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[PROJECTOR CLICKING ♪]

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Downloaded from
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Official YIFY movies site:
YTS.MX

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♪

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>> Woman: A STATE OF SHOCK IS

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NOT JUST WHAT HAPPENS TO US WHEN

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SOMETHING BAD HAPPENS.

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IT'S WHAT HAPPENS TO US WHEN WE

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LOSE OUR NARRATIVE, WHEN WE LOSE

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OUR STORY, WHEN WE BECOME

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DISORIENTED.

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WHAT KEEPS US ORIENTED

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AND ALERT, AND OUT OF SHOCK,

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IS OUR HISTORY.

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SO, A PERIOD OF CRISIS, LIKE

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THE ONE WE ARE IN, IS A VERY

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GOOD TIME TO THINK ABOUT

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HISTORY, TO THINK ABOUT

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CONTINUITIES, TO THINK

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ABOUT ROOTS.

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IT'S A GOOD TIME TO PLACE

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OURSELVES IN THE LONGER HUMAN

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STORY OF STRUGGLE.

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[TYPEWRITER CLACKING...]

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[♪...]

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>> Narrator: THE STORY BEGINS

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ON JUNE THE FIRST, 1951, WHEN

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REPRESENTATIVES OF WESTERN

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INTELLIGENCE AGENCIES SECRETLY

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MET WITH ACADEMICS AT MONTREAL'S

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RITZ‐CARLTON HOTEL.

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THIS MEETING CONTRIBUTED TO

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MILITARY‐FUNDED RESEARCH INTO

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THE EFFECTS OF SENSORY

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DEPRIVATION AT McGILL

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UNIVERSITY.

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>> SENSORY DEPRIVATION REALLY IS

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A WAY OF PRODUCING EXTREME

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MONOTONY.

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IT CAUSES LOSS OF CRITICAL

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CAPACITY, THE THINKING IS

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LESS CLEAR.

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THE SUBJECT COMPLAINS THAT HE

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CAN'T EVEN DAYDREAM...

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AND WHEN YOU HAVE COLLEGE

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STUDENTS THAT CAN'T DAYDREAM,

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YOU'RE, THEY'RE IN A BAD WAY.

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[♪...]

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I BEGAN TO THINK WHILE WE WERE

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DOING OUR EXPERIMENTS THAT IT'S

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POSSIBLE THAT SOMETHING THAT

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INVOLVES PHYSICAL DISCOMFORT OR

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EVEN PAIN MIGHT BE MORE

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TOLERABLE THAN SIMPLY THE,

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THE DEPRIVATION CONDITIONS THAT

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WE STUDIED.

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>> Narrator: HEBB DECIDED

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TO STOP WORK ON THE RESEARCH.

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>> WELL, I HAD NO IDEA WHEN

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I SUGGESTED THAT, WHAT A, WHAT

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A VICIOUS WEAPON, POTENTIALLY

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VICIOUS WEAPON THIS COULD,

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THIS COULD BE.

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>> THESE ARE THE DAYS AND OURS

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ARE THE OCCASIONS...

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>> Narrator: BUT EXPERIMENTS

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AT McGILL CONTINUED UNDER

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THE AMBITIOUS HEAD OF

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PSYCHIATRY, DR. EWEN CAMERON.

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>> WHAT HE DID WAS MUCH MORE

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THAN WE HAD DONE.

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WE DID OUR WORK STRICTLY WITH

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THE UNDERSTANDING THAT THE

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SUBJECT COULD GET UP AND WALK

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OUT AT ANY POINT HE, HE WISHED

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TO, AND SOME OF THEM DID.

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>> Narrator: CAMERON'S PATIENTS

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WERE NOT SO LUCKY.

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THE ALLAN MEMORIAL INSTITUTE

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WHERE HE WORKED BEGAN TO

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RESEMBLE A MACABRE PRISON, WHERE

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CAMERON PERFORMED BIZARRE

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EXPERIMENTS ON HIS PSYCHIATRIC

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PATIENTS.

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CAMERON WANTED TO DE‐PATTERN

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OR WIPE CLEAN HIS PATIENT'S

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MIND, SO HE COULD REBUILD THEM

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FROM A BLANK SLATE.

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JANINE HUARD WAS A YOUNG MOTHER

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OF FOUR, SUFFERING FROM

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POST‐NATAL DEPRESSION.

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>> I USED TO SHIVER WHEN THEY

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TOLD ME ABOUT, "YOU'RE GONNA GET

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A SHOCK TREATMENT TOMORROW."

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I USED TO SHIVER.

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I WAS SO SCARED OF IT.

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[♪...]

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[ELECTRONIC WHINE, BUZZ...]

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>> Huard: AND I WOULD WAKE UP IN

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ANOTHER ROOM, ALL, ALL MIXED UP

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AND SAD AND, IT USED TO MAKE ME

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VERY SAD AFTER.

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YOU'RE JUST LIKE A ZOMBIE

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WALKING AROUND.

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>> Narrator: CAMERON COMBINED

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SHOCK THERAPY WITH SLEEP THERAPY

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AND THE REPEATED PLAYING

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OF TAPED MESSAGES.

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>> Huard: IT SAYS, "JANINE,

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JANINE, YOU ARE RUNNING AWAY

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FROM YOUR RESPONSIBILITY.

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YOU DON'T WANT TO TAKE CARE OF

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YOUR HUSBAND AND CHILDREN."

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ALL THE TIME, THE SAME THING.

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[DISTANT, INDISTINCT VOICES...]

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[BUZZING, GROWS LOUDER]

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>> IT SOUNDS LIKE YOU WERE BEING

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INTERROGATED.

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>> YES, INTERROGATION, BUT...

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FOR WHAT PURPOSE?

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>> Narrator: IT WASN'T LONG

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BEFORE THE C. I. A. PUT CAMERON'S

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RESEARCH INTO PRACTICE.

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MANY OF HIS TECHNIQUES APPEAR IN

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THE AGENCY'S

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KUBARK COUNTER‐

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INTELLIGENCE INTERROGATION

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MANUAL.

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THESE WORDS ARE FROM THE MANUAL.

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>> Man: "IT'S A FUNDAMENTAL

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HYPOTHESIS OF THIS HANDBOOK...

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[LOUD MUSIC...]

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THAT THESE TECHNIQUES ARE, IN

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ESSENCE, METHODS OF INDUCING

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REGRESSION OF THE PERSONALITY.

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[BIG DOG BARKING...]

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THERE IS AN INTERVAL, WHICH MAY

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BE EXTREMELY BRIEF, OF SUSPENDED

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ANIMATION, A KIND OF

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PSYCHOLOGICAL SHOCK

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OR PARALYSIS.

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[MUFFLED SCREAMS,

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RAPID HEARTBEAT...]

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EXPERIENCED INTERROGATORS

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RECOGNIZE THIS EFFECT WHEN IT

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APPEARS, AND KNOW THAT AT THIS

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MOMENT THE SOURCE IS FAR MORE

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OPEN TO SUGGESTION, AND FAR

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LIKELIER TO COMPLY THAN HE WAS

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JUST BEFORE HE EXPERIENCED

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THE SHOCK."

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[ZAPPING..., MUFFLED SCREAM]

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[TYPEWRITER CLACKING]

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[♪...]

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>> Narrator: AT THE SAME TIME AS

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EWEN CAMERON WAS CONDUCTING HIS

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EXPERIMENTS IN MONTREAL,

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AN EXPONENT OF ANOTHER KIND

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OF SHOCK WAS WORKING NOT SO

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FAR AWAY.

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[♪...]

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MILTON FRIEDMAN WAS TEACHING

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ECONOMICS AT THE UNIVERSITY

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OF CHICAGO.

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HE BELIEVED ECONOMIC SHOCK

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THERAPY COULD ENCOURAGE

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SOCIETIES TO ACCEPT A PURER FORM

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OF DEREGULATED CAPITALISM.

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IN OCTOBER 2008, IN THE MIDST OF

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THE BIGGEST FINANCIAL CRISIS

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SINCE 1929, NAOMI KLEIN WENT TO

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THE UNIVERSITY OF CHICAGO TO

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TALK ABOUT MILTON FRIEDMAN.

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>> Klein: WHEN MILTON FRIEDMAN

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TURNED 90, THE BUSH WHITE HOUSE

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HELD A BIRTHDAY PARTY FOR HIM

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AND EVERYONE MADE SPEECHES,

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INCLUDING GEORGE BUSH, BUT THERE

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WAS A REALLY GOOD SPEECH THAT

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WAS GIVEN BY DONALD RUMSFELD.

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MY FAVORITE QUOTE IN THAT

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SPEECH, FROM RUMSFELD, IS THIS.

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HE SAID, "MILTON IS THE

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EMBODIMENT OF THE TRUTH THAT

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IDEAS HAVE CONSEQUENCES."

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WHAT I WANNA ARGUE HERE IS THAT

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THE ECONOMIC CHAOS THAT WE'RE

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SEEING RIGHT NOW ON WALL STREET,

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AND ON MAIN STREET AND IN

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WASHINGTON, STEMS FROM MANY

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FACTORS OF COURSE, BUT AMONG

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THEM ARE THE IDEAS OF

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MILTON FRIEDMAN.

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[♪... VOICES CHATTER...]

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>> Narrator: THE WALL STREET

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CRASH OF 1929 LED TO THE

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DEPRESSION OF THE '30s.

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[♪..., MUFFLED SHOUTING]

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CENTRAL TO FRIEDMAN'S THESIS WAS

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HIS OPPOSITION TO THE NEW DEAL

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ANNOUNCED BY PRESIDENT FRANKLIN

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ROOSEVELT IN HIS INAUGURAL

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SPEECH.

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[♪...]

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>> Roosevelt: OUR GREATEST

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PRIMARY TASK IS TO PUT PEOPLE

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TO WORK.

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THIS IS NO UNSOLVABLE PROBLEM

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IF WE FACE IT WISELY

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AND COURAGEOUSLY.

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LET ME ASSERT MY FIRM BELIEF

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THAT THE ONLY THING WE HAVE TO

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FEAR IS FEAR ITSELF.

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>> Narrator: INFLUENCED BY THE

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ECONOMIST JOHN MAYNARD KEYNES,

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ROOSEVELT STARTED A PROGRAM

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OF PUBLIC EMPLOYMENT TO GET

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PEOPLE BACK TO WORK.

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[PEOPLE TALKING,

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TYPEWRITERS CLACKING...]

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[♪...]

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>> Newsreel announcer: TODAY,

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DEPRESSION IS A FADING MEMORY.

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MILLIONS OF MEN AND WOMEN HAVE

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FOUND EMPLOYMENT AND WITH IT,

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CONFIDENCE AND HOPE.

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>> Narrator: IT WASN'T

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THAT SIMPLE.

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THE DEPRESSION LASTED INTO

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WORLD WAR II.

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BUT AFTER THE WAR, THE MARSHALL

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PLAN SPREAD KEYNES'S MODEL OF

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GOVERNMENT REGULATION AND

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INTERVENTION TO EUROPE.

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[♪..., TOOLS CLANKING...]

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[HISSING, ♪...]

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HIS PRINCIPLES WERE WIDELY

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ACCEPTED...

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[♪...]

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BUT NOT IN THE ECONOMICS

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DEPARTMENT OF THE UNIVERSITY

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OF CHICAGO.

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>> MILTON FRIEDMAN FROM THIS

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UNIVERSITY WAGED A WAR

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AGAINST THE NEW DEAL.

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>> Narrator: FRIEDMAN WAS

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A MEMBER OF A GROUP

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CALLED "THE MONT PELERIN

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SOCIETY", LED BY THE AUSTRIAN

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ECONOMIST FRIEDRICH VON HAYEK.

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THEY BELIEVED THAT IF GOVERNMENT

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STOPPED PROVIDING SERVICES AND

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STOPPED REGULATING MARKETS, THE

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ECONOMY WOULD CORRECT ITSELF.

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IN THE '50s THEY WERE SEEN AS

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CRANKS, BUT OVER THE LAST 30

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YEARS, THEIR IDEAS HAVE BECOME

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THE DOMINANT ECONOMIC DOCTRINE.

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>> Klein: THE THESIS OF THE

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SHOCK DOCTRINE IS THAT WE'VE

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BEEN SOLD A FAIRY TALE ABOUT

262
00:08:49,763 --> 00:08:52,365
HOW THESE RADICAL POLICIES HAVE

263
00:08:52,398 --> 00:08:54,000
SWEPT THE GLOBE...

264
00:08:54,034 --> 00:08:55,168
THAT THEY HAVEN'T SWEPT THE

265
00:08:55,201 --> 00:08:56,637
GLOBE ON THE BACKS OF FREEDOM

266
00:08:56,670 --> 00:08:57,904
AND DEMOCRACY, BUT THEY HAVE

267
00:08:57,938 --> 00:08:59,506
NEEDED SHOCKS, THEY HAVE NEEDED

268
00:08:59,540 --> 00:09:01,207
CRISES, THEY HAVE NEEDED STATES

269
00:09:01,241 --> 00:09:03,109
OF EMERGENCIES.

270
00:09:03,143 --> 00:09:04,711
MILTON FRIEDMAN UNDERSTOOD THE

271
00:09:04,745 --> 00:09:07,347
UTILITY OF CRISIS: "ONLY A

272
00:09:07,380 --> 00:09:09,683
CRISIS, ACTUAL OR PERCEIVED,

273
00:09:09,716 --> 00:09:11,284
PRODUCES REAL CHANGE.

274
00:09:11,317 --> 00:09:13,319
WHEN THAT CRISIS OCCURS, THE

275
00:09:13,353 --> 00:09:15,421
ACTIONS THAT ARE TAKEN DEPEND ON

276
00:09:15,455 --> 00:09:16,957
THE IDEAS THAT ARE LYING

277
00:09:16,990 --> 00:09:18,024
AROUND."

278
00:09:18,058 --> 00:09:20,861
[TYPEWRITER CLACKING]

279
00:09:20,894 --> 00:09:23,530
[♪...]

280
00:09:23,564 --> 00:09:24,731
>> Narrator: IT WAS IN CHILE

281
00:09:24,765 --> 00:09:26,166
THAT FRIEDMAN'S DISCIPLES FIRST

282
00:09:26,199 --> 00:09:27,834
LEARNED HOW TO EXPLOIT A LARGE

283
00:09:27,868 --> 00:09:31,004
SCALE SHOCK OR CRISIS.

284
00:09:31,037 --> 00:09:33,206
>> Klein: USUALLY THE OFFICIAL

285
00:09:33,239 --> 00:09:35,308
STORYTELLERS OF NEO‐LIBERALISM,

286
00:09:35,341 --> 00:09:37,143
THE OFFICIAL PUBLICISTS, DON'T

287
00:09:37,177 --> 00:09:38,344
EVEN MENTION CHILE.

288
00:09:38,378 --> 00:09:40,046
THEY START THE STORY WITH

289
00:09:40,080 --> 00:09:41,982
THATCHER AND REAGAN BECAUSE IT'S

290
00:09:42,015 --> 00:09:44,250
MUCH MORE FLATTERING THAT WAY.

291
00:09:44,284 --> 00:09:45,318
>> Narrator: IN THE '50s AND

292
00:09:45,351 --> 00:09:47,253
'60s, CHILE'S PROGRESSIVE

293
00:09:47,287 --> 00:09:49,122
DEVELOPMENTAL POLICIES WERE

294
00:09:49,155 --> 00:09:51,224
A BEACON IN THE REGION.

295
00:09:51,257 --> 00:09:52,358
THE GOVERNMENTS INVESTED IN

296
00:09:52,392 --> 00:09:55,529
HEALTH, EDUCATION AND INDUSTRY.

297
00:09:55,562 --> 00:09:56,797
AMERICAN CORPORATIONS WERE

298
00:09:56,830 --> 00:09:57,964
WORRIED THEIR INVESTMENTS

299
00:09:57,998 --> 00:09:59,833
WOULD SUFFER.

300
00:09:59,866 --> 00:10:01,635
IN RESPONSE THE U. S. STATE

301
00:10:01,668 --> 00:10:03,369
DEPARTMENT BEGAN SPONSORING

302
00:10:03,403 --> 00:10:04,971
STUDENTS FROM CHILE AND THE REST

303
00:10:05,005 --> 00:10:06,973
OF SOUTH AMERICA TO STUDY FREE

304
00:10:07,007 --> 00:10:08,542
MARKET ECONOMICS WITH

305
00:10:08,575 --> 00:10:10,176
MILTON FRIEDMAN.

306
00:10:10,210 --> 00:10:11,912
>> THE UNIVERSITY OF CHICAGO HAD

307
00:10:11,945 --> 00:10:13,346
A JOINT ARRANGEMENT WITH THE

308
00:10:13,379 --> 00:10:14,948
CATHOLIC UNIVERSITY OF CHILE

309
00:10:14,981 --> 00:10:16,182
UNDER WHICH A GREAT MANY CHILEAN

310
00:10:16,216 --> 00:10:17,618
STUDENTS CAME TO THE UNIVERSITY

311
00:10:17,651 --> 00:10:19,052
OF CHICAGO, WERE TRAINED BY US

312
00:10:19,085 --> 00:10:21,154
AND RECEIVED Ph. Ds.

313
00:10:21,187 --> 00:10:22,222
>> Narrator: THESE STUDENTS WENT

314
00:10:22,255 --> 00:10:24,324
BACK AND TAUGHT IN CHILE.

315
00:10:24,357 --> 00:10:25,626
THE CATHOLIC UNIVERSITY

316
00:10:25,659 --> 00:10:27,628
ECONOMICS DEPARTMENT IN SANTIAGO

317
00:10:27,661 --> 00:10:30,430
BECAME A LITTLE CHICAGO SCHOOL.

318
00:10:30,463 --> 00:10:32,566
ARNOLD HARBERGER, THE ECONOMIST

319
00:10:32,599 --> 00:10:33,967
IN CHARGE OF THE PROGRAM,

320
00:10:34,000 --> 00:10:35,802
DESCRIBED HIMSELF AS

321
00:10:35,836 --> 00:10:37,303
A "SERIOUSLY DEDICATED

322
00:10:37,337 --> 00:10:39,606
MISSIONARY".

323
00:10:39,640 --> 00:10:42,676
[CHEERING...]

324
00:10:42,709 --> 00:10:45,178
IN 1970, SALVADOR ALLENDE'S

325
00:10:45,211 --> 00:10:47,113
POPULAR UNITY GOVERNMENT WON THE

326
00:10:47,147 --> 00:10:48,615
ELECTION ON A PLATFORM OF

327
00:10:48,649 --> 00:10:50,584
NATIONALIZATION OF LARGE SECTORS

328
00:10:50,617 --> 00:10:54,087
OF THE ECONOMY.

329
00:10:54,120 --> 00:10:55,255
CHILE'S PHONE COMPANY WAS

330
00:10:55,288 --> 00:10:56,857
MAJORITY‐OWNED BY THE U. S.

331
00:10:56,890 --> 00:11:00,260
CORPORATION I. T. T.

332
00:11:00,293 --> 00:11:01,928
IT SPEARHEADED ATTEMPTS TO STOP

333
00:11:01,962 --> 00:11:04,931
ALLENDE BECOMING PRESIDENT.

334
00:11:04,965 --> 00:11:06,199
IT HAD THE SUPPORT OF RICHARD

335
00:11:06,232 --> 00:11:08,401
NIXON IN THE WHITE HOUSE.

336
00:11:08,434 --> 00:11:10,837
>> I WAS NOT THERE, BUT I CAN

337
00:11:10,871 --> 00:11:14,007
TELL YOU WHAT WE NOW KNOW TO BE

338
00:11:14,040 --> 00:11:15,108
A FACT.

339
00:11:15,141 --> 00:11:17,911
HE ORDERED THE C. I. A. TO, TO

340
00:11:17,944 --> 00:11:20,313
PREVENT ALLENDE FROM ASSUMING

341
00:11:20,346 --> 00:11:22,683
THE PRESIDENCY, AND INDEED THEY

342
00:11:22,716 --> 00:11:25,285
TRIED TO GET ME TO LEAN ON THE

343
00:11:25,318 --> 00:11:27,721
CHILEAN MILITARY RIGHT AFTER

344
00:11:27,754 --> 00:11:29,556
ALLENDE WAS ELECTED.

345
00:11:29,590 --> 00:11:30,691
>> Narrator: DESPITE THE EFFORTS

346
00:11:30,724 --> 00:11:32,458
OF THE C. I. A., ALLENDE WAS SWORN

347
00:11:32,492 --> 00:11:33,760
IN AS PRESIDENT.

348
00:11:33,794 --> 00:11:34,494
[CROWD CHANTING,

349
00:11:34,528 --> 00:11:39,232
"ALLENDE! ALLENDE...!"]

350
00:11:39,265 --> 00:11:40,166
>> Narrator: RICHARD NIXON

351
00:11:40,200 --> 00:11:41,902
ORDERED THE C. I. A. DIRECTOR TO

352
00:11:41,935 --> 00:11:44,404
"MAKE THE ECONOMY SCREAM".

353
00:11:44,437 --> 00:11:47,273
[SPEAKING SPANISH...]

354
00:11:55,916 --> 00:11:57,250
>> Narrator: PREPARATIONS BEGAN

355
00:11:57,283 --> 00:11:59,152
FOR THE MILITARY COUP.

356
00:11:59,185 --> 00:12:01,722
THE CHILEAN CHICAGO BOYS STARTED

357
00:12:01,755 --> 00:12:02,823
WORK ON A 500‐PAGE ECONOMIC

358
00:12:02,856 --> 00:12:03,990
BLUEPRINT CALLED

359
00:12:04,024 --> 00:12:07,027
THE BRICK.

360
00:12:07,060 --> 00:12:08,862
WITH U. S. FUNDING, EVERYTHING

361
00:12:08,895 --> 00:12:10,263
WAS DONE TO DESTABILIZE

362
00:12:10,296 --> 00:12:12,132
THE ECONOMY.

363
00:12:12,165 --> 00:12:13,934
TRUCK DRIVERS WENT ON STRIKE,

364
00:12:13,967 --> 00:12:15,301
BRINGING FACTORIES AND SHOPS

365
00:12:15,335 --> 00:12:17,671
TO A STANDSTILL.

366
00:12:17,704 --> 00:12:18,539
[MACHINE GUN FIRE...]

367
00:12:18,572 --> 00:12:19,973
THERE WAS A FAILED COUP ATTEMPT

368
00:12:20,006 --> 00:12:22,308
ON JUNE 29th, 1973.

369
00:12:22,342 --> 00:12:25,045
[CROWD SHOUTING, CHANTING...]

370
00:12:25,078 --> 00:12:28,081
AND THEN ON SEPTEMBER 11th,

371
00:12:28,114 --> 00:12:29,382
WITH GENERAL PINOCHET LEADING

372
00:12:29,415 --> 00:12:31,151
THE ARMY, THE ASSAULT BEGAN

373
00:12:31,184 --> 00:12:32,553
ON THE PRESIDENTIAL PALACE.

374
00:12:32,586 --> 00:12:35,355
[TYPEWRITER CLACKING]

375
00:12:35,388 --> 00:12:38,158
[♪...]

376
00:12:38,191 --> 00:12:40,060
CHILE HAD ENJOYED 41 YEARS OF

377
00:12:40,093 --> 00:12:41,427
UNINTERRUPTED PEACEFUL

378
00:12:41,461 --> 00:12:43,229
DEMOCRATIC RULE.

379
00:12:43,263 --> 00:12:44,097
NOW IT WAS BEING

380
00:12:44,130 --> 00:12:47,200
VIOLENTLY OVERTHROWN.

381
00:12:50,370 --> 00:12:52,005
PINOCHET AND HIS SUPPORTERS

382
00:12:52,038 --> 00:12:54,207
DESCRIBED THE COUP AS "A WAR".

383
00:12:54,240 --> 00:12:55,141
IT WAS CERTAINLY DESIGNED

384
00:12:55,175 --> 00:12:57,678
TO LOOK LIKE ONE.

