>>> wall street up and running and the markets are in positive territory after the dow closed at the new high on friday topping the previous record close set last wednesday. the s&p climbed 108% since obama became president, adding more than 10 trillion in equity market value. the obama rally is nearly a year longer than the average bull market. plus the fed does vow actually the money printing program will have to end. tom hartman warns 2016 could make the great depression look like childs play, the crash of 2016, the plot to destroy america and what we can do to stop it. thanks so much for joining us. lets start with 2016. i mean, one of the things that i think weve all watched unfold is we have increasing economic inequality which leads to increasing political inequality which leads to more economic inequality and round and round we go. its been happening relatively slowly. how do you see us getting to this breaking point where we have a clam tus crisis. >> i think were in the midst of the breaking point right now but the point is perfect, weve been here before. we saw the exact same thing happen in the 1920s and we saup the exact same thing in 1850s and something very similar happen in the late 1760s and early 1770s. each time is led to a massive clash which led to a rebooting of our country. >> you write in the book about financialization. what is that and why should people care about it? >> a little over a third of our economy used to be making things. when adam smith wrote wealth of nations, the wealth he was talking about were things. the example he used was a tree branch on the ground has no intrensic value, but it you add labor, it has wealth thats multigenerational actually. we have in our trade policies and economic policies have been devastated our ability to make things. and what has stepped into that brief is lets make money with money. and making money with money looks like wealth because theres a lot of money moving around and third of our economy is this fire, the financial economy. but it -- theres no real wealth associated with it. so what youre looking at is bubble. its just bubble. >> you write about the koch brothers and other folks like that. when we have the rich, the super wealthy having an out sized amount of control over our political system, especially our elections and way we make laws, do we even have a true democracy at this point? >> arguably not. we have a corporatal garty and you can thank the supreme courts to a large extent for this. >> but it pre-dates citizens united, going back to the powell memo and even before that. >> the powell memo is the beginning of the modern era war on base beingally working people and government on the idea of governance. but if you go back to the 1920s, its the exact same game, just different games. back then it was the rockefellers and morgans and now its the koch brothers and so on. >> as a nation, we faced crisis a number of times, handful of times. this is one example of that, but you say the difference between this impending crash is were going to be forced to embrace this moral motive versus a prophet motive. walk us why its important morally. >> this is the important thing that comes out of crashes. aside from the heres the stuff you need to know in order to survive personally is that every time weve had one of these major reboots in american history, our country has come out of it radically better. the new deal was a radical transformation in a whole series of way, political, social, the civil war was a radical transformation and beginning of slavery. about every 80 years we go through these reboots and im very optimistic that whats going to come out of this crash is it will -- there will be enough pain but to your point, toure, that people are going to say, okay, things are crazy, the system doesnt work. the structure is screwed up and people are saying that now. but and in fact nancy pelosi passed great legislation when she was speaker of the house and died in the senate. there wasnt an overwhelming public will. that happens when things are really bad. >> because we care. >> and enough people are hurting unfortunately. >> tom, what particular policy changes do you see happening? are there any policy changes we could potentially and foreseeably make now to avoid this clam tus crash? >> you can stop the crash in its tracks right now although were sort of into it, but you can stop it simply by breaking up big banks and rolling back the reagan tax cuts and tweaking trade policies. all of these have been proposed by the progressive caucus and democrats and by president obama. none of those things will happen as long as this unrelenting republican obstruction is going on. >> people feel the tea party has exacted a great deal of impact despite not having a majority. right. >> where does your book come down versus the legacy of occupy wall trestreet? 1832 the white house was occupied from the lawn of the white house down to the poe potomac river. i would argue are manifestations of the same thing, which is populist rage. people get that something is really screwed up, that we havent reached that point, that we did in 1932. but were damned close to it. >> the financial reform, especially the way we approach elections is so critical and the amount of power that the rich have amassed over the system is far greater than any previous time. and as long as we still have that in place, then even the will of the people will not be enough to stop the masses of the wealthy. >> back in the 70s, there was a song called eve of destruction and had a line, youre old enough to kill but not for voting. that song ignited a mass movement that in six months we amend the constitution and dropped the voting age down to 18. move to amend.org i have no affiliation with, im looking at these -- this is the leading edge of the kind of change well see after the crash. over 500 communities across the united states, over 20 states have passed nonbinding resolutions saying we need to amend and roll back the supreme court doctrine that corporations are persons. i think thats what -- thats probably going to be the biggest thing that comes out of this. once that happens, then you can actually have political change in america. you cant take money out of pliksz -- >> the idea that corporations are people, so bizarre. >> and something well get into more later in the show, tom hartman, thank you so much. >> thank you, krystal. >> paying college athletes is one step closer. well spin next as the cycle rolls on.
Posted on: Tue, 12 Nov 2013 02:29:15 +0000
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