System Error

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“For a period of time, everybody wins. That’s the thing.” – Stewart Cowley, former Wall Street fund manager

“There is no limit. The limit is the sky,” says a cattle breeder working on a massive feed lot carved out of cleared Brazilian rainforest.

“Growth is a law of nature and we can’t go against it,” says Audi’s head of production strategy, as robots perform complex, seemingly choreographed movements behind him in an automated assembly plant.

Sitting at his desk, the head of Germany’s most powerful industrial lobby group says, “Growth will continue no matter what… For me, that’s as immutable as gravity.”

Endless growth is a tenet of capitalism—larger markets, more products, new services. But can it really go on forever? Or are we about to ram up against its limits? And if we are, what happens then?

Shot in the US, Brazil, China, Germany, and the UK, SYSTEM ERROR explores the notion of endless growth in conversations with advocates such as a Brazilian soybean magnate, an algorithmic trader, finance journalists, and multinational executives—often letting the cameras roll while the interviewees themselves offer seemingly contradictory or incoherent arguments. (SYSTEM ERROR also features a brief appearance by financier and former Trump communications officer Anthony Scaramucci, who calls himself an “artist of capital,” and expounds on the inconceivability of an end to growth.)

The film is divided into chapters on subjects including the amorality of GDP, destructive agriculture, financialization, the decoupling of finance from the real-world economy, and automation. Each chapter opens with a relevant quote from Karl Marx and also features insightful commentary from ecological economist and sustainable development advocate Tim Jackson—who serves as a guide, offering clear explanations of sometimes complex concepts.

Award-winning director, Florian Optiz (SPEED, IN SEARCH OF LOST TIME and THE BIG SELLOUT) uses gorgeous shots of earth from the International Space Station to subtly comment on the finite nature of the planet. Also, cinematographer Andy Lehmann delivers brilliantly framed and filmed scenes: a massive Airbus assembly plant; the interior of a packed barn in a poultry operation that turns over 15 million birds a year; a Beijing traffic jam with haze-covered high-rises in the distance.

SYSTEM ERROR takes us from to the roots of the expectation of unlimited growth, particularly in the post-World War II years, to the financial crash of 2008 and beyond. Does the subsequent decade of simultaneous inequality, austerity, and soaring markets indicate that the system has become disconnected from reality? And by focusing on growth at all costs, have we created a system that is escaping our control and may destroy us?

"A very well made film, with impressive cinematography and great interviews... The madness of growth is clear and to the point! It's perfect." — Ulrike Herrmann, DLF Kultur

"An inspiring and very important movie." — Kino Ziet

"A great panopticon about the complex life on our planet." — Kino Kino

"In SYSTEM ERROR, the two-time Grimme-Preis Award winner Florian Opitz breaks down the limits of growth and examines the theses of capitalism critics by means of impressive examples." — Finanz Nachrichten

“Strongly recommended; a thoughtful critique. Interviewing experts including economists, industrialists, hedge fund managers, agribusiness farmers, engineers, and more, System Error examines the ups and downs of policies pursuing perpetual growth. A good primer for anyone who wants to see some of these issues assimilated into a larger context for better understanding.” — Video Librarian

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Main credits

Opitz, Florian (film director)
Opitz, Florian (screenwriter)
Opitz, Florian (film producer)
Opitz, Florian (narrator)
Krüger, Jan (film producer)

Other credits

Music, Cico Beck, Florian Kreier & Bobby Rausch; directory of photography, Andy Lehmann; editor, Frank Müller.

MARC Record See Worldcat record

Keywords

; "System Error"; Icarus Films; Florian Opitz; Germany; Karl Marx; Capitalism; ; "System Error"; Icarus Films,doc; history; politics

WEBVTT

00:00:00.959 --> 00:00:03.917
(clanging)

00:00:04.709 --> 00:00:09.458
♪

00:00:10.333 --> 00:00:12.208
(crackling)

00:00:14.959 --> 00:00:16.834
(crackling)

00:00:19.500 --> 00:00:21.458
(crackling)

00:00:23.625 --> 00:00:24.875
♪

00:00:24.875 --> 00:00:27.500
(bubbling)

00:00:27.500 --> 00:00:37.834
♪

00:00:39.625 --> 00:00:42.875
We view growth
as something positive.

00:00:42.875 --> 00:00:45.583
It\'s great watching
our kids grow up

00:00:45.583 --> 00:00:48.417
or seeing a tree grow.

00:00:48.417 --> 00:00:49.500
Yet we are always aware

00:00:49.500 --> 00:00:53.041
that all growth
must come to an end.

00:00:53.041 --> 00:00:53.834
There is a limit.

00:00:53.834 --> 00:00:57.083
Nature knows no such thing
as infinite growth.

00:00:57.083 --> 00:01:01.875
This rule seems to apply to
every kind of growth but one.

00:01:01.875 --> 00:01:02.542
Economic growth

00:01:02.542 --> 00:01:06.417
is somehow supposed
to continue indefinitely.

00:01:06.417 --> 00:01:08.583
We believed then and now,

00:01:08.583 --> 00:01:12.417
there are no limits
to growth and human progress

00:01:12.417 --> 00:01:17.125
when men and women are free
to follow their dreams.

00:01:17.125 --> 00:01:19.458
And we were right.

00:01:19.458 --> 00:01:24.458
If that growth fails
to materialize, we panic.

00:01:24.458 --> 00:01:26.458
But why?

00:01:26.458 --> 00:01:29.417
As one person recognized
150 years ago,

00:01:29.417 --> 00:01:31.917
growth is
the fundamental principle

00:01:31.917 --> 00:01:33.709
of our economic system.

00:01:33.709 --> 00:01:37.333
Capitalism only works
when the economy grows.

00:01:37.333 --> 00:01:40.458
But Karl Marx recognized
something else as well.

00:01:40.458 --> 00:01:43.875
It is this growth that will
eventually destroy

00:01:43.875 --> 00:01:45.250
the system itself.

00:01:45.250 --> 00:01:49.208
And today,
have we reached that point?

00:01:49.208 --> 00:01:51.667
Is the system
about to collapse?

00:01:51.667 --> 00:01:56.250
Or might infinite growth
actually be possible?

00:01:56.250 --> 00:01:58.000
♪

00:01:58.000 --> 00:02:01.834
The governments don\'t want us
to even question the G word.

00:02:01.834 --> 00:02:06.375
They don\'t even want to put
a discussion around growth.

00:02:06.375 --> 00:02:08.333
If you were looking
at this from the outside,

00:02:08.333 --> 00:02:10.500
an alien arriving
from outer space

00:02:10.500 --> 00:02:13.625
and you\'re looking
at this society,

00:02:13.625 --> 00:02:16.375
you would really wonder
what was going on.

00:02:16.375 --> 00:02:17.500
What are they doing?

00:02:17.500 --> 00:02:19.959
What is this growth
that has to appear

00:02:19.959 --> 00:02:22.542
in every political sentence
and is the basis

00:02:22.542 --> 00:02:24.709
of every economics textbook?

00:02:24.709 --> 00:02:26.250
What is it all about? Is it a--

00:02:26.250 --> 00:02:27.417
Is it a religion
that they have?

00:02:27.417 --> 00:02:29.041
Is it a god
that they\'re chasing?

00:02:29.041 --> 00:02:32.834
Is it a virus
that\'s taken over them?

00:02:32.834 --> 00:02:35.542
And what is this visceral fear

00:02:35.542 --> 00:02:41.125
that emerges as soon as growth
starts to go away?

00:02:41.125 --> 00:02:45.375
♪

00:02:45.375 --> 00:02:48.041
(crackling)

00:02:48.041 --> 00:02:58.375
♪

00:03:23.458 --> 00:03:26.500
(door opening)

00:03:28.333 --> 00:03:30.500
♪

00:04:19.542 --> 00:04:22.500
(chatter)

00:05:09.667 --> 00:05:12.625
(applause)

00:05:46.208 --> 00:05:48.542
The Federation
of German Industries

00:05:48.542 --> 00:05:51.166
is Germany\'s
most influential lobby.

00:05:51.166 --> 00:05:55.875
No German government can
afford to ignore its voice.

00:05:55.875 --> 00:05:59.208
(speaking foreign language)

00:06:18.166 --> 00:06:20.792
(applause)

00:06:20.792 --> 00:06:26.542
♪

00:06:43.333 --> 00:06:53.667
♪

00:07:00.709 --> 00:07:02.792
Where does this
unshakeable belief

00:07:02.792 --> 00:07:05.250
in economic growth come from?

00:07:05.250 --> 00:07:07.500
Has it always been there?

00:07:07.500 --> 00:07:11.875
Is it really part
of human nature?

00:07:11.875 --> 00:07:22.208
♪

00:07:23.375 --> 00:07:25.917
It was through audacious
and imaginative use

00:07:25.917 --> 00:07:26.875
of mass production methods

00:07:26.875 --> 00:07:29.250
that U.S. industry
was able to perform

00:07:29.250 --> 00:07:30.959
its wartime miracles.

00:07:30.959 --> 00:07:31.875
To build more planes

00:07:31.875 --> 00:07:33.959
than all the United Nations
put together.

00:07:33.959 --> 00:07:37.000
To turn out ships
at the rate of 200 a month.

00:07:37.000 --> 00:07:38.959
Ships which carried overseas
the armed might

00:07:38.959 --> 00:07:42.750
of the United States to decide
the outcome of a war.

00:07:42.750 --> 00:07:45.375
The success story
of economic growth

00:07:45.375 --> 00:07:47.583
began during World War II.

00:07:47.583 --> 00:07:49.500
Mass production of tanks
and aircraft

00:07:49.500 --> 00:07:52.625
led the American economy
out of crisis.

00:07:52.625 --> 00:07:54.458
The output
of military equipment

00:07:54.458 --> 00:07:58.250
was now calculated by
a new statistical measure:

00:07:58.250 --> 00:08:00.583
gross domestic product or GDP.

00:08:00.583 --> 00:08:05.625
If production, i.e. GDP, grew,
then so did prosperity.

00:08:05.625 --> 00:08:08.917
Americans believed so firmly
in this new formula

00:08:08.917 --> 00:08:10.208
that they compelled
their allies

00:08:10.208 --> 00:08:13.041
to bring their economic
policies in line with it.

00:08:13.041 --> 00:08:17.250
From then on, it wasn\'t
people\'s incomes that counted;

00:08:17.250 --> 00:08:20.250
it was only growth.

00:08:20.250 --> 00:08:26.625
♪

00:08:26.625 --> 00:08:28.959
And it turned out to be
such a useful measure,

00:08:28.959 --> 00:08:29.959
actually for the war effort

00:08:29.959 --> 00:08:31.750
and for understanding
the war effort,

00:08:31.750 --> 00:08:34.125
that afterwards
there was a lot of effort

00:08:34.125 --> 00:08:37.709
put into building this system
of national accounts,

00:08:37.709 --> 00:08:39.083
having this number, the GDP,

00:08:39.083 --> 00:08:42.041
correctly measured
through the economy.

00:08:42.041 --> 00:08:46.041
And it became, almost...

00:08:46.041 --> 00:08:47.375
incrementally, it became

00:08:47.375 --> 00:08:53.041
the single most important
policy number

00:08:53.041 --> 00:08:53.959
across the world.

00:08:53.959 --> 00:08:56.500
It kind of symbolizes
progress to us.

00:08:56.500 --> 00:08:59.792
Sort of says, \"Wow,
things are getting bigger,

00:08:59.792 --> 00:09:01.125
so they must be
getting better.\"

00:09:01.125 --> 00:09:04.000
That was the birth of the GDP.

00:09:04.000 --> 00:09:05.625
In the three decades
after the war,

00:09:05.625 --> 00:09:10.166
the Western economies grew
up to eight percent annually.

00:09:10.166 --> 00:09:11.583
In the U.S. they called it

00:09:11.583 --> 00:09:13.333
\"The Golden Age of Capitalism.\"

00:09:13.333 --> 00:09:16.583
In France, they were
\"The 30 Glorious Years.\"

00:09:16.583 --> 00:09:19.333
In Germany, it was
\"The Economic Miracle.\"

00:09:19.333 --> 00:09:23.208
An entire generation enjoyed
material prosperity

00:09:23.208 --> 00:09:24.041
and full employment

00:09:24.041 --> 00:09:27.750
and this became engraved in
the collective consciousness.

00:09:27.750 --> 00:09:29.208
Even though these
high growth rates

00:09:29.208 --> 00:09:32.583
were only made possible
by massive wartime destruction,

00:09:32.583 --> 00:09:35.834
the belief in growth
was now unstoppable.

00:09:35.834 --> 00:09:40.750
GDP became the most important
benchmark in history.

00:09:40.750 --> 00:09:43.041
(engine puttering)

00:09:43.041 --> 00:09:46.291
♪

00:09:46.291 --> 00:09:48.375
(shouting)

00:09:48.375 --> 00:09:55.166
♪

00:09:55.166 --> 00:09:56.959
And the economy
and the growth of the economy

00:09:56.959 --> 00:10:00.667
was doing a good job for us
when--when we were young,

00:10:00.667 --> 00:10:02.667
if you like,
when as an economy,

00:10:02.667 --> 00:10:04.208
as a society, we were young.