385
00:12:57,711 --> 00:12:59,245
IT WAS A CHILEAN PRECURSOR

386
00:12:59,279 --> 00:13:01,715
TO "SHOCK AND AWE".

387
00:13:01,748 --> 00:13:05,351
[♪...]

388
00:13:07,788 --> 00:13:09,422
[MACHINE GUN FIRES...]

389
00:13:09,455 --> 00:13:13,627
[GUNFIRE...]

390
00:13:38,384 --> 00:13:40,220
[EXPLOSION, GUNFIRE...]

391
00:13:42,055 --> 00:13:43,790
[EXPLOSION]

392
00:13:43,824 --> 00:13:48,529
[GUNFIRE...]

393
00:13:57,003 --> 00:13:58,739
[EXPLOSION]

394
00:13:58,772 --> 00:14:03,409
[FLAMES CRACKLE...]

395
00:14:13,486 --> 00:14:18,124
>> [SPEAKING SPANISH]

396
00:14:31,805 --> 00:14:33,173
>> Narrator: THE CHICAGO BOYS

397
00:14:33,206 --> 00:14:34,374
DELIVERED THEIR ECONOMIC

398
00:14:34,407 --> 00:14:35,008
BLUEPRINT,

399
00:14:35,041 --> 00:14:35,576
THE BRICK,

400
00:14:35,609 --> 00:14:36,710
TO PINOCHET.

401
00:14:36,743 --> 00:14:43,016
[SHOUTING IN UNISON...]

402
00:14:44,117 --> 00:14:45,118
>> Narrator: IN THE DAYS THAT

403
00:14:45,151 --> 00:14:47,788
FOLLOWED, MORE THAN 13,000

404
00:14:47,821 --> 00:14:49,022
OPPONENTS WERE ARRESTED

405
00:14:49,055 --> 00:14:52,826
AND IMPRISONED.

406
00:15:06,773 --> 00:15:08,441
THOUSANDS OF PRISONERS WERE HELD

407
00:15:08,474 --> 00:15:10,176
IN THE NATIONAL STADIUM.

408
00:15:10,210 --> 00:15:11,745
MANY WERE TORTURED.

409
00:15:11,778 --> 00:15:13,179
CHILE BECAME NOTORIOUS

410
00:15:13,213 --> 00:15:14,247
AROUND THE WORLD.

411
00:15:14,280 --> 00:15:20,521
>> [SPEAKING SPANISH...]

412
00:15:26,727 --> 00:15:31,331
[♪...]

413
00:15:31,364 --> 00:15:32,198
>> Narrator: AT THE BEGINNING

414
00:15:32,232 --> 00:15:33,834
OF NOVEMBER, 5,000 PRISONERS

415
00:15:33,867 --> 00:15:36,570
WERE RELEASED.

416
00:15:36,603 --> 00:15:38,171
THE 900 THEY LEFT BEHIND WERE

417
00:15:38,204 --> 00:15:39,606
TRANSFERRED TO OTHER DETENTION

418
00:15:39,640 --> 00:15:40,641
CENTERS.

419
00:15:40,674 --> 00:15:46,647
[♪...]

420
00:15:46,680 --> 00:15:50,584
[SHOUTING, OVERLAPPING VOICES]

421
00:15:50,617 --> 00:15:54,387
[♪...]

422
00:16:05,899 --> 00:16:07,901
LESS THAN A MONTH LATER, FIFA

423
00:16:07,934 --> 00:16:09,570
ALLOWED CHILE TO PLAY A WORLD

424
00:16:09,603 --> 00:16:10,804
CUP QUALIFIER IN THE VERY

425
00:16:10,837 --> 00:16:12,806
SAME STADIUM.

426
00:16:12,839 --> 00:16:14,007
THEIR OPPONENTS, THE SOVIET

427
00:16:14,040 --> 00:16:16,476
UNION, REFUSED TO PLAY THERE, SO

428
00:16:16,510 --> 00:16:18,011
CHILE WERE ALLOWED TO SCORE INTO

429
00:16:18,044 --> 00:16:19,746
AN OPEN GOAL AND WENT THROUGH TO

430
00:16:19,780 --> 00:16:22,015
THE 1974 WORLD CUP FINALS.

431
00:16:22,048 --> 00:16:27,053
[ANNOUNCER SPEAKING SPANISH]

432
00:16:27,087 --> 00:16:30,757
[TYPEWRITER CLACKS]

433
00:16:30,791 --> 00:16:32,859
[MILITARY BAND PLAYS A MARCH...]

434
00:16:32,893 --> 00:16:34,661
WITH THE POPULATION IN SHOCK,

435
00:16:34,695 --> 00:16:36,029
PINOCHET IMPOSED THE POLICIES

436
00:16:36,062 --> 00:16:38,732
RECOMMENDED BY THE CHICAGO BOYS:

437
00:16:38,765 --> 00:16:40,767
REMOVAL OF PRICE CONTROLS,

438
00:16:40,801 --> 00:16:42,703
THE SALE OF STATE COMPANIES,

439
00:16:42,736 --> 00:16:44,538
THE REMOVAL OF IMPORT BARRIERS

440
00:16:44,571 --> 00:16:45,772
AND CUTS TO GOVERNMENT

441
00:16:45,806 --> 00:16:47,040
EXPENDITURE.

442
00:16:47,073 --> 00:16:48,408
FRIEDMAN LATER OPENLY

443
00:16:48,441 --> 00:16:49,743
ACKNOWLEDGED THE IMPORTANCE

444
00:16:49,776 --> 00:16:51,845
OF THE CHILEAN EXPERIMENT.

445
00:16:51,878 --> 00:16:52,979
>> Friedman: HERE WAS A FIRST

446
00:16:53,013 --> 00:16:54,480
CASE IN WHICH YOU HAD A MOVEMENT

447
00:16:54,515 --> 00:16:57,383
TOWARD COMMUNISM, WHICH WAS

448
00:16:57,417 --> 00:16:59,886
REPLACED BY A MOVEMENT TOWARD

449
00:16:59,920 --> 00:17:01,688
FREE MARKETS.

450
00:17:01,722 --> 00:17:03,189
>> Narrator: IT DIDN'T WORK.

451
00:17:03,223 --> 00:17:04,558
A YEAR LATER, INFLATION WAS

452
00:17:04,591 --> 00:17:08,194
375% PER YEAR, THE HIGHEST

453
00:17:08,228 --> 00:17:13,066
IN THE WORLD.

454
00:17:13,099 --> 00:17:15,536
SO IN MARCH 1975, ARNOLD

455
00:17:15,569 --> 00:17:17,170
HARBERGER AND MILTON FRIEDMAN

456
00:17:17,203 --> 00:17:20,340
FLEW INTO SANTIAGO.

457
00:17:20,373 --> 00:17:21,875
>> HE USED A PHRASE THAT HAD

458
00:17:21,908 --> 00:17:23,910
NEVER BEFORE BEEN USED IN

459
00:17:23,944 --> 00:17:26,747
A REAL WORLD ECONOMIC CRISIS.

460
00:17:26,780 --> 00:17:29,616
HE CALLED FOR "SHOCK TREATMENT".

461
00:17:29,650 --> 00:17:31,484
HE SAID THAT HE WAS LIKE A

462
00:17:31,518 --> 00:17:33,654
DOCTOR THAT WAS GOING TO HELP A

463
00:17:33,687 --> 00:17:35,221
COUNTRY THAT WAS SUFFERING AN

464
00:17:35,255 --> 00:17:37,190
EPIDEMIC AND HE WAS SIMPLY

465
00:17:37,223 --> 00:17:39,593
PRESCRIBING THE MEDICINE.

466
00:17:39,626 --> 00:17:42,462
[MILITARY BAND PLAYS...]

467
00:17:42,495 --> 00:17:43,630
>> Narrator: FRIEDMAN WROTE

468
00:17:43,664 --> 00:17:44,798
THAT GENERAL PINOCHET WAS

469
00:17:44,831 --> 00:17:46,232
SYMPATHETICALLY ATTRACTED TO

470
00:17:46,266 --> 00:17:48,835
THE IDEA OF A SHOCK TREATMENT,

471
00:17:48,869 --> 00:17:50,704
BUT WAS CLEARLY DISTRESSED AT

472
00:17:50,737 --> 00:17:52,172
THE TEMPORARY UNEMPLOYMENT

473
00:17:52,205 --> 00:17:53,840
IT MIGHT CAUSE.

474
00:17:53,874 --> 00:17:59,445
[MILITARY MUSIC CONTINUES...]

475
00:17:59,479 --> 00:18:00,914
IT RAPIDLY BECAME CLEAR THAT

476
00:18:00,947 --> 00:18:02,583
FRIEDMAN'S ECONOMIC POLICIES

477
00:18:02,616 --> 00:18:03,950
BENEFITED THE WEALTHY

478
00:18:03,984 --> 00:18:07,153
AT THE EXPENSE OF THE POOR.

479
00:18:07,187 --> 00:18:08,722
IT WAS CALCULATED THAT A FAMILY

480
00:18:08,755 --> 00:18:10,023
TRYING TO LIVE ON THE AVERAGE

481
00:18:10,056 --> 00:18:12,425
WAGE HAD TO SPEND 74% OF

482
00:18:12,458 --> 00:18:14,895
ITS INCOME ON BREAD.

483
00:18:14,928 --> 00:18:16,697
ITEMS SUCH AS BUS FARES OR MILK

484
00:18:16,730 --> 00:18:18,965
BECAME LUXURIES, AND PINOCHET

485
00:18:18,999 --> 00:18:21,434
GOT RID OF FREE MILK IN SCHOOL,

486
00:18:21,467 --> 00:18:22,636
A MOVE THAT ECHOED THE

487
00:18:22,669 --> 00:18:23,937
CONTROVERSIAL POLICY OF THE

488
00:18:23,970 --> 00:18:25,205
YOUNG EDUCATION MINISTER IN

489
00:18:25,238 --> 00:18:26,740
BRITAIN WHO WOULD LATER BECOME

490
00:18:26,773 --> 00:18:28,975
HIS FRIEND.

491
00:18:29,009 --> 00:18:31,612
>> THANK YOU.

492
00:18:31,645 --> 00:18:34,715
THANK YOU VERY MUCH.

493
00:18:34,748 --> 00:18:35,849
>> Narrator: IN ORDER TO ENFORCE

494
00:18:35,882 --> 00:18:37,383
THESE ECONOMIC POLICIES, THERE

495
00:18:37,417 --> 00:18:40,821
HAD TO BE AN ENEMY TO FEAR.

496
00:18:40,854 --> 00:18:43,924
>> [SPEAKING SPANISH]

497
00:18:58,438 --> 00:19:01,542
[♪...]

498
00:19:06,446 --> 00:19:07,213
>> Narrator: FRIEDMAN AND

499
00:19:07,247 --> 00:19:09,082
HARBERGER ARGUED THAT FREE

500
00:19:09,115 --> 00:19:10,450
MARKET ECONOMICS WENT HAND IN

501
00:19:10,483 --> 00:19:12,653
HAND WITH FREEDOM AND DEMOCRACY,

502
00:19:12,686 --> 00:19:14,487
BUT IN CHILE, WHERE THEIR IDEAS

503
00:19:14,521 --> 00:19:15,722
WERE BEING IMPLEMENTED WITHIN

504
00:19:15,756 --> 00:19:17,090
THE CONTEXT OF A MILITARY

505
00:19:17,123 --> 00:19:18,725
DICTATORSHIP, THE OPPOSITE

506
00:19:18,759 --> 00:19:20,260
WAS TRUE.

507
00:19:20,293 --> 00:19:21,695
MANY IN LATIN AMERICA SAW A

508
00:19:21,728 --> 00:19:23,296
DIRECT CONNECTION BETWEEN THE

509
00:19:23,329 --> 00:19:24,698
ECONOMIC SHOCKS THAT

510
00:19:24,731 --> 00:19:26,399
IMPOVERISHED MILLIONS OF PEOPLE

511
00:19:26,432 --> 00:19:28,234
AND THE EPIDEMIC OF TORTURE

512
00:19:28,268 --> 00:19:29,870
INFLICTED ON THOSE WHO BELIEVED

513
00:19:29,903 --> 00:19:33,674
IN A DIFFERENT KIND OF SOCIETY.

514
00:19:33,707 --> 00:19:34,775
ONE OF THOSE WAS

515
00:19:34,808 --> 00:19:37,844
ORLANDO LETELIER.

516
00:19:37,878 --> 00:19:39,212
LETELIER HAD BEEN ALLENDE'S

517
00:19:39,245 --> 00:19:42,949
AMBASSADOR IN WASHINGTON.

518
00:19:42,983 --> 00:19:44,117
HE SPENT A YEAR IN ONE

519
00:19:44,150 --> 00:19:45,552
OF PINOCHET'S PRISONS...

520
00:19:45,586 --> 00:19:49,089
[MEN SINGING IN SPANISH...]

521
00:19:49,122 --> 00:19:50,223
BEFORE BEING EXILED BACK

522
00:19:50,256 --> 00:19:53,226
TO AMERICA.

523
00:19:55,862 --> 00:19:59,533
IN 1976, LETELIER WROTE,

524
00:19:59,566 --> 00:20:01,702
"THE ECONOMIC PLAN HAS HAD TO BE

525
00:20:01,735 --> 00:20:03,704
ENFORCED AND IN THE CHILEAN

526
00:20:03,737 --> 00:20:05,606
CONTEXT, THAT COULD ONLY BE DONE

527
00:20:05,639 --> 00:20:07,674
BY THE KILLING OF THOUSANDS,

528
00:20:07,708 --> 00:20:08,942
THE ESTABLISHMENT OF

529
00:20:08,975 --> 00:20:10,611
CONCENTRATION CAMPS ALL OVER THE

530
00:20:10,644 --> 00:20:12,412
COUNTRY AND THE JAILING OF MORE

531
00:20:12,445 --> 00:20:14,214
THAN 100,000 PERSONS

532
00:20:14,247 --> 00:20:17,117
IN THREE YEARS."

533
00:20:17,150 --> 00:20:22,188
[♪..., INDISTINCT CONVERSATIONS]

534
00:20:29,462 --> 00:20:30,997
[SIREN WAILING]

535
00:20:31,031 --> 00:20:33,033
LESS THAN A MONTH LATER,

536
00:20:33,066 --> 00:20:34,100
LETELIER WAS KILLED

537
00:20:34,134 --> 00:20:36,603
BY A CAR BOMB.

538
00:20:36,637 --> 00:20:37,604
>> Man on TV: Good evening.

539
00:20:37,638 --> 00:20:39,773
A powerful bomb today tore

540
00:20:39,806 --> 00:20:41,508
through a car that was driving

541
00:20:41,542 --> 00:20:43,744
along Washington's usually quiet

542
00:20:43,777 --> 00:20:45,111
Embassy Row.

543
00:20:45,145 --> 00:20:46,379
The Chilean was Orlando

544
00:20:46,412 --> 00:20:48,148
Letelier, who also had been

545
00:20:48,181 --> 00:20:49,583
Foreign Minister during the last

546
00:20:49,616 --> 00:20:51,351
months of the late Salvador

547
00:20:51,384 --> 00:20:53,353
Allende's Marxist regime.

548
00:20:53,386 --> 00:20:55,255
Richard Roth reports.

549
00:20:55,288 --> 00:20:56,590
>> Narrator: MICHAEL TOWNLEY,

550
00:20:56,623 --> 00:20:58,058
A MEMBER OF PINOCHET'S SECRET

551
00:20:58,091 --> 00:21:00,326
POLICE, WAS BEHIND THE BOMBING.

552
00:21:00,360 --> 00:21:02,028
HE'D ENTERED THE U. S. ON A FALSE

553
00:21:02,062 --> 00:21:03,463
PASSPORT WITH THE KNOWLEDGE

554
00:21:03,496 --> 00:21:05,498
OF THE C. I. A.

555
00:21:05,532 --> 00:21:06,032
>> Michael,

556
00:21:06,066 --> 00:21:06,733
buenas noches.

557
00:21:06,767 --> 00:21:07,634
>> Buenas noches.. .

558
00:21:07,668 --> 00:21:11,605
[BOTH SPEAKING SPANISH...]

559
00:21:19,880 --> 00:21:21,147
[TIRES SCREECH]

560
00:21:21,181 --> 00:21:22,148
>> Narrator: DESPITE HIS

561
00:21:22,182 --> 00:21:23,684
CONFIDENCE, TOWNLEY WAS

562
00:21:23,717 --> 00:21:25,519
EXTRADITED TO THE U. S. AND

563
00:21:25,552 --> 00:21:28,755
CONVICTED OF LETELIER'S MURDER.

564
00:21:28,789 --> 00:21:30,023
[SOLDIERS VOCALIZING...]

565
00:21:30,056 --> 00:21:31,558
PINOCHET RULED CHILE AS A

566
00:21:31,592 --> 00:21:34,027
MILITARY DICTATOR FOR 17 YEARS,

567
00:21:34,060 --> 00:21:35,596
BUT IN A FRANK INTERVIEW,

568
00:21:35,629 --> 00:21:38,364
HARBERGER REMAINED IN DENIAL.

569
00:21:38,398 --> 00:21:42,435
>> YOU CANNOT HAVE A REPRESSIVE

570
00:21:42,468 --> 00:21:45,371
GOVERNMENT FOR LONG WITHIN A

571
00:21:45,405 --> 00:21:49,009
GENUINELY FREE ECONOMIC SYSTEM.

572
00:21:49,042 --> 00:21:50,677
[GROUP CHANTING...]

573
00:21:50,711 --> 00:21:51,778
>> Narrator: IN THE SAME YEAR

574
00:21:51,812 --> 00:21:53,880
AS ORLANDO LETELIER'S MURDER,

575
00:21:53,914 --> 00:21:55,649
MILTON FRIEDMAN WAS AWARDED

576
00:21:55,682 --> 00:21:58,685
THE NOBEL PRIZE FOR ECONOMICS.

577
00:21:58,719 --> 00:22:00,086
>> ...YOU KNOW, YOU PEOPLE

578
00:22:00,120 --> 00:22:01,888
HAVE SUCH A DISTORTED IDEA

579
00:22:01,922 --> 00:22:02,856
OF WHAT WENT ON.

580
00:22:02,889 --> 00:22:04,825
LET ME TELL YA SOME FACTS.

581
00:22:04,858 --> 00:22:07,127
NUMBER ONE, I WAS OFFERED TWO

582
00:22:07,160 --> 00:22:09,062
HONORARY DEGREES BY UNIVERSITIES

583
00:22:09,095 --> 00:22:10,597
IN CHILE BEFORE I WENT THERE,

584
00:22:10,631 --> 00:22:12,666
AND I REFUSED TO TAKE THEM

585
00:22:12,699 --> 00:22:14,668
BECAUSE THOSE UNIVERSITIES

586
00:22:14,701 --> 00:22:16,503
WERE BEING SUPPORTED IN PART BY

587
00:22:16,537 --> 00:22:18,605
PUBLIC FUNDS AND I DID NOT WANT

588
00:22:18,639 --> 00:22:21,174
TO APPEAR IN ANY WAY TO PROVIDE

589
00:22:21,207 --> 00:22:22,776
ANY SUPPORT TO THE POLITICAL

590
00:22:22,809 --> 00:22:23,644
SYSTEM IN CHILE.

591
00:22:23,677 --> 00:22:24,978
I'M NOT A REPRESENTATIVE OF

592
00:22:25,011 --> 00:22:26,479
CHILE, I'M NOT AN ADVISOR TO

593
00:22:26,513 --> 00:22:28,014
CHILE, I HAVE NO COMMITMENTS

594
00:22:28,048 --> 00:22:30,183
TO THE GOVERNMENT OF CHILE.

595
00:22:30,216 --> 00:22:33,587
[♪...]

596
00:22:35,188 --> 00:22:37,190
>> Man: I NOW TURN TO YOU,

597
00:22:37,223 --> 00:22:37,991
PROFESSOR MILTON FRIEDMAN.

598
00:22:38,024 --> 00:22:41,662
[WHISTLE BLOWING]

599
00:22:41,695 --> 00:22:44,497
>> FRIEDMAN, GO HOME!

600
00:22:44,531 --> 00:22:46,867
FRIEDMAN, GO HOME!

601
00:22:46,900 --> 00:22:49,069
[SPEAKING IN FOREIGN

602
00:22:49,102 --> 00:22:53,707
LANGUAGE...]

603
00:22:53,740 --> 00:22:55,408
>> Man: I AM VERY SORRY

604
00:22:55,441 --> 00:22:57,443
FOR THIS INCIDENT.

605
00:22:57,477 --> 00:22:59,312
IT COULD HAVE BEEN WORSE.

606
00:22:59,345 --> 00:23:04,585
[LAUGHTER AND APPLAUSE...]

607
00:23:04,618 --> 00:23:09,255
[TYPEWRITER CLACKING...]

608
00:23:09,289 --> 00:23:10,724
>> WHAT I'M TRYING TO DO IN

609
00:23:10,757 --> 00:23:12,458
THE SHOCK DOCTRINE IS TELL

610
00:23:12,492 --> 00:23:15,862
AN ALTERNATIVE HISTORY OF HOW

611
00:23:15,896 --> 00:23:19,499
THIS SAVAGE STREAM OF PURE

612
00:23:19,533 --> 00:23:20,901
CAPITALISM THAT WE'VE BEEN

613
00:23:20,934 --> 00:23:23,469
LIVING, CAPITALISM UNRESTRAINED,

614
00:23:23,504 --> 00:23:25,506
CAME TO DOMINATE THE WORLD.

615
00:23:25,539 --> 00:23:26,640
>> Narrator: CHILE WASN'T THE

616
00:23:26,673 --> 00:23:28,074
ONLY COUNTRY IN SOUTH AMERICA TO

617
00:23:28,108 --> 00:23:30,677
ADOPT CHICAGO SCHOOL POLICIES.

618
00:23:30,711 --> 00:23:32,412
FRIEDMAN'S DISCIPLES HELD KEY

619
00:23:32,445 --> 00:23:34,515
POSITIONS IN BRAZIL AND ADVISED

620
00:23:34,548 --> 00:23:36,783
THE GOVERNMENT OF URUGUAY.

621
00:23:36,817 --> 00:23:40,120
THEN ON MARCH THE 24th, 1976,

622
00:23:40,153 --> 00:23:41,622
A MILITARY COUP OVERTURNED

623
00:23:41,655 --> 00:23:43,189
THE GOVERNMENT OF ISABEL PERON

624
00:23:43,223 --> 00:23:46,426
IN ARGENTINA.

625
00:23:46,459 --> 00:23:47,894
A JUNTA OF THREE GENERALS

626
00:23:47,928 --> 00:23:49,162
TOOK OVER THE COUNTRY,

627
00:23:49,195 --> 00:23:52,498
LED BY GENERAL VIDELA.

628
00:23:52,533 --> 00:23:53,534
>> GENTLEMEN...

629
00:23:53,567 --> 00:23:54,535
>> Narrator: CHICAGO BOYS

630
00:23:54,568 --> 00:23:55,936
LANDED KEY ECONOMIC POSTS

631
00:23:55,969 --> 00:23:58,104
IN THE MILITARY GOVERNMENT...

632
00:23:58,138 --> 00:23:59,540
THEY SEIZED THE OPPORTUNITY

633
00:23:59,573 --> 00:24:01,542
FOR MAJOR ECONOMIC AND SOCIAL

634
00:24:01,575 --> 00:24:03,810
REENGINEERING...

635
00:24:03,844 --> 00:24:05,846
AND WITHIN A YEAR OF THE COUP,

636
00:24:05,879 --> 00:24:07,681
WAGES LOST 40% OF THEIR

637
00:24:07,714 --> 00:24:10,016
VALUE, FACTORIES CLOSED,

638
00:24:10,050 --> 00:24:13,119
POVERTY SPIRALED.

639
00:24:13,153 --> 00:24:15,021
JUST AS IN CHILE, PEOPLE HAD TO

640
00:24:15,055 --> 00:24:16,557
BE TERRORIZED INTO ACCEPTING

641
00:24:16,590 --> 00:24:19,125
THESE ECONOMIC POLICIES.

