2 dot com stay with us now before the. Financial news in the country. Guys are this is the kaiser report you know the way phone china is the apollo 11. This decade its defining the technological landscape for a whole country going to happen for a long time. Sure this high tech advantage that china has should have been a split nick moment i shouldve. Basically introduced some sort of industrial policy and said hey americans we need to realize that china is eating our lunch on top of this we also should realize that our our exorbitant privilege of having the u. S. Dollar as worlds reserve currency has indeed been a massive privilege and we should have done everything to sustain that so acting like a bully has not only saw that you know even france and germany are coming up with an alternative to swift to circumvent the u. S. Dollar to circumvent the new york fed where all trades are settled that exorbitant privileges ending but this privilege of having the you know. This being so crucially important to world trade is also ending because what were seeing is this shocking headline and this is miss talk talking about a wall street journal headline china no longer needs u. S. Parts in its phones American Tech Companies are getting the go ahead to resume business with chinese smartphone giant qual Way Technologies but it may be too late it is now building smartphones without us chips while ways latest phone which it unveiled in september called the meat 30 with a curved display and wide angle cameras that compete with apples i phone 11 contained no us parts according to an analysis by u. B. S. And for more hot Technology SolutionsJapanese Technology lab that took the device apart to inspect its insides now going back to apollo 11 in the Space Program we had an industrial policy in america which was over there in california the xerox labs where they developed a lot of the technologies that apple used in the i phone like the cursor and all the micro circuitry and all these things that are the parts that go into an i phone were developed by the u. S. Government thanks to the taxpayer as part of an industrial policy called the space race and now youve got an industrial policy in china to beat Us Technology to beat apple with a huawei next generation phone and it looks like theyre succeeding and theres no parts in the phone and the us is being going to be sputnik and left on the roadside while china and the technology in 5 g. Go into the future all they have are terrorists and set of being able to compete i think with bell labs was in it they did it on the last big part of 00 they had a big. Research part in steve jobs open openly said that they stole a lot of stuff from there they were the best at stealing they have from the technology from the u. S. Government this story actually hits here in North Carolina. While way long relied on suppliers like corvo incorporated the North Carolina maker of chips that are used to connect smartphones with cell towers and sky Work Solutions will burn massachusetts based company that makes similar chips it also use parts from Broadcom Incorporated the san jose based maker. Chips and Cirrus Logic Incorporated in austin based company that makes chips for producing sound theyve replaced all the ships with their own or other alternatives now well id love to see america get back in the race but it needs entrepreneurial ism and you would need the. Ration in scorched earth tearing down of all those banks that are there only because of cheap rates right and they suck up 3040 percent of the g. D. P. Of the economy of the United States of america so theres no room for entrepreneur alyssum anymore not a not on a world class basis i mean you have people coming up with you know great ways to you know pocket fisherman or Something Like that you know novelty products that we sell out here in the u. S. But nothing serious in fact nothing serious is in this next headline again ray dally oh and i believe hes been watching the kaiser report because i noticed a huge sign coming out with statements or newsletters or blog posts or conversations on stage that basically just steal our stuff and im pretty sure hes doing that so send us a signal next time like blink 3 times fairly fast or send an a u. F. O. Going fast you in the background because you have always are always good for ratings really here is a headline and Paul Tudor Jones is back ray dal you and Paul Tudor Jones warn we will kill each other if our broken Economic System isnt fixed on stage i think it was in connecticut and said because the world is looking for yield companies can sell dreams rather than earnings the number of companies that produce earnings is the lowest since the dot com bubble in terms of their need because you can sell a dream as a result of the accumulation of the money at the top in technology we have a situation where naturally those who have a. A lot of money also have a lot of money in credit but it doesnt trickle down and as a result we have a situation with a large wealth gap thats definitely stolen from me from just a few shows ago i explained how stories sell and in the case that we work the story was were going to have a certain percentage of the Global Real Estate market and theres so much credit free credit out there you can get a few billionaires to market the value that story or dream 48000000000. 00 but its actually theres no revenue theres no earnings its its there its a complete ponzi scheme so thats a problem we have identified when you have unlimited trillions of elbel to folks that are board like out in connecticut or a dahlia and Paul Tudor Jones are board billionaires Paul Tudor Jones well Paul Tudor Jones they would be no raid eliot Paul Tudor Jones invented the modern hedge fund the modern approach to trading at the. Rate dahlia now capitalize on and makes a big fund out of it but when you have board billionaires in connecticut who are lounging around on their yachts or at the Bell Haven Club sipping my ties and they have nothing to do they have like i heard a story about a company thats going to take over a Global Real Estate or you know i heard a story about you know some guy whos going to launch satellites out of his pocket using a cheese grater you know give a 1000000000. 