00:10:04.208 --> 00:10:06.166
And one of the really
important things to say is

00:10:06.166 --> 00:10:09.125
that there are some societies
where that is still necessary,

00:10:09.125 --> 00:10:10.375
where you still need
that growth

00:10:10.375 --> 00:10:13.250
where you still need food,
clothing, and shelter,

00:10:13.250 --> 00:10:14.375
where there are very, very poor

00:10:14.375 --> 00:10:17.291
undernourished people
living on less than the price

00:10:17.291 --> 00:10:20.250
of a skinny latte
from the cafe downstairs.

00:10:20.250 --> 00:10:22.542
And that\'s a--
that\'s a situation

00:10:22.542 --> 00:10:26.166
where growth makes some sense.

00:10:26.166 --> 00:10:28.291
But the idea that,
as human beings,

00:10:28.291 --> 00:10:31.542
all we want ever is
more and more stuff

00:10:31.542 --> 00:10:32.375
doesn\'t really stack up.

00:10:32.375 --> 00:10:34.917
So, after a certain point,
you have to ask yourself,

00:10:34.917 --> 00:10:36.083
\"Well, how much is enough?

00:10:36.083 --> 00:10:38.333
How much more do I need
to grow the economy

00:10:38.333 --> 00:10:41.875
to satisfy human appetites?\"

00:10:44.959 --> 00:10:48.041
(birds chirping)

00:12:09.583 --> 00:12:12.542
(clicking)

00:12:14.750 --> 00:12:18.458
The GDP counts everything
that\'s produced, really.

00:12:18.458 --> 00:12:21.208
Yeah, sure it counts some of
the good things that we need,

00:12:21.208 --> 00:12:24.417
but it also counts,
you know, ambulances

00:12:24.417 --> 00:12:26.500
to clear up carnage
on the streets

00:12:26.500 --> 00:12:29.625
or the rescue efforts

00:12:29.625 --> 00:12:32.208
when an oil tanker
pollutes the ocean.

00:12:32.208 --> 00:12:36.417
To some extent, all of this
is a measure of the busyness

00:12:36.417 --> 00:12:39.458
of economic activity.

00:12:39.458 --> 00:12:41.542
But many of these things,

00:12:41.542 --> 00:12:43.458
even though they are
getting bigger,

00:12:43.458 --> 00:12:44.792
are not really economic growth,

00:12:44.792 --> 00:12:47.125
they\'re more
un-economic growth,

00:12:47.125 --> 00:12:49.041
because they\'re not
delivering welfare.

00:12:49.041 --> 00:12:50.834
Sometimes they\'re
just clearing up

00:12:50.834 --> 00:12:51.750
after the mess we made.

00:12:51.750 --> 00:12:53.625
Sometimes they\'re
really creating mess,

00:12:53.625 --> 00:12:56.542
really destructive production,
if you like,

00:12:56.542 --> 00:13:02.333
of, you know, things that
actually just destroy stuff.

00:13:02.333 --> 00:13:06.583
♪

00:13:06.583 --> 00:13:11.166
The 1970s saw growth rates
sink for the first time,

00:13:11.166 --> 00:13:14.166
due to the oil crisis
and other factors.

00:13:14.166 --> 00:13:18.250
The boom was over,
the market saturated,

00:13:18.250 --> 00:13:20.083
Western economies stagnated.

00:13:20.083 --> 00:13:23.458
Millions suddenly found
themselves unemployed.

00:13:23.458 --> 00:13:25.792
It was uncharted territory.

00:13:25.792 --> 00:13:29.709
For the first time, the limits
of growth became visible:

00:13:29.709 --> 00:13:34.542
economically, socially,
and ecologically.

00:13:34.542 --> 00:13:37.333
(birds squawking)

00:13:37.333 --> 00:13:43.959
♪

00:13:43.959 --> 00:13:46.208
(shattering)

00:13:46.208 --> 00:13:50.542
We do have some understanding
about growth.

00:13:50.542 --> 00:13:53.000
In 1972, a group of scholars

00:13:53.000 --> 00:13:54.667
commissioned by
the Club of Rome

00:13:54.667 --> 00:13:56.959
presented a report
in Washington

00:13:56.959 --> 00:13:58.583
entitled \"The Limits to Growth.\"

00:13:58.583 --> 00:14:02.125
Using a computer simulation,
researchers at MIT

00:14:02.125 --> 00:14:04.208
had calculated
for the first time

00:14:04.208 --> 00:14:06.333
what continuous
economic growth

00:14:06.333 --> 00:14:07.333
would do to the planet.

00:14:07.333 --> 00:14:10.291
Their findings set off
alarm bells around the world.

00:14:10.291 --> 00:14:13.250
When resource consumption
is doubling every 20 years...

00:14:13.250 --> 00:14:15.375
For the first time,
people were confronted

00:14:15.375 --> 00:14:17.166
with the fact
that economic growth

00:14:17.166 --> 00:14:19.458
could also have
negative consequences

00:14:19.458 --> 00:14:21.875
and that the planet\'s
natural limits

00:14:21.875 --> 00:14:23.083
would soon be reached.

00:14:23.083 --> 00:14:26.166
The success story of growth
was in crisis.

00:14:26.166 --> 00:14:29.083
The most important lesson
is that we are near the end

00:14:29.083 --> 00:14:30.792
of a development of society

00:14:30.792 --> 00:14:34.500
which has been going on
for about 2,000 years.

00:14:34.500 --> 00:14:36.917
We\'ve reached levels
of prosperity

00:14:36.917 --> 00:14:39.917
which carry the seeds
of disruption

00:14:39.917 --> 00:14:42.750
and necessitate
a complete re-look

00:14:42.750 --> 00:14:44.083
at the whole world\'s social,

00:14:44.083 --> 00:14:46.250
political, and other situations.

00:14:46.250 --> 00:14:49.417
The Club of Rome report
sold 30 million copies

00:14:49.417 --> 00:14:52.166
and became a global sensation.

00:14:52.166 --> 00:14:53.667
The realization
that exponential growth

00:14:53.667 --> 00:14:57.125
was destroying the foundation
of human life on this planet

00:14:57.125 --> 00:15:01.291
was entirely new
and shocking to many people.

00:15:01.291 --> 00:15:06.041
And yet, soon the scholars
themselves came under attack.

00:15:06.041 --> 00:15:07.583
Their calculations were decried

00:15:07.583 --> 00:15:09.667
as irresponsible fear mongering

00:15:09.667 --> 00:15:13.417
because it\'s impossible
to admit the unacceptable.

00:15:13.417 --> 00:15:18.500
The success story of growth
must continue.

00:15:18.500 --> 00:15:26.583
♪

00:15:26.583 --> 00:15:29.500
Unfortunately, many of
the scholars\' predictions

00:15:29.500 --> 00:15:32.834
turned out to be right
and in many cases,

00:15:32.834 --> 00:15:37.625
reality even surpassed
their bleak predictions.

00:15:37.625 --> 00:15:47.959
♪

00:16:14.875 --> 00:16:19.333
♪

00:16:19.333 --> 00:16:21.834
As the Club of Rome report
was causing

00:16:21.834 --> 00:16:22.792
an international uproar,

00:16:22.792 --> 00:16:25.875
the Brazilian rainforests
in the Amazon basin

00:16:25.875 --> 00:16:27.834
were still nearly untouched.

00:16:27.834 --> 00:16:29.917
The huge Brazilian state
of Mato Grosso,

00:16:29.917 --> 00:16:32.458
largely populated
by indigenous people,

00:16:32.458 --> 00:16:35.417
consisted of forest
and savannah.

00:16:35.417 --> 00:16:38.625
Today, not much of that
is left.

00:16:38.625 --> 00:16:39.542
Since the mid-\'80s,

00:16:39.542 --> 00:16:42.125
progress, aided by
international investors,

00:16:42.125 --> 00:16:44.834
has been eating away
at the rainforest.

00:16:44.834 --> 00:16:47.667
Thirty-five football fields
of forest

00:16:47.667 --> 00:16:49.208
disappear every minute.

00:16:49.208 --> 00:16:52.542
It\'s been the same story
over and over again:

00:16:52.542 --> 00:16:53.959
lumberjacks move in first,

00:16:53.959 --> 00:16:59.125
then cattle breeders,
and finally the soybean barons.

00:16:59.125 --> 00:17:09.458
♪

00:17:21.500 --> 00:17:25.291
(screeching)

00:18:09.792 --> 00:18:13.458
(animals calling,
insects chirring)

00:18:15.709 --> 00:18:19.625
♪

00:18:53.166 --> 00:19:00.000
♪

00:19:00.000 --> 00:19:03.208
(squeaking, slamming)

00:20:10.625 --> 00:20:13.750
(engine puttering)

00:20:19.709 --> 00:20:21.542
The tropical climate delivers

00:20:21.542 --> 00:20:23.667
three to four harvests per year

00:20:23.667 --> 00:20:25.500
and with it, massive profits.

00:20:25.500 --> 00:20:29.917
Soy and corn for export
and animal feed.

00:20:29.917 --> 00:20:33.041
(engine puttering)

00:20:34.917 --> 00:20:39.125
Highway 163 is the gateway
to the Amazon basin.

00:20:39.125 --> 00:20:42.208
It brought lumberjacks,
money, and destruction

00:20:42.208 --> 00:20:43.709
into the forest.

00:20:43.709 --> 00:20:47.542
Today countless trucks
line the agribusiness highway

00:20:47.542 --> 00:20:49.625
transporting
their valuable cargo

00:20:49.625 --> 00:20:52.333
to the international port.

00:20:52.333 --> 00:20:55.041
They pass an endless sea
of soybean fields,

00:20:55.041 --> 00:20:57.125
enormous silos
and slaughterhouses

00:20:57.125 --> 00:21:00.709
through one of the largest
boom regions in the world.

00:21:00.709 --> 00:21:03.417
Growth rates of up to 20%.

00:21:03.417 --> 00:21:04.959
Big business.

00:21:04.959 --> 00:21:08.083
(engine puttering)

00:21:13.542 --> 00:21:15.709
In the \'70s, this region,

00:21:15.709 --> 00:21:19.709
it was just populized
by Indians.

00:21:19.709 --> 00:21:23.875
It\'s just Amazon forest.

00:21:23.875 --> 00:21:26.792
Thirty-four years
just of colonization

00:21:26.792 --> 00:21:30.917
and it\'s
the most important region

00:21:30.917 --> 00:21:33.917
in agribusiness
of the country.

00:21:33.917 --> 00:21:38.583
It\'s the right place
to make new investments,

00:21:38.583 --> 00:21:41.417
to make money.

00:21:41.417 --> 00:21:42.750
Woo!

00:21:42.750 --> 00:21:44.208
Woo!

00:21:44.208 --> 00:21:45.750
Ha!

00:21:45.750 --> 00:21:47.000
Woo!

00:21:47.000 --> 00:21:50.500
Here is the most important,
biggest feedlot

00:21:50.500 --> 00:21:52.375
in this state of Mato Grosso.

00:21:52.375 --> 00:21:56.291
The cattle, a good part
is exported to Russia,

00:21:56.291 --> 00:21:57.667
China, and other countries.

00:21:57.667 --> 00:22:03.041
Here, we work, it\'s just
to classify the animals.

00:22:10.709 --> 00:22:12.333
The cattle goes to the JBS,

00:22:12.333 --> 00:22:16.917
the most biggest meat industry
in the world is from Brazil

00:22:16.917 --> 00:22:23.375
and they have it in other
12 countries around the world.

00:22:27.250 --> 00:22:29.500
-Do you see any limits?
-No.

00:22:29.500 --> 00:22:33.709
Next ten years,
with the technologies,

00:22:33.709 --> 00:22:35.208
what can I say?

00:22:35.208 --> 00:22:36.000
There is no limit.

00:22:36.000 --> 00:22:38.500
The limit is
probably the sky,

00:22:38.500 --> 00:22:39.792
heaven is the limit.

00:22:39.792 --> 00:22:42.417
(buzzing)

00:22:42.417 --> 00:22:45.625
♪

00:22:45.625 --> 00:22:48.417
(birds squawking)

00:22:48.417 --> 00:22:53.709
♪

00:22:53.709 --> 00:22:56.500
(birds squawking)

00:22:56.500 --> 00:23:00.750
♪

00:23:00.750 --> 00:23:01.667
In just a few years

00:23:01.667 --> 00:23:04.542
Mato Grosso\'s untouched
wilderness was transformed

00:23:04.542 --> 00:23:07.291
into the world\'s
largest food factory.

00:23:07.291 --> 00:23:10.083
(engine puttering)

00:23:10.083 --> 00:23:16.834
♪

00:23:50.583 --> 00:23:53.333
(clucking)

00:23:53.333 --> 00:23:56.291
(chirping)

00:24:03.208 --> 00:24:06.166
(clucking)

00:25:07.041 --> 00:25:10.000
(rumbling)

00:25:48.750 --> 00:25:51.625
(drone of helicopter)

00:25:51.625 --> 00:25:52.500
♪

00:25:52.500 --> 00:25:53.959
(siren wailing)

00:25:53.959 --> 00:25:56.125
In response to the crisis
of the \'70s,

00:25:56.125 --> 00:25:58.875
economic policy underwent
a change of course.

00:25:58.875 --> 00:26:02.542
New growth had to be found,
no matter what the cost.

