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tv   Keiser Report  RT  June 6, 2018 11:00pm-11:31pm EDT

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and this cycle is being played out all over again and so the question is is the. pentagon says it's impossible to know how many civilians died in last year's liberation of the syrian fifty years that's after amnesty international slams the u.s. led coalition in a new report alleging possible war crimes during the consul or with city. there's few worry in germany after the new u.s. ambassador is accused of lending support to far right groups in europe maybe he needs to be a little bit more careful this just in. a u.s. crossing swords with the u.s. so the newly imposed a trade tariffs promising counter measures from next month and calling the move by washington illegal. and u.s. senators consider
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a bill which would greatly expand the president's war powers even as constitutional experts testify about the dangers of the new legislation. that got more on those on other stories that are to dot com up next the marquee international look at today's financial scandals but the kaiser reports in the u.k. and ireland is the latest economic news on the boom bust. hey it's there this is the cause report. max i'm going to introduce you to the family and it's important to know about them in case you don't know anything about history and many of us don't but they are in our news today because we have something called the made cycle happening here in america but first remember they
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are the house and the d.c. the were in the republic of florence they ruled the republic of florence and then expanded their power across europe they installed family members and as like katherine dimon in france the queen of france the pope's in italy. you know they became powerful in the first half of the fifteenth century because they were banking family who were first to really use the power of double entry bookkeeping so they were the ones that became very powerful from that which is interesting in today when we have big queen and triple entry bookkeeping so they became powerful through that they brought us the likes they were patronage of the arts they had some like from davinci to raphael they financed these guys so you know they did bring us some good stuff but the warning on it is coming up really they were fantastically wealthy at the time and what happened well america the media cycle in
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the corporate powers and politics a recent paper by luigi zingales of the university of chicago titled towards a political theory of the firm deals with the issue of rent seeking behavior by monopolistic firms through political influence neoclassical theory assumes that firms have no power of feel any different from ordinary market contrasts. thus fortiori no power to influence the rules of the game rights in galleys in the real world firms have such power i argue that the more firms have market power the more they have the ability and the need to gain political power thus market concentration can easily lead to a mid vicious circle where money is used to get political power and political power is used to make money so you obviously see that across america now you see these giant corporations spend enormous amounts on lobbyist but they spend even more
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enormous power amount on funding campaigns funding super pacs citizens united the supreme court allowed for these corporations to spend unlimited amounts of money and why do they spend why are they spending more and more money in america well because the likes of occupy wall street because of all these activist groups because of people starting teachers striking across america as they're starting to strike and protest against the monopolistic pricing power that many many corporations in the telecoms industry in the health care industry and the pharmaceutical industry have and the stress the ordinary population is enduring you're seeing that they're rising up and getting politically active and casting their votes for anybody who will destroy the pricing power of these monopolies and the monopolies and therefore to protect themselves poor more and more money into buying the politicians who won't listen to the people and i guess the question is
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is it inevitable otherwise ok the media the family was engaged in a massive political financial corruption which led to a concentration of wealth in the downfall of that country so in america a similar corruption playing out we call it money in politics and people try to get rid of the lobbyists and this is cycles being played out all over again. so the question is is it inevitable the us was created with the toward separation of powers and i toward distribution of power and trying to mitigate against the risk of wealth concentration and it lasted quite a long time but now these lobbyists have come in they've changed the constitution they've changed the bill of rights of the end run around the bill of rights i'm thinking about this whole net neutrality debate that's clearly a violation of speech is second the first amendment and so you have a repudiation of the basic concepts of the founding fathers due to this cycle or
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corruption but is it inevitable i mean it just seems like there's nothing going to stop at the moment it seems like this is how we're feeding as an empire is partly because of this and you can see how it happened back then ok so the d.t. family should they have been compensated for the first to basically market and create a lot of wealth through using double entry bookkeeping should they be penalized for that they were the first to figure it out but at a point where they've bought and you know they become very wealthy they become very close to princes and other leaders at the time they then start having so much wealth that they create great works of public art the likes of warren buffett and bill gates today they are. publicly very publicly give huge amounts of money on paper anyway they say that we're giving billions of dollars to fight malaria we're giving billions of dollars to all these good causes
