you have to be the center of the football we're with you and we will show you all the great. you are the rock at the back nobody gets past you we need you to get going let's go. alone. and i'm really happy to join the fall of two thousand and thirteen world cup in russia meet the special what. needs to. be r.t. team's latest edition to make up a bigger. look. in the heart of the swiss alps this is a place probably more secretive than the pentagon more mysterious than the cia and better guarded than for knox swiss customs are here permanently all the science is controlled by them and they impose the opening times. it is from the procedures in place of the strictest in all europe masterpieces by artists like pecan so and
modigliani can't boards and sold inside this warehouse that's where the report comes in it covers up deals which are naturally discreet commercially discreet but also discreet because they concern fraud. some of those paintings are linked to dark secrets nobody knows how many of these secrets a kept inside the geneva freeport system you'll never obtain an inventory of all the works in the freeport who knows how many there are three hundred three thousand three hundred thousand is it a matter of confidentiality only is it the world's black box of the art business. the far right. isn't just on the march it's taking violent. action i don't like it. of those organizations which are usually splintered which would be for different names i'll give you that look.
at. the complex web of fashionable pearl. purred. welcome back to the kaiser report imax keyser time now to return to our conversation with dr michael i'd say and dr hudson welcome back to the kaiser report good to be here to continue to so we are talking about donald trump and his new steel and aluminum tariffs and how that's going to play out economic lay and
least you know last time we kind of talked about how this could shut wall street out and that's an interesting concept you know if we can take this and go down this path a little bit but what do you mean by it shuts wall street out and isn't that it good i mean you know the economy has always been a battle between main street and wall street and certainly wall street's been a winning the last twenty five years certainly sounds the reagan thatcher era and male liberalism and main street spend shut out main street the wages have been stagnant a lot of jobs have been lost so is this signaling kind of an era when main street can look forward to some gains here versus wall street and isn't that a positive thing and isn't that the way the cookie crumbles if you are working on wall street dr hudson well i don't think from economic policies that don't favor wolves three are the same as bernie sanders was the it's the don't they are both
great just because wall street loses doesn't mean automatically means three yangs there must i think there's a national security strategy but i think the national security the state has taken over and what they're trying to do is play the game of international diplomacy that is not going to help either wall street or main street they can both be losers if the economy is being mismanaged and it looks to me like trump and the republicans are mismanaging out the economy for instance if. trump wanted to know wall street what he would really do would be to build up infrastructure. and some set up infrastructure he would lower the cost of doing business for wall street there's no let me jump in here for a second because you know was america's biggest competition globally would be china china of course as an adult policy and it's a top down hierarchical approach and it was a bit of an iron fist our alleged free market ideology in america prevents our
elected politicians from even offering this type of thing but in other words can have as america compete with china if china's going an american as a same to have any problem with a lot of the inroads that china is making and so are our technology space etc with surveillance technology this type of thing but in other words are two very highly contrasts things temps our styles of doing business air your comments it is impossible for a free market economy to compete internationally a free market economy is one of economic collapse and austerity look america didn't get rich by being a free market it got rich by being a protectionist country that's what my book is about america's protectionist take off. in the nineteenth century america had the idea was if we build. america it is a mixed economy where the public sector providing education roads really roads and
all of the infrastructure at a subsidized cost there are really then our business can hire labor and do business and a lower cost than other countries that are privatized and free market so american got rich by not being a free market china's getting rich by following the exact same policy that made america rich and germany rich and other industrial countries by having a mixed economy where the government provides most of what's their own externalities transportation costs communication boss education costs water sewage all of these are in america the infrastructures. it is being prototypes to increase the cost comes next best. increases the cost of doing business in the financial eyes of the me alone let me jump in because as an interesting points in other words if you have the infrastructure like roads hospitals education these types of parts of the economy that add to the aggregate
gross domestic product and intangible ways and tangible ways of while allowing the free market to exist and things like computers and soft drinks and you know things that are commercially competing out there you end up with this mixed economy and the best of both worlds but in america and also in britain you have now the privatization of things like transportation a runway it becomes vastly more expensive it doesn't work. ideologically or theoretically you don't want to ans of a railway system competing with each other because then you get stuck breaking down in the middle as you have in the u.k. or amtrak as i don't have to order what the current status is of i have a track but anyway so you have this mixed economy right and that's the best of both worlds but in this country and elsewhere they've privatized those elements and now you pick up the competitive and has really been destroyed right yes what you call