00:26:02.542 --> 00:26:05.583
Even if that meant
unleashing the primal forces

00:26:05.583 --> 00:26:08.750
of finance capitalism.

00:26:08.750 --> 00:26:09.875
♪

00:26:09.875 --> 00:26:12.375
These had been contained
after World War II

00:26:12.375 --> 00:26:14.125
because they were
held responsible

00:26:14.125 --> 00:26:18.208
for the Great Depression
and the war itself.

00:26:18.208 --> 00:26:21.041
(indistinct chatter)

00:26:21.041 --> 00:26:22.250
♪

00:26:22.250 --> 00:26:26.208
Monetarism was
the new magic word.

00:26:26.208 --> 00:26:27.208
♪

00:26:27.208 --> 00:26:28.250
Monetarism was the idea

00:26:28.250 --> 00:26:31.208
that if you put more money
into the economy,

00:26:31.208 --> 00:26:32.792
\"liquidity,\" it was called,

00:26:32.792 --> 00:26:34.834
that additional money
in the economy

00:26:34.834 --> 00:26:36.041
would help real investment.

00:26:36.041 --> 00:26:37.792
That would help
give us more production,

00:26:37.792 --> 00:26:39.959
it would allow us
to consume more goods,

00:26:39.959 --> 00:26:42.125
and we would get
growth back again.

00:26:42.125 --> 00:26:46.333
So this little hiatus,
if you like, in the \'70s,

00:26:46.333 --> 00:26:49.083
primarily caused
by the oil crisis,

00:26:49.083 --> 00:26:53.333
led to a transformation
in the economics

00:26:53.333 --> 00:26:54.625
of our--of our societies,

00:26:54.625 --> 00:26:56.625
and in particular
how we think about growth

00:26:56.625 --> 00:26:59.583
and how we think about
stimulating growth.

00:26:59.583 --> 00:27:02.125
♪

00:27:02.125 --> 00:27:04.834
Governments deregulated
financial markets.

00:27:04.834 --> 00:27:08.208
Banks, insurance companies,
and investment funds

00:27:08.208 --> 00:27:09.041
gained an influence

00:27:09.041 --> 00:27:11.834
and were now allowed
to gamble with currencies,

00:27:11.834 --> 00:27:15.583
stocks, even with
people\'s retirement funds.

00:27:15.583 --> 00:27:16.583
Capital was let loose

00:27:16.583 --> 00:27:21.625
and the financial sector
was flooded with money.

00:27:21.625 --> 00:27:30.667
♪

00:27:30.667 --> 00:27:32.166
It was a pact with the devil

00:27:32.166 --> 00:27:34.458
and the beginning
of the slow process

00:27:34.458 --> 00:27:36.041
of self-disempowerment.

00:27:36.041 --> 00:27:38.875
In exchange for growth,
governments relinquished

00:27:38.875 --> 00:27:41.041
their power
to financial markets.

00:27:41.041 --> 00:27:45.250
But who do we mean by
financial markets and capital,

00:27:45.250 --> 00:27:48.333
and what does it all
have to do with us?

00:27:48.333 --> 00:27:50.709
We can give the go

00:27:50.709 --> 00:27:55.959
to extend, I believe,
yes, getting the head nod.

00:27:55.959 --> 00:27:56.834
The Allianz Group

00:27:56.834 --> 00:27:59.542
is Europe\'s biggest
insurance conglomerate

00:27:59.542 --> 00:28:01.000
and one of the biggest players

00:28:01.000 --> 00:28:02.709
in the global financial market.

00:28:02.709 --> 00:28:05.875
(indistinct chatter)

00:28:06.792 --> 00:28:10.041
And, yes, China contributed
about one percent point

00:28:10.041 --> 00:28:12.917
to global growth,
and next to it, you have India

00:28:12.917 --> 00:28:16.333
with less than 0.2 percent
contribution to growth.

00:28:16.333 --> 00:28:18.083
And that\'s not
a cheap workbench.

00:28:18.083 --> 00:28:21.583
It\'s true, but China is
a little bit struggling

00:28:21.583 --> 00:28:25.875
really to change
their business model

00:28:25.875 --> 00:28:30.041
from investment-
and production-oriented

00:28:30.041 --> 00:28:32.917
to consumption-
and service-oriented

00:28:32.917 --> 00:28:35.583
business model, right.

00:29:18.417 --> 00:29:19.208
If we summarize:

00:29:19.208 --> 00:29:23.458
this moderate
positive growth in China,

00:29:23.458 --> 00:29:27.208
therefore,
also in Asia, overall,

00:29:27.208 --> 00:29:28.917
some kind of moderate growth,

00:29:28.917 --> 00:29:34.125
and in the developed markets
in Europe and the U.S.,

00:29:34.125 --> 00:29:39.125
there are also no new
growth drivers to be seen.

00:30:30.125 --> 00:30:32.458
So, the idea is
the collaboration

00:30:32.458 --> 00:30:36.041
with the world bank
to do projects together

00:30:36.041 --> 00:30:40.083
directly in emerging markets
based on hard currency,

00:30:40.083 --> 00:30:42.500
U.S. dollar or Euro,

00:30:42.500 --> 00:30:48.291
so to avoid the local
currency mortality.

00:31:23.208 --> 00:31:24.917
If we invest
in emerging markets,

00:31:24.917 --> 00:31:27.667
get a nice collateral,
a nice covenant on it,

00:31:27.667 --> 00:31:31.750
so we have a security
that we can sell if necessary,

00:31:31.750 --> 00:31:36.583
like the airplane
in the evasion finance area.

00:31:36.583 --> 00:31:42.208
That\'s a, let\'s say a win-win
situation for us.

00:31:43.125 --> 00:31:44.583
I take that as a \"yes.\"

00:31:44.583 --> 00:31:47.417
(laughs)

00:32:02.500 --> 00:32:07.125
(water lapping, birds calling)

00:32:07.583 --> 00:32:10.542
The money of millions
of insured individuals

00:32:10.542 --> 00:32:12.458
is sent on its way to multiply.

00:32:12.458 --> 00:32:14.542
When Andreas Gruber\'s team
has a rough idea

00:32:14.542 --> 00:32:18.583
to which countries and sectors
the billions should flow,

00:32:18.583 --> 00:32:20.375
they hire an asset manager.

00:32:20.375 --> 00:32:25.500
He determines what stocks
or bonds to invest in.

00:32:34.625 --> 00:32:39.417
Most of our clients are
institutions, companies,

00:32:39.417 --> 00:32:43.000
pension funds,
employers federations,

00:32:43.000 --> 00:32:47.083
also unions, churches,
central banks,

00:32:47.083 --> 00:32:50.500
sovereign wealth
management companies.

00:32:50.500 --> 00:32:54.750
What they want is
they want their money invested

00:32:54.750 --> 00:32:57.208
in the capital market.

00:32:58.667 --> 00:33:04.000
Our customers expect
their capital to be returned.

00:33:04.000 --> 00:33:04.959
They want their money back

00:33:04.959 --> 00:33:07.542
and they want a return
on that capital.

00:33:07.542 --> 00:33:14.625
And the more growth there is,
the higher the return.

00:33:30.709 --> 00:33:41.041
♪

00:33:45.959 --> 00:33:51.875
Worldwide, PIMCO manages
1.2 trillion Euros of assets,

00:33:51.875 --> 00:33:55.959
and in Germany, we are managing
490 billion Euros of assets

00:33:55.959 --> 00:33:58.208
we have under management here.

00:34:06.625 --> 00:34:09.959
So the financial markets,
they have a social role

00:34:09.959 --> 00:34:15.625
in distributing people\'s savings
towards investment,

00:34:15.625 --> 00:34:18.917
and that investment is
usually a form of debt.

00:34:18.917 --> 00:34:24.125
So when you take out a loan,
for example, to buy a house,

00:34:24.125 --> 00:34:25.917
that loan could end up in a bond

00:34:25.917 --> 00:34:29.250
and we could end up
buying that bond.

00:34:29.250 --> 00:34:30.542
So growth is important

00:34:30.542 --> 00:34:33.083
so that individuals
and companies

00:34:33.083 --> 00:34:35.917
who borrow money
in the capital markets

00:34:35.917 --> 00:34:40.375
can actually
pay those loans back.

00:34:44.333 --> 00:34:45.959
Not for this pre-trade.

00:34:45.959 --> 00:34:49.750
Yeah, but you wouldn\'t say
20 pips, wouldn\'t you?

00:34:49.750 --> 00:34:53.125
(indistinct remarks, chatter)

00:34:54.333 --> 00:34:56.625
So there is always debt
in the system.

00:34:56.625 --> 00:35:00.125
We can aggregate that
up to the whole country level

00:35:00.125 --> 00:35:05.041
and without growth,
that debt cannot be repaid back.

00:35:05.041 --> 00:35:07.375
Imagine a world
with a zero growth

00:35:07.375 --> 00:35:13.750
That\'s a world in which pretty
much everything gets frozen.

00:35:13.750 --> 00:35:17.500
If you haven\'t got a job
in this new world,

00:35:17.500 --> 00:35:21.166
with no growth, bad luck,

00:35:21.166 --> 00:35:23.834
you are gonna have to wait
for somebody to retire

00:35:23.834 --> 00:35:26.834
before maybe you get their job.

00:35:28.792 --> 00:35:35.208
A society without growth
probably won\'t work at all.

00:35:35.208 --> 00:35:37.625
Not for long.

00:35:37.625 --> 00:35:42.875
It\'ll degenerate into collapse.

00:35:44.208 --> 00:35:48.166
Without growth, societies
will descend into chaos,

00:35:48.166 --> 00:35:52.083
according to the financial
and political elite.

00:35:52.083 --> 00:35:53.750
But is that really the case?

00:35:53.750 --> 00:35:56.750
Isn\'t it rather
their blind faith in growth

00:35:56.750 --> 00:35:59.000
that leads us to chaos?

00:36:27.792 --> 00:36:38.125
♪

00:36:39.458 --> 00:36:42.291
In the \'80s,
the world of finance operating

00:36:42.291 --> 00:36:44.208
from the city of London
and Wall Street

00:36:44.208 --> 00:36:47.667
increased its influence
on governments and societies

00:36:47.667 --> 00:36:50.834
and became the driving force
of capitalism.

00:36:50.834 --> 00:36:53.875
Today, financial markets,
not governments,

00:36:53.875 --> 00:36:58.333
determine the well-being
of entire countries.

00:36:58.333 --> 00:36:59.166
How did it come to this?

00:36:59.166 --> 00:37:02.875
How could financial markets
gain such influence

00:37:02.875 --> 00:37:05.125
over our lives?

00:37:05.125 --> 00:37:15.458
♪

00:37:20.000 --> 00:37:22.000
One person who knows
the financial world

00:37:22.000 --> 00:37:25.750
better than almost anyone
is Stewart Cowley.

00:37:25.750 --> 00:37:26.583
For nearly 30 years,

00:37:26.583 --> 00:37:29.959
he was a successful
fund manager on Wall Street

00:37:29.959 --> 00:37:31.959
and in the city of London.

00:37:31.959 --> 00:37:33.125
♪

00:37:33.125 --> 00:37:34.583
No, I never planned
to be a fund manager.

00:37:34.583 --> 00:37:37.542
I was a scientist
and I was at Oxford,

00:37:37.542 --> 00:37:39.417
and one night I was playing
in a jazz quartet.

00:37:39.417 --> 00:37:43.000
The drummer was an economist,
we were very drunk.

00:37:43.000 --> 00:37:45.583
I asked, you know,
\"What\'s this thing in the city?\"

00:37:45.583 --> 00:37:46.583
that sort of thing.

00:37:46.583 --> 00:37:47.875
And he told us all about it.

00:37:47.875 --> 00:37:52.709
And I woke up the next morning
with a massive hangover.

00:37:52.709 --> 00:37:55.166
But remembered,
remembered what he said.

00:37:55.166 --> 00:37:58.458
I went to the careers department
at Oxford University

00:37:58.458 --> 00:38:00.458
and got the forms
and filled them in really badly,

00:38:00.458 --> 00:38:04.250
and before I knew it,
I\'d been offered a job.

00:38:04.250 --> 00:38:06.959
And I\'d been offered
20,000 pounds

00:38:06.959 --> 00:38:10.333
to go and start on Wall Street
in 1987.

00:38:10.333 --> 00:38:11.834
And that was the Wild West.

00:38:11.834 --> 00:38:14.333
That was the beginning of it,
really.

00:38:14.333 --> 00:38:16.625
♪

00:38:16.625 --> 00:38:20.291
We went into the new era
of Reagan, Thatcher,

00:38:20.291 --> 00:38:21.875
and liberal trade.

00:38:21.875 --> 00:38:23.959
So what we\'re doing is
we\'re taking

00:38:23.959 --> 00:38:25.583
the corset off the system, yes?

00:38:25.583 --> 00:38:28.625
We went through this process
of liberalization.

00:38:28.625 --> 00:38:31.125
So the so-called Big Bang
in the city

00:38:31.125 --> 00:38:33.542
was all about
financial deregulation.

00:38:33.542 --> 00:38:35.834
\"Let\'s go,
let the market decide

00:38:35.834 --> 00:38:40.417
and let\'s hire people and
let\'s see what happens, yes? \"

00:38:40.417 --> 00:38:41.834
As opposed to
this really kind of

00:38:41.834 --> 00:38:44.667
controlled atmosphere
which we\'d had before.

