tv Politicking RT June 8, 2018 1:30am-2:01am EDT
lation he's not doing it through government diktat he's just asking them for a voluntary price decreases allowing them to remain stored 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. the business community which is owns the media and they own most of the government would argue 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 excessive rate of return that could be considered deleterious to society at large my view is that instead 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 and not
a poll of bureau not the stasi that is the central bank and introduce universal basic income and or fund the arts and entertainment in a huge way to create an 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 it drives the return down to just basically a little bit about the business cycle yeah that's capitalism that's what do you expect but you're saying that they're destroying their position in 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 him a d. cheat 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 d.g. period left some examples of great artistic beauty in florence i am not sure that market capitalism of the twenty first century will be able to do the same they need a new renaissance to wait out the potentates in aristocrats during the middle ages created the lords and serfs in the dark ages and then we have of course triple entry bookkeeping with crypto community and that is the new renaissance otoshi is the new dimension and where patrons of the new renaissance of art like alex shaffer who's burning down the banks on canvas you know as a representation of what needs to happen to stop this vicious cycle.
owner tens of thousands on what he calls a still small pot. cause i don't need guns to tell him the will move out to us all morning as the silence is a downside acid all to the city. apply for many clubs over the years so i know the game inside guides. football isn't only about what happens on the pitch put a funnel school it's about the passion from the fans it's the age of the super money just kill the narrowness and spend two to twenty million a one playa. it's an experience like nothing else on here because i want to share what i think what i know about the beautiful game migrates of what paul chimes for . and thinks this minute.
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 and same day the expertise the deep thinking and the renaissance like mindset of dr michael hudson welcome to the kaiser report good to be back max i just heard some rumor you were in china ok break it down for us what's happening there trade talk trade wars how stropped impacting that country well it wasn't much struck at the trade war there was much talk about whether it's going to go off privatization route you remember last year well 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 that 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 is a. 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 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 that 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. 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 the shanghai property market a current paging gen one and 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 for the mortgage necessary that i was saying then you're going to fall for the western finance capitalist. this well are the arguments then get all there that far but the response we've got regarding from the women and the women also 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 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 i'm the apartment and able to sleep for a wife or i women at a very 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 and 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 limit 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 at beijing university come from outlying areas were of the 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 economy taking place and the question is how are they going to break it. they haven't so that is the main problem that they're working on that china of course
enter a world trade organization under clinton and sense the economy has expanded magnificently they've they've. friends isha from essentially communism to capitalism what that the l. and they fatten on interrupted ron 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 you know if in 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 seems like there's a split philosophically here now that they have 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 and 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 is the w.c. you know real trade organization is bringing them china's has been development so far is almost identical to the american development in the nineteenth century and the german path of development and that of anyone before is a mixed economy and the key to its mixed economy is the government has. control of the infrastructure and provides basic infrastructure services like education roads transportation 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 friedman. margaret thatcher privatized everything you can't have a mixed economy only the united states can have
a mixed economy and mixed economies are going to be basically military technology and they're not pleased to make china and other countries dependent so. china. has no intention of letting america dismantle its economy and right now you have the ideological attack from 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're pleased to do that and. join the west and china has no went to china says there was 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 maintained a. delicate and mixed economy with the public sector so it's going to continue to do this and as you can see with the fight over. i t. technology right now. wants to be free america's ability to create a technology monopoly to make it and. so you're having this this change political tension there of wanting to sort of. avoid having a military like that with united states libya style or russia. while still trying to maintain the export markets to get enough money to buy the technology and the raw materials that it needs to continue to grow its i didn't say all right let me jump in are because you're you did say though that the government
as has come down on corruption which in turn have. decreased the g.d.p. growth which has them. inspired the government to go to the private sector and invite privatization and ears saying of course then you're just privatizing the corruption i get that so why would do then make the next step and say that they have a political and philosophical ideological problem here because they have not experienced a wholesale collapse not sense the nineteen thirties 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 going to calm folks is the trick question maxed the slower the judy.