a privatized economy is really a financial economy where the financial sector. every bit of infrastructure privatized finance is very expensive credit with interest charges stock buyback programs management charges overhead capital gains and. america will end up looking like margaret thatcher's single and they call it a free market economy but it's really away from industrial capitalism as we know it in the main in the nearly twentieth century back into a kind of feudal and it's a kind of me it's you know spoken about. before and it is a retrogression from capitalism industrial capitalism and it's even either call it finance capitalism or new york feudalism but it's going to be very high cost of living high possible doing business like a competition and the only way you can really are protected this is militarily with a national security state and the military industrial complex and that's not
something that benefits either wall street or main street this is something that is basically simply parasitic changing gears for a second i want to pick your brain on something air everyone from jack ma to marcus dr burke have been warning about the impending artificial intelligence job apocalypse do you agree the most or press will be displaced by machines or algorithms is there anything we should do as a society for paraffin so what is your current thinking on the way i trend and jobs and economics dr odds on this argument goes back two hundred years repair no marks and other people who are saying it's mechanization going to replace libor or no and marches and if there was no it's not going to because instead of more and more workers are going to be employed in the capital goods industries. that are making the machines that displace manual labor so what you're going to have is an
upgrading it later from the old manual labor to the machine making labor well the same argument that was waged in the nineteenth century can be waged now in the twentieth century how many workers are going to be employed in the artificial intelligence at this rate how many i mention all of the all of the gas stations that are going to get more businesses are so crowded parasols mentioned to each other i mentioned the increase in hospitals and the smoke reading power automatic intelligence cars run over pedestrians you know who knows you know how many extra jobs are going to be created by this so the let me let me jump in for a second. in the us let's go off on a wild tangent here as we normally do so yet you talk about ricardo and marx and nineteenth century economic models and how this is not any different but i would posit that it is different because in the case of the algorithmically driven the high tech economy that we're now living in the cost of the raw materials the digits
that go into this economy are zero zero this is completely new never seen in the history of economics on a case of over you know they have over drivers working at under below the minimum wage because a platform that algorithmically controls millions of customers and thousands of taxi drivers taking advantage of the fact that there of raw material cost digit electrons to them is basically zero same thing with google as same thing with all these major platforms facebook it's a platform is resting on a reservoir of raw material that causes your oh and so things are trending down is highly deflationary in this regard and so therefore this artificial intelligence again are algorithmically driven is tapping into this a some pot a curve of raw material cost is zero and that's highly deflationary isn't that
a seismic change in economics and the models that have been looked at and examined now for two hundred years dr watson yes i have to admit you're right it is a seismic change and it's a race to the bottom and it goes hand in hand with the haitian you're seeing so to the extent that. the artificial intelligence doesn't mean higher quality of life it may very well mean the kind of managerial program that's what you know it results in a lower quality of life for most people just like drivers earning less than the minimum wage people going to work for him is. are notoriously. short lived there there. were jews apparently you know. what he did so right into this mix donald trump is coming out and saying hey you know we're going to put some extra tax dollars in your pocket the form of cash
we're going to we're going to bring tariffs on to give steel workers some high wage jobs and you know this is a vote winner and against a backdrop of fear the average worker is scared to death because they also implicit and this kind of cycle economically would be a trend toward higher inflation anyway as we're now entering into a new era of higher interest rates etc a trade wars. are not deflationary dr odds and they tend to be inflationary aren't they another thing backing up your point of that modern he is different from industrial technology in the nineteenth century. high wage labor under sold low weights labor it was called proper labor the idea was that once you have machinery you're going to have to have more and more highly skilled highly trained better fed and rested labor in order to operate it so you had upgrading of labor all during the industrial revolution as
a result of this mechanization new labor increased as living standards in order to be able to perform the higher quality were just industrial work jobs but now under industrial technology it's like the navy designed by geniuses to be run by idiots and you're going to treat labor is essentially you're carrying you're turning labor into low quality repetitive servo mechanism lever rather than the highly skilled labor that people thought was going to lead from industrial capitalism and the socialism and better living standards fair enough now what's your latest book by the way and junk for jay for junk economics at the latest that's no my latest book i'll be coming out with another one in may our no see it on the new york times best seller list i see not seem to love this book up there and it is just recycling the same things over and over and over again there's nothing in that same tell a book we haven't seen already a hundred times you're actually bringing some fresh to the table i come you're not