00:38:44.667 --> 00:38:46.542
And it was that
that we walked into,

00:38:46.542 --> 00:38:50.500
where money now talks,
now money wins.

00:38:50.500 --> 00:38:52.333
And you need people,
smart people,

00:38:52.333 --> 00:38:55.959
to trade the markets and
make finance the powerhouse

00:38:55.959 --> 00:38:59.083
behind capitalism
which it is supposed to be.

00:38:59.083 --> 00:39:02.291
Because all capitalism
functions on debt.

00:39:02.291 --> 00:39:05.500
Functions on money
and in particular, debt.

00:39:05.500 --> 00:39:06.458
And that\'s what it did.

00:39:06.458 --> 00:39:12.000
And that\'s when growth and
inflation exploded in the 1980s.

00:39:12.000 --> 00:39:21.667
♪

00:39:21.667 --> 00:39:23.417
The plan seemed to work.

00:39:23.417 --> 00:39:24.291
Stock markets boomed.

00:39:24.291 --> 00:39:27.625
Growth no longer needed to be
financed by increasing wages

00:39:27.625 --> 00:39:30.875
and tax revenue;
now it was all about credit.

00:39:30.875 --> 00:39:33.834
Governments and individuals
were to take out loans

00:39:33.834 --> 00:39:38.041
from banks and investors so that
they could be good consumers

00:39:38.041 --> 00:39:40.750
and thus generate growth.

00:39:40.750 --> 00:39:42.458
♪

00:39:42.458 --> 00:39:46.083
Credit cards come along,
overdraft facilities,

00:39:46.083 --> 00:39:50.959
lending for houses
becomes widely available.

00:39:50.959 --> 00:39:54.750
And it is at that point
that it explodes.

00:39:54.750 --> 00:39:56.709
That now, it\'s not
just the very wealthy

00:39:56.709 --> 00:39:59.667
who have access to
all these things, consumerism,

00:39:59.667 --> 00:40:03.542
it\'s now people lower down
the income scales as well.

00:40:03.542 --> 00:40:04.625
And if you look at money supply

00:40:04.625 --> 00:40:08.000
and the supply of credit
in the early \'80s,

00:40:08.000 --> 00:40:09.625
it just explodes.

00:40:09.625 --> 00:40:15.041
♪

00:40:15.041 --> 00:40:17.208
It has been
access to consumerism

00:40:17.208 --> 00:40:20.875
and promotion of consumerism
plus debt

00:40:20.875 --> 00:40:26.417
which has created the growth
and created where we are today.

00:40:26.417 --> 00:40:30.333
♪

00:40:30.333 --> 00:40:33.166
When was the last time
you heard anybody say,

00:40:33.166 --> 00:40:36.417
\"I can\'t come out tonight
because we\'re saving up

00:40:36.417 --> 00:40:39.375
to buy a refrigerator.\"

00:40:39.375 --> 00:40:42.875
It just doesn\'t happen,
you know?

00:40:42.875 --> 00:40:44.917
Nobody waits anymore.

00:40:44.917 --> 00:40:47.166
♪

00:40:47.166 --> 00:40:49.959
The cold logic of the market
took over,

00:40:49.959 --> 00:40:53.417
producing winners and losers.

00:40:53.417 --> 00:41:03.750
♪

00:41:04.667 --> 00:41:05.792
You used to be
a poker player,

00:41:05.792 --> 00:41:08.959
is this poker play
with other means?

00:41:08.959 --> 00:41:11.125
Well, yeah, I\'ve
played some poker

00:41:11.125 --> 00:41:12.417
in my lifetime,
I suppose

00:41:12.417 --> 00:41:16.875
a lot of people in
this business have.

00:41:16.875 --> 00:41:21.792
I think that there
is a common feeling,

00:41:21.792 --> 00:41:24.458
that playing cards
or playing Blackjack

00:41:24.458 --> 00:41:27.166
or something like
that is gambling.

00:41:27.166 --> 00:41:29.083
But of course,
we know

00:41:29.083 --> 00:41:30.166
it\'s not really
gambling.

00:41:30.166 --> 00:41:31.333
It\'s taking
into account

00:41:31.333 --> 00:41:33.583
the probability
of certain events

00:41:33.583 --> 00:41:38.417
occurring and placing
wagers accordingly.

00:41:38.417 --> 00:41:41.458
We would call that
the art of speculation.

00:41:41.458 --> 00:41:49.792
♪

00:41:49.792 --> 00:41:51.041
One of the people
who knew best

00:41:51.041 --> 00:41:53.542
how to profit
from this new logic

00:41:53.542 --> 00:41:54.709
was Donald Trump.

00:41:54.709 --> 00:41:57.041
I really think
I have an instinct

00:41:57.041 --> 00:41:59.542
but I don\'t think it\'s
the instinct of a shark,

00:41:59.542 --> 00:42:03.750
I think it\'s the instinct
of maybe getting what I want

00:42:03.750 --> 00:42:07.291
or knowing how
to get what I want.

00:42:07.291 --> 00:42:09.875
Only a few recognized
the profit opportunities

00:42:09.875 --> 00:42:13.500
in this new era
as well as Donald Trump.

00:42:13.500 --> 00:42:14.750
He made large scale purchases

00:42:14.750 --> 00:42:17.041
of derelict New York
apartment blocks

00:42:17.041 --> 00:42:18.333
and promised
to transform them

00:42:18.333 --> 00:42:21.041
into luxury hotels
and apartments.

00:42:21.041 --> 00:42:25.041
He received financing from
banks high on the market boom

00:42:25.041 --> 00:42:27.125
and through
the largest tax break

00:42:27.125 --> 00:42:28.750
in New York City history.

00:42:28.750 --> 00:42:31.917
Trump himself paid
practically nothing.

00:42:31.917 --> 00:42:34.667
Manhattan is
an incredible place,

00:42:34.667 --> 00:42:36.208
where you build
a huge building

00:42:36.208 --> 00:42:37.583
and it\'s sold out
in a matter of days.

00:42:37.583 --> 00:42:39.667
I mean, you know,
you build a building

00:42:39.667 --> 00:42:41.375
with literally
300 or 400 units.

00:42:41.375 --> 00:42:42.291
I\'m building a building

00:42:42.291 --> 00:42:43.792
that\'s one of the
hottest buildings

00:42:43.792 --> 00:42:44.792
anyone\'s ever seen.

00:42:44.792 --> 00:42:46.583
It\'s just selling
like hot cakes.

00:42:46.583 --> 00:42:50.834
Manhattan itself is becoming
a place of the rich.

00:42:50.834 --> 00:42:52.250
Period.

00:42:52.250 --> 00:42:57.041
♪

00:42:57.041 --> 00:42:59.333
Where are your limits,
Mr. Trump?

00:42:59.333 --> 00:43:00.875
Well, I don\'t know
what my limits are,

00:43:00.875 --> 00:43:04.000
but I know that when
I reach my limits

00:43:04.000 --> 00:43:06.375
I hope I\'m gonna
be able to know that

00:43:06.375 --> 00:43:07.875
at that point.

00:43:07.875 --> 00:43:12.583
♪

00:43:12.583 --> 00:43:14.250
The genie was
out of the bottle.

00:43:14.250 --> 00:43:16.792
The brave new world
of financial capitalism

00:43:16.792 --> 00:43:19.250
could no longer
be constrained

00:43:19.250 --> 00:43:21.333
and great efforts were made
to sell it

00:43:21.333 --> 00:43:24.583
as a controllable
and secure system.

00:43:24.583 --> 00:43:26.208
♪

00:43:26.208 --> 00:43:28.375
The whole industry
is based around

00:43:28.375 --> 00:43:29.792
a kind of an illusion.

00:43:29.792 --> 00:43:32.083
And the illusion
of certainty.

00:43:32.083 --> 00:43:34.709
There is a vested interest
if you like,

00:43:34.709 --> 00:43:37.500
inside of the system as it is

00:43:37.500 --> 00:43:39.625
to project knowledge.

00:43:39.625 --> 00:43:40.792
And extra knowledge.

00:43:40.792 --> 00:43:42.959
And that\'s not to say
that the people

00:43:42.959 --> 00:43:45.208
who are in it are telling lies,

00:43:45.208 --> 00:43:49.542
it\'s that they\'re doing their
best with what they have.

00:43:49.542 --> 00:43:52.375
But they really don\'t have
any more knowledge

00:43:52.375 --> 00:43:54.417
than probably you do.

00:43:54.417 --> 00:43:58.792
♪

00:43:58.792 --> 00:44:00.625
The Bloomberg Company
from New York

00:44:00.625 --> 00:44:03.750
plays a central role
in the financial system.

00:44:03.750 --> 00:44:05.917
Since the 1980s,
Bloomberg has provided

00:44:05.917 --> 00:44:08.875
stock traders and bankers
with lightning fast

00:44:08.875 --> 00:44:11.583
price fluctuations
and finance data

00:44:11.583 --> 00:44:13.250
from around the globe,

00:44:13.250 --> 00:44:14.625
making it one of the world\'s

00:44:14.625 --> 00:44:17.709
most influential
media companies.

00:44:17.709 --> 00:44:18.583
Around the clock,

00:44:18.583 --> 00:44:20.875
Bloomberg\'s news agency
and stock market channel

00:44:20.875 --> 00:44:25.041
broadcast the glad tidings
of the free market.

00:44:25.041 --> 00:44:26.500
♪

00:44:26.500 --> 00:44:30.875
Our role in financial markets is
as a provider of transparency.

00:44:30.875 --> 00:44:33.166
We provide
a huge amount of data,

00:44:33.166 --> 00:44:35.125
a huge amount of numbers
on markets,

00:44:35.125 --> 00:44:36.208
on economies, on companies.

00:44:36.208 --> 00:44:40.125
All the things that investors
and companies themselves need

00:44:40.125 --> 00:44:44.542
to operate, to make money can
be discovered through Bloomberg,

00:44:44.542 --> 00:44:46.417
be it through
the data we provide

00:44:46.417 --> 00:44:48.583
or be it in the form
of breaking news

00:44:48.583 --> 00:44:51.208
from our journalists
from around the world.

00:44:51.208 --> 00:44:55.917
It\'s a one-stop shop
for the financial markets.

00:45:00.875 --> 00:45:02.500
We\'re trying
to inform the markets,

00:45:02.500 --> 00:45:04.208
we\'re certainly not trying
to drive them.

00:45:04.208 --> 00:45:05.542
Providing a chronicle
of capitalism,

00:45:05.542 --> 00:45:08.709
telling the story of money,
is vitally important

00:45:08.709 --> 00:45:11.375
to Bloomberg and central
to what Bloomberg does.

00:45:11.375 --> 00:45:14.875
We\'re trying to make
a real-world feel for people

00:45:14.875 --> 00:45:16.709
so that they understand

00:45:16.709 --> 00:45:18.583
what\'s happened,
why it\'s happened

00:45:18.583 --> 00:45:21.583
and what might happen next.

00:45:25.291 --> 00:45:29.458
Economic growth data is one of
the most important numbers

00:45:29.458 --> 00:45:31.125
we look for.

00:45:31.125 --> 00:45:33.166
It provides
a football score

00:45:33.166 --> 00:45:34.667
on the state of an economy.

00:45:34.667 --> 00:45:37.959
Steady, solid growth
in financial markets

00:45:37.959 --> 00:45:42.417
is usually reflected
in solid, sustainable

00:45:42.417 --> 00:45:45.041
growth in economics,

00:45:45.041 --> 00:45:46.750
in demand,
in jobs markets.

00:45:46.750 --> 00:45:49.959
The reason is that
people feel wealthier.

00:45:49.959 --> 00:45:52.959
These are the yields
in Spain, Italy, Ireland.

00:45:52.959 --> 00:45:53.917
They\'re all falling today.

00:45:53.917 --> 00:45:57.333
Bond insurance is falling
across Europe today,

00:45:57.333 --> 00:45:59.083
and those are the commodities,

00:45:59.083 --> 00:46:01.000
the far right-hand side
of your screen,

00:46:01.000 --> 00:46:04.500
after Greece of course
received a deal...

00:46:04.500 --> 00:46:05.542
If you look at the textbooks,

00:46:05.542 --> 00:46:07.500
there should be no limits
to growth

00:46:07.500 --> 00:46:09.083
but if you look in
the newspapers at the moment,

00:46:09.083 --> 00:46:14.000
you get the feeling
there is a break on growth.

00:46:14.000 --> 00:46:17.583
The central question now
is whether

00:46:17.583 --> 00:46:19.375
we\'re in a cyclical slump

00:46:19.375 --> 00:46:22.625
or whether something
structural is going on.

00:46:22.625 --> 00:46:24.375
...nine percent lower,

00:46:24.375 --> 00:46:27.291
biggest drop since 2008.

00:46:27.291 --> 00:46:30.542
And do you have
a personal opinion on that?

00:46:30.542 --> 00:46:32.625
I don\'t have a personal opinion.

00:46:32.625 --> 00:46:34.667
I\'m a journalist.

00:46:34.667 --> 00:46:37.959
I do,
but I\'m not gonna share it.

