have some earnings dilution because of the cost of acquiring another company wholefoods is a thirteen billion dollar company in this case amazon stock price went up and the on wall street are talking about this being earnings a creative that earnings instantaneously are improved because the cost of acquiring this thirteen billion dollars retailer is zero in terms of its cost of funds cost of capital they have the money on the balance sheet but they could just as easily
borrow thirteen billion dollars from wall street virtually no cost whatsoever this is part of what i do. all the interest rate apartheid wall where if you're you can borrow money at zero or negative to make an acquisition like whole foods and immediately accrue earnings bumps but if you live if you're an employee at whole foods and you're a cashier and you go to. payday lender because you don't have any savings and you need a medical emergency you're going to pay three thousand percent annualized rates on that money that you need so it's three thousand percent for the cashier in an emergency zero percent for bezos that's the apartheid interest rate wall the bantustans in america are growing prolifically you know they talk about thirty million people in mexico on the verge of starvation in america you've got one hundred million or more now below the poverty line and i'm sure ten or twenty percent of that ten or twenty million are now on the verge of starvation so comparatively speaking to countries are competing with their
a multi-million dollar verge of starvation cost so then the article goes on to apple the biggest of the tech companies the mammoth the biggest corporation in the world i think it was the first crossed a trillion or as close to a trillion dollars. just close to it but the article says that apple even as it invades american taxes enjoys a two hundred fifty billion dollar cash reserve that surpasses that of the united kingdom and canada combined their new five billion dollar headquarters in cupertino like those a firm such as facebook alphabet and sales force dot com reflect the kind of heady excess their earlier generations of moguls might have admired the peculiar nature of the tech economy rewards even to failures like yahoo's marissa mayer who earned two hundred thirty nine million dollars almost a million dollars a week as she drove one of the net's earliest stars towards oblivion while the
executive shuffling with the small town or million dollar payout of the goddess of a. succeed or not again usually executives or bonuses would be tied to a say success earning success but you don't have any earning success you have money being borrowed at zero percent and then stock buybacks that make it artificially look like earnings are going up and then the bonuses that are tied to stock options are worth a lot so if people who are actually failing get paid hundreds of millions of dollars speaking of failure here's the situation over the private company where sixty eight or seventy billion dollars a lot of radically second halves are leaving or have left including the c.e.o. who are going to parachute in now possibly is rumored shell samberg the c.f.o. of retirement according to c.s. and so that i'm sure will be another multi hundred million dollars he's already a billionaire so this could be a multi hundred million dollars for her regardless of where the company succeeds or not there's a lot of people speculating that the underlying core business model of unsustainable
and this company's going to go the way of enron and multi you know billion dollar goose egg i want to remind you of that point i just meet. apple has reserves cash reserves of two hundred and fifty billion dollars which is more than that of the united kingdom and canada apple has more money more cash than the united kingdom or canada they are more powerful than a nation state and this is one of the things that we need to worry about this is what's so worrying about a world where they're trying to push through the likes of t.p. or to tip or these trade deals which give them these companies that have more reserves the nation states the. another level of of of justice where only they have access to all this justice and
a legal system of their own like we saw with the h.s.b.c. case of the failure to prosecute because they're protected under the bank of international settlements and the f.s.b. the financial stability board out of sorts so apple and google or alphabet and facebook they are actually answerable to the governance clauses and corporate governance documents that are according to treaties or bills like d.p.p. and others make them exempt from compliance to the u.s. constitution or the u.s. law so they're exempt from the law if they get in trouble they would sign a deferred prosecution agreement like they just b.c. did which means a that they get no prosecution so the constitution is really no longer in force yes and then this article moves to. a study from competition policy international dot com and what it finds is that the tech boom of the one nine hundred eighty s.
and one nine hundred ninety s. rode on a wave of entrepreneurial ism that provided enormous opportunities for millions of americans the current wave is kerik. rise by stagnant productivity consolidation and disparities in wealth not seen since the mobile era as one recent paper demonstrates the super platforms of the so-called big five depress competition squeeze suppliers and drive down earnings much as the monopolist of the late nineteenth century did so this is the environment of depressing wages you were there during the first dot com boom when there was a general sense of prosperity across all america and jobs being created and productivity was soaring now productivity we know is in decline and wages are being depressed well you know the dot com era you have acquired many many many startups and used intellectual property patent law firms things like one click shopping to create a barrier to entry for competitors so gaming the system anyway all right we've got
to go to the second half don't go away much more coming your way. the economic development is all about really pleased to avoid this quarter we've heard one hundred six point zero. but what do we know about the other figures. when i think about the fact that i see my. made over twenty million dollars last year more than one thousand times the average wal-mart associate. with all due respect i have to say i don't think that's right. it's not just you know a free market works. people went from pretty simple financial lives pre nine hundred eighty to the point now where people are. just totally submerged in their
financial accounts and they're all in debt and what exactly devoid. society from the part of the government tried to do it both nicely maybe. it might be making things worse. by saying this is not how capitalism work this is our capitalism goes hopelessly disastrously wrong. yet there is a saying. i think there won't be cheap us and then through and through all the countries let's idea is that right to go to us companies he said if we give them every fifteen to pass.