642
00:24:19,159 --> 00:24:20,827
VIDELA LEARNT FROM PINOCHET'S

643
00:24:20,861 --> 00:24:21,995
EXPERIENCE.

644
00:24:22,028 --> 00:24:23,363
HE ADOPTED THE TACTIC OF

645
00:24:23,396 --> 00:24:25,766
DISAPPEARING PEOPLE.

646
00:24:25,799 --> 00:24:27,167
STRIKING A BALANCE BETWEEN

647
00:24:27,200 --> 00:24:29,169
PUBLIC AND PRIVATE HORROR,

648
00:24:29,202 --> 00:24:30,436
DISAPPEARANCES WERE OFTEN

649
00:24:30,470 --> 00:24:32,438
CARRIED OUT IN BROAD DAYLIGHT

650
00:24:32,472 --> 00:24:36,242
BUT COULD ALWAYS BE DENIED.

651
00:24:36,276 --> 00:24:39,613
[MAN SPEAKING SPANISH...]

652
00:25:00,200 --> 00:25:01,301
MANY OF THE TECHNIQUES

653
00:25:01,334 --> 00:25:02,769
USED BY THE CHILEAN

654
00:25:02,803 --> 00:25:04,404
AND ARGENTINEAN MILITARY

655
00:25:04,437 --> 00:25:06,472
HAD BEEN LEARNT IN THE U. S.‐RUN

656
00:25:06,507 --> 00:25:08,408
SCHOOL OF THE AMERICAS.

657
00:25:08,441 --> 00:25:10,577
>> TORTURE TECHNIQUES TAUGHT

658
00:25:10,611 --> 00:25:16,082
FROM RAPE TO DE‐ROBING TO

659
00:25:16,116 --> 00:25:19,119
TORTURE WITH, WITH...

660
00:25:19,152 --> 00:25:21,522
POINTED OBJECTS, BREAKING OF

661
00:25:21,555 --> 00:25:24,057
EXTREMITIES, POKING EYES OUT,

662
00:25:24,090 --> 00:25:25,425
BRANDING.

663
00:25:25,458 --> 00:25:26,693
>> Man: IN LATIN AMERICA, THERE

664
00:25:26,727 --> 00:25:27,861
ARE VARIOUS REGIMES WHICH AT THE

665
00:25:27,894 --> 00:25:28,995
MOMENT ARE ABUSING HUMAN

666
00:25:29,029 --> 00:25:30,263
RIGHTS‐‐ POLITICAL MURDER,

667
00:25:30,296 --> 00:25:32,032
TORTURE, DEPORTATIONS,

668
00:25:32,065 --> 00:25:33,867
IMPRISONMENT WITHOUT TRIAL‐‐

669
00:25:33,900 --> 00:25:35,001
USING THE TECHNIQUES THEY

670
00:25:35,035 --> 00:25:36,036
MAY HAVE LEARNED IN THIS

671
00:25:36,069 --> 00:25:37,804
ESTABLISHMENT.

672
00:25:37,838 --> 00:25:40,440
>> UH... YOU MAY BE RIGHT.

673
00:25:40,473 --> 00:25:42,342
IF YOU CAN SAY THAT THE SKILLS

674
00:25:42,375 --> 00:25:43,877
WHICH WE'VE TAUGHT HERE HAVE

675
00:25:43,910 --> 00:25:47,914
BEEN APPLIED, I CAN'T DENY THAT.

676
00:25:47,948 --> 00:25:51,351
>> THE USE OF TORTURE OF A KNOWN

677
00:25:51,384 --> 00:25:53,954
ENEMY SOLDIER TO GAIN SOME KIND

678
00:25:53,987 --> 00:25:56,222
OF MILITARY ADVANTAGE I THINK

679
00:25:56,256 --> 00:25:59,593
IS JUSTIFIABLE AND SMART.

680
00:25:59,626 --> 00:26:02,428
TO GO BEYOND THAT, TO USE

681
00:26:02,462 --> 00:26:04,765
TORTURE TECHNIQUES MERELY TO

682
00:26:04,798 --> 00:26:07,067
INTIMIDATE PEOPLE, IS COMPLETELY

683
00:26:07,100 --> 00:26:11,437
WRONG, UNETHICAL AND IMMORAL.

684
00:26:11,471 --> 00:26:12,706
>> Narrator: BUT IN ARGENTINA

685
00:26:12,739 --> 00:26:14,407
AND CHILE, THESE TECHNIQUES

686
00:26:14,440 --> 00:26:16,076
WERE NOT USED JUST ON SOLDIERS

687
00:26:16,109 --> 00:26:17,611
OR TERRORISTS.

688
00:26:17,644 --> 00:26:19,012
THEY WERE USED ON STUDENTS

689
00:26:19,045 --> 00:26:20,947
AND UNION MEMBERS.

690
00:26:20,981 --> 00:26:22,182
THEY WERE USED ON ANYONE

691
00:26:22,215 --> 00:26:23,684
WHO OPPOSED THE FREE MARKET

692
00:26:23,717 --> 00:26:26,587
ECONOMIC POLICIES OF THE REGIME.

693
00:26:39,432 --> 00:26:42,669
IN 1978, THE ARGENTINE JUNTA

694
00:26:42,703 --> 00:26:46,673
HOSTED THE WORLD CUP.

695
00:26:46,707 --> 00:26:48,108
THE FINAL WAS PLAYED IN A

696
00:26:48,141 --> 00:26:49,676
STADIUM LESS THAN A MILE AWAY

697
00:26:49,710 --> 00:26:51,077
FROM THE BIGGEST DETENTION CAMP

698
00:26:51,111 --> 00:26:53,013
IN THE COUNTRY, WHERE THOUSANDS

699
00:26:53,046 --> 00:26:54,480
OF PRISONERS WERE HELD IN

700
00:26:54,515 --> 00:26:55,749
TORTURE CHAMBERS.

701
00:26:55,782 --> 00:26:57,684
[WOMAN SPEAKING SPANISH...]

702
00:27:04,625 --> 00:27:06,426
[MAN SPEAKING SPANISH...]

703
00:27:29,282 --> 00:27:30,517
AND ARGENTINA TOOK

704
00:27:30,551 --> 00:27:32,052
THEIR TERROR REGIME

705
00:27:32,085 --> 00:27:34,354
ONE STEP FURTHER THAN CHILE.

706
00:27:34,387 --> 00:27:35,622
AMONG THE DISAPPEARED WERE

707
00:27:35,656 --> 00:27:37,558
HUNDREDS OF PREGNANT WOMEN,

708
00:27:37,591 --> 00:27:38,959
WOMEN WHO WERE ALLOWED TO GIVE

709
00:27:38,992 --> 00:27:41,394
BIRTH BEFORE BEING MURDERED.

710
00:27:41,427 --> 00:27:44,130
>> [SPEAKING SPANISH...]

711
00:28:03,249 --> 00:28:04,618
>> Narrator: THOSE CHILDREN,

712
00:28:04,651 --> 00:28:05,952
MANY OF WHOM WERE RAISED BY

713
00:28:05,986 --> 00:28:07,387
FAMILIES CONNECTED TO THE

714
00:28:07,420 --> 00:28:09,155
MILITARY, WERE A POWERFUL

715
00:28:09,189 --> 00:28:11,024
REMINDER OF THE JUNTAS PROJECT

716
00:28:11,057 --> 00:28:15,996
TO REENGINEER AN ENTIRE SOCIETY.

717
00:28:16,029 --> 00:28:21,434
[CROWD SINGING...]

718
00:28:21,467 --> 00:28:22,736
WHILE THE JUNTA WAS STILL IN

719
00:28:22,769 --> 00:28:24,538
POWER, A GROUP OF MOTHERS AND

720
00:28:24,571 --> 00:28:26,406
GRANDMOTHERS OF THE DISAPPEARED

721
00:28:26,439 --> 00:28:28,108
STARTED TO PROTEST IN THE PLAZA

722
00:28:28,141 --> 00:28:30,376
DE MAYO.

723
00:28:30,410 --> 00:28:34,247
[WOMAN SCREAMS]

724
00:28:34,280 --> 00:28:36,449
THEY TURNED DETECTIVE, SEARCHING

725
00:28:36,482 --> 00:28:40,153
FOR THE DISAPPEARED CHILDREN.

726
00:28:40,186 --> 00:28:41,988
AFTER THE JUNTA COLLAPSED,

727
00:28:42,022 --> 00:28:43,724
SOME WERE FOUND AND REUNITED

728
00:28:43,757 --> 00:28:46,126
WITH THEIR FAMILIES.

729
00:28:46,159 --> 00:28:48,595
OCCASIONALLY THEY FOUND REMAINS.

730
00:28:48,629 --> 00:28:50,997
MOSTLY THEY FOUND NOTHING.

731
00:28:54,968 --> 00:28:57,037
GENERAL VIDELA WAS FOUND GUILTY

732
00:28:57,070 --> 00:28:58,772
OF MURDER, KIDNAPPING,

733
00:28:58,805 --> 00:29:00,440
AND TORTURE.

734
00:29:00,473 --> 00:29:01,875
[MAN SPEAKING SPANISH...]

735
00:29:08,649 --> 00:29:10,050
HE WAS SENTENCED TO

736
00:29:10,083 --> 00:29:11,885
LIFE IN PRISON.

737
00:29:11,918 --> 00:29:14,988
[♪...]

738
00:29:20,727 --> 00:29:22,696
>> NOW, THESE EARLY EXPERIMENTS

739
00:29:22,729 --> 00:29:24,497
IN LATIN AMERICA PRESENTED

740
00:29:24,531 --> 00:29:26,099
FRIEDMAN AND HIS COHORTS WITH

741
00:29:26,132 --> 00:29:29,169
A SERIOUS IDEOLOGICAL PROBLEM.

742
00:29:29,202 --> 00:29:31,538
FRIEDMAN HAD PROMISED THAT THESE

743
00:29:31,572 --> 00:29:33,674
POLICIES WOULD NOT JUST MAKE THE

744
00:29:33,707 --> 00:29:35,609
ELITES RICHER, BUT THAT THEY

745
00:29:35,642 --> 00:29:37,811
WOULD CREATE THE FREEST POSSIBLE

746
00:29:37,844 --> 00:29:39,680
SOCIETIES, THAT THIS WAS A WAR

747
00:29:39,713 --> 00:29:41,815
AGAINST TYRANNY, THAT CAPITALISM

748
00:29:41,848 --> 00:29:44,184
AND FREEDOM WENT HAND IN HAND.

749
00:29:44,217 --> 00:29:45,719
YET HERE WE SEE THAT IN THE

750
00:29:45,752 --> 00:29:48,221
'70s, THE ONLY COUNTRIES PUTTING

751
00:29:48,254 --> 00:29:50,156
THESE IDEAS INTO PRACTICE WERE

752
00:29:50,190 --> 00:29:52,058
MILITARY DICTATORSHIPS.

753
00:29:52,092 --> 00:29:54,160
NIXON HAD FULLY SUPPORTED

754
00:29:54,194 --> 00:29:56,763
IMPOSING THESE TYPES OF BRUTAL

755
00:29:56,797 --> 00:29:58,765
FREE‐MARKET POLICIES IN SOUTH

756
00:29:58,799 --> 00:30:01,167
AMERICAN DICTATORSHIPS.

757
00:30:01,201 --> 00:30:03,403
BUT WHEN IT CAME TO DOMESTIC

758
00:30:03,436 --> 00:30:05,438
ECONOMIC POLICY IN THE UNITED

759
00:30:05,471 --> 00:30:07,440
STATES, WHERE NIXON HAD TO WORRY

760
00:30:07,473 --> 00:30:09,910
ABOUT GETTING REELECTED, IT WAS

761
00:30:09,943 --> 00:30:11,878
A VERY, VERY DIFFERENT STORY.

762
00:30:11,912 --> 00:30:15,649
[TYPEWRITER CLACKING...]

763
00:30:15,682 --> 00:30:19,686
[♪...]

764
00:30:19,720 --> 00:30:20,954
>> Narrator: FRIEDMAN ENJOYED

765
00:30:20,987 --> 00:30:22,422
A FRIENDLY RELATIONSHIP WITH

766
00:30:22,455 --> 00:30:23,423
NIXON.

767
00:30:23,456 --> 00:30:24,858
SEVERAL OF HIS CHICAGO SCHOOL

768
00:30:24,891 --> 00:30:26,226
COLLEAGUES AND DISCIPLES

769
00:30:26,259 --> 00:30:27,594
WERE RECRUITED TO WORK FOR

770
00:30:27,628 --> 00:30:30,597
THE GOVERNMENT.

771
00:30:30,631 --> 00:30:34,167
DONALD RUMSFELD WAS ONE OF THEM.

772
00:30:34,200 --> 00:30:35,602
>> SO HELP ME GOD.

773
00:30:35,636 --> 00:30:36,770
>> CONGRATULATIONS.

774
00:30:36,803 --> 00:30:37,771
>> THANK YOU, SIR.

775
00:30:37,804 --> 00:30:39,640
>> Narrator: BUT IN 1971,

776
00:30:39,673 --> 00:30:41,341
WITH THE ECONOMY IN A SLUMP,

777
00:30:41,374 --> 00:30:42,776
NIXON TURNED HIS BACK ON

778
00:30:42,809 --> 00:30:44,611
FRIEDMAN'S IDEAS AND IMPOSED

779
00:30:44,645 --> 00:30:47,280
A WAGE AND PRICE CONTROL POLICY.

780
00:30:47,313 --> 00:30:49,149
HE PUT RUMSFELD IN CHARGE.

781
00:30:49,182 --> 00:30:50,350
>> ...WHICH IS ESSENTIALLY A

782
00:30:50,383 --> 00:30:52,385
PROBLEM OF SUPPLY AND DEMAND.

783
00:30:52,418 --> 00:30:54,621
>> I HAVE FOR LONG BEEN OPPOSED

784
00:30:54,655 --> 00:30:56,156
TO THE WAGE AND PRICE CONTROL.

785
00:30:56,189 --> 00:30:58,124
I BELIEVE IT INVOLVES GOVERNMENT

786
00:30:58,158 --> 00:30:59,359
INTERVENTION WITH THE FREEDOM

787
00:30:59,392 --> 00:31:00,594
OF INDIVIDUALS, AND I THINK

788
00:31:00,627 --> 00:31:02,829
IT'S INTOLERABLE.

789
00:31:02,863 --> 00:31:03,930
>> Narrator: THE KEYNESIAN

790
00:31:03,964 --> 00:31:06,266
POLICY WAS A SUCCESS, AND NIXON

791
00:31:06,299 --> 00:31:07,601
WON A SECOND TERM WITH

792
00:31:07,634 --> 00:31:10,270
A LANDSLIDE MAJORITY.

793
00:31:10,303 --> 00:31:12,105
IT WAS A BLOW FOR FRIEDMAN.

794
00:31:12,138 --> 00:31:15,275
[CROWD CHEERING]

795
00:31:15,308 --> 00:31:17,944
THEN IN 1979, MARGARET THATCHER

796
00:31:17,978 --> 00:31:19,379
WAS ELECTED PRIME MINISTER OF

797
00:31:19,412 --> 00:31:20,947
BRITAIN.

798
00:31:20,981 --> 00:31:22,583
HER INTELLECTUAL GURU

799
00:31:22,616 --> 00:31:23,984
WAS MILTON FRIEDMAN'S OLD

800
00:31:24,017 --> 00:31:27,353
MENTOR, FRIEDRICH VON HAYEK.

801
00:31:27,387 --> 00:31:29,523
AND JUST OVER A YEAR LATER,

802
00:31:29,556 --> 00:31:31,024
RONALD REAGAN WAS ELECTED

803
00:31:31,057 --> 00:31:33,159
PRESIDENT OF THE UNITED STATES.

804
00:31:37,631 --> 00:31:39,800
BOTH BRITAIN AND AMERICA WERE

805
00:31:39,833 --> 00:31:41,568
NOW RULED BY UNABASHED

806
00:31:41,602 --> 00:31:45,205
FRIEDMANITES.

807
00:31:45,238 --> 00:31:46,640
>> Friedman: MARGARET THATCHER'S

808
00:31:46,673 --> 00:31:48,909
PROGRAM WHEN SHE CAME IN HAD

809
00:31:48,942 --> 00:31:52,445
FOUR PLANKS: CUT GOVERNMENT

810
00:31:52,478 --> 00:31:54,581
SPENDING, CUT TAX RATES,

811
00:31:54,615 --> 00:31:56,016
REDUCE GOVERNMENT OWNERSHIP

812
00:31:56,049 --> 00:31:57,518
AND OPERATION OF INDUSTRIES OR

813
00:31:57,551 --> 00:31:59,686
REGULATION OF INDUSTRY, AND HAVE

814
00:31:59,720 --> 00:32:02,689
A MODERATE AND STABLE MONETARY

815
00:32:02,723 --> 00:32:05,291
POLICY TO BRING DOWN INFLATION.

816
00:32:05,325 --> 00:32:06,359
>> Narrator: WITHIN HER FIRST

817
00:32:06,392 --> 00:32:07,861
THREE YEARS IN OFFICE,

818
00:32:07,894 --> 00:32:09,730
UNEMPLOYMENT DOUBLED IN PARTS

819
00:32:09,763 --> 00:32:11,264
OF THE ECONOMY, LEADING TO

820
00:32:11,297 --> 00:32:13,099
WAVES OF STRIKES.

821
00:32:13,133 --> 00:32:14,735
THATCHER'S PERSONAL APPROVAL

822
00:32:14,768 --> 00:32:20,073
RATING SLUMPED TO 25%.

823
00:32:20,106 --> 00:32:21,407
THERE WERE RIOTS IN

824
00:32:21,441 --> 00:32:23,409
BRITAIN'S MAJOR CITIES.

825
00:32:23,443 --> 00:32:24,711
[LAUGHTER]

826
00:32:24,745 --> 00:32:25,946
EVEN MARGARET THATCHER'S

827
00:32:25,979 --> 00:32:31,552
ADMIRERS HAD THEIR DOUBTS.

828
00:32:31,585 --> 00:32:32,886
>> THE ECONOMIC PERFORMANCE

829
00:32:32,919 --> 00:32:33,987
OF THE THATCHER GOVERNMENT

830
00:32:34,020 --> 00:32:35,088
HAS BEEN MIXED.

831
00:32:35,121 --> 00:32:40,761
[CROWD CHANTING]

832
00:32:40,794 --> 00:32:42,929
>> TO THOSE WAITING WITH BATED

833
00:32:42,963 --> 00:32:45,065
BREATH FOR THAT FAVORITE MEDIA

834
00:32:45,098 --> 00:32:47,801
CATCHPHRASE, "THE U‐TURN,"

835
00:32:47,834 --> 00:32:50,771
I HAVE ONLY ONE THING TO SAY‐‐

836
00:32:50,804 --> 00:32:52,939
YOU TURN IF YOU WANT TO.

837
00:32:52,973 --> 00:32:56,242
[LAUGHTER AND APPLAUSE]

838
00:32:56,276 --> 00:32:59,445
THE LADY'S NOT FOR TURNING.

839
00:32:59,479 --> 00:33:02,583
[LAUGHTER]

840
00:33:02,616 --> 00:33:04,050
>> Narrator: FRIEDRICH VON HAYEK

841
00:33:04,084 --> 00:33:05,418
URGED THATCHER TO COPY

842
00:33:05,451 --> 00:33:06,720
PINOCHET'S ECONOMIC SHOCK

843
00:33:06,753 --> 00:33:09,690
THERAPY POLICIES.

844
00:33:09,723 --> 00:33:12,458
THATCHER REPLIED, "IN BRITAIN,

845
00:33:12,492 --> 00:33:14,194
WITH OUR DEMOCRATIC INSTITUTIONS

846
00:33:14,227 --> 00:33:15,696
AND WITH THE NEED FOR A HIGH

847
00:33:15,729 --> 00:33:17,163
DEGREE OF CONSENT, SOME OF

848
00:33:17,197 --> 00:33:18,865
THE MEASURES ADOPTED IN CHILE

849
00:33:18,899 --> 00:33:20,466
ARE QUITE UNACCEPTABLE."

850
00:33:20,500 --> 00:33:24,170
[CROWD SINGING, CLAPPING]

851
00:33:24,204 --> 00:33:25,639
>> THATCHER'S PROFOUND

852
00:33:25,672 --> 00:33:27,373
UNPOPULARITY SEEMED TO BE

853
00:33:27,407 --> 00:33:29,943
PROVING ONCE AGAIN THAT

854
00:33:29,976 --> 00:33:31,277
FREE‐MARKET FUNDAMENTALISM

855
00:33:31,311 --> 00:33:33,346
WAS SIMPLY TOO UNPOPULAR,

856
00:33:33,379 --> 00:33:35,649
TOO DIRECTLY HARMFUL TO TOO MANY

857
00:33:35,682 --> 00:33:37,684
PEOPLE, TO SURVIVE IN A

858
00:33:37,718 --> 00:33:39,720
DEMOCRATIC STATE WHERE GOVERNING

859
00:33:39,753 --> 00:33:41,822
REQUIRES GETTING THE CONSENT

860
00:33:41,855 --> 00:33:43,489
OF THE GOVERNED, UNLIKE

861
00:33:43,524 --> 00:33:45,992
A MILITARY DICTATORSHIP.

862
00:33:46,026 --> 00:33:48,028
WHAT PULLED THATCHER BACK FROM

863
00:33:48,061 --> 00:33:49,863
THE ABYSS AND ULTIMATELY SAVED

864
00:33:49,896 --> 00:33:52,799
THE PROJECT WAS A CRISIS.

865
00:33:52,833 --> 00:33:54,200
INDEED IT WAS THE ULTIMATE

866
00:33:54,234 --> 00:33:55,769
CRISIS‐‐ IT WAS A WAR.

867
00:33:55,802 --> 00:33:56,803
[BELL TOLLING...]

868
00:33:56,837 --> 00:33:58,004
>> Thatcher: WE ARE HERE BECAUSE

869
00:33:58,038 --> 00:33:59,606
FOR THE FIRST TIME FOR MANY

870
00:33:59,640 --> 00:34:01,675
YEARS, BRITISH SOVEREIGN

871
00:34:01,708 --> 00:34:03,744
TERRITORY HAS BEEN INVADED

872
00:34:03,777 --> 00:34:05,512
BY A FOREIGN POWER.

873
00:34:05,546 --> 00:34:07,614
THE GOVERNMENT HAS NOW DECIDED

874
00:34:07,648 --> 00:34:09,583
THAT A LARGE TASK FORCE WILL

875
00:34:09,616 --> 00:34:11,952
SAIL AS SOON AS ALL PREPARATIONS

876
00:34:11,985 --> 00:34:13,486
ARE COMPLETE.

877
00:34:13,520 --> 00:34:16,222
H.M.S. INVINCIBLE WILL BE

878
00:34:16,256 --> 00:34:20,460
IN THE LEAD.

879
00:34:20,493 --> 00:34:21,628
>> Narrator: MOST PEOPLE IN

880
00:34:21,662 --> 00:34:22,963
BRITAIN HAD NEVER EVEN HEARD

881
00:34:22,996 --> 00:34:24,531
OF THE FALKLANDS, BUT WHEN

882
00:34:24,565 --> 00:34:26,099
ARGENTINA INVADED THE SMALL

883
00:34:26,132 --> 00:34:27,367
GROUP OF ISLANDS THOUSANDS

884
00:34:27,400 --> 00:34:28,769
OF MILES AWAY IN THE SOUTH

885
00:34:28,802 --> 00:34:30,704
ATLANTIC, THATCHER SEIZED HER

886
00:34:30,737 --> 00:34:32,238
OPPORTUNITY TO PROVE HER

887
00:34:32,272 --> 00:34:35,441
CREDENTIALS AS "THE IRON LADY".

888
00:34:35,475 --> 00:34:36,810
>> GENTLEMEN, I'VE JUST HEARD

889
00:34:36,843 --> 00:34:38,278
THAT THE WHITE FLAG IS FLYING

890
00:34:38,311 --> 00:34:39,479
OVER STANLEY.