00:46:37.959 --> 00:46:48.291
♪

00:46:50.000 --> 00:46:51.542
So the history of the world
would suggest

00:46:51.542 --> 00:46:54.500
that man actually
usually gets it right

00:46:54.500 --> 00:46:55.333
quite a lot of the time,

00:46:55.333 --> 00:46:58.125
that when backs
are put against the wall,

00:46:58.125 --> 00:47:00.667
those entrepreneurs,
those investors

00:47:00.667 --> 00:47:04.500
have smart ideas
that can actually flourish.

00:47:04.500 --> 00:47:06.333
If you look back 20 years,

00:47:06.333 --> 00:47:08.875
the idea of Facebook
or Twitter,

00:47:08.875 --> 00:47:11.875
of Apple computers,
of all those things

00:47:11.875 --> 00:47:14.834
that we almost
take for granted these days

00:47:14.834 --> 00:47:16.792
are new sources of growth.

00:47:16.792 --> 00:47:18.542
Yes, the world can
reinvent itself.

00:47:18.542 --> 00:47:22.125
It has done so multiple times
in history.

00:47:22.125 --> 00:47:24.208
You can usually
bet on the human being

00:47:24.208 --> 00:47:27.041
to find a better future.

00:47:27.041 --> 00:47:31.000
♪

00:47:31.000 --> 00:47:35.417
I used Bloomberg throughout
my 28-year career.

00:47:35.417 --> 00:47:37.375
Every single day.

00:47:37.375 --> 00:47:39.041
All these information
systems\' empires

00:47:39.041 --> 00:47:42.959
are based upon people\'s
remaining to have confidence

00:47:42.959 --> 00:47:44.667
in the information
they\'re giving out.

00:47:44.667 --> 00:47:49.291
And the promotion of the
ideology and the narrative

00:47:49.291 --> 00:47:51.000
which finance is based around,

00:47:51.000 --> 00:47:52.125
which has increasingly become

00:47:52.125 --> 00:47:54.917
this kind of game show
approach to things,

00:47:54.917 --> 00:47:58.583
in order to get people to invest
and be interested

00:47:58.583 --> 00:48:01.709
and see the possibilities in it,

00:48:01.709 --> 00:48:04.291
the capitalist message,
if you like.

00:48:04.291 --> 00:48:07.583
For a period of time,
everybody wins.

00:48:07.583 --> 00:48:08.792
That\'s the thing.

00:48:08.792 --> 00:48:09.667
And it\'s stable.

00:48:09.667 --> 00:48:11.208
Mathematically, it\'s stable,

00:48:11.208 --> 00:48:12.834
for a certain period of time.

00:48:12.834 --> 00:48:15.917
And then,
as a number of economists--

00:48:15.917 --> 00:48:18.125
Marx, Keynes have pointed out--

00:48:18.125 --> 00:48:21.625
is eventually,
all of these manias go up a lot

00:48:21.625 --> 00:48:23.875
and then they crash down.

00:48:23.875 --> 00:48:34.208
♪

00:48:40.208 --> 00:48:43.208
There was heavy lobbying
by the financial sector

00:48:43.208 --> 00:48:45.166
on the government to ensure,
actually,

00:48:45.166 --> 00:48:49.625
that this financial sector
growth could continue.

00:48:49.625 --> 00:48:50.458
And governments believed

00:48:50.458 --> 00:48:52.208
that it was in the interest
of the economy,

00:48:52.208 --> 00:48:54.542
because everyone told them,
monetarism told them,

00:48:54.542 --> 00:48:56.667
that if you had all this
liquidity in the system,

00:48:56.667 --> 00:48:58.875
then you must be growing
your real economy.

00:48:58.875 --> 00:49:02.458
But actually what was happening
within that system rather was,

00:49:02.458 --> 00:49:04.166
that you freed up
all this money,

00:49:04.166 --> 00:49:07.375
which was then used
to bet on the increases

00:49:07.375 --> 00:49:08.917
in the value
of certain companies

00:49:08.917 --> 00:49:12.917
and certain shares and of
money itself in the system.

00:49:12.917 --> 00:49:14.834
And the people who
were doing that betting

00:49:14.834 --> 00:49:18.458
were not only profiting from it
but they were also

00:49:18.458 --> 00:49:19.959
the only people who were
regulating the system.

00:49:19.959 --> 00:49:27.458
So it created a huge unstable
and an incredibly unequal system

00:49:27.458 --> 00:49:30.709
in which the rich
got very much richer

00:49:30.709 --> 00:49:32.542
really very fast.

00:49:32.542 --> 00:49:35.959
♪

00:49:35.959 --> 00:49:38.792
For decades,
society has been transformed

00:49:38.792 --> 00:49:40.000
into an enormous market

00:49:40.000 --> 00:49:43.667
to which there\'s
allegedly no alternative.

00:49:43.667 --> 00:49:47.375
The huge sums earned by a few
in the financial markets

00:49:47.375 --> 00:49:50.625
scream for higher returns
and have penetrated

00:49:50.625 --> 00:49:53.041
every corner of the globe.

00:49:53.041 --> 00:49:56.542
New ways are constantly sought
to expand profits

00:49:56.542 --> 00:49:58.291
already in the trillions.

00:49:58.291 --> 00:50:03.250
The world seems to be getting
too small for all the capital.

00:50:03.250 --> 00:50:13.583
♪

00:50:50.291 --> 00:51:00.625
♪

00:51:25.709 --> 00:51:30.083
When I was a kid, I couldn\'t
afford to fly in an airplane.

00:51:30.083 --> 00:51:32.417
I actually joined
the air transport industry

00:51:32.417 --> 00:51:35.041
before I ever flew
in an airplane.

00:51:35.041 --> 00:51:38.041
Today, people take flying
for granted.

00:51:38.041 --> 00:51:39.583
It shaped the way we buy goods,

00:51:39.583 --> 00:51:41.625
it shaped the places
people go to,

00:51:41.625 --> 00:51:44.166
it shaped the meetings
between people

00:51:44.166 --> 00:51:46.500
and different cultures.

00:51:46.500 --> 00:51:48.917
(hum of machinery)

00:51:48.917 --> 00:51:53.917
Over the next 20 years,
we expect the world to need

00:51:53.917 --> 00:51:56.667
32,000 new civil aircraft.

00:51:56.667 --> 00:51:59.125
Passenger aircraft
and freighter aircraft.

00:51:59.125 --> 00:52:03.417
And we expect to sell
a significant share

00:52:03.417 --> 00:52:05.875
of those 32,000.

00:52:05.875 --> 00:52:13.834
♪

00:52:13.834 --> 00:52:17.875
At the moment, around
one billion of the people

00:52:17.875 --> 00:52:22.166
who live on our planet
fly by air regularly.

00:52:22.166 --> 00:52:25.291
The remaining six billion
don\'t yet fly by air.

00:52:25.291 --> 00:52:29.917
And it\'s these people who
will be tomorrow\'s passengers

00:52:29.917 --> 00:52:30.875
and tomorrow\'s customers,

00:52:30.875 --> 00:52:34.667
in addition for those of us
in developed countries

00:52:34.667 --> 00:52:36.750
who take flying for granted.

00:52:36.750 --> 00:52:39.834
Clearly this means that
the biggest scope for growth

00:52:39.834 --> 00:52:43.875
is where the people are and
where the economic wealth is,

00:52:43.875 --> 00:52:45.208
the disposable incomes are.

00:52:45.208 --> 00:52:51.000
So, top of the list come
Asia Pacific, China, India,

00:52:51.000 --> 00:52:55.125
Indonesia, Southeast Asia,
and followed quickly

00:52:55.125 --> 00:52:57.792
by Latin America,
where we see strong growth.

00:52:57.792 --> 00:53:01.667
And a little further behind
but growing strongly

00:53:01.667 --> 00:53:07.208
from a small base is Africa.

00:53:08.583 --> 00:53:13.166
(unintelligible instruction)

00:53:17.875 --> 00:53:21.750
(radio transmission)

00:53:21.750 --> 00:53:23.125
Okay.

00:53:23.125 --> 00:53:27.709
(unintelligible instruction)

00:53:31.709 --> 00:53:34.000
You have to go to China
to appreciate

00:53:34.000 --> 00:53:37.542
how strongly
China has been growing.

00:53:37.542 --> 00:53:41.375
Beijing Capital Airport
has become just recently

00:53:41.375 --> 00:53:43.542
the busiest airport
in the world.

00:53:43.542 --> 00:53:45.625
And that growth
will be continued

00:53:45.625 --> 00:53:47.041
with the new Beijing airport

00:53:47.041 --> 00:53:50.875
as well as the growth
in the major hubs.

00:53:50.875 --> 00:53:53.834
A lot of growth in China.

00:53:53.834 --> 00:54:04.166
♪

00:54:51.291 --> 00:54:56.834
We have delivered
over the last six years

00:54:56.834 --> 00:54:59.458
more than 100
brand-new airplanes

00:54:59.458 --> 00:55:02.417
to the airlines in China.

00:55:02.417 --> 00:55:04.917
Every year.

00:55:04.917 --> 00:55:05.750
In other terms,

00:55:05.750 --> 00:55:12.000
around one airplane
every three days to China.

00:55:13.875 --> 00:55:17.125
Fascinating.

00:55:18.709 --> 00:55:22.583
The changes are spectacular.

00:55:22.583 --> 00:55:29.375
I can\'t imagine,
when I came here in 1994,

00:55:29.375 --> 00:55:35.458
on the streets, you can see
everywhere full of bicycles.

00:55:35.458 --> 00:55:41.125
And today,
if you look at the streets,

00:55:41.125 --> 00:55:43.542
very limited number of bicycles.

00:55:43.542 --> 00:55:48.375
We feel that change
very strongly here.

00:55:51.250 --> 00:55:54.959
But you have more traffic jams
today.

00:55:54.959 --> 00:55:59.125
Traffic jams are
a real headache in Beijing.

00:55:59.125 --> 00:56:03.250
In a huge city like Beijing,
there are too much cars.

00:56:03.250 --> 00:56:06.083
Yes, it\'s another headache.

00:56:06.083 --> 00:56:16.417
♪

00:56:21.625 --> 00:56:26.166
(indistinct conversation)

00:56:26.542 --> 00:56:29.875
(reporting in foreign language)

00:57:08.291 --> 00:57:12.709
Currently we have
slightly more then 200 airports

00:57:12.709 --> 00:57:14.083
in China, in total.

00:57:14.083 --> 00:57:19.709
And every year, in the range of
10 or 15 new airports

00:57:19.709 --> 00:57:20.750
will be built.

00:57:20.750 --> 00:57:23.583
The market is huge
and we are optimistic

00:57:23.583 --> 00:57:27.375
because with
1.4 billion population,

00:57:27.375 --> 00:57:34.667
imagine if everybody can afford
the travel expenses.

00:57:34.667 --> 00:57:37.458
Even a peasant
with low cost business model,

00:57:37.458 --> 00:57:41.500
a worker that is
willing to travel by air.

00:57:41.500 --> 00:57:45.000
The market is fantastic,
you can\'t imagine.

00:57:45.000 --> 00:57:50.291
And I\'ve already seen
the sign of that!

00:57:50.291 --> 00:57:54.333
That\'s why,
every time I\'m asked about

00:57:54.333 --> 00:57:55.709
the perspectives of the market,

00:57:55.709 --> 00:57:59.542
I cannot measure
the dimension of this market

00:57:59.542 --> 00:58:03.792
when I have the reference
of 1.4 billion,

00:58:03.792 --> 00:58:09.166
which is even more important
than the whole of Europe.

00:58:10.625 --> 00:58:11.834
Every 15 years,

00:58:11.834 --> 00:58:15.417
the world fleet
will be doubled again.

00:58:15.417 --> 00:58:18.917
In China,
you don\'t need to wait 15 years.

00:58:18.917 --> 00:58:22.500
In seven, eight years,
we get the fleet doubled.

00:58:22.500 --> 00:58:27.959
It\'s quicker than
in other parts of the world.

00:58:29.000 --> 00:58:31.917
But more air traffic
means more pollution.

00:58:31.917 --> 00:58:34.250
What do you do about that?

00:58:34.250 --> 00:58:40.041
We made every single effort
to try to reduce the emissions.

00:58:40.041 --> 00:58:43.500
But if we look
at the social benefits,

00:58:43.500 --> 00:58:47.333
at the economic benefits
the aviation industry

00:58:47.333 --> 00:58:49.709
brings to the humanity,

00:58:49.709 --> 00:58:55.375
then people may think
differently.

00:58:55.792 --> 00:59:04.000
We are trying to make the world
smaller and smaller.

00:59:04.000 --> 00:59:08.917
To make it a real village.

00:59:08.917 --> 00:59:19.250
♪

00:59:42.709 --> 00:59:45.041
...that was made
at Ober Center.

00:59:45.041 --> 00:59:46.333
That cap.

00:59:46.333 --> 00:59:46.959
Copy that.

00:59:46.959 --> 00:59:51.709
For decades, growth was kept
on life support with debt.

00:59:51.709 --> 00:59:53.792
Only a few
had the courage to say

00:59:53.792 --> 00:59:56.375
that the party
couldn\'t go on forever,

00:59:56.375 --> 00:59:58.291
but no one listened to them.

00:59:58.291 --> 01:00:01.917
In September 2008,
the time had come.