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and it does work you see a lot of people feel like warren buffett is caught only in a nice guy and why would you have any problem with his you know even he by the way his wealth he himself he states that publicly he said it in his shareholder newsletter that he looks for companies that have monopoly pricing power it just emerged for example that he tried to invest three billion dollars and what is seeking by losing money big time right now is they're seeking to destroy all the competition in order to have monopoly pricing power ok but who created the wealth was. a family or was it the artist of the renaissance so the artist of the renaissance created a distribution of power away from the feudal lords of the middle ages and so you had wealth distribution then the medicis came in and they reimposed the wealth
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concentration so to try to avoid a populist uprising in the first forex they throw a few bones out a couple artists and say we love your work here's some shekels to go build some more i have this they did finance some of the most spectacular is devin she was one of the greatest artists of all time and he would relied on the body chief family for a lot of his funding so it's not like they didn't participate in that but in terms of what's happening in america and how the process happens zingales and this is actually a piece from constantine there are also symmetric incentives for the firms to engage in rent seeking as in galleys notes if the ability to influence the political power increases with economic power so doesn't need to do so because the greater the market power a firm has the greater the fear of expiration by the political power. strange but it is quite intuitive as a firm gains market power its prices rise above the marginal cost yielding abnormal
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economic profits to the firm at the expense of consumers the governments can and do claim political mandate to limit these profits by taxing the market dominant firms profits either through regulation or direct taxation thus express in part of the abnormal returns i want to point out that you know trump is a business guy first and now he's president and you know you saw that tweet trump says major drug companies to announce massive voluntary price decreases in two weeks this is part of the fear of these pharmaceutical companies who have intellectual property they have the department they have the whole government on their side to enforce these strict intellectual property rights and to jack up prices one hundred percent two hundred percent three hundred percent a year and their life saving drugs and a lot of people you saw this in the twenty sixteen election you saw in the two thousand and twelve election you saw the two thousand and eight election president after president you know political candidate after political candidate claims that
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they're going to fight this one issue that americans are really against or against the banking monopolies and they're against these pharmaceutical and health care monopolies that are imposing so much severe cost on their basic necessities of life and they keep on vowing to stop this monopoly pricing power as trump is recognizing here but of course he's not doing it through regulation and he's not doing it through government diktat he's just asking them for a voluntary price decreases allowing them to remain the storage of you know power centers to refer to something in the text that you're reading there they are talking about a normal rate of return so the business community which is owns the media and they most of the government what are you there is no normal rate of return or a milton friedman. type argument would be that our only responsibility is to create a maximum rate of return and it could be an infinite rate of return and there is no
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excessive rate of return that could be considered deleterious to society at large my view is that of trying to establish what a normal rate of return is there should be more of a competitive environment yet by introducing competition in two ways let the interest rates in the economy be set by the market in a poll of bureau not the stasi that is the central bank and introduce universal basic unco and or fun the arts and entertainment way to create offsetting incentive and competition to reign in this predatory monopolist they do point out in this article and too long to go into it but they do say the abnormal rates of return happen only when there's no competition that happens in an absence of competition because if you could dig a rock out there and sell it and you your profit margin is one hundred percent usually competitors come in and say well you can make so much money doing that and
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it drives the return down to just basically a little bit above the market business cycle yeah that's capitalism that's what do you expect but you are saying that they're destroying their own position the revenge or their competition so we've seen that of course with bank they do as you pointed out this ended up destroying italy having this very family they were great guys perhaps and they and they helped a lot of the arts and they were nice people incredibly perhaps like warren buffett we don't know but the fear is of what i call a vicious circle it which money is used to gain political power and political power is then used to make more money and the case of medieval italy it turned florence from one of the most industrialized and powerful cities in europe to a marginal province of a foreign empire at least the mideast period left some examples of great artistic beauty in florence i am not sure that market capitalism. the twenty first century will be able to do the same they need a new renaissance to weed out the potentates and aristocrats during the middle ages
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created the lords and serfs and the dark ages and now we have of course triple entry bookkeeping with crypto community and that is the new renaissance toshi is the new dimension and where patrons of the new renaissance of art like alex shaffer who's burning down the banks on campus you know as a representation of what needs to happen to stop this vicious cycle. but without being patronizing they don't go away michael hudson will be in the circular don't. i think the last to the interventions military interventions. to those who usually be to listen to this in the regime change also perform arts and take. them all seen take a leave. i think. and i think we should we all should tell you you know