this country. this is what we don't understand how we are poor in such a country. to the ones at the same time. the soon to run up or lose similar. to the us if you feel. the middle of on board not that god can we believe again without a doubt the couple with the plane. would come back to the three story you do have to see. at the end to the best. move for. you.
welcome back to the kaiser report imax guys are time now to turn to economist a columnist at one hundred l. alondra welcome thank you very much max great to have you on here we are in mexico city were meeting lots of interesting folks and we've got incredible opinions about a number of different issues but first tell us a little bit about yourself well i'm an economist that i worked at. just recently retired and i write a weekly column at lahore not on economic issues mostly the global economy mexico america definitely it's been a hot issue during the recent election in the united states one of those issues is the wall. to wall he says solar panels will reduce the cost of mexico to build this wall your thoughts on the economics and politics of the wall well i think this is more a campaign style of rhetoric that trump you all along the campaign trail we need to see. most more important than what he's going to do with nafta because i mean
the wall the rhetoric is also related to he's negotiating nafta or changing or retooling or whatever and so this is a christian the major concern for the mexican economy trump state something that's patently false he calls mexico the second most dangerous country in the world second only to syria when you state something as absurdly over the top. das city and lying of this nature the u.s. media kind of falls into place and doesn't really question us there if. your thoughts were i mean in mexico and has been. droning and kaos of by humans for the last twenty years today this is a dangerous country it's not the most or the second most dangerous country if i go to chicago i will not be driving down the green for. well that's pretty dangerous when they live so whether one neighborhood or one city or one country's
a dangerous place to go i think it all depends on your perspective the reason there's so much danger in mexico obviously comes out of the jug cartels as are the hotbed of violence as the drug cartels are fed by american bankers and h.s.b.c. i just b.c. i funded terrorism in mexico for years and sixty thousand dead mexicans because h.s.b.c.'s money laundering out of donald trump doesn't mention that exactly and the other thing is that you have an economy that is in a stagnant mode for the last three decades also this is an economy that doesn't generate jobs you doesn't have a party to study or have a decent job in the future so. and you have as you say we have the biggest drug market in the world next next to our border i mean next door to us so this is the most important thing we need to take into account when you talk about violence and drugs where is the market that will wear the dress or the color of eric eric holder hopefully you know former attorney general shipping fast and furious exactly public will you talk about corruption in mexico results look at the network you
know the marketing channel of drugs in the u.s. is laden with corruption you talk about the economy in mexico stagnating a lot of that to do with the fact that it's a vassal state of america that america doesn't want competition it doesn't want the competition so how can a mexico break out of the stagnation well the first thing we need to do is to recall group control of economic growth we don't have as you say it's a vassal state i like to call it a protectorate but make it maybe even more accurate the fact is that we don't have control of macroeconomic policy we don't have control of industrial policy in fact we really need to in our broad sweep to industrialize the mexican economy when we got into a nafta formally this is essentially giving up all policy tools for industrialisation so we need to recover that's when people say we should you know trump wants to renegotiate. nafta is this an opportunity for mexico you have to understand nafta now after subjectives in the nature of nafta what is it it's not
a trade agreement nafta was meant to lock in mexico and the new liberal policy package this is the main. objective so it will not be possible to get out of the neo liberal policy package because you need to renegotiate nafta to do that and that will not happen because this is this is something you have agreed with the united states so i can you got charged off and say we don't want to say that after as a matter of fact facts killed after all you want to negotiate kill it kill it you know that you're bloviating you know new york real estate developer just kill it absolutely well the thing is you need a new political landscape to do it here in mexico i mean with the present administration this government with these the powers that be today in mexico that won't happen you need to absolutely change but you're right we need to say get out of this mode of thinking and see how can we tweak and change the little details in the after to get a better deal this is this is not going to happen this is you will not get
a better deal there rearranging the deck chairs on the titanic that's right exactly every play in the feel that all the playing that and the band played on in the band plane and the waves swallow them well the thing is that you can do some minor adjustments to that that's not going to change the thing is nafta not only locked in mexico in a neo liberal mode i think it subordinated the mexican economy to the american business cycle to the value chain of multinational corporations operating in the us and mexico became again once again a primary economy reply memorize the mexican economy so became we export raw materials or oil agricultural products and cheap labor through the michael or border industries to the offshore companies that operate here in mexico including the automobile and. stree which many people think this is really our way to industrialisation no it's not those industries are disconnected from the rest of
the economy so they may grow the economy will not grow with them and this is clearly i mean if you look at the numbers you see years when you have. spectacular expansion of trait but the mexican up economy is in recession or or is stagnant well those guys are still a little bit what it is this could make because i sure because well that this is. they are not the value added is not in mexico right the panama paper shell there is that multi-trillion dollar offshore cartel and mexico is getting. stabbed with this but even but even if you have plants i mean you have forward you know american companies stablish in mexico yes but what are you really exporting curst know you exporting cheap labor you are assembling parts that are coming in shipped to mexico assembled and re exported to the us and there's no flow of currencies there by the way so this is why you know this these industries are disconnected from the.