891
00:34:39,513 --> 00:34:43,283
[GROUP CHEERS]

892
00:34:43,316 --> 00:34:44,651
>> Narrator: THE WAR WAS OVER

893
00:34:44,685 --> 00:34:47,220
IN LESS THAN THREE MONTHS.

894
00:34:47,253 --> 00:34:50,557
[CROWD CHEERING...]

895
00:34:50,591 --> 00:34:51,825
AS THE TROOPS RETURNED TO

896
00:34:51,858 --> 00:34:54,027
BRITAIN, A WAVE OF PATRIOTIC

897
00:34:54,060 --> 00:34:56,630
CELEBRATIONS SWEPT THE COUNTRY.

898
00:34:56,663 --> 00:35:00,534
[♪...]

899
00:35:00,567 --> 00:35:02,803
THATCHER WON THE 1983 ELECTIONS

900
00:35:02,836 --> 00:35:06,072
WITH A MASSIVE MAJORITY.

901
00:35:06,106 --> 00:35:07,473
SHE COULD NOW PUSH THROUGH

902
00:35:07,508 --> 00:35:08,975
A FORM OF THE ECONOMIC SHOCK

903
00:35:09,009 --> 00:35:11,411
THERAPY WITNESSED IN CHILE.

904
00:35:11,444 --> 00:35:12,312
[NO VOICE]

905
00:35:16,416 --> 00:35:18,652
THE MOST POWERFUL UNION IN

906
00:35:18,685 --> 00:35:20,053
BRITAIN WAS THE NATIONAL UNION

907
00:35:20,086 --> 00:35:22,689
OF MINE WORKERS.

908
00:35:22,723 --> 00:35:23,957
WHEN THE NATIONAL COAL BOARD

909
00:35:23,990 --> 00:35:25,959
TRIED TO CLOSE PITS DOWN,

910
00:35:25,992 --> 00:35:27,794
THE MINERS WENT ON STRIKE.

911
00:35:27,828 --> 00:35:30,496
[CHEERING AND APPLAUSE...]

912
00:35:30,531 --> 00:35:31,798
>> Man: PARTS OF CENTRAL LONDON

913
00:35:31,832 --> 00:35:33,066
ARE BROUGHT TO A HALT AS

914
00:35:33,099 --> 00:35:34,267
THOUSANDS OF MINERS AND

915
00:35:34,300 --> 00:35:35,669
SYMPATHIZERS MARCH THROUGH

916
00:35:35,702 --> 00:35:36,903
THE CITY IN SUPPORT OF

917
00:35:36,937 --> 00:35:38,138
THE MINERS STRIKE.

918
00:35:38,171 --> 00:35:39,673
IT'S BRITAIN'S LONGEST AND MOST

919
00:35:39,706 --> 00:35:42,108
BITTER SINCE 1926 AND THE MOST

920
00:35:42,142 --> 00:35:44,077
EXPENSIVE EVER.

921
00:35:44,110 --> 00:35:45,245
>> Narrator: THE STRIKE LASTED

922
00:35:45,278 --> 00:35:48,381
ALMOST A YEAR.

923
00:35:48,414 --> 00:35:49,983
THATCHER USED EVERY MEANS AT HER

924
00:35:50,016 --> 00:35:53,319
DISPOSAL TO DESTROY THE UNION.

925
00:35:53,353 --> 00:35:56,723
[HELICOPTER ROTORS WHIRRING...]

926
00:36:01,294 --> 00:36:03,764
EVENTUALLY, THE MINERS

927
00:36:03,797 --> 00:36:07,233
WERE DEFEATED.

928
00:36:07,267 --> 00:36:08,802
THATCHER USED THIS VICTORY

929
00:36:08,835 --> 00:36:10,136
TO BRING THE CHICAGO SCHOOL

930
00:36:10,170 --> 00:36:13,874
REVOLUTION TO BRITAIN.

931
00:36:13,907 --> 00:36:16,009
A SERIES OF GLOSSY COMMERCIALS

932
00:36:16,042 --> 00:36:17,544
PROMOTED A MASSIVE PROGRAM

933
00:36:17,578 --> 00:36:19,946
OF PRIVATIZATIONS.

934
00:36:19,980 --> 00:36:21,347
THATCHER SOLD OFF THE STEEL

935
00:36:21,381 --> 00:36:26,086
INDUSTRY, WATER, ELECTRICITY,

936
00:36:26,119 --> 00:36:31,024
GAS, TELEPHONES,

937
00:36:31,057 --> 00:36:35,261
AIRLINES, OIL.

938
00:36:35,295 --> 00:36:37,764
PUBLIC HOUSING WAS SOLD OFF,

939
00:36:37,798 --> 00:36:39,465
COUNCIL SERVICES PUT OUT

940
00:36:39,499 --> 00:36:41,902
TO TENDER.

941
00:36:41,935 --> 00:36:44,738
IN 1986, FINANCIAL AND BANKING

942
00:36:44,771 --> 00:36:46,607
SERVICES WERE DEREGULATED.

943
00:36:46,640 --> 00:36:49,710
[BELL RINGING]

944
00:36:49,743 --> 00:36:51,978
IT WAS CALLED "THE BIG BANG".

945
00:36:52,012 --> 00:36:54,581
>> NO ONE HERE TONIGHT NEEDS

946
00:36:54,615 --> 00:36:56,282
REMINDING THAT THE BIG BANG

947
00:36:56,316 --> 00:36:57,951
IS ONLY A BEGINNING.

948
00:36:57,984 --> 00:37:00,621
[♪...]

949
00:37:00,654 --> 00:37:01,988
>> Narrator: IN BRITAIN BEFORE

950
00:37:02,022 --> 00:37:03,757
THATCHER, A C. E. O. EARNED

951
00:37:03,790 --> 00:37:04,958
10 TIMES AS MUCH AS THE

952
00:37:04,991 --> 00:37:07,393
AVERAGE WORKER.

953
00:37:07,427 --> 00:37:09,863
BY 2007, THEY EARNED MORE

954
00:37:09,896 --> 00:37:12,132
THAN A HUNDRED TIMES AS MUCH.

955
00:37:12,165 --> 00:37:15,101
[♪..., NO VOICE]

956
00:37:18,471 --> 00:37:21,007
IN THE U. S. BEFORE REAGAN,

957
00:37:21,041 --> 00:37:23,677
C.E.O.s EARNED 43 TIMES AS MUCH

958
00:37:23,710 --> 00:37:25,345
AS THE AVERAGE WORKER.

959
00:37:25,378 --> 00:37:27,914
BY 2005, THEY EARNED MORE

960
00:37:27,948 --> 00:37:32,218
THAN 400 TIMES AS MUCH.

961
00:37:32,252 --> 00:37:33,820
FRIEDMAN OPENLY ACKNOWLEDGED

962
00:37:33,854 --> 00:37:35,055
THE IMPORTANCE OF THATCHER

963
00:37:35,088 --> 00:37:36,456
AND REAGAN IN THE SPREADING

964
00:37:36,489 --> 00:37:38,058
OF CHICAGO SCHOOL POLICIES

965
00:37:38,091 --> 00:37:40,326
AROUND THE WORLD.

966
00:37:40,360 --> 00:37:41,461
>> Thatcher: I THOUGHT IF YOU

967
00:37:41,494 --> 00:37:42,395
WOULD STAND HERE...

968
00:37:42,428 --> 00:37:43,964
>> Friedman: THE COINCIDENCE OF

969
00:37:43,997 --> 00:37:45,766
THATCHER AND REAGAN HAVING BEEN

970
00:37:45,799 --> 00:37:48,001
IN OFFICE AT THE SAME TIME WAS

971
00:37:48,034 --> 00:37:50,270
ENORMOUSLY IMPORTANT FOR THE

972
00:37:50,303 --> 00:37:52,939
PUBLIC ACCEPTANCE WORLDWIDE OF

973
00:37:52,973 --> 00:37:54,440
A DIFFERENT APPROACH TO ECONOMIC

974
00:37:54,474 --> 00:38:00,080
AND MONETARY POLICY.

975
00:38:00,113 --> 00:38:02,583
>> THANK YOU VERY MUCH.

976
00:38:02,616 --> 00:38:03,950
WHAT I'M DESCRIBING NOW IS

977
00:38:03,984 --> 00:38:05,485
A PLAN AND A HOPE FOR THE

978
00:38:05,519 --> 00:38:07,854
LONG‐TERM‐‐ THE MARCH OF FREEDOM

979
00:38:07,888 --> 00:38:09,322
AND DEMOCRACY, WHICH WILL LEAVE

980
00:38:09,355 --> 00:38:11,457
MARXISM AND LENINISM ON THE ASH

981
00:38:11,491 --> 00:38:13,727
HEAP OF HISTORY AS IT HAS LEFT

982
00:38:13,760 --> 00:38:15,562
OTHER TYRANNIES WHICH STIFLE

983
00:38:15,596 --> 00:38:16,763
THE FREEDOM AND MUZZLE THE

984
00:38:16,797 --> 00:38:19,065
SELF‐EXPRESSION OF THE PEOPLE.

985
00:38:24,605 --> 00:38:26,339
>> NOW, WE ALL KNOW THE FAIRY

986
00:38:26,372 --> 00:38:27,941
TALE ABOUT THE FALL OF

987
00:38:27,974 --> 00:38:29,943
COMMUNISM, THAT THE WEST UNDER

988
00:38:29,976 --> 00:38:31,545
REAGAN AND THATCHER LOOKED SO

989
00:38:31,578 --> 00:38:33,413
PROSPEROUS TO THE PEOPLE OF

990
00:38:33,446 --> 00:38:35,215
THE FORMER COMMUNIST BLOC

991
00:38:35,248 --> 00:38:37,083
THAT THEY THEMSELVES DEMANDED

992
00:38:37,117 --> 00:38:39,485
RADICAL FREE‐MARKET POLICIES.

993
00:38:39,520 --> 00:38:40,621
NOW, THIS REALLY IS

994
00:38:40,654 --> 00:38:41,722
A FAIRY TALE.

995
00:38:41,755 --> 00:38:43,624
IT IS TRUE THAT PEOPLE WHO HAD

996
00:38:43,657 --> 00:38:45,158
BEEN LIVING UNDER AUTHORITARIAN

997
00:38:45,191 --> 00:38:47,327
COMMUNISM GENUINELY WANTED

998
00:38:47,360 --> 00:38:48,929
DEMOCRACY, AND IT'S ALSO TRUE

999
00:38:48,962 --> 00:38:50,664
THAT PEOPLE WANTED TO BE ABLE

1000
00:38:50,697 --> 00:38:52,198
TO GO OUT AND BUY BLUE JEANS

1001
00:38:52,232 --> 00:38:53,166
AND HAVE BIG MACS.

1002
00:38:53,199 --> 00:38:54,300
THAT IS TRUE.

1003
00:38:54,334 --> 00:38:55,869
BUT THAT DOES NOT MEAN THAT THEY

1004
00:38:55,902 --> 00:38:57,771
WANTED THE KIND OF WILD‐WEST

1005
00:38:57,804 --> 00:39:00,641
CAPITALISM OF OLIGARCHS GONE MAD

1006
00:39:00,674 --> 00:39:02,342
AND NO SOCIAL PROTECTIONS THAT

1007
00:39:02,375 --> 00:39:04,645
SO MANY EASTERN BLOC COUNTRIES

1008
00:39:04,678 --> 00:39:06,279
ACTUALLY ENDED UP WITH AND

1009
00:39:06,312 --> 00:39:08,148
SUFFER UNDER TO THIS DAY.

1010
00:39:08,181 --> 00:39:10,383
[CROWD CHANTING...]

1011
00:39:10,416 --> 00:39:11,384
>> Narrator: THATCHER HAD DONE

1012
00:39:11,417 --> 00:39:12,819
EVERYTHING SHE COULD TO BREAK

1013
00:39:12,853 --> 00:39:14,154
THE POWER OF THE UNIONS IN

1014
00:39:14,187 --> 00:39:17,057
BRITAIN, BUT IN 1988 SHE WENT TO

1015
00:39:17,090 --> 00:39:18,792
POLAND TO SHOW HER SUPPORT FOR

1016
00:39:18,825 --> 00:39:24,030
THE WORKERS UNION SOLIDARITY.

1017
00:39:24,064 --> 00:39:26,733
>> ...HOW DO YOU SEE IT'S THE

1018
00:39:26,767 --> 00:39:29,770
PROCESS FROM WHERE YOU ARE NOW

1019
00:39:29,803 --> 00:39:31,672
TO WHERE YOU WANT TO BE?

1020
00:39:31,705 --> 00:39:33,106
>> Narrator: STRIKES IN POLAND

1021
00:39:33,139 --> 00:39:34,808
LED TO SOLIDARITY BEING ALLOWED

1022
00:39:34,841 --> 00:39:36,309
TO CONTEST THE GENERAL ELECTION

1023
00:39:36,342 --> 00:39:38,512
IN JUNE 1989.

1024
00:39:38,545 --> 00:39:39,813
THIS TRIGGERED A WAVE OF

1025
00:39:39,846 --> 00:39:41,281
DEMONSTRATIONS THROUGHOUT

1026
00:39:41,314 --> 00:39:44,117
EASTERN EUROPE.

1027
00:39:44,150 --> 00:39:48,088
[CROWD CHEERING]

1028
00:39:48,121 --> 00:39:50,724
[CROWD SINGING]

1029
00:39:50,757 --> 00:39:52,158
IN THE PAST,

1030
00:39:52,192 --> 00:39:53,493
THE SOVIET UNION HAD USED

1031
00:39:53,527 --> 00:39:54,795
MILITARY FORCE TO CRUSH

1032
00:39:54,828 --> 00:39:57,831
DEMOCRATIC MOVEMENTS.

1033
00:39:57,864 --> 00:39:59,065
BUT THE SOVIET UNION

1034
00:39:59,099 --> 00:40:00,867
HAD A NEW TYPE OF LEADER,

1035
00:40:00,901 --> 00:40:02,869
MIKHAIL GORBACHEV, WHO WAS

1036
00:40:02,903 --> 00:40:04,237
COMMITTED TO GLASNOST AND

1037
00:40:04,270 --> 00:40:06,039
PERESTROIKA.

1038
00:40:06,072 --> 00:40:08,141
HE TALKED ABOUT A THIRD WAY,

1039
00:40:08,174 --> 00:40:09,576
A GRADUAL TRANSITION TO

1040
00:40:09,610 --> 00:40:11,044
SCANDINAVIAN‐STYLE SOCIAL

1041
00:40:11,077 --> 00:40:13,246
DEMOCRACY, SOMETHING BETWEEN

1042
00:40:13,279 --> 00:40:14,648
FREE‐MARKET CAPITALISM

1043
00:40:14,681 --> 00:40:16,717
AND COMMUNISM.

1044
00:40:16,750 --> 00:40:19,319
[♪...]

1045
00:40:19,352 --> 00:40:20,754
GORBACHEV CHARMED THE PUBLIC

1046
00:40:20,787 --> 00:40:24,157
AND POLITICIANS OF THE WEST.

1047
00:40:24,190 --> 00:40:27,127
[CROWD CHEERING...]

1048
00:40:27,160 --> 00:40:29,630
>> HE'S A BOLD, A DETERMINED

1049
00:40:29,663 --> 00:40:32,799
AND COURAGEOUS LEADER.

1050
00:40:32,833 --> 00:40:34,100
>> Narrator: GORBACHEV STOOD AND

1051
00:40:34,134 --> 00:40:36,236
WATCHED AS ONE BY ONE THE OLD

1052
00:40:36,269 --> 00:40:38,872
COMMUNIST REGIMES COLLAPSED.

1053
00:40:38,905 --> 00:40:41,542
[CROWD YELLING AND CHEERING...]

1054
00:40:41,575 --> 00:40:47,648
[♪...]

1055
00:40:47,681 --> 00:40:50,050
AT THE END OF THE YEAR, THE MOST

1056
00:40:50,083 --> 00:40:51,484
FAMOUS SYMBOL OF THE DIVISION OF

1057
00:40:51,518 --> 00:40:53,319
EUROPE CAME TUMBLING DOWN.

1058
00:40:53,353 --> 00:40:54,354
[CROWDS CHEERING

1059
00:40:54,387 --> 00:40:57,323
AND APPLAUDING...]

1060
00:41:02,829 --> 00:41:04,164
FOR FRIEDMAN AND THE CHICAGO

1061
00:41:04,197 --> 00:41:05,966
BOYS, A WHOLE NEW WORLD

1062
00:41:05,999 --> 00:41:08,234
OPENED UP.

1063
00:41:08,268 --> 00:41:10,804
IN THE SOVIET UNION, GORBACHEV

1064
00:41:10,837 --> 00:41:12,573
WAS HOPING TO GRADUALLY REFORM

1065
00:41:12,606 --> 00:41:14,908
THE RUSSIAN ECONOMY.

1066
00:41:14,941 --> 00:41:17,711
IN 1991, GORBACHEV WAS INVITED

1067
00:41:17,744 --> 00:41:20,446
TO THE G7 SUMMIT IN LONDON.

1068
00:41:20,480 --> 00:41:21,782
HE WAS HOPING FOR FINANCIAL

1069
00:41:21,815 --> 00:41:23,249
SUPPORT FOR HIS GRADUAL

1070
00:41:23,283 --> 00:41:24,885
ECONOMIC REFORMS.

1071
00:41:24,918 --> 00:41:26,953
INSTEAD, HE WAS TOLD THAT

1072
00:41:26,987 --> 00:41:28,555
UNLESS HE EMBRACED RADICAL

1073
00:41:28,589 --> 00:41:30,223
SHOCK THERAPY, THERE WOULD BE

1074
00:41:30,256 --> 00:41:31,457
NO AID AT ALL.

1075
00:41:31,491 --> 00:41:32,659
>> HOW ARE YOU? >> Man: HOW ARE

1076
00:41:32,693 --> 00:41:33,426
YOU, MR. PRESIDENT?

1077
00:41:33,459 --> 00:41:34,795
>> THAT'S NOT A LITTLE CLOSE?

1078
00:41:34,828 --> 00:41:35,696
>> Narrator: THE NEXT MONTH,

1079
00:41:35,729 --> 00:41:36,763
THERE WAS A COUP ATTEMPT

1080
00:41:36,797 --> 00:41:38,364
AGAINST HIM.

1081
00:41:38,398 --> 00:41:40,000
A GROUP OF COMMUNIST PARTY

1082
00:41:40,033 --> 00:41:42,135
HARDLINERS PLACED GORBACHEV

1083
00:41:42,168 --> 00:41:43,336
UNDER HOUSE ARREST IN HIS

1084
00:41:43,369 --> 00:41:47,107
HOLIDAY HOME IN THE CRIMEA.

1085
00:41:47,140 --> 00:41:48,141
TANKS SURROUNDED THE WHITE

1086
00:41:48,174 --> 00:41:50,343
HOUSE, THE RUSSIAN PARLIAMENT.

1087
00:41:50,376 --> 00:41:52,245
[HORNS HONKING,

1088
00:41:52,278 --> 00:41:59,786
TANK ENGINES REVVING...]

1089
00:41:59,820 --> 00:42:04,457
[EXPLOSIONS, GLASS BREAKING...]

1090
00:42:04,490 --> 00:42:05,959
>> Reporter: AMID THE CHAOS AND

1091
00:42:05,992 --> 00:42:06,827
STREET CLASHES...

1092
00:42:06,860 --> 00:42:09,062
[GUNFIRE...]

1093
00:42:09,095 --> 00:42:10,030
IT WAS OBVIOUS THAT TO

1094
00:42:10,063 --> 00:42:11,832
REINFORCE THEIR POSITION,

1095
00:42:11,865 --> 00:42:12,999
THE HARDLINERS WOULD HAVE TO

1096
00:42:13,033 --> 00:42:14,367
RESORT TO VIOLENCE.

1097
00:42:14,400 --> 00:42:15,736
[GUNFIRE...]

1098
00:42:15,769 --> 00:42:16,937
SUCH ACTION BETWEEN THE PEOPLE

1099
00:42:16,970 --> 00:42:18,772
AND THE SECURITY FORCES HAS NOT

1100
00:42:18,805 --> 00:42:20,507
BEEN SEEN SINCE THE EARLY DAYS

1101
00:42:20,541 --> 00:42:22,308
OF THE RUSSIAN REVOLUTION.

1102
00:42:22,342 --> 00:42:23,977
BY DAWN THIS MORNING,

1103
00:42:24,010 --> 00:42:25,646
AMID A SEA OF DEBRIS,

1104
00:42:25,679 --> 00:42:27,180
IT WAS BECOMING CLEAR THAT THE

1105
00:42:27,213 --> 00:42:29,983
COUP WAS DISINTEGRATING.

1106
00:42:30,016 --> 00:42:31,317
THE RUSSIAN PARLIAMENT BUILDING

1107
00:42:31,351 --> 00:42:33,286
WAS UNSCATHED... THE MILITARY

1108
00:42:33,319 --> 00:42:34,955
HAD NOT MADE THEIR MOVE...

1109
00:42:34,988 --> 00:42:37,090
INSIDE, BORIS YELTSIN WAS MORE

1110
00:42:37,123 --> 00:42:38,224
POWERFUL THAN EVER.

1111
00:42:38,258 --> 00:42:39,225
>> Crowd chanting: YELTSIN!

1112
00:42:39,259 --> 00:42:44,230
YELTSIN! YELTSIN! YELTSIN...!

1113
00:42:44,264 --> 00:42:45,265
>> Narrator: THIS WAS YELTSIN'S

1114
00:42:45,298 --> 00:42:47,300
FINEST HOUR.

1115
00:42:47,333 --> 00:42:50,971
[YELTSIN SPEAKING RUSSIAN...]

1116
00:42:51,004 --> 00:42:52,973
GORBACHEV WAS RELEASED AND HE

1117
00:42:53,006 --> 00:42:55,075
RETURNED TO MOSCOW... BUT HE HAD

1118
00:42:55,108 --> 00:42:56,543
LOST MUCH OF HIS POWER.

1119
00:42:56,577 --> 00:42:59,846
[APPLAUSE...]

1120
00:42:59,880 --> 00:43:05,185
>> [SPEAKING RUSSIAN...]

1121
00:43:07,821 --> 00:43:09,690
[APPLAUSE...]

1122
00:43:09,723 --> 00:43:11,391
>> Narrator: IN DECEMBER 1991,

1123
00:43:11,424 --> 00:43:13,560
THE SOVIET UNION WAS DISSOLVED,

1124
00:43:13,594 --> 00:43:14,761
A PROFOUND SHOCK FOR THE

1125
00:43:14,795 --> 00:43:16,863
RUSSIAN PEOPLE.

1126
00:43:16,897 --> 00:43:18,364
YELTSIN WAS NOW IN CHARGE

1127
00:43:18,398 --> 00:43:19,733
OF ECONOMIC POLICY FOR THE

1128
00:43:19,766 --> 00:43:23,136
RUSSIAN FEDERATION.

1129
00:43:23,169 --> 00:43:26,206
THE FREE MARKET CAME TO RUSSIA.

1130
00:43:26,239 --> 00:43:31,344
THERE WAS CHAOS.

1131
00:43:31,377 --> 00:43:32,879
THE ADOPTION OF CHICAGO SCHOOL

1132
00:43:32,913 --> 00:43:34,915
POLICIES IN RUSSIA MARKS THE

1133
00:43:34,948 --> 00:43:36,517
BEGINNING OF A NEW CHAPTER IN

1134
00:43:36,550 --> 00:43:38,619
THE FREE MARKET CRUSADE.

1135
00:43:38,652 --> 00:43:41,487
IT WAS ALL SHOCK, NO THERAPY.

1136
00:43:41,522 --> 00:43:45,091
[PEOPLE YELLING ANGRILY...]

1137
00:43:45,125 --> 00:43:47,193
[INDISTINCT VOICE ON P. A.]