01:00:01.917 --> 01:00:03.458
The house of cards collapsed.

01:00:03.458 --> 01:00:08.041
Okay, Tracy, I\'m cleaning off
the tip of the gun.

01:00:30.458 --> 01:00:32.500
♪

01:00:32.500 --> 01:00:35.542
It\'s a Black Monday
for the American capital market.

01:00:35.542 --> 01:00:37.917
Despite dramatic rescue efforts
over the weekend,

01:00:37.917 --> 01:00:41.542
all efforts to keep the world\'s
fourth largest investment bank

01:00:41.542 --> 01:00:42.959
alive have failed.

01:00:42.959 --> 01:00:46.458
Lehman Brothers is shutting
its doors for good.

01:00:46.458 --> 01:00:49.792
It\'s also, I think, a necessary
part of the clean-up process.

01:00:49.792 --> 01:00:53.125
Lehman we knew was weak,
we expected it to go.

01:00:53.125 --> 01:00:56.333
It\'s not going in the way
that people expected it to,

01:00:56.333 --> 01:00:58.417
but it\'s gone.

01:00:58.417 --> 01:01:01.375
♪

01:01:01.375 --> 01:01:03.750
In the long run, I\'m confident
that our capital markets

01:01:03.750 --> 01:01:07.792
are flexible and resilient and
can deal with these adjustments.

01:01:07.792 --> 01:01:09.625
Can you tell us
how you\'re feeling?

01:01:09.625 --> 01:01:11.083
It\'s awful, I know.

01:01:11.083 --> 01:01:11.709
It sucks.

01:01:11.709 --> 01:01:14.625
But did you see it coming
at all?

01:01:14.625 --> 01:01:16.417
No, I didn\'t.

01:01:16.417 --> 01:01:18.458
♪

01:01:18.458 --> 01:01:20.291
There was a deep shock
in the system.

01:01:20.291 --> 01:01:21.750
There was a sense of,
my goodness,

01:01:21.750 --> 01:01:23.000
we can\'t let this
happen again.

01:01:23.000 --> 01:01:27.208
Governments have to have a
better handle on this system.

01:01:27.208 --> 01:01:27.875
And for a while,

01:01:27.875 --> 01:01:29.667
there were attempts
to do that.

01:01:29.667 --> 01:01:34.000
It lasted probably
a matter of a few months.

01:01:34.000 --> 01:01:40.375
In fact, by the end of 2009
and into 2010

01:01:40.375 --> 01:01:42.792
the very same companies
that had been responsible

01:01:42.792 --> 01:01:44.291
for some of that disaster

01:01:44.291 --> 01:01:46.875
were still engaging
in those same kinds

01:01:46.875 --> 01:01:50.375
of risky trading procedures
that for a while

01:01:50.375 --> 01:01:52.083
had been stopped
in the wake of the crisis.

01:01:52.083 --> 01:01:57.458
So we learned the lesson,
but then we forgot it again.

01:01:57.458 --> 01:01:59.750
♪

01:01:59.750 --> 01:02:03.125
The financial crisis was a huge
opportunity for governments

01:02:03.125 --> 01:02:04.542
to free the world
from its dependency

01:02:04.542 --> 01:02:08.959
on financial markets
and to change the system,

01:02:08.959 --> 01:02:09.917
but they wasted it.

01:02:09.917 --> 01:02:13.500
Instead they did all they could
to revive the old system,

01:02:13.500 --> 01:02:17.959
spending trillions of dollars
to save the banks.

01:02:17.959 --> 01:02:20.083
Then something incredible
happened.

01:02:20.083 --> 01:02:25.375
The banking crisis miraculously
became a sovereign debt crisis.

01:02:25.375 --> 01:02:27.500
Private debt became public debt.

01:02:27.500 --> 01:02:29.333
Governments and their citizens
were subjected

01:02:29.333 --> 01:02:33.375
to austerity policies
under which millions of people

01:02:33.375 --> 01:02:35.333
suffer to this day.

01:02:35.333 --> 01:02:37.083
Banks and stock markets,
however,

01:02:37.083 --> 01:02:40.083
were keen to demonstrate
a sense of normalcy

01:02:40.083 --> 01:02:41.917
as soon as possible.

01:02:41.917 --> 01:02:45.166
In reality,
nothing is as it seems.

01:02:45.166 --> 01:02:47.291
Capitalism survived the crisis

01:02:47.291 --> 01:02:52.417
but no longer functions
like it once did.

01:02:57.667 --> 01:02:59.750
Even though it\'s not as busy
as it used to be,

01:02:59.750 --> 01:03:02.166
this is still
the center of capitalism.

01:03:02.166 --> 01:03:03.166
You can look at all the tourists

01:03:03.166 --> 01:03:05.417
who are outside the building
taking pictures.

01:03:05.417 --> 01:03:08.417
They all still believe this is
the center of capitalism.

01:03:08.417 --> 01:03:14.542
It may not be as busy as before
but it\'s a symbol of something.

01:03:14.542 --> 01:03:18.000
It means something to them.

01:03:23.875 --> 01:03:24.875
Here we have all the visits,

01:03:24.875 --> 01:03:29.542
like when President Bush came
onto the floor and visited.

01:03:29.542 --> 01:03:31.625
That\'s John Thain,
the former CEO

01:03:31.625 --> 01:03:33.542
of the New York Stock Exchange.

01:03:33.542 --> 01:03:34.834
You\'re looking for growth.

01:03:34.834 --> 01:03:36.500
That\'s what all these people
are looking for.

01:03:36.500 --> 01:03:39.750
How to grow their companies,
how to grow the economy.

01:03:39.750 --> 01:03:43.333
How to make more money,
how to employ more people.

01:03:43.333 --> 01:03:46.458
How to get people--
wages growing.

01:03:46.458 --> 01:03:49.333
The whole game here
is how to get growth.

01:03:49.333 --> 01:03:53.458
How to employ people, how to
keep the global economy going.

01:03:53.458 --> 01:03:56.583
That\'s what it\'s all about.

01:03:56.583 --> 01:03:58.500
Come on.

01:04:04.667 --> 01:04:07.625
I\'m sort of like the weatherman
for the stock market.

01:04:07.625 --> 01:04:10.083
I come in every day
and try to figure out

01:04:10.083 --> 01:04:11.583
what\'s going on
in the stock market.

01:04:11.583 --> 01:04:14.417
I talk to trading desks,
I talk to analysts,

01:04:14.417 --> 01:04:16.625
I talk to people who know a lot
about the stock market,

01:04:16.625 --> 01:04:19.041
and I go on the air
and on the Internet

01:04:19.041 --> 01:04:20.500
and explain what\'s going on.

01:04:20.500 --> 01:04:21.917
So, every day I come in
and try to figure out

01:04:21.917 --> 01:04:26.166
which way the wind is blowing
on Wall Street.

01:04:26.166 --> 01:04:28.875
(chatter)

01:04:30.125 --> 01:04:33.709
100,000, open
at 16 dollars and 12 cents!

01:04:33.709 --> 01:04:35.291
Good work!

01:04:35.291 --> 01:04:38.375
(cheering)

01:04:38.375 --> 01:04:40.333
Congratulations,
a big day for all of you.

01:04:40.333 --> 01:04:42.917
Congratulations, and again,
happy to have you.

01:04:42.917 --> 01:04:43.750
Thank you very much!

01:04:43.750 --> 01:04:46.375
This is my favorite part
of my job.

01:04:46.375 --> 01:04:47.667
(chatter)

01:04:47.667 --> 01:04:48.959
Watching people make money.

01:04:48.959 --> 01:04:51.500
Watching capitalism at work.

01:04:51.500 --> 01:04:53.375
-Congratulations.
-Thank you.

01:04:53.375 --> 01:04:55.125
Thanks, Bob.

01:04:59.041 --> 01:05:03.083
So, remember, the SEP 500 is
now 1.5 percent this month.

01:05:03.083 --> 01:05:04.750
We have very clear
market leaders,

01:05:04.750 --> 01:05:08.083
and the reason we\'ve had it
is because better prospects

01:05:08.083 --> 01:05:09.750
for earnings
in the fourth quarter.

01:05:09.750 --> 01:05:12.083
Remember what
the market leaders have been?

01:05:12.083 --> 01:05:13.375
Energy, tech, and banks.

01:05:13.375 --> 01:05:16.625
Lagging today?
Energy, techs, and banks.

01:05:16.625 --> 01:05:18.667
That\'s interesting.

01:05:18.667 --> 01:05:20.959
Thanks, guys.

01:05:20.959 --> 01:05:21.959
Hi, Nancy, how\'re you doing?

01:05:21.959 --> 01:05:26.041
Hey, Bob, let me just
change your battery.

01:05:29.333 --> 01:05:30.291
You can\'t come up and say,

01:05:30.291 --> 01:05:33.041
\"Well, the markets
are just drifting around.

01:05:33.041 --> 01:05:34.417
There is no real meaning

01:05:34.417 --> 01:05:36.083
of anything
that\'s happening today.

01:05:36.083 --> 01:05:38.542
Back to you, Sue.\"
That won\'t make any sense.

01:05:38.542 --> 01:05:40.583
Nobody\'s going to be
interested in that.

01:05:40.583 --> 01:05:42.375
Human beings want stories.

01:05:42.375 --> 01:05:44.750
They don\'t want
an endless list of numbers.

01:05:44.750 --> 01:05:46.834
Nobody\'s impressed
with a list of numbers.

01:05:46.834 --> 01:05:48.166
They want to know
what\'s going on.

01:05:48.166 --> 01:05:51.875
Tell us in plain English
what the markets are doing.

01:05:51.875 --> 01:05:55.458
And that\'s the real skill set
and often that\'s not easy,

01:05:55.458 --> 01:05:58.750
because things
are very complicated.

01:06:01.917 --> 01:06:02.709
Hey, Pisani.

01:06:02.709 --> 01:06:06.083
So what do you think\'s
going on here?

01:06:07.750 --> 01:06:09.834
Yeah.

01:06:09.834 --> 01:06:14.834
Azure Power opened at 16.12,
it\'s now trading at 15.29.

01:06:14.834 --> 01:06:16.041
That\'s kind of a disappointment.

01:06:16.041 --> 01:06:18.709
-Down 15 percent.
-They were very nice, though.

01:06:18.709 --> 01:06:19.792
They were such wonderful people.

01:06:19.792 --> 01:06:23.709
They all came from India to do
the whole solar power thing.

01:06:23.709 --> 01:06:24.709
You know, they were all excited

01:06:24.709 --> 01:06:27.417
and it was just a great moment
to talk to them.

01:06:27.417 --> 01:06:30.417
And they said
they\'ve been watching CNBC

01:06:30.417 --> 01:06:32.542
-for 20 years.
-Aw!

01:06:35.208 --> 01:06:39.667
People have always claimed
that capitalism can be evil

01:06:39.667 --> 01:06:41.583
and capitalism
doesn\'t help people.

01:06:41.583 --> 01:06:43.542
I completely disagree.

01:06:43.542 --> 01:06:45.500
What I see in the last 150 years

01:06:45.500 --> 01:06:49.208
is millions of people
have been lifted out of poverty.

01:06:49.208 --> 01:06:53.208
I personally am a true believer
and still believe

01:06:53.208 --> 01:06:54.917
that the system works well,

01:06:54.917 --> 01:06:58.875
and I\'m committed
to that system.

01:09:04.625 --> 01:09:07.208
Here\'s the news for the day:

01:09:07.208 --> 01:09:09.667
Everybody love each other

01:09:09.667 --> 01:09:13.083
and quit
screwing each other over.

01:09:13.083 --> 01:09:15.417
Be a friend to everybody.

01:09:15.417 --> 01:09:17.917
And don\'t forget,
just \'cause we\'re homeless

01:09:17.917 --> 01:09:20.792
don\'t mean we\'re bad people.

01:09:25.208 --> 01:09:28.166
I think what we\'ve seen
over the last few years

01:09:28.166 --> 01:09:34.542
is cracks in the shiny surface
of capitalism.

01:09:34.542 --> 01:09:36.875
And at first
that\'s what they look like.

01:09:36.875 --> 01:09:38.041
They just look as though

01:09:38.041 --> 01:09:39.583
there\'s something
not quite right

01:09:39.583 --> 01:09:42.625
on the way the light
reflects off it.

01:09:42.625 --> 01:09:48.750
And as you look
more and more closely,

01:09:48.750 --> 01:09:52.041
you see this--
you see that these cracks

01:09:52.041 --> 01:09:54.834
go right to the heart
of the model.

01:09:54.834 --> 01:09:55.959
They go right to the heart

01:09:55.959 --> 01:10:01.250
of the basic ideas
of capitalism.

01:10:01.250 --> 01:10:05.583
♪

01:10:05.583 --> 01:10:08.041
Does capitalism still work?

01:10:08.041 --> 01:10:11.333
Can the system deliver
what it promises,

01:10:11.333 --> 01:10:16.750
providing growth, jobs,
and prosperity for all?

01:10:16.750 --> 01:10:24.667
♪

01:10:36.500 --> 01:10:39.166
(hum of machinery)

01:12:12.709 --> 01:12:15.792
(robotic buzzing)

01:13:21.125 --> 01:13:25.250
♪

01:13:25.250 --> 01:13:27.417
Ever since
the Industrial Revolution,

01:13:27.417 --> 01:13:30.166
machines have been
replacing human labor,

01:13:30.166 --> 01:13:33.458
thereby causing
great societal upheavals,

01:13:33.458 --> 01:13:36.375
but until recently,
they had only replaced

01:13:36.375 --> 01:13:39.083
the physical labor of humans.