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exactly these nation the. changes will those who should accept our limits but i think the ideal for regime change military into the shoes from outside this is mostly all the. church secret indeed priests accused of sexually abusing children can get away with it literally. to call this to do graphic solution. what the bush admin's to do then he finds out that the proof is a perfect truth is simply moves him to a difference. were the previous standards not the highest ranks of the catholic church conceal the accused priests from the police and justice system to that of
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that's known as the i intend to include attitudes to seattle. well go back to the guys are a part time max kaiser time now to go to somebody who will explain how in fact the world got so in the same way day the expertise the deep thinking and the renaissance like mindset of dr michael hudson welcome to the kaiser report well it's good to be back next i just heard some rumor you were in china ok break it down for us what's happening there trade talk trade war and how strong impacting that country well it wasn't much struck at the trade war there was much struck
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about whether it's going to go off privatization route you remember last year the last two years actually there was a big fight against corruption and the government's response to corruption has been probably the only response that could have taken and that's your office that. finds that your oxys really tightened up the government budget the. universities i'm a professor at university and so they look for more and more partnerships with the private sector even for large conferences like that they needed private sponsors they know the airfare and bring people. business classes that are regular class so there's a running reliance on privatisation is the alternative to corruption so what that does of course is privatized corruption and the big debate is over whether to let
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private banks into china the american administration has been pushing to let the banks that go up and this goes hand in hand with what their real economic tensions and the real estate prices their real estate prices continue to go up almost entirely because of bad. and what i was trying to say and what my friend david already was trying to say was to say you guys are marxist politically but how about looking at what marx wrote economically volume three of capital where he talked about the self expanding tendency of credit and if you like american banks then how are they going to get this they're going to get business by lending to real estate just like chinese government banks to private lenders but they're going to try to make it easier terms easier credit lower down payment and the effect is going to be that bit of housing prices all the more and you're going to have what happened in
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the shanghai property market a current beijing shenzhen will have other chinese cities and this is going to create a bifurcated society if we're going to raise your housing prices and undercut your long term competitive position because you can say internationally you know prices are a reflection of wage levels and wage levels are what it costs to buy housing and pay the banks the mortgage necessary to get those and then you're going to fall for the western finance capitalist. this well are the arguments didn't get all there that far but the response we've got regarding from the women and the women all said in china if they're going to get married they have to find a guy whose family is given him in the apartment to start currently the women can get it's very hard room and they get salaries to pay so i can see that china is
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following the asian route of women getting paid much less than men and that actually is the key to their export competitiveness because if you look at the assembly lines and korea or china you find the export industries that are all women they're not. so you have a man having a high salary and the apartment and able to sleep for a wife or i would women at a very earnest such a low income comparatively because of the inequality there the export competitiveness the export competitiveness is based on male supremacy you could say that's one problem the second problem is that china wants to avoid a rural exodus into the cities it doesn't want the kind of overcrowding that has led to slums in latin america africa and other countries so what does an order to
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live in beijing or jen or other cities do you have to have a passport for that city meaning you pretty much have to be born in that city well that means that the students that base in university come from outlying areas really that rapes once they graduate they can't get a job in beijing or an apartment they have to either go back to their cities of origin and so they can. beijing needs other labor or they go to work or a institution like a university that has housing for its own employees like. a college or a high school that provides housing where it ages so very much like the old soviet system used to be where every company would provide housing for its workers entertainment workers and you're having this kind of segmentation of the
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economy taking place and the question is how are they going to break it. they haven't sold yet but that is the main problem that they're working on that china of course enter a world trade organization under clinton and sense that the economy has expanded magnificently they've. transition from essentially communism to capitalism with that the l. and they fatten uninterrupted run of growth and what you're suggesting and what i'm reading is that they're now trying to figure out how to handle a contraction to that growth and they've playbook of course in capitalism the system that they're emulating is to let the losers die and don't bail them out in l.a. and appear a capitalist society of course you don't see that america anymore about in the purest of a capitalist notion whereas in communism of course that would not be the case so it
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seems like there's a split philosophically here now that they've had this big run this enormous g.d.p. expansion thanks to inclusion in the w.t. you know now they're facing a huge a different problem in their history modern history i see you're shaking your head so my off base what what do you have to say that i don't think the w c o really trade organization is bringing them china's happy development so far is almost identical to the american development in the nineteenth century and the germans have the development and that event when before it's a mixed economy and the key to its mixed economy is the government has takes control of the infrastructure and provides basic infrastructure services like education roads transportation either really or don't last is the look with infrastructure that made america so competitive in the late nineteenth century and early twentieth century now the real trade organization is basically milton