1138
00:43:47,227 --> 00:43:48,529
DESPITE THE PUBLIC EFFORTS TO

1139
00:43:48,562 --> 00:43:50,263
PROMOTE POPULAR CAPITALISM, THE

1140
00:43:50,296 --> 00:43:52,633
REALITY WAS A SMALL HANDFUL OF

1141
00:43:52,666 --> 00:43:53,967
BUSINESSMEN MADE VAST FORTUNES.

1142
00:43:58,004 --> 00:43:59,706
STATE INDUSTRIES WERE SOLD OFF

1143
00:43:59,740 --> 00:44:04,410
AT BARGAIN BASEMENT PRICES.

1144
00:44:04,444 --> 00:44:06,346
THE RUSSIAN PRESS DUBBED

1145
00:44:06,379 --> 00:44:08,081
YELTSIN'S ADVISORS,

1146
00:44:08,114 --> 00:44:10,283
"THE CHICAGO BOYS."

1147
00:44:10,316 --> 00:44:13,119
>> [SPEAKING RUSSIAN...]

1148
00:44:13,153 --> 00:44:15,055
[♪...]

1149
00:44:15,088 --> 00:44:16,456
>> Narrator: YELTSIN'S SHOCK

1150
00:44:16,489 --> 00:44:19,325
THERAPY MEANT THAT IN 1992 THE

1151
00:44:19,359 --> 00:44:21,628
AVERAGE RUSSIAN CONSUMED 40%

1152
00:44:21,662 --> 00:44:26,299
LESS THAN IN 1991.

1153
00:44:26,332 --> 00:44:27,668
A THIRD OF RUSSIANS FELL BELOW

1154
00:44:27,701 --> 00:44:29,903
THE POVERTY LINE AND WAGES

1155
00:44:29,936 --> 00:44:33,774
WEREN'T PAID FOR MONTHS.

1156
00:44:33,807 --> 00:44:34,941
>> Reporter: ONE EXPERT TODAY

1157
00:44:34,975 --> 00:44:37,243
PREDICTED 140 MILLION RUSSIANS

1158
00:44:37,277 --> 00:44:38,779
WILL SOON BE LIVING BELOW

1159
00:44:38,812 --> 00:44:40,514
THE POVERTY LINE.

1160
00:44:40,547 --> 00:44:41,748
>> Narrator: CORRUPTION WAS

1161
00:44:41,782 --> 00:44:45,485
RIFE, ORGANIZED CRIME BOOMED.

1162
00:44:45,519 --> 00:44:48,388
MOSCOW BECAME THE NEW WILD WEST.

1163
00:44:48,421 --> 00:44:52,993
[MEN YELLING IN RUSSIAN...]

1164
00:44:53,026 --> 00:44:55,261
[♪...]

1165
00:44:55,295 --> 00:44:57,864
[MEN SPEAKING RUSSIAN...]

1166
00:44:57,898 --> 00:45:00,567
[THUMP, MAN GROANS]

1167
00:45:00,601 --> 00:45:01,568
[♪...]

1168
00:45:01,602 --> 00:45:04,404
[SIRENS WAILING...]

1169
00:45:04,437 --> 00:45:11,011
[♪...]

1170
00:45:11,044 --> 00:45:13,146
THE MAJORITY OF RUSSIANS OPPOSED

1171
00:45:13,179 --> 00:45:14,981
THE CHICAGO BOYS' RADICAL VISION

1172
00:45:15,015 --> 00:45:17,117
FOR THEIR COUNTRY.

1173
00:45:17,150 --> 00:45:20,220
IN MARCH 1993, PARLIAMENT MADE A

1174
00:45:20,253 --> 00:45:22,989
CRUCIAL DECISION.

1175
00:45:23,023 --> 00:45:24,390
IT VOTED TO REPEAL THE SPECIAL

1176
00:45:24,424 --> 00:45:26,593
POWERS IT HAD GIVEN TO YELTSIN.

1177
00:45:26,627 --> 00:45:30,531
[MAN SPEAKING RUSSIAN...]

1178
00:45:30,564 --> 00:45:31,565
YELTSIN DECLARED

1179
00:45:31,598 --> 00:45:36,870
A STATE OF EMERGENCY.

1180
00:45:36,903 --> 00:45:39,405
THE CONSTITUTIONAL COURT RULED

1181
00:45:39,439 --> 00:45:40,641
THAT IT WAS ILLEGAL.

1182
00:45:40,674 --> 00:45:42,809
[APPLAUSE...]

1183
00:45:42,843 --> 00:45:46,980
[♪...]

1184
00:45:47,013 --> 00:45:50,283
ON SEPTEMBER 21st, YELTSIN TOOK

1185
00:45:50,316 --> 00:45:51,918
THE PINOCHET OPTION AND

1186
00:45:51,952 --> 00:45:54,454
DISSOLVED PARLIAMENT.

1187
00:45:54,487 --> 00:45:59,693
>> [SPEAKING RUSSIAN...]

1188
00:46:04,998 --> 00:46:06,800
>> Narrator: THE WEST THREW ITS

1189
00:46:06,833 --> 00:46:10,370
WEIGHT BEHIND YELTSIN.

1190
00:46:10,403 --> 00:46:11,872
>> WE, WE FEEL THAT BORIS

1191
00:46:11,905 --> 00:46:15,976
YELTSIN IS THE BEST HOPE

1192
00:46:16,009 --> 00:46:18,712
FOR DEMOCRACY IN RUSSIA.

1193
00:46:18,745 --> 00:46:20,781
>> Narrator: TWO DAYS LATER,

1194
00:46:20,814 --> 00:46:22,148
PARLIAMENT VOTED TO IMPEACH

1195
00:46:22,182 --> 00:46:28,288
YELTSIN BY 636 VOTES TO TWO.

1196
00:46:28,321 --> 00:46:29,890
THOUSANDS OF SUPPORTERS OF THE

1197
00:46:29,923 --> 00:46:31,525
PARLIAMENT GATHERED OUTSIDE THE

1198
00:46:31,558 --> 00:46:33,259
WHITE HOUSE AND MARCHED ON THE

1199
00:46:33,293 --> 00:46:34,961
TELEVISION STATION.

1200
00:46:34,995 --> 00:46:38,732
[CROWD SINGING...]

1201
00:46:38,765 --> 00:46:44,170
[YELLING AND CLATTERING...]

1202
00:46:49,342 --> 00:46:51,344
IT LOOKED LIKE THE SUPPORTERS OF

1203
00:46:51,377 --> 00:46:55,381
PARLIAMENT WERE WINNING.

1204
00:46:55,415 --> 00:46:56,850
YELTSIN FLEW BACK TO MOSCOW

1205
00:46:56,883 --> 00:46:58,919
FROM HIS HOLIDAY HOME.

1206
00:46:58,952 --> 00:47:00,854
[CAMERAS CLICKING...]

1207
00:47:00,887 --> 00:47:03,389
THAT NIGHT, 100 DEMONSTRATORS

1208
00:47:03,423 --> 00:47:04,925
WERE KILLED AS THE YELTSIN

1209
00:47:04,958 --> 00:47:06,927
AUTHORITIES FOUGHT BACK.

1210
00:47:06,960 --> 00:47:08,729
[YELLING, CLATTERING,

1211
00:47:08,762 --> 00:47:14,234
GUNFIRE...]

1212
00:47:19,405 --> 00:47:22,776
[GUNFIRE CONTINUES...]

1213
00:47:22,809 --> 00:47:25,378
[WOMAN SPEAKS TEARFULLY]

1214
00:47:25,411 --> 00:47:26,713
Narrator: ON THE 4th

1215
00:47:26,747 --> 00:47:28,682
OF OCTOBER HE ORDERED TROOPS

1216
00:47:28,715 --> 00:47:30,283
TO STORM THE WHITE HOUSE,

1217
00:47:30,316 --> 00:47:31,852
SHELLING THE VERY BUILDING HE

1218
00:47:31,885 --> 00:47:33,754
HAD DEFENDED TWO YEARS EARLIER.

1219
00:47:34,487 --> 00:47:35,956
[MAN SPEAKING ON LOUDSPEAKER...]

1220
00:47:39,192 --> 00:47:44,831
[EXPLOSIONS AND GUNFIRE...]

1221
00:48:05,151 --> 00:48:12,025
[CHEERING AND APPLAUSE...]

1222
00:48:12,058 --> 00:48:13,493
WARREN CHRISTOPHER,

1223
00:48:13,527 --> 00:48:15,261
THE U. S. SECRETARY OF STATE,

1224
00:48:15,295 --> 00:48:16,863
SAID, "THE UNITED STATES

1225
00:48:16,897 --> 00:48:18,498
DOES NOT EASILY SUPPORT THE

1226
00:48:18,532 --> 00:48:20,333
SUSPENSION OF PARLIAMENTS, BUT

1227
00:48:20,366 --> 00:48:23,069
THESE ARE EXTRAORDINARY TIMES".

1228
00:48:23,103 --> 00:48:28,675
[PEOPLE YELLING...]

1229
00:48:28,709 --> 00:48:32,445
YELTSIN NOW HAD ABSOLUTE POWER.

1230
00:48:32,478 --> 00:48:33,847
WITH THE ADVICE OF HIS CHICAGO

1231
00:48:33,880 --> 00:48:35,549
BOYS, HE RULED THROUGH A FORM

1232
00:48:35,582 --> 00:48:37,283
OF CRONY CAPITALISM.

1233
00:48:37,317 --> 00:48:39,853
[♪...]

1234
00:48:39,886 --> 00:48:41,454
EVEN MORE STATE INDUSTRIES WERE

1235
00:48:41,487 --> 00:48:43,657
SOLD OFF, CREATING A NEW CLASS

1236
00:48:43,690 --> 00:48:45,358
OF BILLIONAIRE BUSINESSMEN WITH

1237
00:48:45,391 --> 00:48:47,327
HUGE POLITICAL INFLUENCE‐‐

1238
00:48:47,360 --> 00:48:51,765
THE OLIGARCHS.

1239
00:48:51,798 --> 00:48:55,368
BY 1998, 80% OF RUSSIAN FARMS

1240
00:48:55,401 --> 00:48:57,938
WERE BANKRUPT AND 70,000 STATE

1241
00:48:57,971 --> 00:49:03,043
FACTORIES WERE CLOSED.

1242
00:49:03,076 --> 00:49:05,145
IN EIGHT YEARS, THE NUMBER OF

1243
00:49:05,178 --> 00:49:06,747
PEOPLE LIVING IN POVERTY

1244
00:49:06,780 --> 00:49:09,683
INCREASED BY 72 MILLION.

1245
00:49:09,716 --> 00:49:11,752
MEANWHILE, MOSCOW WOULD GO ON

1246
00:49:11,785 --> 00:49:13,286
TO HAVE MORE BILLIONAIRES THAN

1247
00:49:13,319 --> 00:49:16,356
ANY OTHER CITY IN THE WORLD.

1248
00:49:16,389 --> 00:49:18,859
[TYPEWRITER CLACKING...]

1249
00:49:18,892 --> 00:49:20,260
[CAMERAS CLICKING...]

1250
00:49:20,293 --> 00:49:24,665
[♪...]

1251
00:49:24,698 --> 00:49:25,365
GOOD AFTERNOON,

1252
00:49:25,398 --> 00:49:26,299
THANK YOU FOR COMING.

1253
00:49:26,332 --> 00:49:28,735
TODAY IT IS MY, UH, HONOR TO

1254
00:49:28,769 --> 00:49:30,436
ANNOUNCE THAT I'M SUBMITTING THE

1255
00:49:30,470 --> 00:49:31,838
NAME OF DONALD RUMSFELD TO BE

1256
00:49:31,872 --> 00:49:33,206
SECRETARY OF DEFENSE.

1257
00:49:33,239 --> 00:49:34,307
>> I LOOK FORWARD TO SERVING

1258
00:49:34,340 --> 00:49:35,642
OUR COUNTRY AGAIN...

1259
00:49:35,676 --> 00:49:36,577
>> Narrator: RUMSFELD HAD BEEN

1260
00:49:36,610 --> 00:49:38,111
SECRETARY OF DEFENSE BEFORE,

1261
00:49:38,144 --> 00:49:39,913
UNDER GERALD FORD.

1262
00:49:39,946 --> 00:49:41,247
THEN THE ENEMY WE WERE SUPPOSED

1263
00:49:41,281 --> 00:49:43,483
TO FEAR WAS THE SOVIET UNION.

1264
00:49:43,517 --> 00:49:44,751
>> I'M NOT SAYING WITH CERTAINTY

1265
00:49:44,785 --> 00:49:45,986
THAT THE RUSSIANS ARE COMING,

1266
00:49:46,019 --> 00:49:47,220
I'M SAYING THE TRENDS ARE HERE.

1267
00:49:47,253 --> 00:49:48,454
I'M NOT SAYING THE RUSSIANS ARE

1268
00:49:48,488 --> 00:49:49,723
TEN FEET TALL, I'M SAYING THEY

1269
00:49:49,756 --> 00:49:50,991
USED TO BE 5'3", THEY'RE NOW

1270
00:49:51,024 --> 00:49:52,993
5'9‐1/2" AND THEY'RE GROWING.

1271
00:49:53,026 --> 00:49:54,194
>> Narrator: NOW THERE WAS A NEW

1272
00:49:54,227 --> 00:49:56,062
ENEMY CLOSER TO HOME.

1273
00:49:56,096 --> 00:49:58,599
ON SEPTEMBER THE 10th, 2001,

1274
00:49:58,632 --> 00:50:00,033
RUMSFELD MADE A SPEECH LAYING

1275
00:50:00,066 --> 00:50:01,835
OUT HIS PLANS TO PRIVATIZE MUCH

1276
00:50:01,868 --> 00:50:04,037
OF THE U. S. MILITARY.

1277
00:50:04,070 --> 00:50:05,038
MILTON FRIEDMAN

1278
00:50:05,071 --> 00:50:06,807
WOULD HAVE BEEN PROUD.

1279
00:50:06,840 --> 00:50:08,642
HE SAID, "THE TOPIC TODAY IS AN

1280
00:50:08,675 --> 00:50:10,944
ADVERSARY THAT POSES A THREAT, A

1281
00:50:10,977 --> 00:50:12,478
SERIOUS THREAT TO THE SECURITY

1282
00:50:12,513 --> 00:50:14,981
OF THE UNITED STATES OF AMERICA.

1283
00:50:15,015 --> 00:50:16,282
THIS ADVERSARY IS ONE OF THE

1284
00:50:16,316 --> 00:50:17,317
WORLD'S LAST BASTIONS

1285
00:50:17,350 --> 00:50:18,919
OF CENTRAL PLANNING.

1286
00:50:18,952 --> 00:50:20,186
IT GOVERNS BY DICTATING

1287
00:50:20,220 --> 00:50:21,988
FIVE‐YEAR PLANS.

1288
00:50:22,022 --> 00:50:23,657
PERHAPS THIS ADVERSARY SOUNDS

1289
00:50:23,690 --> 00:50:25,726
LIKE THE FORMER SOVIET UNION,

1290
00:50:25,759 --> 00:50:27,661
BUT THAT ENEMY HAS GONE.

1291
00:50:27,694 --> 00:50:29,863
THIS ADVERSARY'S CLOSER TO HOME.

1292
00:50:29,896 --> 00:50:32,599
IT'S THE PENTAGON BUREAUCRACY.

1293
00:50:32,633 --> 00:50:34,400
TODAY WE DECLARE WAR

1294
00:50:34,434 --> 00:50:37,571
ON BUREAUCRACY."

1295
00:50:37,604 --> 00:50:39,205
THE NEXT DAY, AMERICAN AIRLINES

1296
00:50:39,239 --> 00:50:41,074
FLIGHT 77 CRASHED INTO THE

1297
00:50:41,107 --> 00:50:44,077
PENTAGON, KILLING 184 PEOPLE.

1298
00:50:49,683 --> 00:50:53,587
[GUNFIRE...]

1299
00:50:53,620 --> 00:50:54,788
>> Man: SECOND JET...

1300
00:50:54,821 --> 00:50:56,857
>> Woman: WHAT WAS THAT?

1301
00:50:56,890 --> 00:51:00,293
OH, MY GOD! OH, MY GOD!

1302
00:51:00,326 --> 00:51:03,296
>> Man: OH, MY GOD!

1303
00:51:03,329 --> 00:51:06,099
[RUMBLING, PEOPLE SCREAMING...]

1304
00:51:12,405 --> 00:51:13,874
>> Klein: THINK ABOUT THAT

1305
00:51:13,907 --> 00:51:16,877
FEELING, AFTER THOSE ATTACKS.

1306
00:51:16,910 --> 00:51:19,012
WHO ARE THESE PEOPLE,

1307
00:51:19,045 --> 00:51:20,581
WHERE DID THEY COME FROM,

1308
00:51:20,614 --> 00:51:22,749
WHY DO THEY HATE US?

1309
00:51:22,783 --> 00:51:24,751
THERE WAS A TOTAL LOSS

1310
00:51:24,785 --> 00:51:26,720
OF COLLECTIVE NARRATIVE.

1311
00:51:26,753 --> 00:51:27,954
THIS... WE WERE NOT LIVING

1312
00:51:27,988 --> 00:51:29,455
IN THE WORLD THAT WE THOUGHT

1313
00:51:29,489 --> 00:51:32,559
WE LIVED IN, AND WE KEPT HEARING

1314
00:51:32,593 --> 00:51:34,127
FROM OUR POLITICAL LEADERS

1315
00:51:34,160 --> 00:51:35,461
THAT EVERYTHING WE THOUGHT

1316
00:51:35,495 --> 00:51:38,131
WE UNDERSTOOD BEFORE THE ATTACKS

1317
00:51:38,164 --> 00:51:39,966
NO LONGER APPLIED.

1318
00:51:40,000 --> 00:51:41,301
THERE WAS A NEW PHRASE,

1319
00:51:41,334 --> 00:51:44,270
"PRE‐9/11 THINKING," AND WHAT

1320
00:51:44,304 --> 00:51:46,306
HAPPENED IN THAT MOMENT IS THAT

1321
00:51:46,339 --> 00:51:48,108
SUDDENLY NEW STORIES SORT OF

1322
00:51:48,141 --> 00:51:50,844
MAGICALLY APPEARED, THAT WE WERE

1323
00:51:50,877 --> 00:51:52,979
IN A CLASH OF CIVILIZATIONS.

1324
00:51:53,013 --> 00:51:53,914
THAT'S THE WORLD THAT WE

1325
00:51:53,947 --> 00:51:55,582
SUDDENLY LIVED IN.

1326
00:51:55,616 --> 00:51:57,551
THAT THERE WAS AN AXIS OF EVIL,

1327
00:51:57,584 --> 00:51:58,685
AND THAT WE WERE FIGHTING

1328
00:51:58,719 --> 00:52:01,421
A WAR AGAINST TERROR.

1329
00:52:01,454 --> 00:52:02,623
>> Narrator: THIS ABSTRACT,

1330
00:52:02,656 --> 00:52:04,625
UNWINNABLE WAR HAS HAD HUGE

1331
00:52:04,658 --> 00:52:06,960
ECONOMIC CONSEQUENCES.

1332
00:52:06,993 --> 00:52:08,428
BEFORE 2001,

1333
00:52:08,461 --> 00:52:09,896
HOMELAND SECURITY BARELY

1334
00:52:09,930 --> 00:52:11,898
REGISTERED AS AN INDUSTRY.

1335
00:52:11,932 --> 00:52:13,099
TODAY IT IS BIGGER

1336
00:52:13,133 --> 00:52:14,000
THAN HOLLYWOOD AND THE

1337
00:52:14,034 --> 00:52:16,903
MUSIC INDUSTRY COMBINED.

1338
00:52:16,937 --> 00:52:18,104
BETWEEN SEPTEMBER THE 11th

1339
00:52:18,138 --> 00:52:20,807
2001 AND 2006,

1340
00:52:20,841 --> 00:52:22,175
THE DEPARTMENT OF HOMELAND

1341
00:52:22,208 --> 00:52:25,311
SECURITY HANDED OUT $130 BILLION

1342
00:52:25,345 --> 00:52:26,847
TO PRIVATE CONTRACTORS.

1343
00:52:26,880 --> 00:52:28,114
>> WE'RE GONNA KILL 'EM!

1344
00:52:28,148 --> 00:52:29,816
KILL THE PILOTS!

1345
00:52:29,850 --> 00:52:30,717
>> Narrator: THIS IS THE

1346
00:52:30,751 --> 00:52:32,819
DISASTER CAPITALISM COMPLEX,

1347
00:52:32,853 --> 00:52:37,057
A NEW ECONOMY BUILT ON FEAR.

1348
00:52:37,090 --> 00:52:39,059
>> THIS WILL BE A MONUMENTAL

1349
00:52:39,092 --> 00:52:42,729
STRUGGLE OF GOOD VERSUS EVIL.

1350
00:52:42,763 --> 00:52:46,767
[GUNFIRE...]

1351
00:52:46,800 --> 00:52:48,301
THE BEST DEFENSE AGAINST

1352
00:52:48,334 --> 00:52:51,638
TERROR IS A GLOBAL OFFENSIVE

1353
00:52:51,672 --> 00:52:53,974
AGAINST TERROR, WHEREVER IT

1354
00:52:54,007 --> 00:52:54,975
MIGHT BE FOUND.

1355
00:52:55,008 --> 00:52:57,678
[JETS WHOOSHING, EXPLOSIONS]

1356
00:52:57,711 --> 00:52:58,645
>> Narrator: THE FIRST PHASE

1357
00:52:58,679 --> 00:53:00,180
OF THIS WAR WAS THE BOMBING

1358
00:53:00,213 --> 00:53:01,682
OF AFGHANISTAN.

1359
00:53:01,715 --> 00:53:07,320
[EXPLOSIONS AND GUNFIRE...]

1360
00:53:07,353 --> 00:53:09,122
THE TALIBAN GOVERNMENT WAS

1361
00:53:09,155 --> 00:53:10,557
QUICKLY OVERTHROWN.

1362
00:53:10,591 --> 00:53:13,426
[MEN YELLING, GUNFIRE...]

1363
00:53:13,459 --> 00:53:15,028
THE AFTERMATH OF THE WAR WAS

1364
00:53:15,061 --> 00:53:16,630
MORE COMPLICATED.

1365
00:53:16,663 --> 00:53:17,764
>> George W. Bush: OUR FIGHT

1366
00:53:17,798 --> 00:53:18,599
AGAINST TERRORISM BEGAN

1367
00:53:18,632 --> 00:53:20,534
IN AFGHANISTAN BUT IT

1368
00:53:20,567 --> 00:53:22,268
WILL NOT END THERE.

1369
00:53:24,337 --> 00:53:26,139
>> WE'RE PRIMARILY LOOKING AT

1370
00:53:26,172 --> 00:53:28,809
DETAINEES THAT WE CAN USE FOR

1371
00:53:28,842 --> 00:53:30,043
COLLECTING INTELLIGENCE.

1372
00:53:31,678 --> 00:53:39,953
[♪...]

1373
00:53:39,986 --> 00:53:41,522
>> Narrator: GUANTANAMO WAS THE

1374
00:53:41,555 --> 00:53:43,056
FIRST TIME THAT THE TECHNIQUES

1375
00:53:43,089 --> 00:53:44,825
OF THE KUBARK MANUAL WERE

1376
00:53:44,858 --> 00:53:46,527
EXPLICITLY AND PUBLICLY BEING

1377
00:53:46,560 --> 00:53:49,129
USED BY AMERICAN FORCES,

1378
00:53:49,162 --> 00:53:50,196
OFFICIALLY SANCTIONED IN THE

1379
00:53:50,230 --> 00:53:52,465
WHITE HOUSE AND OPENLY BROADCAST

1380
00:53:52,498 --> 00:53:55,368
ON TELEVISION AROUND WORLD.

1381
00:53:55,401 --> 00:53:56,970
>> Man: ISOLATION, BOTH

1382
00:53:57,003 --> 00:53:59,005
PHYSICAL AND PSYCHOLOGICAL,

1383
00:53:59,039 --> 00:54:00,541
MUST BE MAINTAINED FROM THE

1384
00:54:00,574 --> 00:54:02,809
MOMENT OF APPREHENSION.

