Topic: Derivatives Bubble

The hosts discuss the "Infinite Growth Monetary Paradigm" and the collapse of a quadrillion-dollar derivatives bubble as the motivation for global civil unrest. They speculate that the burning of a Sony warehouse and other retail outlets during the UK riots may have been insurance scams rather than random looting. John C. Dvorak suggests that the lack of attacks on bookstores proves the looters were only interested in high-value electronics.

Kenneth Green warned that cap and trade creates a new financial instrument that could lead to a "carbon bubble" similar to the housing crisis. He also argued that carbon controls favor biofuels, which could lead to the displacement of natural forests by 2065. Green dismissed the promise of "green jobs," asserting that government policy merely shifts jobs with a net loss to the economy.