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friedman. margaret thatcher privatized everything you can't have a mixed economy only the united states in the midst of the many mixed economies going to be basically military technology and then our place to make china and other countries depend. so china. has no intention of letting america dismantle its economy and right now you have the ideological attack washington saying you've got to privatized your schools so that your students will have to take on the student debt just like american and us to privatized your education so you can have as rotten an expensive transportation system as one but. you can just as actually commit economic suicide what you please do that and. join the west and china has no went to china says there was
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a lot of discussion about we don't want to do what the russians. have because the russians have never read marx they didn't understand capitalism and i had no idea what was in store for them when they let me know what rules when the reply me and the one thing that it's china has meant i mean a. dollar kind of a mixed economy with the public sector so it's going to continue to do this and as you can see with the fight over. ip. technology right now it wants to be free of america's ability to create a technology monopoly to make it and. and so you're having this this tension political tension there of wanting to sort of. avoid having a military like that with the united states libya style or russia. while it's still trying to maintain the export markets to get enough money to buy the
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technology and the raw materials that it needs then you're growing i didn't say all right let me jump in or because you're you did say though that the government have has come down on corruption which in turn have. decreased the g.d.p. growth which as that. inspired the government to do sco to the private sector and invite privatization and we're saying of course then you're just privatizing the corruption i get that so but why would you then make they've next step and say that they have a political or philosophical ideological problem here because they have not experienced a wholesale collapse not sense the nineteen thirty s maybe has there been a huge collapse in china you know and so how do they get if the people are in revolt and they have a history of revolting i mean how they're going to calm folks it's a trick question max the slower the g.d.p.
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growth the faster the economy grows because the g.d.p. is a fake measure the g.d.p. doesn't measure growth it measures how all the growth in america of g.d.p. since two thousand and eight has been the banking sector the fire sector finance insurance and real estate it's fictitious growth in the west china has avoided fictitious wrote and it's pursued the kind of growth that doesn't show up in g.d.p. namely low cost services provided by government investment that isn't counted in in the g.d. so the china does not follow a statistical measure of growth like the west in china statistics that are talking about real growth their growth is continuing is not taking the form of a construction life as it was or is not taking the american form of increasing banking is not them taking the form of increasing debt service life in america but
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i can assure you that the economy is continuing to grow just as it was before but this doesn't show up in the g.d.p. statistics because they don't follow the digital piece that just thinks they're designed by the financial sector to celebrate itself ok let's look at the other side of the equation or let's look at america eve of course. super a period lism many say that the us empire is honest last legs we've got a study out the top ten percent of americans are the new aristocracy controlling huge vast sums of wealth life expectancy in america is down in from a terrible the op student debts over a one and a half trillion looks bad what so how it we only have about a minute but how would you characterize the american empire at the moment fighting desperately to keep its control over other countries and try to say that all the growth of other countries and the united states is trying to do this by. lacing the
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old round of colonialism with a monopoly it wants to monopolize all the high technology all the finance everything that other countries need for essentials in its own hands so that it can statement on their growth to itself and other countries are breaking away china is breaking away. russia doesn't know which way it's going to go and we're seeing the tensions playing out in europe right now in america so i don't buy cheap russian gas by expensive american gas and the germans whatever you say and the english say ok so. america if it sounds like a good joke is in there somewhere we're got to do that the next time dr michael hunter thanks for being on the kaiser report. and that's going to do it for this edition of the kaiser report with me banks kaiser and stacy herbert like to thank our guest dr michael hudson it generates on twitter because
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a report it's next on bio. faced with frustration and dismay for america's allies even members of the g.o.p. donald trump is sticking to his campaign promise to recast washington's trade relations with the world the reaction has been loud and swift only on the verge of a global trade war. looms.
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our. own of welcome to worlds apart just a few years ago they feel you're a feeling i'm down the length of the united states and reopening for business with russia seems like crazy talk in some corners it's still nice but it's donald trump continues to spread to europe with tariffs and secondary sanctions can lead to push and seize the moment while to discuss that i'm now and joined by one consists of former chancellor of the austrian and former president of the european council chancellor it's a great honor talking to thank you very much for your time and now you've heard my introduction and as far fetched as it may be i feel like.


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