1385
00:54:02,843 --> 00:54:04,611
THE CAPACITY FOR RESISTANCE IS

1386
00:54:04,645 --> 00:54:08,214
DIMINISHED BY DISORIENTATION.

1387
00:54:08,248 --> 00:54:09,616
PRISONERS SHOULD MAINTAIN

1388
00:54:09,650 --> 00:54:11,918
SILENCE AT ALL TIMES.

1389
00:54:11,952 --> 00:54:13,453
THEY SHOULD NEVER BE ALLOWED

1390
00:54:13,486 --> 00:54:16,557
TO SPEAK TO EACH OTHER.

1391
00:54:16,590 --> 00:54:17,724
>> Narrator: THREE OF THE

1392
00:54:17,758 --> 00:54:19,860
PRISONERS WERE ASIF IQBAL,

1393
00:54:19,893 --> 00:54:21,762
RUHAL AHMED AND SHAFIQ RASUL

1394
00:54:21,795 --> 00:54:25,231
FROM TIPTON IN ENGLAND.

1395
00:54:25,265 --> 00:54:26,700
THEY SPENT MORE THAN TWO YEARS

1396
00:54:26,733 --> 00:54:28,234
IN GUANTANAMO BEFORE BEING

1397
00:54:28,268 --> 00:54:30,904
RELEASED WITHOUT CHARGE.

1398
00:54:30,937 --> 00:54:32,305
>> MENTALLY, YEAH, YOU COULDN'T

1399
00:54:32,338 --> 00:54:34,040
SPEAK TO NOBODY, YOU COULDN'T DO

1400
00:54:34,074 --> 00:54:36,510
NOTHING, YOU COULDN'T STAND UP,

1401
00:54:36,543 --> 00:54:37,944
AND JUST SITTING THERE,

1402
00:54:37,978 --> 00:54:39,513
JUST, LIKE, YOU'D BE IN YOUR

1403
00:54:39,546 --> 00:54:40,514
THOUGHTS ALL THE TIME, THINKING,

1404
00:54:40,547 --> 00:54:41,582
"WHAT THE HELL'S GOING ON?

1405
00:54:41,615 --> 00:54:43,016
WHERE THE HELL AM I?

1406
00:54:43,049 --> 00:54:44,217
ARE WE GONNA BE STAYING HERE

1407
00:54:44,250 --> 00:54:45,418
FOR THE REST OF OUR LIVES?

1408
00:54:45,451 --> 00:54:46,520
ARE WE GOING TO BE

1409
00:54:46,553 --> 00:54:47,287
GOING BACK HOME?

1410
00:54:47,320 --> 00:54:48,188
WILL WE EVER SEE

1411
00:54:48,221 --> 00:54:51,257
OUR FAMILY AGAIN?"

1412
00:54:51,291 --> 00:54:53,026
>> Narrator: OF THE 779

1413
00:54:53,059 --> 00:54:54,360
PRISONERS THAT HAVE BEEN HELD

1414
00:54:54,394 --> 00:54:55,896
IN GUANTANAMO BAY,

1415
00:54:55,929 --> 00:54:57,463
ONLY THREE HAVE EVER BEEN

1416
00:54:57,497 --> 00:54:59,465
CONVICTED OF ANY OFFENSE.

1417
00:54:59,499 --> 00:55:02,703
[♪...]

1418
00:55:06,206 --> 00:55:07,173
>> THE ONLY THING I KNOW

1419
00:55:07,207 --> 00:55:08,141
FOR CERTAIN IS THAT

1420
00:55:08,174 --> 00:55:09,576
THESE ARE BAD PEOPLE.

1421
00:55:09,610 --> 00:55:10,777
>> Klein: IT WAS A MESSAGE

1422
00:55:10,811 --> 00:55:12,345
TO THE WHOLE WORLD, AND THE

1423
00:55:12,378 --> 00:55:13,379
MESSAGE WAS CLEAR.

1424
00:55:13,413 --> 00:55:14,615
IT WAS, "THIS IS WHAT HAPPENS

1425
00:55:14,648 --> 00:55:16,750
TO YOU IF YOU GET IN OUR WAY."

1426
00:55:16,783 --> 00:55:20,721
[GUNFIRE...]

1427
00:55:20,754 --> 00:55:22,355
>> THE WAR ON TERROR IS NOT

1428
00:55:22,388 --> 00:55:24,858
ABOUT ONE MAN, AND IT IS NOT

1429
00:55:24,891 --> 00:55:26,860
ABOUT ONE COUNTRY.

1430
00:55:26,893 --> 00:55:27,828
>> Narrator: THERE WERE MANY

1431
00:55:27,861 --> 00:55:28,962
JUSTIFICATIONS GIVEN FOR THE

1432
00:55:28,995 --> 00:55:30,564
INVASION OF IRAQ.

1433
00:55:30,597 --> 00:55:31,965
BUT IF THE U. S. HAD REALLY

1434
00:55:31,998 --> 00:55:33,567
WANTED TO ATTACK A COUNTRY WHERE

1435
00:55:33,600 --> 00:55:34,868
THE LEADERS OF AL QAEDA WERE

1436
00:55:34,901 --> 00:55:36,537
THOUGHT TO BE HIDING, WHICH HAD

1437
00:55:36,570 --> 00:55:38,304
NUCLEAR WEAPONS AND WAS SELLING

1438
00:55:38,338 --> 00:55:39,740
NUCLEAR TECHNOLOGY TO OTHER

1439
00:55:39,773 --> 00:55:41,808
COUNTRIES, THEN PAKISTAN WOULD

1440
00:55:41,842 --> 00:55:44,511
HAVE BEEN THE OBVIOUS CHOICE.

1441
00:55:44,545 --> 00:55:45,612
IT HAD CLOSE CONNECTIONS

1442
00:55:45,646 --> 00:55:47,480
TO THE TALIBAN AND WAS BEING RUN

1443
00:55:47,514 --> 00:55:50,483
BY A MILITARY DICTATOR.

1444
00:55:50,517 --> 00:55:52,118
INSTEAD GEORGE BUSH CHOSE

1445
00:55:52,152 --> 00:55:54,454
TO TARGET IRAQ, A COUNTRY

1446
00:55:54,487 --> 00:55:55,889
WITH THE THIRD‐LARGEST OIL

1447
00:55:55,922 --> 00:55:57,558
RESERVES IN THE WORLD.

1448
00:55:57,591 --> 00:56:01,628
[CROWD CHEERING...]

1449
00:56:01,662 --> 00:56:05,498
[GUNFIRE...]

1450
00:56:05,532 --> 00:56:06,767
>> NOW ABOUT THE DEFENSE

1451
00:56:06,800 --> 00:56:08,334
DEPARTMENT'S WAR PLAN.

1452
00:56:08,368 --> 00:56:09,302
IT IS NOT LIKE THAT

1453
00:56:09,335 --> 00:56:10,303
FOR THE GULF WAR.

1454
00:56:10,336 --> 00:56:11,705
IT'S MORE ALONG THE LINES OF THE

1455
00:56:11,738 --> 00:56:13,439
PANAMA INVASION OF 1989.

1456
00:56:13,473 --> 00:56:15,175
CBS NEWS HAS BEEN TOLD IT WOULD

1457
00:56:15,208 --> 00:56:17,343
START ON WHAT'S CALLED A‐DAY.

1458
00:56:17,377 --> 00:56:19,345
"A" AS IN AIR STRIKES‐‐

1459
00:56:19,379 --> 00:56:21,281
AIR STRIKES SO DEVASTATING, THEY

1460
00:56:21,314 --> 00:56:22,683
WOULD LEAVE SADDAM'S SOLDIERS

1461
00:56:22,716 --> 00:56:24,785
UNABLE OR UNWILLING TO FIGHT.

1462
00:56:24,818 --> 00:56:26,386
THE IDEA IS TO RAIN DOWN THE

1463
00:56:26,419 --> 00:56:28,288
THUNDER SO HARD AS TO CREATE,

1464
00:56:28,321 --> 00:56:30,023
QUOTE, "SHOCK AND AWE."

1465
00:56:30,056 --> 00:56:31,825
>> Reporter: IF THE PENTAGON

1466
00:56:31,858 --> 00:56:33,727
STICKS TO ITS CURRENT WAR PLAN,

1467
00:56:33,760 --> 00:56:35,161
ONE DAY IN MARCH THE AIR FORCE

1468
00:56:35,195 --> 00:56:36,697
AND NAVY WILL LAUNCH BETWEEN

1469
00:56:36,730 --> 00:56:38,765
3‐ AND 400 CRUISE MISSILES

1470
00:56:38,799 --> 00:56:40,233
AT TARGETS IN IRAQ...

1471
00:56:40,266 --> 00:56:41,467
MORE THAN WERE LAUNCHED

1472
00:56:41,501 --> 00:56:43,369
DURING THE ENTIRE 40 DAYS

1473
00:56:43,403 --> 00:56:45,205
OF THE FIRST GULF WAR.

1474
00:56:45,238 --> 00:56:46,272
THE SHEER SIZE OF THIS

1475
00:56:46,306 --> 00:56:48,108
HAS NEVER BEEN SEEN BEFORE,

1476
00:56:48,141 --> 00:56:50,577
NEVER BEEN CONTEMPLATED BEFORE.

1477
00:56:50,611 --> 00:56:51,812
HARLAN ULMAN IS ONE OF THE

1478
00:56:51,845 --> 00:56:53,279
AUTHORS OF THE "SHOCK AND AWE"

1479
00:56:53,313 --> 00:56:54,815
CONCEPT, WHICH RELIES

1480
00:56:54,848 --> 00:56:56,082
ON LARGE NUMBERS OF

1481
00:56:56,116 --> 00:56:58,051
PRECISION‐GUIDED WEAPONS.

1482
00:56:58,084 --> 00:56:59,219
>> SO THAT YOU HAVE THIS

1483
00:56:59,252 --> 00:57:00,954
SIMULTANEOUS EFFECT RATHER LIKE

1484
00:57:00,987 --> 00:57:02,055
THE NUCLEAR WEAPONS AT

1485
00:57:02,088 --> 00:57:04,525
HIROSHIMA, NOT TAKING DAYS OR

1486
00:57:04,558 --> 00:57:06,126
WEEKS, BUT IN MINUTES.

1487
00:57:06,159 --> 00:57:10,230
[JET ENGINE ROARING]

1488
00:57:10,263 --> 00:57:13,967
[EXPLOSIONS, ♪...]

1489
00:57:14,000 --> 00:57:16,236
YOU ALSO TAKE THE CITY DOWN.

1490
00:57:16,269 --> 00:57:17,671
BY THAT I MEAN YOU GET RID

1491
00:57:17,704 --> 00:57:19,005
OF THEIR POWER, THEIR WATER,

1492
00:57:19,039 --> 00:57:20,907
AND YOU BEGIN THIS RELENTLESS

1493
00:57:20,941 --> 00:57:22,876
CAMPAIGN TO WEAR THEM DOWN

1494
00:57:22,909 --> 00:57:24,177
SO THAT TWO, THREE,

1495
00:57:24,210 --> 00:57:25,411
FOUR, FIVE DAYS, THEY ARE

1496
00:57:25,445 --> 00:57:26,747
PHYSICALLY, EMOTIONALLY AND

1497
00:57:26,780 --> 00:57:28,949
PSYCHOLOGICALLY EXHAUSTED.

1498
00:57:28,982 --> 00:57:30,517
>> Reporter: LAST NIGHT,

1499
00:57:30,551 --> 00:57:33,086
A SQUARE MILE IN CENTRAL BAGHDAD

1500
00:57:33,119 --> 00:57:35,488
SEEMED LIKE HELL ON EARTH.

1501
00:57:35,522 --> 00:57:38,959
[SIRENS WAILING, EXPLOSIONS...]

1502
00:57:38,992 --> 00:57:40,093
>> Narrator: DURING THE FIRST

1503
00:57:40,126 --> 00:57:41,461
WAVE OF THE BOMBING, THE

1504
00:57:41,494 --> 00:57:42,863
CITIZENS OF BAGHDAD SUFFERED

1505
00:57:42,896 --> 00:57:44,130
A VERSION OF THE SENSORY

1506
00:57:44,164 --> 00:57:45,566
DEPRIVATION DESCRIBED IN THE

1507
00:57:45,599 --> 00:57:49,302
KUBARK MANUAL.

1508
00:57:49,335 --> 00:57:51,404
[PEOPLE SHOUTING...]

1509
00:57:51,437 --> 00:57:52,639
IN THE CHAOS THAT FOLLOWED

1510
00:57:52,673 --> 00:57:54,541
THE OVERTHROW OF SADDAM HUSSEIN,

1511
00:57:54,575 --> 00:57:56,009
THE U. S. DID LITTLE TO STOP

1512
00:57:56,042 --> 00:57:57,578
THE LOOTING.

1513
00:57:57,611 --> 00:57:59,245
SOME U. S. OFFICIALS EVEN THOUGHT

1514
00:57:59,279 --> 00:58:00,814
IT GAVE THEM A HEAD START ON

1515
00:58:00,847 --> 00:58:05,085
DISMANTLING THE IRAQI STATE.

1516
00:58:05,118 --> 00:58:06,987
JOHN AGRESTO, DIRECTOR OF HIGHER

1517
00:58:07,020 --> 00:58:08,789
EDUCATION RECONSTRUCTION,

1518
00:58:08,822 --> 00:58:10,223
SAID HE SAW THE LOOTING

1519
00:58:10,256 --> 00:58:12,759
OF SCHOOLS "AS THE OPPORTUNITY

1520
00:58:12,793 --> 00:58:15,729
FOR A CLEAN START."

1521
00:58:15,762 --> 00:58:17,698
IN FACT, BEFORE SANCTIONS,

1522
00:58:17,731 --> 00:58:19,399
IRAQ HAD THE BEST EDUCATION

1523
00:58:19,432 --> 00:58:21,167
SYSTEM IN THE REGION.

1524
00:58:21,201 --> 00:58:23,937
89% OF IRAQIS WERE LITERATE.

1525
00:58:23,970 --> 00:58:26,139
BY CONTRAST IN NEW MEXICO,

1526
00:58:26,172 --> 00:58:28,308
JOHN AGRESTO'S HOME STATE,

1527
00:58:28,341 --> 00:58:31,011
46% OF THE POPULATION WERE

1528
00:58:31,044 --> 00:58:33,514
FUNCTIONALLY ILLITERATE.

1529
00:58:33,547 --> 00:58:35,015
>> IN IRAQ, YOU HAD THREE

1530
00:58:35,048 --> 00:58:37,584
DISTINCT FORMS OF SHOCK THAT

1531
00:58:37,618 --> 00:58:39,920
WERE ALL WORKING TOGETHER AND

1532
00:58:39,953 --> 00:58:41,922
REINFORCING EACH OTHER.

1533
00:58:41,955 --> 00:58:44,057
YOU HAD THE SHOCK OF THE WAR,

1534
00:58:44,090 --> 00:58:46,593
WHICH WAS IMMEDIATELY FOLLOWED

1535
00:58:46,627 --> 00:58:48,929
BY ECONOMIC SHOCK THERAPY

1536
00:58:48,962 --> 00:58:50,631
IMPOSED UNDER PAUL BREMER,

1537
00:58:50,664 --> 00:58:53,333
AND AS RESISTANCE TO THAT

1538
00:58:53,366 --> 00:58:54,801
ECONOMIC TRANSFORMATION, THAT

1539
00:58:54,835 --> 00:58:57,437
VERY RAPID ECONOMIC SHOCK,

1540
00:58:57,470 --> 00:58:59,773
GREW, YOU HAD THE SHOCK OF

1541
00:58:59,806 --> 00:59:02,208
ENFORCEMENT, INCLUDING TORTURE.

1542
00:59:02,242 --> 00:59:03,476
THREE DIFFERENT KINDS OF SHOCK.

1543
00:59:03,510 --> 00:59:07,581
[TYPEWRITER CLACKING...]

1544
00:59:07,614 --> 00:59:10,584
[♪...]

1545
00:59:10,617 --> 00:59:12,953
>> Narrator: IN MAY 2003,

1546
00:59:12,986 --> 00:59:14,420
PAUL BREMER WAS APPOINTED

1547
00:59:14,454 --> 00:59:16,389
U.S. ENVOY TO IRAQ.

1548
00:59:16,422 --> 00:59:18,324
TWO WEEKS AFTER HE ARRIVED,

1549
00:59:18,358 --> 00:59:19,726
HE DECLARED THE COUNTRY

1550
00:59:19,760 --> 00:59:21,862
OPEN FOR BUSINESS.

1551
00:59:21,895 --> 00:59:22,863
>> WE CONSIDER THAT THE

1552
00:59:22,896 --> 00:59:24,230
COALITION HAS VERY BROAD

1553
00:59:24,264 --> 00:59:26,099
AUTHORITIES TO DETERMINE THE

1554
00:59:26,132 --> 00:59:29,102
DIRECTION OF THE IRAQI ECONOMY.

1555
00:59:29,135 --> 00:59:30,303
>> Narrator: BREMER KNEW LITTLE

1556
00:59:30,336 --> 00:59:32,072
OF IRAQ, BUT HE KNEW ABOUT

1557
00:59:32,105 --> 00:59:34,608
DISASTER CAPITALISM.

1558
00:59:34,641 --> 00:59:35,976
HE HAD LAUNCHED CRISIS

1559
00:59:36,009 --> 00:59:37,644
CONSULTING PRACTICE

1560
00:59:37,678 --> 00:59:38,912
AT THE START OF THE HOMELAND

1561
00:59:38,945 --> 00:59:40,747
SECURITY BOOM.

1562
00:59:40,781 --> 00:59:43,650
>> TODAY IS A VERY IMPORTANT DAY

1563
00:59:43,684 --> 00:59:45,786
IN BAGHDAD.

1564
00:59:45,819 --> 00:59:47,020
>> Narrator: BREMER SPENT THE

1565
00:59:47,053 --> 00:59:48,622
FIRST FOUR MONTHS PASSING

1566
00:59:48,655 --> 00:59:52,225
CLASSIC CHICAGO SCHOOL LAWS.

1567
00:59:52,258 --> 00:59:53,727
RUMSFELD DESCRIBED IRAQ

1568
00:59:53,760 --> 00:59:55,461
AS HAVING SOME OF THE MOST

1569
00:59:55,495 --> 00:59:57,330
ENLIGHTENED AND INVITING TAX

1570
00:59:57,363 --> 00:59:58,665
AND INVESTMENT LAWS IN THE

1571
00:59:58,699 --> 01:00:01,401
FREE WORLD.

1572
01:00:01,434 --> 01:00:03,704
ONE OF THE FIRST ACTS OF BREMER

1573
01:00:03,737 --> 01:00:05,772
WAS TO FIRE 500,000

1574
01:00:05,806 --> 01:00:07,440
STATE WORKERS.

1575
01:00:07,473 --> 01:00:08,542
THIS WAS PARTLY AN ACT

1576
01:00:08,575 --> 01:00:10,243
OF DE‐BA'ATHIFICATION,

1577
01:00:10,276 --> 01:00:11,678
BUT SLASHING GOVERNMENTS

1578
01:00:11,712 --> 01:00:15,616
WAS ALSO VINTAGE FRIEDMAN.

1579
01:00:15,649 --> 01:00:17,017
MONEY WAS PROMISED

1580
01:00:17,050 --> 01:00:18,484
FOR RECONSTRUCTION.

1581
01:00:18,519 --> 01:00:19,252
>> George W. Bush: OUR

1582
01:00:19,285 --> 01:00:20,353
INVESTMENT IN THE FUTURE OF

1583
01:00:20,386 --> 01:00:22,188
AFGHANISTAN AND IRAQ IS THE

1584
01:00:22,222 --> 01:00:24,257
GREATEST COMMITMENT OF ITS KIND

1585
01:00:24,290 --> 01:00:27,193
SINCE THE MARSHALL PLAN.

1586
01:00:27,227 --> 01:00:28,629
>> Narrator: BUT IN FACT,

1587
01:00:28,662 --> 01:00:30,831
IT WAS JUST THE OPPOSITE.

1588
01:00:30,864 --> 01:00:31,998
WHEREAS THE MARSHALL PLAN

1589
01:00:32,032 --> 01:00:33,499
WAS INTENDED TO BOOST EUROPEAN

1590
01:00:33,534 --> 01:00:35,368
INDUSTRIES, U. S. AID MONEY

1591
01:00:35,401 --> 01:00:36,870
IN IRAQ WAS SPENT ON U. S.

1592
01:00:36,903 --> 01:00:38,705
CORPORATIONS.

1593
01:00:38,739 --> 01:00:40,541
IF WORK CAME TO IRAQIS,

1594
01:00:40,574 --> 01:00:42,042
IT CAME AT THE BOTTOM OF A

1595
01:00:42,075 --> 01:00:46,412
SERIES OF SUBCONTRACTORS.

1596
01:00:46,446 --> 01:00:48,448
CREATIVE ASSOCIATES RECEIVED

1597
01:00:48,481 --> 01:00:49,716
CONTRACTS WORTH A HUNDRED

1598
01:00:49,750 --> 01:00:51,317
MILLION DOLLARS TO DRAFT

1599
01:00:51,351 --> 01:00:53,019
THE CURRICULUM AND PRINT NEW

1600
01:00:53,053 --> 01:00:54,688
TEXTBOOKS FOR THE EDUCATION

1601
01:00:54,721 --> 01:00:56,857
SYSTEM.

1602
01:00:56,890 --> 01:00:58,158
MANAGEMENT AND TECHNOLOGY

1603
01:00:58,191 --> 01:01:00,160
CONSULTANT BearingPoint WAS

1604
01:01:00,193 --> 01:01:01,394
AWARDED CONTRACTS WORTH

1605
01:01:01,427 --> 01:01:04,397
$240 MILLION TO BUILD A

1606
01:01:04,430 --> 01:01:07,534
MARKET‐DRIVEN SYSTEM IN IRAQ.

1607
01:01:07,568 --> 01:01:09,536
NORTH CAROLINA‐BASED R.T.I.

1608
01:01:09,570 --> 01:01:10,604
RECEIVED CONTRACTS WORTH

1609
01:01:10,637 --> 01:01:14,174
$466 MILLION TO ADVISE ON

1610
01:01:14,207 --> 01:01:16,376
BRINGING DEMOCRACY TO IRAQ.

1611
01:01:16,409 --> 01:01:17,544
[CASH REGISTER DINGS]

1612
01:01:17,578 --> 01:01:18,912
AND HALLIBURTON WAS AWARDED

1613
01:01:18,945 --> 01:01:20,947
$20 BILLION IN COST‐PLUS

1614
01:01:20,981 --> 01:01:22,949
IRAQI CONTRACTS.

1615
01:01:22,983 --> 01:01:24,184
[MEN SHOUTING]

1616
01:01:24,217 --> 01:01:26,853
PARSONS WAS HANDED $186 MILLION

1617
01:01:26,887 --> 01:01:30,323
TO BUILD 142 HEALTH CLINICS.

1618
01:01:30,356 --> 01:01:33,426
ONLY SIX WERE EVER COMPLETED.

1619
01:01:33,459 --> 01:01:34,928
BASIC ELECTRICITY AND WATER

1620
01:01:34,961 --> 01:01:36,963
SUPPLIES HARDLY IMPROVED

1621
01:01:36,997 --> 01:01:38,732
DESPITE BILLIONS BEING SPENT

1622
01:01:38,765 --> 01:01:40,500
IN THE FIRST FOUR YEARS.

1623
01:01:40,534 --> 01:01:41,935
>> WE'RE GONNA SUCCEED HERE,

1624
01:01:41,968 --> 01:01:43,436
AND WHEN WE SUCCEED HERE WE WILL

1625
01:01:43,469 --> 01:01:44,505
HAVE DONE SOMETHING IMPORTANT

1626
01:01:44,538 --> 01:01:47,073
NOT JUST FOR 25 MILLION IRAQIS,

1627
01:01:47,107 --> 01:01:48,474
WE WILL HAVE DONE SOMETHING THAT

1628
01:01:48,509 --> 01:01:49,976
SERVES WESTERN INTERESTS IN THIS

1629
01:01:50,010 --> 01:01:52,012
WHOLE REGION.