on the new york times bestseller list this is a travesty dr hudson because i'm the kind of person that you have on your show not the kind of person that the new york times likes to celebrate though they review books that advertise in the new york times and i don't ever if i go on your fair enough yeah that's right tell it never comes i was on air once i got to say we got him on back all right maybe you two should be on for debates and dr johnson thanks for being on. the kaiser report is always going to be here. well that's going to do it for this edition of the kaiser report with me max kaiser and stacey ebert like to thank our guest dr michael hudson latest book j. for junkie economics if you want to catch us on twitter it's kaiser report and the next time. he becomes nuclear which will become all your lordship getting it toward your
career as well but i guess it was the most got a year each invaded so i was studying one hundred fifty as its official line is that. north exist so i will study is in the u.s. occupied territories to be may be a great source of what i will study else to probably develop nukes and if that happens what about. to get not all this gantries have a lot to develop. with manufacture consent to public will. when the ruling classes protect themselves. with the flaming. lips and. we can all middle of the
room sit. down not once not. lose all. the definitions and i'm back in the. south. taking the eco city south just it didn't include oxycodone and then you're just going to bring. it out we said i'm . going to let you know let me. suck out. this just feeling this one thing i love just i know. that he's just numb tokio find it he's going to keep going to.
his work was because did it because he didn't seem quite a cultural thing i pulled the premise. well you know that they were kind of adopted because we were called pirates for so long. i've been there in the small ball and sticks it hard to watch it and it's. up to. the little self the big fish already ninety percent of the dark got a new ball because their. concept fifteen scoops seventy five tons true and they do it several times
a day with the big fleet now you get an idea of why. we have to understand we can all stay still and just. be with them this will be news he'll be going to browse through. i'm doing this because i want the future world to future generations to have and enjoy the ocean we have. really you very much. in love you're in the event without. me each of you jump each doesn't want to eat eat eat eat eat eat eat eat eat eat eat eat eat eat eat. eat eat.
eat eat eat eat eat eat. more than five thousand people need serious militant controlled enclave of easting did so with many more expected to escape to safety by the end of the day. for free. should go away should sure told the u.k.'s defense secretary resorts to under promise a language as tensions between london and moscow increase over the poisoning of former spice they gave script and his daughter. all the investigation into the poisoning has so far produced it no concrete evidence and u.k. police say it could take weeks more to establish a suspect. iconic ukrainian lawmaker in a judge just south claims the current government was behind the deadly made town
square shooting in kiev in twenty fourteen. a warm welcome you are watching r.t. international with me making airing now we have a significant development from the syrian enclave of the. more than five thousand civilians have a scapes the rebel controlled area of a humanitarian corridor or established by russia and syria these are the latest pictures from the area the russian defense ministry center for reconciliation in syria says up to thirteen thousand people are expected to reach safe zones by the end of the day the humanitarian corridors were set up as part of an effort to implementing a un resolution ceasefire in syria however civilians rarely use them with reports
of militants taking hostages and opening fire on those attempting to flee the syrian government's anti terror operation has forced many militants to cut deals to let civilians go in exchange for their own safety r.t. arabic correspondent reports from eastern guta. left out my uncle and i what they needed there wasn't of civilians are living good or right now by the humanitarian corridor you can see behind me the passage has been recently opened by syrian forces it's allowing crowds of civilians many of them are children to leave them battle area people are coming from different districts of bhooter many civilians were telling about the suffering the face for militants also said they were previously prevented from flee and we left eastern ghouta you were so difficult when we tried to leave earlier we were not allowed as it was controlled by terrorists the army advanced on the town and asked us to leave thank god we are safe and sound and we have arrived here. is to go to which is close to the capital
damascus came under rebel control back in two thousand and twelve since then and government forces have been trying to recapture the area and fighting intensify their last month of the militants have been driven into three pockets with the syrian government's now holding large parts of the territory but the situation for civilians trapped in the embattled areas remains dire people have been caught in the. crossfire and suffering shortages of food and supplies. now the u.k.'s defense secretary has told russia to quote shut up and go away of the moscow's alleged poisoning of former spice a case cripple and his daughter as the diplomatic fallout over the incident continues. it is absolutely atrocious precious an outrageous what russia did in salzburg we have responded to that frankly russia should go away it should shut up