01:13:39.083 --> 01:13:40.959
Now machines
are capable of doing

01:13:40.959 --> 01:13:43.375
what makes us humans unique:

01:13:43.375 --> 01:13:44.834
They are able to think.

01:13:44.834 --> 01:13:47.709
It\'s a completely new chapter
in human history

01:13:47.709 --> 01:13:50.250
which will have
massive consequences

01:13:50.250 --> 01:13:52.917
on how we live and work.

01:13:52.917 --> 01:13:56.125
♪

01:13:57.959 --> 01:14:00.041
Can technology think?

01:14:00.041 --> 01:14:01.458
Watson can.

01:14:01.458 --> 01:14:05.375
IBM Watson is a technology
unlike any that\'s come before,

01:14:05.375 --> 01:14:06.875
because rather than
force humans

01:14:06.875 --> 01:14:07.959
to think like a computer,

01:14:07.959 --> 01:14:11.500
Watson interacts with humans
on human terms.

01:14:11.500 --> 01:14:13.500
♪

01:14:13.500 --> 01:14:16.583
You don\'t program Watson,
you work with Watson.

01:14:16.583 --> 01:14:19.542
And through your interactions
with it, it learns,

01:14:19.542 --> 01:14:21.208
just like we do.

01:14:21.208 --> 01:14:23.417
♪

01:14:58.750 --> 01:15:00.375
Are you interested
in talking about

01:15:00.375 --> 01:15:03.333
how I express
and understand emotions?

01:15:03.333 --> 01:15:05.208
I can express emotions
with my voice,

01:15:05.208 --> 01:15:09.166
gestures, and tablet
as well as the colorful lights

01:15:09.166 --> 01:15:11.208
in my eyes and on my shoulders.

01:15:11.208 --> 01:15:13.792
As you can see,
I am a humanoid robot

01:15:13.792 --> 01:15:14.792
created by Aldebaran.

01:15:14.792 --> 01:15:18.500
I\'m a sophisticated combination
of hardware and software,

01:15:18.500 --> 01:15:23.041
designed to interact with humans
and bring them joy!

01:15:23.041 --> 01:15:26.208
-Thank you!
-You\'re welcome!

01:15:51.417 --> 01:15:54.041
(indistinct announcement)

01:15:54.041 --> 01:15:56.417
In the future,
algorithms and robots

01:15:56.417 --> 01:16:00.250
will be able to carry out
nearly every routine task

01:16:00.250 --> 01:16:02.709
previously performed by humans.

01:16:02.709 --> 01:16:04.709
Millions of jobs will vanish.

01:16:04.709 --> 01:16:08.417
These new technologies
do provide economic growth

01:16:08.417 --> 01:16:10.291
but not much in the way of jobs

01:16:10.291 --> 01:16:13.333
and that could endanger
capitalism itself.

01:16:13.333 --> 01:16:16.542
Who will be able to purchase
all the nice things

01:16:16.542 --> 01:16:18.125
mass produced every day

01:16:18.125 --> 01:16:19.375
when there are not enough people

01:16:19.375 --> 01:16:22.250
who can pay for them
with their wages?

01:16:22.250 --> 01:16:25.208
(machinery whirring)

01:16:34.458 --> 01:16:44.792
♪

01:16:48.166 --> 01:16:50.041
Are we all passengers on a plane

01:16:50.041 --> 01:16:53.041
whose navigation system
is broken?

01:16:53.041 --> 01:16:55.959
Are we still in control
of the system

01:16:55.959 --> 01:16:58.625
or is it controlling us?

01:16:58.625 --> 01:17:08.959
♪

01:17:46.041 --> 01:17:46.917
In financial markets,

01:17:46.917 --> 01:17:50.333
algorithms have long since
been running the show.

01:17:50.333 --> 01:17:52.625
Computers interact
with other computers

01:17:52.625 --> 01:17:56.542
in fractions of a second
without any human input,

01:17:56.542 --> 01:18:00.166
and sometimes they do things
that were not planned

01:18:00.166 --> 01:18:04.083
like in the Flash Crash
of May 2010.

01:18:04.083 --> 01:18:06.625
Wow! Almost a thousand points!

01:18:06.625 --> 01:18:08.917
We call this a capitulation!

01:18:08.917 --> 01:18:11.625
They\'re gonna
probably hold trading!

01:18:11.625 --> 01:18:14.208
We can\'t stop the selling!

01:18:14.208 --> 01:18:16.250
The Flash Crash was an incident

01:18:16.250 --> 01:18:20.208
in which markets
essentially disappeared

01:18:20.208 --> 01:18:21.917
for a few seconds.

01:18:21.917 --> 01:18:26.917
The whole event
took maybe 40 minutes,

01:18:26.917 --> 01:18:28.041
but there was a moment

01:18:28.041 --> 01:18:31.291
during this massive
stock market decline

01:18:31.291 --> 01:18:34.792
which was not triggered
by any particular event.

01:18:34.792 --> 01:18:38.000
There was no news,
there was no dramatic change

01:18:38.000 --> 01:18:42.375
in economic conditions
or corporate fundamentals.

01:18:42.375 --> 01:18:45.959
It was simply
a positive feedback loop

01:18:45.959 --> 01:18:49.417
kicked off within
a complex system

01:18:49.417 --> 01:18:51.000
that fed upon itself,

01:18:51.000 --> 01:18:53.583
and suddenly,
all of the computer systems

01:18:53.583 --> 01:18:55.333
that were looking
at the same signals

01:18:55.333 --> 01:18:59.375
in the same ways
all reacted at the same time

01:18:59.375 --> 01:19:04.000
and withdrew their orders
from the market.

01:19:07.333 --> 01:19:10.417
As the market continued to drop

01:19:10.417 --> 01:19:12.125
and risk limits were being hit

01:19:12.125 --> 01:19:17.375
and programs were reacting
in unexpected ways,

01:19:17.375 --> 01:19:20.667
you could see them
getting more and more frantic

01:19:20.667 --> 01:19:22.750
until, at some point,
the head of the firm

01:19:22.750 --> 01:19:25.834
came running out
onto the trading floor shouting,

01:19:25.834 --> 01:19:27.542
\"Shut it off! Shut it all off!\"

01:19:27.542 --> 01:19:29.583
and we just started
hitting Control C

01:19:29.583 --> 01:19:32.375
and killing programs
left and right.

01:19:32.375 --> 01:19:33.500
Any keyboard you could find,

01:19:33.500 --> 01:19:37.667
you killed the program
that was running.

01:19:37.667 --> 01:19:38.834
As you watched the market,

01:19:38.834 --> 01:19:41.750
you could see the exact
same thing was happening

01:19:41.750 --> 01:19:43.458
on every other trading floor,

01:19:43.458 --> 01:19:46.000
because orders were
just disappearing

01:19:46.000 --> 01:19:48.166
out of the market.

01:19:48.166 --> 01:19:50.250
♪

01:19:50.250 --> 01:19:51.750
It was that moment
where you\'re sort of

01:19:51.750 --> 01:19:56.208
staring into the abyss
and you\'re saying to yourself,

01:19:56.208 --> 01:19:58.458
\"What\'s gonna happen now?\"

01:19:58.458 --> 01:20:00.208
It doesn\'t make any sense.

01:20:00.208 --> 01:20:01.500
There\'s nothing economically

01:20:01.500 --> 01:20:05.917
that would explain why a market
would just be gone.

01:20:05.917 --> 01:20:07.834
♪

01:20:07.834 --> 01:20:10.375
-Yeah!
-Good job!

01:20:10.375 --> 01:20:12.208
Yeah!

01:20:12.208 --> 01:20:13.417
Yes!

01:20:13.417 --> 01:20:14.458
♪

01:20:14.458 --> 01:20:16.959
The modern financial market,
it has become

01:20:16.959 --> 01:20:20.500
what would be called
a complex adaptive system.

01:20:20.500 --> 01:20:22.709
Humans cannot control
complex systems.

01:20:22.709 --> 01:20:28.000
That\'s the fallacy
of how we approach regulation

01:20:28.000 --> 01:20:30.250
and oversight
of a complex system.

01:20:30.250 --> 01:20:33.750
It can\'t be done, because
we can\'t understand them.

01:20:33.750 --> 01:20:36.417
There\'s too much going on.

01:20:36.417 --> 01:20:37.542
(distant sirens blaring)

01:20:37.542 --> 01:20:42.792
Do you think we have lost
control of the system?

01:20:47.333 --> 01:20:48.041
I don\'t know.

01:20:48.041 --> 01:20:51.875
Have we lost control
of the system?

01:20:53.458 --> 01:20:57.166
Maybe control is overrated.

01:20:58.625 --> 01:21:03.959
Maybe it\'s okay to not
necessarily be in control,

01:21:03.959 --> 01:21:08.583
provided the economy
is working for everyone.

01:21:08.583 --> 01:21:10.959
Now, I don\'t think
it\'s working for everyone.

01:21:10.959 --> 01:21:15.250
The economic system
is not functioning as it should

01:21:15.250 --> 01:21:17.125
and the benefits
are not accruing

01:21:17.125 --> 01:21:20.667
to as many people
as they could be.

01:21:20.667 --> 01:21:21.917
♪

01:21:21.917 --> 01:21:26.125
The Flash Crash also came
and went without consequences.

01:21:26.125 --> 01:21:28.917
In fact, the capital
turnover rate

01:21:28.917 --> 01:21:30.792
has accelerated since then.

01:21:30.792 --> 01:21:34.417
Today, computers interact
in nanoseconds.

01:21:34.417 --> 01:21:39.417
A nanosecond is
a billionth of a second.

01:22:22.333 --> 01:22:24.083
In this room,
that\'s what we do here,

01:22:24.083 --> 01:22:25.166
we have an on/off switch.

01:22:25.166 --> 01:22:28.667
There is really
no human intervention.

01:22:28.667 --> 01:22:32.667
I really don\'t believe
in leaving the room

01:22:32.667 --> 01:22:38.375
and letting something
trade unattended.

01:22:38.375 --> 01:22:39.750
It\'s about being there

01:22:39.750 --> 01:22:44.083
with the creation that,
you know, you\'ve worked on.

01:22:44.083 --> 01:22:46.458
Even if I--no,
you don\'t control it,

01:22:46.458 --> 01:22:47.250
but you watch it.

01:22:47.250 --> 01:22:52.917
Is it doing everything
that you designed it to do?

01:22:56.417 --> 01:23:00.375
I really don\'t interact
with economists

01:23:00.375 --> 01:23:03.667
and policymakers,
so I\'m gonna have to say

01:23:03.667 --> 01:23:05.458
there\'s really not much
of a connection.

01:23:05.458 --> 01:23:08.750
If there was a strong connection
between the two,

01:23:08.750 --> 01:23:11.667
you would think
that firms in my space

01:23:11.667 --> 01:23:16.166
would have need for people

01:23:16.166 --> 01:23:22.625
with that kind
of economic background.

01:23:23.500 --> 01:23:24.750
As I said, who do we hire?

01:23:24.750 --> 01:23:28.333
We hire scientists,
technologists, and lawyers.

01:23:28.333 --> 01:23:33.208
We don\'t hire MBAs,
we don\'t hire economists.

01:23:34.208 --> 01:23:36.542
There are many
mathematical models

01:23:36.542 --> 01:23:41.375
that come out of fields
such as horse betting

01:23:41.375 --> 01:23:44.125
that are used in our business

01:23:44.125 --> 01:23:49.041
as fundamental pieces
of algorithmic trading.

01:23:49.041 --> 01:23:53.875
We somehow project,
in our capitalist society,

01:23:53.875 --> 01:23:59.500
this idea that this
is a safe environment

01:23:59.500 --> 01:24:03.500
for people to build up
their retirement on.

01:24:03.500 --> 01:24:06.959
It\'s actually a hyper
competitive environment

01:24:06.959 --> 01:24:12.417
and, you know,
depending on the product,

01:24:12.417 --> 01:24:15.583
sometimes I feel safer
going into a casino

01:24:15.583 --> 01:24:19.208
than trading certain products
in our space.

01:24:19.208 --> 01:24:23.917
So, this idea that, um...

01:24:24.917 --> 01:24:27.834
...that markets are...

01:24:28.917 --> 01:24:32.166
...somehow going to support

01:24:32.166 --> 01:24:37.041
a very, very large base
of the population

01:24:37.041 --> 01:24:39.709
and produce returns for them

01:24:39.709 --> 01:24:41.834
when, in our space, all we do

01:24:41.834 --> 01:24:44.959
is try to eliminate
those returns.

01:24:44.959 --> 01:24:48.083
I mean, that\'s the job.

01:24:50.000 --> 01:24:52.083
It is a very different world

01:24:52.083 --> 01:24:56.750
than the way it\'s advertised
to the general public.

01:24:57.959 --> 01:25:01.375
♪

01:25:01.375 --> 01:25:03.083
Financial markets
are out of control

01:25:03.083 --> 01:25:06.667
and no longer have
any connections to reality.