00 whatever we have to many billions because we get it for free it when the cost of monies are 0 the value of money is their own if the cost of money is negative then the value of money is less than 0 but hes agreeing with you reality who is a great what youre not suggesting they raise rates he doesnt make that suggestion hes unwilling to make the proper response to his comment and simply quoting me on his newsletter is not enough he also needs to offer a solution as well you cant just if the guy you 1st of all hes overrated is performance is horrible and he just gets a lot of cash for. Does he rips our stuff off well hes kind of suggesting m. M. T. Like a quantitative easing for the people i think thats kind of a suggestion because he says there are 3 things that exist today that havent existed since the 1930 s. A wealth gap thats driving populism on the left and right the absence of effective Monetary Policy and an emerging world power china challenging an existing world power the us and i think that last bit is the most important thats always the most important because no great power want to give up their power they always turn violent and we saw that basically all these world wars that weve had in the past century are a result of that he said that in my opinion were in the end in the late stages of our reagan served currency system its a fee out Monetary System not only do we have negative rates but were going to have much bigger deficits and thats not half the story because the larger story is the unfunded liabilities those are pension liabilities and debt liabilities so he believes the dollar is that end of the u. S. Reserve currency status around the world and of course he can still that from us ok so why is this significant aside from the pilfering going on by rate dahlia of our content its because she has a a was a 200000000000. 00 fund something enormous. His actions move markets right as george soros would would refer to as a reflex of flexibilty reflexivity you know your actions will create prices you know youre not falling prices are creating prices and so thats why this is significant if he believes this to be true and he were to suddenly go well i understand he did make a very large bet on a negative bet on the s. And p. Futures i think he put one or 2 percent of his portfolio in denies that he just says its a had rights as the rest of his sport ok fine enough but on the margins you know as a hedge you know thats where he has the Biggest Hedge Fund right about where you are he could be building a position right so youre putting on. Also you cant tip a san and say im going negative because then he was going to front runner a dahlia right so hes going to say well its ahead at 2 percent it could be a position hes building it could be 10 to 20 percent negative this Time Next Year if thats the case then he by virtue of his actions yes and p. Will be down thats the problem with the one percent that actually the 00 point one percent taking away all you know running away with all the wealth is that when you have like j. P. Morgan for example its a massive bank like it dwarfs all others and one of the theories about the repo market is that is them having all the liquidity that caused the crisis theyre here. Saying yeah there is a large bet relative to everybody else in the market that the s. And p. 500. 00 will crash but its only a small small tiny percentage of my huge Largest Hedge Fund in the world and were just heading our position but just his tiny percentage of his wealth could distort the entire market but if you want to go 1020 percent negative in the fund he couldnt do it all at once you know what the size of the fund hes got to take steps hes got to build his position over time so its going to be a lot of fake news coming out or a dell you know and he loves to be transparent socalled with a huge reports and is book of series and facts which is like hundreds and hundreds of rules of great dahlia which can be summed up in 2 simply buy low sell high thats the entire rate of any money manager thats ultimately all you need to know and so he could be building a huge position but hes like a tell us because he has customers as clients that he has to serve not us his solution is kind of quantitative easing for the people which steve kean has presented on this show and the other thing that steve king has always said is a government deficit is on one side of the Balance Sheet and its the benefit of somebody else as an asset for somebody else on the other side of the Balance Sheet usually the population the households in that economy but again when you have a oligarchic up takhar c. And a corrupt system here it goes to the top 0 point one percent. And Paul Tudor Jones mentions that he insists its not markets that its not just the markets that are running away but its the 5 percent budget deficit in the us that has caused us stocks to outperform he said clearly asset prices today whether its us stocks or its Interest Rates or its the dollar is all priced off of in my opinion a 5 percent budget deficit with this incredibly overly stimulative fiscal policy combined with overly stimulating Monetary Policy is creating this us exceptionalism that one day like if we normalized our deficit to levels more popular in europe where they have 3 percent a budget deficit we see completely different valuations of the stock market the dollar excess play out something weve pointed out on the show is that the banks are making junk loans and for corporations to consolidate and to create these a behavior of some private equity firms that are taking the World Private and eliminating Public Markets and for their sins the central bank absolves them by printing more money so remember back in medieval days if you committed the papacy you could buy your way out of going to the netherworld by giving the pope some money and you could with an indulgence right you paid your indulgence and you could buy your way into heaven all these people are trading Financial Center in america can buy their way into having a private jet. On the tab of the u. S. Taxpayer by making an indulgence with the Federal Reserve but the dollar currency money a supposed to irrigate the entire economy is supposed to nourish the entire economy and this is what you have when you have a corrupt system is not only does Monetary Policy that does the spigot go directly to the very wealthiest but if it appears also fiscal policy