we've certainly raised eyebrows because it begins to feel a little bit surreal when this kind of language starts being used in this kind of language comes into play especially if you're expecting to be taken seriously certainly in the world of diplomacy or u.k. foreign secretary boris johnson today talked about how there is quote overwhelming evidence that russia was behind this cripple incident although however when he also was asked about his certainly a certainty on a scale from one to ten he described it to be at nine point ninety eight and he talked about russia being full of smug sarcasm we also heard from nato secretary general talk about this whole ordeal let's take a listen to those i'm afraid the evidence is overwhelming that it is russia and something by the way in the kind of smug sock stick response that we've heard from the russians to me that indicates their fundamental guilt do you track
to ensure they can place against the backdrop of a reckless pattern of russian behavior. over many years we do know that the u.k. has plans to provide a sample of the nerve agent that has been discussed in rebel in connection to this poisoning to the organization for the prague bishan of chemical weapons which russia is also a part of but it's not providing a sample to russia despite requests and messages multiple times from russia throughout this past week to be able to analyze this nerve agent and try to assess what exactly it is and we do know of course the foreign ministry in russia has been saying they would like to know what the substance is we've heard from foreign minister sergei lavrov said russia that russia will definitely retaliate in connection to the expulsion of the twenty three russian diplomats certainly a quid pro quo scenario is sort of traditional in these kinds of scenarios but he
did underscore that russia will continue to use diplomatic language germany france america and the u.k. have now issued a joint statement on the poisoning which they say was highly likely to have been orchestrated by the kremlin it requests the most provides the organization for the prohibition of chemical weapons with information about the navi chalk nerve agent program when it comes of following the british government's decision on wednesday to take retaliatory measures against russia in an address to parliament prime minister to resign may announce the twenty three russian diplomats will be expelled from the country she said high level bilateral meetings are also being suspended that includes a visit from russia's foreign minister sergei lavrov on top of that there will be no official delegation from the u.k. attending the coming for the world cup this summer we spoke to economist and russian expert pierre thomas he says the measures are probably too. i don't believe
in second easy story why president putin and the rush hour when we go for election would prove more chips of scandal international who condemn it easy may second we are the world cup or football or we are actually invested billions way too to exert risk to the mage's big event for a few years now we ceased to be russia for be our everywhere usually the diplomats are so cautious and so prudent way so the new we know all all more few hours after all who is needy or russia the investigation into the attack on the former russian intelligence agent and his daughter is still ongoing and there are still many unanswered questions as artie's daniel hawkins explains. and i tack by the kremlin on u.k. soil for downing street it seems the case is all but closed russia is the culprit
no questions or other. has the prime minister taken the necessary steps to make a formal request for evidence from the russian government given the gravity of the accusations at official request seemed like a reason the mosque but law school though says no such requests were forthcoming. we haven't received any official request from london we've told britain we're ready to respond if they file the request instead of filing the official request the u.k. continues to pull political stunts moscow also said it would cooperate in a joint investigation within o.p.c. w. parameters it seems this offer was unacceptable to the u.k. government. has a high resolution trace analysis been run on a sample of the nerve agent no answers from to reason may on that but the prime minister believes there's already enough evidence to make it highly likely this was
an attack orders by the russian state guilty as charged mr script atlantis daughter poisoned with nothing chock a military grade nerve agent developed by russia means motive and opportunity are usually needed to prove criminal guilt the nerve agent shark used in that attack was actually developed in the soviet union decades ago and the o.p.c. w. officially confirmed that russia had concluded the destruction of its entire chemical weapons stockpile last year but apparently it was not only russia that had access to research labs and the scientists working there in his better stand for example which became independent after the breakup of the soviet union it was the pentagon that helped to demilitarize the facility it was in that very facility schalke was tested to do most of the global. up against good schools in the mid one nine hundred ninety s. western special services recruited a number of our chemical specialists their names are known they also brought some
of the documents and continued research in this area including in the us in the u.k. the results achieved by those countries in creating new poisonous substances that for some reason classified under the common name in the west a confirmed and represented in more than two hundred open sources from nato countries we have all the references we're ready to provide them. how has she responded to the russian government's request for a sample of the agent used in the soulsby attack to run its own tests apparently no response and no sample why the secrecy if this is such an open and shut case. has that revealed any evidence as to the location of its production all the identity of its perpetrators hundreds of offices as you would expect continued to work around gathering evidence to identify those responses were not declaring a person of interest or a.