1630
01:01:52,045 --> 01:01:53,246
>> Narrator: EVEN THE NEW IRAQI

1631
01:01:53,279 --> 01:01:54,981
CURRENCY WAS PRINTED ABROAD.

1632
01:01:55,015 --> 01:01:57,250
>> LET ME SHOW YOU AN EXAMPLE

1633
01:01:57,283 --> 01:02:00,921
OF THESE NOTES.

1634
01:02:00,954 --> 01:02:02,656
>> Narrator: THE U. S. EVEN PAID

1635
01:02:02,689 --> 01:02:04,290
PRIVATE CONTRACTORS TO MONITOR

1636
01:02:04,324 --> 01:02:05,659
THE WORK OF THE PRIVATE

1637
01:02:05,692 --> 01:02:08,494
CONTRACTORS WHO WON CONTRACTS.

1638
01:02:08,529 --> 01:02:10,196
>> Men, chanting: WE WANT JOBS!

1639
01:02:10,230 --> 01:02:12,966
WE WANT JOBS! WE WANT JOBS!

1640
01:02:12,999 --> 01:02:15,435
>> I WAS IN BAGHDAD IN 2004,

1641
01:02:15,468 --> 01:02:16,837
AND THIS IS THE PERIOD WHEN

1642
01:02:16,870 --> 01:02:17,904
BOMBS STARTED TO GO OFF

1643
01:02:17,938 --> 01:02:18,805
REGULARLY IN BAGHDAD.

1644
01:02:18,839 --> 01:02:20,273
IN FACT, THE NIGHT THAT I

1645
01:02:20,306 --> 01:02:21,341
ARRIVED, A BOMB WENT OFF

1646
01:02:21,374 --> 01:02:24,110
VERY NEAR OUR HOTEL.

1647
01:02:24,144 --> 01:02:25,378
BUT WHAT WAS REALLY STRIKING

1648
01:02:25,411 --> 01:02:27,914
TO ME IN THIS PERIOD WAS THAT

1649
01:02:27,948 --> 01:02:29,583
DESPITE THE VIOLENCE AND DESPITE

1650
01:02:29,616 --> 01:02:32,018
THE CHAOS, THE NEXT DAY, IRAQIS

1651
01:02:32,052 --> 01:02:33,153
WERE OUT IN THE STREETS

1652
01:02:33,186 --> 01:02:34,154
PROTESTING.

1653
01:02:34,187 --> 01:02:35,822
...19 KILLED AND 100 INJURED

1654
01:02:35,856 --> 01:02:37,290
IN NAJAF.

1655
01:02:37,323 --> 01:02:38,692
...AND WHAT THEY WERE DEMANDING

1656
01:02:38,725 --> 01:02:40,761
AT THIS TIME WAS ELECTIONS, THE

1657
01:02:40,794 --> 01:02:43,697
RIGHT TO ACTUALLY HAVE A SAY IN,

1658
01:02:43,730 --> 01:02:45,331
IN WHAT THE POST‐SADDAM ERA

1659
01:02:45,365 --> 01:02:46,199
WOULD LOOK LIKE.

1660
01:02:46,232 --> 01:02:47,668
NOW, IN THE EARLY DAYS OF THE

1661
01:02:47,701 --> 01:02:48,835
OCCUPATION, THE PROTESTS WERE

1662
01:02:48,869 --> 01:02:51,271
PEACEFUL, BUT AS TIME WENT ON

1663
01:02:51,304 --> 01:02:52,438
AND THE PROTESTS DIDN'T HAVE

1664
01:02:52,472 --> 01:02:54,407
AN EFFECT, MORE AND MORE IRAQIS

1665
01:02:54,440 --> 01:02:56,209
JOINED THE ARMED RESISTANCE.

1666
01:02:56,242 --> 01:02:57,811
[GUNFIRE]

1667
01:02:57,844 --> 01:03:02,148
[MEN CHANTING]

1668
01:03:02,182 --> 01:03:03,149
>> Narrator: THE VIOLENCE

1669
01:03:03,183 --> 01:03:06,386
SPUN OUT OF CONTROL.

1670
01:03:10,924 --> 01:03:14,227
[GUNFIRE]

1671
01:03:14,260 --> 01:03:18,965
[MEN SHOUTING]

1672
01:03:18,999 --> 01:03:22,235
[♪...]

1673
01:03:22,268 --> 01:03:23,804
AS IN SOUTH AMERICA THREE

1674
01:03:23,837 --> 01:03:25,506
DECADES EARLIER, BODIES WERE

1675
01:03:25,539 --> 01:03:27,107
OFTEN DUMPED BY THE ROADSIDE

1676
01:03:27,140 --> 01:03:30,210
AS A WARNING TO OTHERS.

1677
01:03:30,243 --> 01:03:32,979
THESE WERE IRAQ'S DISAPPEARED.

1678
01:03:40,453 --> 01:03:42,088
EXTREMELY AGGRESSIVE MEASURES

1679
01:03:42,122 --> 01:03:43,289
WERE NEEDED TO SUPPRESS

1680
01:03:43,323 --> 01:03:45,425
THE OPPOSITION.

1681
01:03:45,458 --> 01:03:47,460
[MEN SHOUTING]

1682
01:03:47,493 --> 01:03:51,898
[TYPEWRITER CLACKING...]

1683
01:03:51,932 --> 01:03:53,233
>> Soldier: GO, GO, GO!

1684
01:03:53,266 --> 01:03:57,170
GO, LET'S GO!

1685
01:03:57,203 --> 01:03:58,171
>> Narrator: THE FIRST THREE

1686
01:03:58,204 --> 01:03:59,540
AND A HALF YEARS OF THE

1687
01:03:59,573 --> 01:04:02,709
OCCUPATION, 61,500 IRAQIS

1688
01:04:02,743 --> 01:04:04,010
WERE CAPTURED.

1689
01:04:04,044 --> 01:04:07,147
BY SPRING 2007, 19,000

1690
01:04:07,180 --> 01:04:11,785
REMAINED IN CUSTODY.

1691
01:04:11,818 --> 01:04:12,819
IN PRISON, THEY WERE

1692
01:04:12,853 --> 01:04:14,588
INTERROGATED USING TECHNIQUES

1693
01:04:14,621 --> 01:04:15,956
THAT COULD BE TRACED TO THOSE

1694
01:04:15,989 --> 01:04:17,824
DEVISED BY THE C. I. A. FROM

1695
01:04:17,858 --> 01:04:19,425
EWEN CAMERON'S EXPERIMENTS

1696
01:04:19,459 --> 01:04:23,463
IN THE '50s.

1697
01:04:23,496 --> 01:04:26,132
[DOGS BARKING]

1698
01:04:30,571 --> 01:04:33,339
ACCORDING TO THE RED CROSS,

1699
01:04:33,373 --> 01:04:35,141
U.S. MILITARY OFFICIALS ADMITTED

1700
01:04:35,175 --> 01:04:37,377
THAT BETWEEN 70 AND 90% OF

1701
01:04:37,410 --> 01:04:40,146
ARRESTS IN IRAQ WERE MISTAKES.

1702
01:04:46,352 --> 01:04:48,088
THE CHAOS IN IRAQ SEEMS LIKE

1703
01:04:48,121 --> 01:04:50,724
A DEFEAT FOR SHOCK THERAPY,

1704
01:04:50,757 --> 01:04:52,826
BUT IN IRAQ, DISASTER CAPITALISM

1705
01:04:52,859 --> 01:04:56,530
MOVED ON.

1706
01:04:56,563 --> 01:04:57,731
>> CEASE FIRE!

1707
01:04:57,764 --> 01:04:58,865
>> Narrator: NOW THE DISASTER

1708
01:04:58,899 --> 01:05:00,534
ITSELF PROVIDED THE OPPORTUNITY

1709
01:05:00,567 --> 01:05:04,671
FOR PROFIT.

1710
01:05:04,705 --> 01:05:07,908
[GLASS BREAKING, GUNFIRE...]

1711
01:05:11,545 --> 01:05:14,715
[TYPEWRITER CLACKING...]

1712
01:05:14,748 --> 01:05:18,519
[HELICOPTER ROTORS WHIRRING]

1713
01:05:18,552 --> 01:05:20,120
U.S. MILITARY SPENDING HAS

1714
01:05:20,153 --> 01:05:23,957
ALMOST DOUBLED SINCE 2001,

1715
01:05:23,990 --> 01:05:30,797
NEARING $700 BILLION PER YEAR.

1716
01:05:30,831 --> 01:05:33,534
AS LONG AGO AS 1961, PRESIDENT

1717
01:05:33,567 --> 01:05:35,936
EISENHOWER, NOT A NOTED LIBERAL,

1718
01:05:35,969 --> 01:05:37,303
WARNED OF THE DANGER OF

1719
01:05:37,337 --> 01:05:39,405
A TOO‐POWERFUL MILITARY.

1720
01:05:39,439 --> 01:05:40,874
>> NOW, THIS CONJUNCTION OF AN

1721
01:05:40,907 --> 01:05:42,475
IMMENSE MILITARY ESTABLISHMENT

1722
01:05:42,509 --> 01:05:44,745
AND A LARGE ARMS INDUSTRY IS

1723
01:05:44,778 --> 01:05:47,914
NEW IN THE AMERICAN EXPERIENCE.

1724
01:05:47,948 --> 01:05:49,750
WE MUST GUARD AGAINST THE

1725
01:05:49,783 --> 01:05:51,251
ACQUISITION OF UNWARRANTED

1726
01:05:51,284 --> 01:05:52,919
INFLUENCE, WHETHER SOUGHT OR

1727
01:05:52,953 --> 01:05:55,121
UNSOUGHT, BY THE MILITARY

1728
01:05:55,155 --> 01:05:57,591
INDUSTRIAL COMPLEX.

1729
01:05:57,624 --> 01:05:58,925
WE MUST NEVER LET THE WEIGHT

1730
01:05:58,959 --> 01:06:00,493
OF THIS COMBINATION ENDANGER

1731
01:06:00,527 --> 01:06:02,295
OUR LIBERTIES OR DEMOCRATIC

1732
01:06:02,328 --> 01:06:04,565
PROCESSES.

1733
01:06:04,598 --> 01:06:06,266
>> Narrator: THE WAR IN IRAQ

1734
01:06:06,299 --> 01:06:07,701
IS THE MOST PRIVATIZED WAR

1735
01:06:07,734 --> 01:06:09,636
IN MODERN HISTORY.

1736
01:06:09,670 --> 01:06:11,004
THE GREEN ZONE IN BAGHDAD IS

1737
01:06:11,037 --> 01:06:12,405
AN EXTREME VERSION OF WHAT IS

1738
01:06:12,438 --> 01:06:15,676
HAPPENING AROUND THE WORLD‐‐

1739
01:06:15,709 --> 01:06:17,343
A PRIVATIZED, SECURE WORLD

1740
01:06:17,377 --> 01:06:18,779
PROTECTED FROM THE CHAOS

1741
01:06:18,812 --> 01:06:20,446
OUTSIDE.

1742
01:06:20,480 --> 01:06:23,216
[♪...]

1743
01:06:27,420 --> 01:06:30,724
IN 1991, IN THE FIRST GULF WAR,

1744
01:06:30,757 --> 01:06:32,358
FOR EVERY HUNDRED SOLDIERS,

1745
01:06:32,392 --> 01:06:33,727
THERE WAS ONE MILITARY

1746
01:06:33,760 --> 01:06:34,695
CONTRACTOR.

1747
01:06:34,728 --> 01:06:36,563
IN 2003, AT THE BEGINNING

1748
01:06:36,597 --> 01:06:38,264
OF THE WAR IN IRAQ, FOR EVERY

1749
01:06:38,298 --> 01:06:39,866
HUNDRED SOLDIERS, THERE WERE

1750
01:06:39,900 --> 01:06:41,434
10 CONTRACTORS.

1751
01:06:41,467 --> 01:06:43,904
BY 2006, FOR EVERY HUNDRED

1752
01:06:43,937 --> 01:06:45,872
SOLDIERS, THERE WERE 33

1753
01:06:45,906 --> 01:06:47,574
CONTRACTORS.

1754
01:06:47,608 --> 01:06:49,342
A YEAR LATER, FOR EVERY

1755
01:06:49,375 --> 01:06:50,977
HUNDRED SOLDIERS, THERE WERE

1756
01:06:51,011 --> 01:06:53,046
70 CONTRACTORS.

1757
01:06:53,079 --> 01:06:55,481
BY JULY 2007, THERE WERE

1758
01:06:55,516 --> 01:06:57,117
MORE CONTRACTORS THAN SOLDIERS

1759
01:06:57,150 --> 01:06:59,052
IN IRAQ.

1760
01:06:59,085 --> 01:07:00,521
THIS WAS GOING BEYOND WHAT

1761
01:07:00,554 --> 01:07:01,788
EVEN MILTON FRIEDMAN HAD

1762
01:07:01,822 --> 01:07:04,024
DARED TO HOPE.

1763
01:07:04,057 --> 01:07:05,526
>> THE ONLY THINGS I WOULD NOT

1764
01:07:05,559 --> 01:07:06,827
DENATIONALIZE ARE THE ARMED

1765
01:07:06,860 --> 01:07:11,264
FORCES, THE COURTS, AND SOME

1766
01:07:11,297 --> 01:07:12,966
OF YOUR, AND YOUR ROADS AND

1767
01:07:12,999 --> 01:07:14,768
HIGHWAYS.

1768
01:07:14,801 --> 01:07:15,936
>> Narrator: ONE OF THE MOST

1769
01:07:15,969 --> 01:07:17,671
HIGH‐PROFILE CONTRACTORS WAS

1770
01:07:17,704 --> 01:07:20,941
BLACKWATER, U. S. A.

1771
01:07:20,974 --> 01:07:22,876
DURING THE APRIL 2004

1772
01:07:22,909 --> 01:07:24,811
UPRISING IN NAJAF,

1773
01:07:24,845 --> 01:07:26,246
BLACKWATER ASSUMED COMMAND

1774
01:07:26,279 --> 01:07:28,148
OVER U. S. MARINES.

1775
01:07:28,181 --> 01:07:29,883
DOZENS OF IRAQIS WERE KILLED

1776
01:07:29,916 --> 01:07:32,118
DURING THE OPERATION.

1777
01:07:32,152 --> 01:07:33,787
THE U. S. HAD INDEMNIFIED THE

1778
01:07:33,820 --> 01:07:35,021
PRIVATE CONTRACTORS AGAINST

1779
01:07:35,055 --> 01:07:37,323
ANY IRAQI LAWS, SO THEY WERE

1780
01:07:37,357 --> 01:07:39,192
OPERATING IN A LAW‐FREE BUBBLE,

1781
01:07:39,225 --> 01:07:40,761
A LITTLE LIKE GUANTANAMO.

1782
01:07:40,794 --> 01:07:43,096
>> Woman: I ASKED YOUR SECRETARY

1783
01:07:43,129 --> 01:07:45,131
OF DEFENSE A COUPLE MONTHS AGO

1784
01:07:45,165 --> 01:07:46,800
WHAT LAW GOVERNS THEIR ACTIONS.

1785
01:07:46,833 --> 01:07:48,101
MR. RUMSFELD...

1786
01:07:48,134 --> 01:07:49,335
>> I WAS GONNA ASK HIM.

1787
01:07:49,369 --> 01:07:50,470
GO AHEAD!

1788
01:07:50,503 --> 01:07:55,008
[LAUGHTER]

1789
01:07:55,041 --> 01:07:56,276
HELP.

1790
01:07:56,309 --> 01:07:58,512
>> WELL, I WAS HOP...[LAUGHTER]

1791
01:07:58,545 --> 01:07:59,713
>> Narrator: JUST AS CAMERON'S

1792
01:07:59,746 --> 01:08:01,481
SHOCK THERAPY LEFT HIS PATIENTS

1793
01:08:01,515 --> 01:08:03,584
CONFUSED AND BROKEN, SO THE

1794
01:08:03,617 --> 01:08:05,185
MULTIPLE SHOCKS INFLICTED ON

1795
01:08:05,218 --> 01:08:07,287
IRAQ REDUCED THE COUNTRY TO

1796
01:08:07,320 --> 01:08:08,354
A LAWLESS, VIOLENT,

1797
01:08:08,388 --> 01:08:09,923
SECTARIAN MESS.

1798
01:08:09,956 --> 01:08:14,160
[MEN SPEAKING INDISTINCTLY...]

1799
01:08:14,194 --> 01:08:15,729
BY THE TIME OF SADDAM HUSSEIN'S

1800
01:08:15,762 --> 01:08:18,832
EXECUTION IN 2006, A THOUSAND

1801
01:08:18,865 --> 01:08:20,066
IRAQIS WERE BEING KILLED

1802
01:08:20,100 --> 01:08:21,735
EACH WEEK.

1803
01:08:21,768 --> 01:08:26,973
[♪...]

1804
01:08:27,007 --> 01:08:29,776
BY APRIL 2007, THE UNITED

1805
01:08:29,810 --> 01:08:31,011
NATIONS HIGH COMMISSION FOR

1806
01:08:31,044 --> 01:08:33,346
REFUGEES ESTIMATED FOUR MILLION

1807
01:08:33,379 --> 01:08:34,648
PEOPLE HAD HAD TO LEAVE

1808
01:08:34,681 --> 01:08:35,816
THEIR HOMES.

1809
01:08:35,849 --> 01:08:36,883
HUNDREDS OF THOUSANDS

1810
01:08:36,917 --> 01:08:41,655
OF IRAQIS HAD DIED.

1811
01:08:41,688 --> 01:08:44,658
>> I THINK THE HISTORIANS WILL

1812
01:08:44,691 --> 01:08:47,360
WRITE VERY CLEARLY THAT WE DID

1813
01:08:47,393 --> 01:08:50,296
A GREAT AND NOBLE THING HERE.

1814
01:08:50,330 --> 01:08:52,265
>> [CHANTING IN FOREIGN

1815
01:08:52,298 --> 01:08:55,235
LANGUAGE...]

1816
01:09:08,214 --> 01:09:11,518
[♪...]

1817
01:09:17,290 --> 01:09:21,595
[MEN SHOUTING]

1818
01:09:21,628 --> 01:09:24,565
[TYPEWRITER CLACKING...]

1819
01:09:24,598 --> 01:09:27,367
[HELICOPTER ROTORS WHIRRING...]

1820
01:09:27,400 --> 01:09:28,268
>> Narrator: WHEN HURRICANE

1821
01:09:28,301 --> 01:09:29,703
KATRINA HIT NEW ORLEANS IN

1822
01:09:29,736 --> 01:09:32,539
AUGUST 2005, THE WORLD WAS

1823
01:09:32,573 --> 01:09:33,974
SHOCKED TO WITNESS A SORT

1824
01:09:34,007 --> 01:09:37,343
OF DISASTER APARTHEID.

1825
01:09:37,377 --> 01:09:38,745
THE ECONOMICALLY SECURE DROVE

1826
01:09:38,779 --> 01:09:40,847
OUT OF TOWN, WHILE TENS OF

1827
01:09:40,881 --> 01:09:42,282
THOUSANDS OF THE VULNERABLE WERE

1828
01:09:42,315 --> 01:09:44,217
STRANDED WITH LITTLE OR NO HELP

1829
01:09:44,250 --> 01:09:45,886
FROM THE STATE.

1830
01:09:48,789 --> 01:09:50,156
>> Klein: I WENT TO NEW ORLEANS

1831
01:09:50,190 --> 01:09:51,257
WHILE THE CITY WAS STILL

1832
01:09:51,291 --> 01:09:53,126
UNDERWATER, AND WHAT I SAW WAS

1833
01:09:53,159 --> 01:09:54,728
THAT WHAT I HAD WITNESSED IN

1834
01:09:54,761 --> 01:09:56,296
IRAQ WAS REPEATING NOT IN THE

1835
01:09:56,329 --> 01:09:57,831
AFTERMATH OF A WAR BUT IN THE

1836
01:09:57,864 --> 01:09:59,600
AFTERMATH OF A TREMENDOUS

1837
01:09:59,633 --> 01:10:01,902
NATURAL DISASTER.

1838
01:10:01,935 --> 01:10:03,469
MILTON FRIEDMAN DIED IN,

1839
01:10:03,503 --> 01:10:05,506
IN 2006.

1840
01:10:05,539 --> 01:10:08,008
HIS VERY LAST PIECE OF PUBLIC

1841
01:10:08,041 --> 01:10:09,876
POLICY RECOMMENDATION WAS AN

1842
01:10:09,910 --> 01:10:10,844
OP‐ED HE WROTE FOR

1843
01:10:10,877 --> 01:10:11,512
THE WALL

1844
01:10:11,545 --> 01:10:12,779
<i>STREET JOURNAL THREE MONTHS</i>

1845
01:10:12,813 --> 01:10:14,380
AFTER KATRINA.

1846
01:10:14,414 --> 01:10:15,982
HE SAID, "MOST NEW ORLEANS

1847
01:10:16,016 --> 01:10:17,751
SCHOOLS ARE IN RUINS, AS ARE THE

1848
01:10:17,784 --> 01:10:19,385
HOMES OF CHILDREN WHO ATTEND,

1849
01:10:19,419 --> 01:10:20,787
WHO HAVE ATTENDED THEM.

1850
01:10:20,821 --> 01:10:21,955
THE CHILDREN ARE NOW SCATTERED

1851
01:10:21,988 --> 01:10:23,223
ALL OVER THE COUNTRY.

1852
01:10:23,256 --> 01:10:24,525
THIS IS A TRAGEDY.

1853
01:10:24,558 --> 01:10:26,092
IT IS ALSO AN OPPORTUNITY

1854
01:10:26,126 --> 01:10:27,460
TO RADICALLY REFORM THE

1855
01:10:27,493 --> 01:10:28,762
EDUCATION SYSTEM."

1856
01:10:28,795 --> 01:10:30,764
HE WAS ADVOCATING THE WHOLESALE

1857
01:10:30,797 --> 01:10:32,065
PRIVATIZATION OF THE SCHOOL

1858
01:10:32,098 --> 01:10:33,033
SYSTEM OF THIS CITY.

1859
01:10:33,066 --> 01:10:37,604
IT WAS HIS SORT OF SWAN SONG.

1860
01:10:37,638 --> 01:10:38,872
[MAN SPEAKING FOREIGN

1861
01:10:38,905 --> 01:10:42,075
LANGUAGE, WOMAN SCREAMING...]

1862
01:10:45,278 --> 01:10:47,047
I'D WITNESSED A SIMILAR PROCESS

1863
01:10:47,080 --> 01:10:48,782
IN SRI LANKA IN THE AFTERMATH

1864
01:10:48,815 --> 01:10:53,486
OF THE 2004 TSUNAMI.

1865
01:10:53,520 --> 01:10:54,487
PEOPLE WHO'D LIVED ON THE

1866
01:10:54,521 --> 01:10:55,956
BEACHES FOR GENERATIONS WERE

1867
01:10:55,989 --> 01:10:57,958
PREVENTED FROM RETURNING SO THAT

1868
01:10:57,991 --> 01:10:59,760
THE LAND COULD BE PRIVATIZED AND

1869
01:10:59,793 --> 01:11:02,596
SOLD OFF TO LUXURY HOTELS.

1870
01:11:02,629 --> 01:11:04,297
[GROUP SPEAKING

1871
01:11:04,330 --> 01:11:07,868
FOREIGN LANGUAGE...]