is thats all we know is to give money to the top one percent and hope it trickles down but it never is trickling down the simple solution for this obviously is to a let some of that money trickle to wages but they wont if you eliminate. Wages and you eliminate organized labor then you will only have money flowing into the oligarch class says if we dont fix it youre going to have a revolution and were going to kill each other right thats not a populist movement if you want to say thats populism then so is the declaration of independence the constitution of the bill of rights right what country are you living in you for a composer all right were going to take a break and when we come back much more coming your way. Seems wrong. Well we just dont. Get to see how this day comes to cancer. And indeed from it equals betrayal. When so many find themselves worlds apart we choose to look for common ground. You know world of big partisan new things a lot and conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for watching closely watching the hawks. Welcome back to the kaiser report im max keyser time now to return to our conversation with dave column he is a professor of art down a chemistry at Cornell University were talking to him about his year in review newsletter he puts out a very extensive very pithy very insightful year end review thats full of nuggets of wisdom dave welcome back i think i will be back you used the phrase quote a rolling lone gathers no loss now that we are at near 0 rate some much lower do you think us rates can go and Michael Hudson who dont know if you know Michael Hudson very respected economists been on the show many times he thinks predicts a negative 25 percent. On rates if the intention is to bail out creditors what do you think theyve column i pray hes wrong. But theyre trying to set us up to go for it or try to soften target for negative rates i think theyre trying to soften targets for our for massive q e. No matter what the fed will ever admit theyve just blown it and so dont just keep doing weird stuff. Yeah. Ive got a 3 quarters of us go home buyers are going to do really well if they drop their rates down there youre a chemist over there at Cornell University a professor and you must have some instinct for the laws of nature and what do you think of time having 0 value or less than value any value if we see negative Interest Rates time has less than 0 value with a negative Interest Rates dave column how does that how youre a physicist area chemist how does that work seem stupid to me i cant imagine why you would lower money but that the credit markets now are so messed up theyre no longer about you know creditors and borrowers meeting to haggle over price and so on. You know if its the feds got to provide all the capital and whatever needs they dont need my capital so they know i dont need an Interest Rate and i think i probably dont need to retire either but as a separate issue so. I think theyre screwing up the system i think i think the central bankers are so too big for their britches they believe the boy when he they skew i want to say ah i think im smarter than i am by recognizing that i dont know what im doing now but if time has a negative interest then were going backwards in time is this so banks on wall street can go back in time and steal from customers from decades past because theyve already looted every customer they possibly can Goldman Sachs and others been caught looting from their own customers their own customers or have been bled dry they want to go back in time and loot from the customers in the past is that what negative Interest Rates are all about to fall scientist to explain this to me. Yeah maybe i have disappearance or needs it. If there are people who are paying interest on loans. So you get to buy debt that they have to pay interest on it that. They can sell it to some other india i think thats the system or it that is got to be happening with all those negative Interest Rate loans which there are people on the margin who by the bye debt thats thats returning negative numbers so take this where are the negative one for all i care right its just stupid and i think it will destroy the Banking System i keep hearing the Banking System start by the low it low negative Interest Rates then why are they the Banking System sir i do believe the transition back to normal going to be a bloodbath so i think theyre afraid of that yeah i think the reason they do it even though it hurts them is very simple its an example of suicide capitalism and weve been saying this develop over the past 20 years where the terrorists there their theocratic fundamentalists or their wall street fundamentalists theyre both looking to blow themselves up for their ideology one follows a religious ideology and one follows a misreading of adam smith but theyre both terrorists now Michael Bloomberg was worth 30000000000. 00 in 2008 now hes worth 52000000000 dollars 10 years later hes running for president to stop people from taking all that free money the fed gave to him through asset Price Inflation do you blame the population for being angry about the unfair redistribution of wealth to the top in here dave youve got a lot of students i would imagine you who are actively are the other students beginning to realise that their future was robbed from them by the likes of Michael Bloomberg i guess i dont know if they know who did what but you can walk into a satellite and find a person who feels like that in iraq and so i dont know if the students realise a bit of rob because they havent yet found themselves unemployed d. And so i dont know if theyre aware. You know you manger in social justice. And you somehow think some employers going to actually hire you what employer would hire someone major in social justice i think that would be a toxic job applicant for me. Somehow sought you know its such a complicated story that again it keeps coming back to the central bankers who are the only ones who really have a pension so to be adults in the room and theyve blown it and so theyve theyve handed over the control of the asylum to see to wild speculation and to blame the speculators for spotting opportunity and speculating and im not inclined to do i also would question the use of who are redistribution. I think it is the distribution of wealth its flawed saw