matrix of industrial relations of mexico so you don't grow this way you will never grow this way so yes my view is let's get rid of nafta it's not a question of renegotiating we need to get rid of nafta to recover our own autonomy reserve economic policy so the other day other country and involved in nafta is canada of course are you guys mexico talking to canada not really not in not a nice there as well i mean you know nafta is not. ganged up on the united states to look at you know that's why the sandwich rather sandwich sure absolutely i would love to do that and that would be great the problem is i mean the powers that be in canada and the pros a b. in mexico are not willing to get rid of nafta and they're not willing to renegotiate nafta in a really. meaningful way because as i say we have minor adjustments here and there's no pro this is nafta joe. rates surplus for mexico so we have a trade surplus with mexico is this when trump says nafta has hurt the united
states he can point out our deficit with mexico bilateral trade deficit with mexico but nafta is not benefiting mexico because we're not growing. and we are we don't have less inequality because of nafta on the contrary we have greater inequality today and we don't have a surplus with the rest of the world so our trade policy did not allow mexico to generate a surplus on our trade balance we have a chronic deficit in spite of the fact that we have this surplus with the united states and by the way the surplus has gotten smaller because you have a drop in oil prices and then my killer dollar industry says this is a operate on the basis of the u.s. business cycle so when they have a recession and they have a problem well we have also brought the same problem with our exports so the only reason we don't we don't have a bigger trade deficit really is because the mexican economy is not growing because
once it starts to grow the deficit starts to grow with it to the center and so here structural disobey our judgments in the mexican economy that need to be addressed and without doing that this economy will continue stagnant the violence will continue unemployment in the quality and environmental deterioration will just continue you know stampede in the vilification of mexico by the administration and some of the mainstream media it sets up a difficulty for the very poor in america to communicate with the very poor in mexico and in mexico has got roughly thirty million that folks that are on the verge of starvation in america got one hundred million or more admirable of the poverty line and probably twenty or thirty million of those are still on the verge of starving to death and so that's fifty to sixty million mexicans and americans that can get together and form some kind of strategic bloc they are voters in both countries they. haven't they just short of killing them and putting a bullet in their head which is what other off their tearing regimes other than the
american author attorney regime or the mexican authorities and regime have done to anyone you know posing a threat to their author tarion is a big fellow that's why one of the ultra poor in mexico and the ulster port of merica get together over a nice ball of chicken molé and a hot dog and you know come together well it would have been nice if the democratic party had understood something of what do saying and say let's let's incorporate that in our agenda and in our campaign but the fact is that. i think the political elite in the united states has chosen to. scapegoat the mexican migrants not only mexico i mean central american mexican migrants the black population even the muslims so when you have this level of forward you know states as we got is becoming today a third world country does the wave part of the recent study there in the second world exert they're not longer the first world. standard of living standards education standards the us is now litter opt out of the top ten there and the
second worlds to look at the gini coefficient the level of inequality and this is a look at their infrastructure ok so. one way to address by elites is to scapegoat migrants and even you know other economic powers in the world that they've stolen our jobs and all this rubbish but it's instead of addressing this i think the democratic party chose to what what was the choice they have can we do we win with centers that we lose with with hillary they chose to lose with hillary i just think that there's this remarkably strong political bloc between the two countries that is somehow not getting together and they not there is social media and you know not to belabor this point too much but through alternative financial systems like crypto and bitcoin they have the ability to secede. from both the american and the mexican economy create their own economy and begin to direct financial power using
alternative currencies in this way sir because of if you look at that yeah well not to that particular part of me then certainly not from the perspective of political organizations n.g.o.s in mexico in the u.s. . what i've been thinking about is this crisis is so deep this is not a financial crisis it's an economic or macro economic crisis of global capitalism that can hold us but you know it will dip another segment with you if you can stay true all right let's put it was actually on the show then great ok well that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert like to thank our guest alexandro del rey just on twitter it's kaiser report and so i saw.