1872
01:11:07,901 --> 01:11:09,502
AND THIS IS EXACTLY WHAT I

1873
01:11:09,536 --> 01:11:11,071
MEAN BY THE SHOCK DOCTRINE‐‐

1874
01:11:11,104 --> 01:11:13,640
THE SYSTEMATIC RAIDING OF THE

1875
01:11:13,674 --> 01:11:15,676
PUBLIC SPHERE IN THE AFTERMATH

1876
01:11:15,709 --> 01:11:17,844
OF A DISASTER, WHEN PEOPLE ARE

1877
01:11:17,878 --> 01:11:20,413
TOO FOCUSED ON THE EMERGENCY,

1878
01:11:20,446 --> 01:11:22,115
ON THEIR DAILY CONCERNS,

1879
01:11:22,148 --> 01:11:24,217
TO PROTECT THEIR INTERESTS.

1880
01:11:24,250 --> 01:11:26,987
[♪...]

1881
01:11:34,828 --> 01:11:35,762
>> Narrator: MAYBE THE FIRST

1882
01:11:35,796 --> 01:11:37,998
ACT OF RESISTANCE IS TO REFUSE

1883
01:11:38,031 --> 01:11:39,700
TO ALLOW OUR COLLECTIVE MEMORY

1884
01:11:39,733 --> 01:11:42,669
TO BE WIPED.

1885
01:11:42,703 --> 01:11:45,606
IN 2008, NAOMI KLEIN VISITED

1886
01:11:45,639 --> 01:11:46,973
VILLA GRIMALDI WITH ISABEL

1887
01:11:47,007 --> 01:11:49,109
MOREL, THE WIDOW OF ORLANDO

1888
01:11:49,142 --> 01:11:52,412
LETELIER.

1889
01:11:52,445 --> 01:11:53,580
VILLA GRIMALDI IS

1890
01:11:53,614 --> 01:11:54,915
A MEMORIAL TO THE CRUELTY

1891
01:11:54,948 --> 01:11:56,883
OF THE PINOCHET REGIME AND

1892
01:11:56,917 --> 01:11:58,418
TO ITS EVENTUAL DEFEAT.

1893
01:11:58,451 --> 01:11:59,986
>> [SPEAKING SPANISH...]

1894
01:12:24,778 --> 01:12:27,548
>> IT'S NOT THAT I LOVED

1895
01:12:27,581 --> 01:12:32,352
PINOCHET, BUT I THINK THAT HE

1896
01:12:32,385 --> 01:12:36,022
WAS OUR TEACHER IN MANY THINGS.

1897
01:12:36,056 --> 01:12:37,858
WE LEARNED ABOUT EVIL.

1898
01:12:37,891 --> 01:12:45,365
[♪...]

1899
01:12:45,398 --> 01:12:46,833
>> Narrator: IN 1998,

1900
01:12:46,867 --> 01:12:48,368
PINOCHET WAS ARRESTED WHILE

1901
01:12:48,401 --> 01:12:50,503
HE WAS IN LONDON.

1902
01:12:50,537 --> 01:12:52,038
HIS OLD ALLY, MARGARET THATCHER,

1903
01:12:52,072 --> 01:12:55,341
STOOD BY HIS SIDE.

1904
01:12:55,375 --> 01:12:58,011
>> I KNOW HOW MUCH

1905
01:12:58,044 --> 01:13:02,749
WE OWE TO YOU.

1906
01:13:02,783 --> 01:13:04,985
[CROWD CHANTING...]

1907
01:13:05,018 --> 01:13:06,152
>> Narrator: IT TOOK 30 YEARS

1908
01:13:06,186 --> 01:13:07,754
FOR THE ECONOMIC EXPERIMENT

1909
01:13:07,788 --> 01:13:09,089
ORIGINALLY TEST‐DRIVEN BY

1910
01:13:09,122 --> 01:13:10,824
PINOCHET TO MAKE ITS WAY

1911
01:13:10,857 --> 01:13:13,393
AROUND THE GLOBE TO IRAQ,

1912
01:13:13,426 --> 01:13:14,828
BUT THE SIMILARITIES BETWEEN

1913
01:13:14,861 --> 01:13:18,164
PAST AND PRESENT ARE STARTLING:

1914
01:13:18,198 --> 01:13:20,033
BETWEEN PINOCHET'S CONCENTRATION

1915
01:13:20,066 --> 01:13:22,368
CAMPS AND BUSH'S GUANTANAMO

1916
01:13:22,402 --> 01:13:25,539
DETENTION CENTER...

1917
01:13:25,572 --> 01:13:27,808
BETWEEN THE DISAPPEARED IN CHILE

1918
01:13:27,841 --> 01:13:31,211
AND THOSE IN IRAQ...

1919
01:13:31,244 --> 01:13:32,779
BETWEEN THE EXPERIMENTS

1920
01:13:32,813 --> 01:13:34,781
OF EWEN CAMERON AND THE TORTURE

1921
01:13:34,815 --> 01:13:36,316
METED OUT ON THE PRISONERS

1922
01:13:36,349 --> 01:13:37,551
OF ABU GHRAIB.

1923
01:13:37,584 --> 01:13:38,519
>> THESE ARE THE DAYS

1924
01:13:38,552 --> 01:13:39,653
AND HOURS...

1925
01:13:39,686 --> 01:13:42,122
>> HE ERASED ALL THE PAST‐‐

1926
01:13:42,155 --> 01:13:43,189
THAT'S WHY HE GAVE

1927
01:13:43,223 --> 01:13:45,892
ELECTROSHOCKS‐‐ ALL THE PAST

1928
01:13:45,926 --> 01:13:47,694
FROM THE PATIENT, AND HE WOULD

1929
01:13:47,728 --> 01:13:51,431
IMPLANT SOME NEW IDEAS.

1930
01:13:51,464 --> 01:13:52,533
>> Narrator: BUT JANINE

1931
01:13:52,566 --> 01:13:53,534
RESISTED.

1932
01:13:53,567 --> 01:13:56,202
IN 1988, THE C. I. A. AGREED TO

1933
01:13:56,236 --> 01:13:57,971
PAY COMPENSATION TO JANINE AND

1934
01:13:58,004 --> 01:13:59,640
OTHER VICTIMS OF EWEN CAMERON'S

1935
01:13:59,673 --> 01:14:03,009
EXPERIMENTS.

1936
01:14:03,043 --> 01:14:04,410
>> Klein: JANINE, ARE YOU PROUD

1937
01:14:04,444 --> 01:14:07,247
THAT THEY TRIED TO BREAK YOU

1938
01:14:07,280 --> 01:14:10,617
AND THAT YOU HAVE FOUGHT SO HARD

1939
01:14:10,651 --> 01:14:12,686
AND WON?

1940
01:14:12,719 --> 01:14:14,588
>> IN A WAY, I AM.

1941
01:14:14,621 --> 01:14:17,357
IN A WAY, I AM.

1942
01:14:17,390 --> 01:14:19,826
BECAUSE I MUST HAVE SOME

1943
01:14:19,860 --> 01:14:22,162
WILLPOWER SEEDS IN ME!

1944
01:14:22,195 --> 01:14:24,030
[LAUGHS]

1945
01:14:24,064 --> 01:14:26,667
IT IS VERY, VERY HARD TO FIGHT

1946
01:14:26,700 --> 01:14:27,834
A GOVERNMENT.

1947
01:14:27,868 --> 01:14:30,136
PEOPLE WOULD TELL ME, "JANINE,

1948
01:14:30,170 --> 01:14:31,471
YOU DON'T FIGHT A GOVERNMENT.

1949
01:14:31,505 --> 01:14:32,739
WHAT'S THE MATTER WITH YOU?

1950
01:14:32,773 --> 01:14:34,274
THEY'RE TOO BIG."

1951
01:14:34,307 --> 01:14:35,842
BUT I HAD FAITH THAT

1952
01:14:35,876 --> 01:14:38,044
WE WOULD WIN.

1953
01:14:38,078 --> 01:14:41,181
[TYPEWRITER CLACKING...]

1954
01:14:41,214 --> 01:14:43,750
[♪...]

1955
01:14:43,784 --> 01:14:45,018
>> Narrator: IT IS IN THE NATURE

1956
01:14:45,051 --> 01:14:46,452
OF UNREGULATED MARKETS

1957
01:14:46,486 --> 01:14:47,821
TO BE VOLATILE.

1958
01:14:47,854 --> 01:14:49,756
BUBBLES ARE ALLOWED TO INFLATE,

1959
01:14:49,790 --> 01:14:53,126
AND THEN INEVITABLY THEY BURST.

1960
01:14:53,159 --> 01:14:54,528
SINCE THE DEREGULATION OF THE

1961
01:14:54,561 --> 01:14:56,162
BIG BANG IN THE '80s, THERE HAVE

1962
01:14:56,196 --> 01:14:59,700
BEEN A NUMBER OF MARKET SHOCKS.

1963
01:14:59,733 --> 01:15:03,770
IN 1987, THERE WAS BLACK MONDAY.

1964
01:15:03,804 --> 01:15:06,607
MARKETS FELL SPECTACULARLY.

1965
01:15:06,640 --> 01:15:08,074
IT WAS THE LARGEST ONE‐DAY

1966
01:15:08,108 --> 01:15:09,442
PERCENTAGE DECLINE IN STOCK

1967
01:15:09,475 --> 01:15:12,813
MARKET HISTORY.

1968
01:15:12,846 --> 01:15:15,015
IN 1992, THERE WAS BLACK

1969
01:15:15,048 --> 01:15:16,617
WEDNESDAY, WHEN CURRENCY

1970
01:15:16,650 --> 01:15:18,184
SPECULATORS MADE FORTUNES

1971
01:15:18,218 --> 01:15:21,522
BETTING AGAINST THE POUND.

1972
01:15:21,555 --> 01:15:23,356
IN 1997, THERE WAS

1973
01:15:23,389 --> 01:15:26,527
THE ASIAN CONTAGION.

1974
01:15:26,560 --> 01:15:28,695
IN ONE YEAR, $600 BILLION

1975
01:15:28,729 --> 01:15:29,963
DISAPPEARED FROM THE STOCK

1976
01:15:29,996 --> 01:15:37,738
MARKETS OF ASIA.

1977
01:15:37,771 --> 01:15:40,874
AND THEN, IN SEPTEMBER 2008,

1978
01:15:40,907 --> 01:15:44,711
THE FINANCIAL MARKETS IMPLODED.

1979
01:15:44,745 --> 01:15:45,946
>> THE MARKET IS NOT

1980
01:15:45,979 --> 01:15:47,380
FUNCTIONING PROPERLY.

1981
01:15:47,413 --> 01:15:49,015
THERE'S BEEN A WIDESPREAD LOSS

1982
01:15:49,049 --> 01:15:50,684
OF CONFIDENCE.

1983
01:15:50,717 --> 01:15:54,855
[♪...]

1984
01:15:56,857 --> 01:15:59,826
[STOCK BELL RINGING]

1985
01:15:59,860 --> 01:16:00,861
>> Narrator: ON SEPTEMBER

1986
01:16:00,894 --> 01:16:03,096
THE 15th, LEHMAN BROTHERS FILED

1987
01:16:03,129 --> 01:16:04,565
FOR CHAPTER 11 BANKRUPTCY

1988
01:16:04,598 --> 01:16:06,399
PROTECTION.

1989
01:16:06,432 --> 01:16:08,368
YET ONLY ONE WEEK LATER, IT WAS

1990
01:16:08,401 --> 01:16:09,736
ANNOUNCED THAT WORKERS AT THEIR

1991
01:16:09,770 --> 01:16:11,437
NEW YORK OFFICE WOULD SHARE

1992
01:16:11,471 --> 01:16:12,706
TWO AND A HALF BILLION DOLLARS

1993
01:16:12,739 --> 01:16:17,110
IN BONUSES.

1994
01:16:17,143 --> 01:16:18,745
IT IS ESTIMATED THAT WALL STREET

1995
01:16:18,779 --> 01:16:21,281
FIRMS PAID $18.4 BILLION

1996
01:16:21,314 --> 01:16:23,183
IN BONUSES LAST YEAR, THE YEAR

1997
01:16:23,216 --> 01:16:24,518
OF THE CRASH.

1998
01:16:24,551 --> 01:16:27,721
[STOCK BELL RINGING]

1999
01:16:27,754 --> 01:16:28,922
>> DESPITE THE TORRENT OF

2000
01:16:28,955 --> 01:16:30,423
POPULIST RHETORIC ABOUT TAKING

2001
01:16:30,456 --> 01:16:32,092
ON THE FAT CATS AND STANDING UP

2002
01:16:32,125 --> 01:16:33,627
FOR THE LITTLE GUY AND SAVING

2003
01:16:33,660 --> 01:16:36,697
MAIN STREET, NOT WALL STREET,

2004
01:16:36,730 --> 01:16:39,065
WE ARE WITNESSING A TRANSFER

2005
01:16:39,099 --> 01:16:43,003
OF WEALTH OF UNFATHOMABLE SIZE.

2006
01:16:43,036 --> 01:16:44,938
IT IS A TRANSFER OF WEALTH FROM

2007
01:16:44,971 --> 01:16:46,607
PUBLIC HANDS, FROM THE HANDS OF

2008
01:16:46,640 --> 01:16:48,374
GOVERNMENT, COLLECTED FROM

2009
01:16:48,408 --> 01:16:50,243
REGULAR PEOPLE IN THE FORM OF

2010
01:16:50,276 --> 01:16:53,213
TAXES, INTO THE HANDS OF THE

2011
01:16:53,246 --> 01:16:54,848
WEALTHIEST CORPORATIONS AND

2012
01:16:54,881 --> 01:16:56,683
INDIVIDUALS IN THE WORLD,

2013
01:16:56,717 --> 01:16:58,552
NEEDLESS TO SAY, THE VERY

2014
01:16:58,585 --> 01:17:00,453
INDIVIDUALS AND CORPORATIONS

2015
01:17:00,486 --> 01:17:02,756
THAT CREATED THIS CRISIS.

2016
01:17:02,789 --> 01:17:05,491
[♪...]

2017
01:17:05,526 --> 01:17:06,827
>> Man: WE ARE IN THE MIDST

2018
01:17:06,860 --> 01:17:08,629
OF A ONCE‐IN‐A‐CENTURY

2019
01:17:08,662 --> 01:17:10,196
CREDIT TSUNAMI.

2020
01:17:10,230 --> 01:17:12,098
I'VE FOUND A FLAW.

2021
01:17:12,132 --> 01:17:13,900
I DON'T KNOW HOW SIGNIFICANT OR

2022
01:17:13,934 --> 01:17:16,102
PERMANENT IT IS, BUT I'VE BEEN

2023
01:17:16,136 --> 01:17:18,539
VERY DISTRESSED BY THAT FACT.

2024
01:17:18,572 --> 01:17:20,641
[CROWD CHEERING...]

2025
01:17:20,674 --> 01:17:21,775
>> Narrator: IN THE UNITED

2026
01:17:21,808 --> 01:17:23,376
STATES, IT WAS THE FINANCIAL

2027
01:17:23,409 --> 01:17:25,211
CRISIS THAT SECURED OBAMA'S

2028
01:17:25,245 --> 01:17:26,346
VICTORY.

2029
01:17:26,379 --> 01:17:27,548
AMERICANS WANTED TO

2030
01:17:27,581 --> 01:17:31,351
CHANGE COURSE.

2031
01:17:31,384 --> 01:17:37,490
>> Obama: HELLO, CHICAGO!

2032
01:17:37,524 --> 01:17:39,059
>> THIS CRISIS IS CLEARLY

2033
01:17:39,092 --> 01:17:41,895
UNDERSTOOD BY ALMOST EVERYONE

2034
01:17:41,928 --> 01:17:44,565
AS BEING THE DIRECT RESULT OF

2035
01:17:44,598 --> 01:17:46,667
THIS PARTICULAR IDEOLOGY OF

2036
01:17:46,700 --> 01:17:51,437
DEREGULATION AND PRIVATIZATION.

2037
01:17:51,471 --> 01:17:52,472
>> Narrator: THE SCALE OF

2038
01:17:52,506 --> 01:17:54,007
THE CRISIS OFFERS THE HOPE

2039
01:17:54,040 --> 01:17:55,375
OF CHANGE.

2040
01:17:55,408 --> 01:17:58,344
[CROWD CHANTING]

2041
01:17:58,378 --> 01:17:59,646
>> Klein: THE SHOCK DOCTRINE

2042
01:17:59,680 --> 01:18:02,148
AS A STRATEGY RELIES ON US NOT

2043
01:18:02,182 --> 01:18:04,084
KNOWING ABOUT IT FOR IT TO WORK,

2044
01:18:04,117 --> 01:18:06,352
AND WHAT I FIND MOST HOPEFUL

2045
01:18:06,386 --> 01:18:07,688
ABOUT THE CURRENT ECONOMIC

2046
01:18:07,721 --> 01:18:09,690
CRISIS IS THAT THIS TACTIC IS

2047
01:18:09,723 --> 01:18:11,324
GETTING TIRED, BECAUSE THAT

2048
01:18:11,357 --> 01:18:12,993
ELEMENT OF SURPRISE IS NO

2049
01:18:13,026 --> 01:18:13,760
LONGER THERE.

2050
01:18:13,794 --> 01:18:15,161
WE'RE ON TO THEM AND IT'S

2051
01:18:15,195 --> 01:18:16,329
NOT WORKING.

2052
01:18:16,362 --> 01:18:21,935
WE'RE BECOMING SHOCK‐RESISTANT.

2053
01:18:21,968 --> 01:18:22,969
>> Narrator: THE LAST TIME

2054
01:18:23,003 --> 01:18:24,170
THE WORLD SUFFERED A FINANCIAL

2055
01:18:24,204 --> 01:18:26,540
CRISIS AS SEVERE AS THIS, PEOPLE

2056
01:18:26,573 --> 01:18:28,241
TURNED TO THE KEYNESIAN POLICIES

2057
01:18:28,274 --> 01:18:29,175
OF THE NEW DEAL.

2058
01:18:29,209 --> 01:18:30,310
>> Roosevelt: LET ME ASSERT MY

2059
01:18:30,343 --> 01:18:33,547
FIRM BELIEF THAT THE ONLY THING

2060
01:18:33,580 --> 01:18:36,683
WE HAVE TO FEAR IS...

2061
01:18:36,717 --> 01:18:39,820
FEAR ITSELF.

2062
01:18:39,853 --> 01:18:40,954
>> Narrator: MORE THAN A MILLION

2063
01:18:40,987 --> 01:18:42,422
PEOPLE CAME TO WASHINGTON

2064
01:18:42,455 --> 01:18:44,290
TO HEAR OBAMA'S INAUGURATION

2065
01:18:44,324 --> 01:18:45,291
SPEECH.

2066
01:18:45,325 --> 01:18:46,459
MANY JOURNALISTS MADE

2067
01:18:46,492 --> 01:18:48,128
COMPARISONS WITH F. D. R.

2068
01:18:48,161 --> 01:18:52,699
[FIREWORKS, CHEERING]

2069
01:18:52,733 --> 01:18:54,768
>> NOW, THERE'S BEEN A LOT OF

2070
01:18:54,801 --> 01:18:57,337
TALK RECENTLY ABOUT COMPARING

2071
01:18:57,370 --> 01:18:59,039
OBAMA TO FRANKLIN DELANO

2072
01:18:59,072 --> 01:19:00,106
ROOSEVELT.

2073
01:19:00,140 --> 01:19:01,775
SO I WANT TO TALK A LITTLE BIT

2074
01:19:01,808 --> 01:19:03,309
ABOUT F. D. R., BECAUSE THERE'S A

2075
01:19:03,343 --> 01:19:05,311
GREAT F. D. R. STORY, AND IT COULD

2076
01:19:05,345 --> 01:19:08,481
BE AN APOCRYPHAL ONE, ABOUT WHEN

2077
01:19:08,515 --> 01:19:11,585
HE WOULD BE VISITED BY SOME

2078
01:19:11,618 --> 01:19:13,386
PROGRESSIVE ORGANIZATION

2079
01:19:13,419 --> 01:19:15,656
OR A UNION AND IT WOULD BE

2080
01:19:15,689 --> 01:19:17,423
PROPOSING SOME NEW PROGRESSIVE

2081
01:19:17,457 --> 01:19:18,992
POLICY THAT THEY WANTED TO BE

2082
01:19:19,025 --> 01:19:20,594
PART OF THE NEW DEAL, AND HE

2083
01:19:20,627 --> 01:19:22,128
WOULD HEAR THEM OUT AND HE WOULD

2084
01:19:22,162 --> 01:19:23,597
LISTEN TO THEM, AND THEN AT THE

2085
01:19:23,630 --> 01:19:25,465
END HE WOULD SAY, "NOW GO OUT

2086
01:19:25,498 --> 01:19:28,669
THERE AND MAKE ME DO IT."

2087
01:19:28,702 --> 01:19:30,236
AND THEY DID.

2088
01:19:30,270 --> 01:19:32,506
IN 1937, WHICH WAS A PIVOTAL

2089
01:19:32,539 --> 01:19:33,974
YEAR FOR THE NEW DEAL, DO YOU

2090
01:19:34,007 --> 01:19:35,175
KNOW HOW MANY STRIKES THERE

2091
01:19:35,208 --> 01:19:36,777
WERE IN THIS COUNTRY?

2092
01:19:36,810 --> 01:19:39,946
4,740 STRIKES LASTING

2093
01:19:39,980 --> 01:19:41,548
AN AVERAGE OF 20 DAYS.

2094
01:19:41,582 --> 01:19:44,651
[APPLAUSE]

2095
01:19:44,685 --> 01:19:45,852
DO YOU KNOW HOW MANY STRIKES

2096
01:19:45,886 --> 01:19:47,621
THERE WERE IN 2007?

2097
01:19:47,654 --> 01:19:48,989
>> Man in audience: TWO.

2098
01:19:49,022 --> 01:19:50,557
>> 21. [LIGHT LAUGHTER]

2099
01:19:50,591 --> 01:19:52,025
NOW, THE OTHER REASON TO

2100
01:19:52,058 --> 01:19:53,894
REMEMBER THIS HISTORY OF

2101
01:19:53,927 --> 01:19:55,929
STRUGGLE IS THAT IT TELLS US

2102
01:19:55,962 --> 01:19:57,430
SOMETHING VERY IMPORTANT,

2103
01:19:57,463 --> 01:19:58,599
SOMETHING THAT WE NEED TO

2104
01:19:58,632 --> 01:20:00,667
REMEMBER AT THIS MOMENT WHEN

2105
01:20:00,701 --> 01:20:02,936
SO MUCH IS AT STAKE.

2106
01:20:02,969 --> 01:20:05,238
IT TEACHES US THAT IF WE WANT

2107
01:20:05,271 --> 01:20:07,407
RESPONSES TO THIS ECONOMIC

2108
01:20:07,440 --> 01:20:10,010
CRISIS THAT LEAVE US WITH A

2109
01:20:10,043 --> 01:20:11,712
WORLD THAT IS HEALTHIER,

2110
01:20:11,745 --> 01:20:13,479
THAT IS MORE JUST, THAT IS

2111
01:20:13,514 --> 01:20:15,649
MORE PEACEFUL, WE ARE GONNA

2112
01:20:15,682 --> 01:20:17,618
HAVE TO GO OUT THERE AND MAKE

2113
01:20:17,651 --> 01:20:18,619
THEM DO IT.

2114
01:20:18,652 --> 01:20:20,253
THANK YOU.

2115
01:20:20,286 --> 01:20:24,124
[APPLAUSE]

2116
01:20:24,157 --> 01:20:26,960
[MEN CHANTING INDISTINCTLY...]

2117
01:20:32,198 --> 01:20:35,001
[RHYTHMIC CLAPPING...]

2118
01:20:52,853 --> 01:20:57,991
[PEOPLE CHANTING "REVOLUTION"]

2119
01:20:58,024 --> 01:21:01,227
[PEOPLE CHEERING, WHISTLING...]

2120
01:21:18,378 --> 01:21:22,348
[♪..., CHEERING...]

2121
01:21:29,523 --> 01:21:34,595
[PEOPLE CHANTING "REVOLUTION"]

2122
01:21:34,628 --> 01:21:38,732
[♪..., CHEERING...]

2123
01:21:56,850 --> 01:21:59,653
[MUSIC FADES]