i think that weve missed price capital when labor so so capital so cheap now that that labors expensive relative way south i think thats hurting the system and i think if if the system was distributing wealth correctly and 2nd to be fair and you going to poor people rich people but correctly you know optimally you wouldnt have to redistribute wealth and you wouldnt have Elizabeth Warren then you wouldnt have Bernie Sanders you wouldnt have all these on democratic hopefuls who were poor proposal outlandishly ridiculous ideas so youre saying that you cant blame speculators when the fed gives them a lot of free money and yet the mandate of the fed is to modulating speculation in the economy through easing the fall crumb of Interest Rate policy thats the purpose of the fed so youre saying that the fed has renae and repudiated the purpose it exists by not trying to create economic balance but by feeding the speculators who are engaging in acts of financial vandalism to put it in the terms of the economist magazine and others out. There who are now openly calling banks financial vandals so as far as those students a Cornell University not being aware of the economic machinations happening around them i mean whats the tuition at cornell this year and what was a total years ago i dont know must be 6570000 total cost to go to cornell. For your. 18 year old kid of course every 18 year old america has 70000. 00 to spend one era car now and they dont notice it right so in other words whos bailing theyre going into the debt market theyre graduating with onerous debt and if they dont notice it then they should immediately drop out of cornell and get a frickin job because theyre morons now lets talk about even the fed the minneapolis fed neil carr cash and cash carry he seem to be looking at the fed getting involved in this redistribution of wealth idea perhaps through modern monetary theory so m. M. T. This is out of the Academic Circles of which i presume you are familiar what is it say can you explain it and is it any good i guess and one of the rope what few topics i spent and wrote the way an inordinate amount of effort to understand this year was empty its this funny mix of. Marxism and and socialism im quite know what it is but the basic premises is that the government can keep spending any money it wants that it doesnt have to even tax you know and it has roots that go all the way back to you know ancient roman roman coin clipping and debasing of currencies or suffering. But some of the things they say are just outlandish and so if you and i write a pretty big chunk of that that will be published later. And when you listen to what they actually seem to say youve got a fair. There is that theres sort of theres theres theres you are nuts and then. Ive tried to give him a break but i cant just reach out to people for help like that no one knows what im talking about that describes it is seemingly coming out thats the key i wouldnt care if they were just some Fringe Groups will include lay down and jonestown but theyre not on their way. Right ok good point that it is get gathering a lot of traction and it seems to be essential a another version of centrally planned model where youve got a group of people who are going to determine how much cash is printed and if theres too much cash as i understand it they raise taxes and if theres not enough cash they lower taxes but theyre still a central body so it is like keynesian in that respect it is like socialism in that respect its actually worse max its they think that the Central Group also i decide which industries to emphasize and which him industries to deemphasize send and that empty should be used to combat Climate Change and things like that so the m. M. T. Crowd really appears to me to be totally one morning and you know stephanie count for example was burning. Financial advisor in 2016 election so if by chance one of these extreme last candidates gets a life thats youre going to see empty in the cabinet to be clear it would be the opposite of the economic model that the u. S. Is spent trying to stick with for 240 years now 7 many of the Corporate Media day of calm are warning about populism rising around the world mostly they blame president putin and russia for controlling the populations of america south America Europe and asia using insincere insidious meme me more fair but is it more closely linked to Central Bank Intervention around the world dave theres something about quote i find fascinating. For several years not written in support of putin not because i think hes a sweetheart but because i dont think hes our worst enemy i think the savage coming back is just bad smash about her having here but but i think we are destroying ourselves from within i think if putins doing things to us. He is fostering now he has figured out how to get us to south. And south to me thats not our biggest problem. Our biggest problem is lack of free press the biggest problem is it is. It is it is lack of. Lack of free markets in the big problem right now is around the time dave cullen thanks for being on the kaiser report. And thats going to do it for this edition of the kaiser report with me max kaiser and Stacy Herbert like to thank our guest today a column of Cornell University if youd like to get in touch tweet us a kaiser reports that next time by all. Is youll be a reflection of reality. In the world transformed. What will make you feel safe. Isolation and community. Are you going the right way or are you being. Direct. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. Or remain in the shallowness. Welcome to worlds apart after 17 months of acrimony the United States and china have decided against slapping each other with additional tariffs but with major differences in aims perceptions and values still remaining it looks like the relationship is set to be dysfunctional or at least troubled for years to combine while one quarrel might have been defused are bigger more dangerous fights still on the cards well to discuss that im now joined by a. Denizen chair of International History and diplomacy at the fleischer school tufts University Professor han its good to talk to you thank you very much for your time thank you very much for having me on its a pleasure to be here now we are recording this program on friday evening time when ben merik