01:25:06.667 --> 01:25:09.542
While algorithms and robots
produce growth,

01:25:09.542 --> 01:25:12.417
they only provide work
and prosperity for a few,

01:25:12.417 --> 01:25:15.709
and it\'s this growth
that\'s destroying our future

01:25:15.709 --> 01:25:16.750
on the planet.

01:25:16.750 --> 01:25:19.917
The signs that something has
gone wrong with our system

01:25:19.917 --> 01:25:22.333
have become impossible
to overlook,

01:25:22.333 --> 01:25:26.041
so why do we consistently
ignore them?

01:25:26.041 --> 01:25:27.792
♪

01:25:27.792 --> 01:25:28.875
Even though ordinary people

01:25:28.875 --> 01:25:33.000
actually don\'t have so much
trouble with the idea

01:25:33.000 --> 01:25:37.792
that you can\'t go on growing
on a finite planet.

01:25:37.792 --> 01:25:39.166
Actually, most people get that,

01:25:39.166 --> 01:25:40.667
because it\'s very, very basic.

01:25:40.667 --> 01:25:46.083
There is nonetheless
a political consensus

01:25:46.083 --> 01:25:48.125
and an institutional consensus

01:25:48.125 --> 01:25:52.166
for which that vision
is incredibly important,

01:25:52.166 --> 01:25:55.041
it\'s incredibly,
deeply embedded.

01:25:55.041 --> 01:25:57.750
And so what you have is
it\'s almost like a--

01:25:57.750 --> 01:26:02.709
it\'s almost like a kind of
collective schizophrenia

01:26:02.709 --> 01:26:03.583
that on the one hand

01:26:03.583 --> 01:26:05.667
we can see
the blindingly obvious,

01:26:05.667 --> 01:26:07.208
it\'s staring us in the face,

01:26:07.208 --> 01:26:10.917
and it is at one level

01:26:10.917 --> 01:26:14.917
something that even--
even my kids,

01:26:14.917 --> 01:26:17.208
school kids can get

01:26:17.208 --> 01:26:20.834
that you just don\'t go on
growing and growing forever

01:26:20.834 --> 01:26:23.125
when you\'re in a finite place.

01:26:23.125 --> 01:26:27.125
And the only mechanisms
from biology

01:26:27.125 --> 01:26:30.083
or from nature
that we see that do that

01:26:30.083 --> 01:26:33.834
end up basically
killing their host.

01:26:45.041 --> 01:26:45.792
This is for TV.

01:26:45.792 --> 01:26:49.375
I\'ve gotta go
to the debate in Las Vegas

01:26:49.375 --> 01:26:51.250
and I have to do my show
from out there,

01:26:51.250 --> 01:26:52.000
so this is--

01:26:52.000 --> 01:26:54.625
the network puts all this stuff
together for me.

01:26:54.625 --> 01:26:56.750
I\'m telling you,
I\'m dressing a lot better now

01:26:56.750 --> 01:26:58.542
than I was
before I did television,

01:26:58.542 --> 01:27:00.875
\'cause they even
hire you a stylist.

01:27:00.875 --> 01:27:02.667
You know what I mean?

01:27:02.667 --> 01:27:05.291
You guys look like shit,
so you obviously don\'t know

01:27:05.291 --> 01:27:06.125
what I\'m talking about,

01:27:06.125 --> 01:27:10.166
but this is some
really nice clothing.

01:27:10.166 --> 01:27:12.250
The most powerful name
in financial television,

01:27:12.250 --> 01:27:15.542
-Wall Street Week is back.
-Do you have some news?

01:27:15.542 --> 01:27:17.750
Skybridge actually
purchased the rights

01:27:17.750 --> 01:27:20.291
-to Wall Street Week.
-Skybridge Capital

01:27:20.291 --> 01:27:22.125
and its managing partner
Anthony Scaramucci

01:27:22.125 --> 01:27:25.875
are reviving the iconic
Wall Street Week program.

01:27:25.875 --> 01:27:26.750
It\'s a show about money

01:27:26.750 --> 01:27:29.458
developed by people
who work in money.

01:27:29.458 --> 01:27:32.917
I view myself
as a capital artist.

01:27:32.917 --> 01:27:37.291
This company that
I\'ve created is my canvas.

01:27:37.291 --> 01:27:39.959
I know you guys in the media
don\'t like capitalism,

01:27:39.959 --> 01:27:41.417
but, you know,
someone had to pay

01:27:41.417 --> 01:27:43.166
for the camera
and the microphone,

01:27:43.166 --> 01:27:45.083
so, I mean,
at the end of the day,

01:27:45.083 --> 01:27:46.917
the capitalist system
is the only system

01:27:46.917 --> 01:27:50.834
that we\'ve been able
to design that works.

01:27:51.500 --> 01:27:55.834
Wall Street is still,
whether people like it or not,

01:27:55.834 --> 01:27:58.750
it\'s part of
the participatory engine

01:27:58.750 --> 01:27:59.583
to financial growth.

01:27:59.583 --> 01:28:02.333
Let me just give you
a perfect example:

01:28:02.333 --> 01:28:04.000
The American fracking process,

01:28:04.000 --> 01:28:06.917
the technological solution
is created.

01:28:06.917 --> 01:28:11.417
You then need to mobilize
capital into that solution,

01:28:11.417 --> 01:28:12.458
to create the energy.

01:28:12.458 --> 01:28:14.792
Now, some environmentalists
don\'t like it

01:28:14.792 --> 01:28:16.291
and we can have
a huge debate about that,

01:28:16.291 --> 01:28:19.333
but at the end of the day,
this was an innovative idea

01:28:19.333 --> 01:28:23.959
that\'s unleashed a tremendous
amount of surplus energy

01:28:23.959 --> 01:28:29.375
that the world didn\'t expect
15 or 20 years ago.

01:28:30.667 --> 01:28:32.750
Let\'s talk about growth, okay?

01:28:32.750 --> 01:28:35.208
There is a perception right now

01:28:35.208 --> 01:28:38.041
in these elitist academic salons

01:28:38.041 --> 01:28:39.500
that we\'re not gonna
grow anymore.

01:28:39.500 --> 01:28:41.417
Well, that\'s just
flat out wrong.

01:28:41.417 --> 01:28:45.500
If you study 5,500 years
of human history,

01:28:45.500 --> 01:28:47.792
we know that human beings
are designed

01:28:47.792 --> 01:28:50.375
to have great
intellectual curiosity

01:28:50.375 --> 01:28:51.125
and to innovate.

01:28:51.125 --> 01:28:53.166
There are so many things
that we\'re gonna do

01:28:53.166 --> 01:28:54.166
over the next 50 years

01:28:54.166 --> 01:28:56.959
that\'s gonna shock everybody
in terms of our capability.

01:28:56.959 --> 01:28:59.792
We\'re gonna pull asteroids down
from the asteroid belt

01:28:59.792 --> 01:29:02.125
that are loaded with platinum,
that will probably be

01:29:02.125 --> 01:29:03.959
where the first trillionaire
comes from.

01:29:03.959 --> 01:29:06.875
We\'re gonna unlock
the ability to stop aging

01:29:06.875 --> 01:29:09.917
or to destroy cancerous cells
in our bodies.

01:29:09.917 --> 01:29:12.417
All of this innovation
is ahead of us,

01:29:12.417 --> 01:29:14.583
and there\'s tremendous
opportunity for growth.

01:29:14.583 --> 01:29:18.125
You\'re gonna grow as long
as you get the tax policy

01:29:18.125 --> 01:29:21.917
and you get
the economic regulations right

01:29:21.917 --> 01:29:23.834
and you create
the incentive to grow

01:29:23.834 --> 01:29:26.041
and you send a message
from Washington

01:29:26.041 --> 01:29:27.083
that we\'re open for business.

01:29:27.083 --> 01:29:29.083
You wanna see
three percent growth,

01:29:29.083 --> 01:29:30.000
four percent growth?

01:29:30.000 --> 01:29:34.417
You\'ve gotta change
the academic view of this stuff

01:29:34.417 --> 01:29:36.291
and talk to
real time practitioners

01:29:36.291 --> 01:29:38.208
that understand
how to grow businesses

01:29:38.208 --> 01:29:41.875
and create innovation
in the economy.

01:29:41.875 --> 01:29:44.583
There will always be growth
on the planet.

01:29:44.583 --> 01:29:48.208
There will always be
a jagged line upward

01:29:48.208 --> 01:29:49.125
for human beings,

01:29:49.125 --> 01:29:52.333
because that\'s been the case
for 5,500 years,

01:29:52.333 --> 01:29:53.667
and as long as we don\'t
blow each other up

01:29:53.667 --> 01:29:55.792
with nuclear weapons,
it will be the case

01:29:55.792 --> 01:29:58.875
for the next 5,500 years.

01:29:58.875 --> 01:30:04.125
♪

01:30:04.125 --> 01:30:06.875
(helicopter buzzing)

01:30:06.875 --> 01:30:11.083
♪

01:30:11.083 --> 01:30:14.667
There\'s a sense of desperation
to this strategy.

01:30:14.667 --> 01:30:18.333
There\'s a sense of having,
for a decade or so,

01:30:18.333 --> 01:30:22.750
recognized there might be
some limits

01:30:22.750 --> 01:30:27.500
to our ability
to continually grow the system.

01:30:27.500 --> 01:30:30.125
And now we\'re tired
of that idea.

01:30:30.125 --> 01:30:33.125
We don\'t want to be
so realistic in the world.

01:30:33.125 --> 01:30:38.959
We would much rather
have a total fantasy

01:30:38.959 --> 01:30:39.917
for our guiding star.

01:30:39.917 --> 01:30:42.083
We would like
to have this vision,

01:30:42.083 --> 01:30:44.750
\"No, we don\'t have to think
about curtailing growth,

01:30:44.750 --> 01:30:47.750
we have to think about
making growth even stronger.

01:30:47.750 --> 01:30:49.000
We have to go harder for it,

01:30:49.000 --> 01:30:51.041
we have to make America
great again.

01:30:51.041 --> 01:30:52.917
We can all be billionaires.

01:30:52.917 --> 01:30:55.667
We can all have
property empires.\"

01:30:55.667 --> 01:30:57.667
And of course, it\'s an illusion.

01:30:57.667 --> 01:31:02.542
It goes back to exactly
that same simple basic fact.

01:31:02.542 --> 01:31:04.417
We live on a finite planet.

01:31:04.417 --> 01:31:07.625
There isn\'t the space
for the dream

01:31:07.625 --> 01:31:11.583
of this reinvigorated
growth fetish.

01:31:11.583 --> 01:31:15.959
This is a round trip
for Donald Trump...

01:31:15.959 --> 01:31:17.875
We live in extraordinary times.

01:31:17.875 --> 01:31:20.875
Our world is becoming
increasingly complex

01:31:20.875 --> 01:31:22.458
and many are disappointed
to find

01:31:22.458 --> 01:31:26.709
that they are worse off
than they used to be.

01:31:26.709 --> 01:31:28.917
But instead of doubting
the economic system,

01:31:28.917 --> 01:31:33.166
they turn to those who have
profited from it the most,

01:31:33.166 --> 01:31:37.625
those who continually
promise new growth.

01:31:37.625 --> 01:31:40.458
For these empty promises,
more and more people

01:31:40.458 --> 01:31:44.125
are apparently willing
to sacrifice democracy,

01:31:44.125 --> 01:31:47.667
peace, and their environment.

01:31:47.667 --> 01:31:51.125
Capitalism has reached
a new level of escalation,

01:31:51.125 --> 01:31:54.709
but is no longer suited
to the world we live in.

01:31:54.709 --> 01:31:58.250
Its end is closer than we think.

01:31:58.250 --> 01:32:08.583
♪

01:32:43.250 --> 01:32:46.792
Are you an optimistic
or a pessimistic person?

01:32:46.792 --> 01:32:49.333
I don\'t know, I don\'t know
that I\'ve ever reflected on it.

01:32:49.333 --> 01:32:53.709
You can\'t do this to me
at this point in an interview.

01:32:53.709 --> 01:32:55.709
Am I an optimist?

01:32:55.709 --> 01:32:56.959
Yes.

01:32:56.959 --> 01:32:58.875
Optimism is an act of will.

01:32:58.875 --> 01:33:02.083
Optimism is what, um--

01:33:02.083 --> 01:33:04.333
is what a football team

01:33:04.333 --> 01:33:06.166
has to hold
to the very last minute,

01:33:06.166 --> 01:33:09.458
even if it\'s a goal behind,
if it wants to win.

01:33:09.458 --> 01:33:12.542
And I think, you know,
Gramsci once said,

01:33:12.542 --> 01:33:14.542
\"It\'s pessimism
of the intellect,

01:33:14.542 --> 01:33:15.542
it\'s optimism of the will,\"

01:33:15.542 --> 01:33:20.709
and this is not just
a snappy thing to say.

01:33:20.709 --> 01:33:23.000
It\'s actually the most
constructive thing to say.

01:33:23.000 --> 01:33:25.750
We gain nothing really
from pessimism

01:33:25.750 --> 01:33:28.375
and we gain everything
from being optimistic

01:33:28.375 --> 01:33:30.250
about the future.

01:33:30.250 --> 01:33:40.583
♪

01:34:03.417 --> 01:34:13.750
♪