all. well for british soil it's time to. go. to. market why not. find out what's really happening to the global economy is a report on our. history a traditionally democratic or republican issue but rather. issue of american national security and i hopeful that we can get that done. barack obama

referred to his commitment to survive to find a new strategic arms reduction treaty with russia despite his policy losing influence in congress the reassurance comes up production in norway has raised concerns that the outcome of the u.s. make time elections might impact its rest. and multimillion dollar contracts to supply fuel to the u.s. and basically just on get the great green light regardless of an ongoing investigation of junctions from the president there are sad faces by the glass and forced to suppose most corporations and i'm gonna start. a debate that's raging in germany at a t.v. show which she's a secret the film had to pay to expose internet paedophiles critics say the program floods the way in pursuit of parental rights. headlines up next to marc's cars and co-host stacy habit look at the case of a u.s. credit company accused of setting up a fake court and judge to fools debtors to pay up that's in the kaiser report in

just a. max times are and this is the kaiser report you know back in the one nine hundred sixty s. they used to say question. now nobody questions anybody's authority let's talk to stacy remember to get more details days in a very complex way you can see this in the first headline fake judges use fake deputies to collect fake debts and fake courts that's right the attorney general of

pennsylvania is suing unicredit america incorporated for allegedly using civil subpoenas to summon consumers to a fake courtroom which allegedly contained furniture and decorations similar to those use an actual court offices including a raised bench area where a fake judge would be seated two tables and chairs in front of the bench for attorneys and defendants a simulated witness stand and seating for spectators and legal books on the book shelves it was all fake in order to put the fear of god in the bad debtors who they were trying to collect debt from and these people were assuming these are real judges handed over basically keys to their houses and told this debt collection agency to go into their house and go take assets from them in a credit is just a fake company the part of the fake economy banks writing fake mortgages and then

engaging in fake foreclosure notices. is securitizing fake securities into fake collateralized mortgage obligations sold to fake hedge funds who trade these things back and forth for huge bonuses that's where the money comes down they actually pay themselves huge bonuses until such time as they make a mistake and then they get the federal government to swap and cash in the fake money for u.s. dollars which of course that's a fear of currency that's also fake money and the rich people in the world are not foolish of course they're using all this fake money to buy gold and so many what's what's what's what tell us more tell us more well the interesting thing about this is if you could apply this little story to the entire global basically credit crunch and debt collapse the headline remains angela merkel confines ireland portugal and spain to their fate. so the article is talking about germany has had

enough they don't want to bail out any more bad debtors in the future so they're changing the lisbon treaty to basically provide for a bailout fund but one which angela merkel says we must keep in mind the feelings of our people who have a justified desire to see that private investors are also on the hook and not just taxpayers yeah she has a feeling she's saying that the the population have has feelings about this not a legitimate right that it shouldn't have happened in the first place and then you can see further in this the actual vendor from the bundesbank says regarding this next time there is a problem bondholders should be part of the solution rather than the problem so far the only ones who have paid for the solution are the tax payers again this is like a fake court the reason why the taxpayers are guilty of the bad debts is because the bondholders went to these organizations like the european central bank or the

i.m.f. and they forced these debts onto the citizens of these countries without any real trial so more and more politicians are deferring to these. global institutions that don't really exist on the charter the i.m.f. and the world bank don't don't have a charter to collect debts from individuals in greece or in ireland or anywhere else but they're the people in these countries are saying whoa they are miffed told us to collect the debt standard of the charge collect these debts you know well they showed up like this first story from erie pennsylvania where you know credit showed up with a guy dressed as a sheriff brought them to a fake courtroom where a guy was dressed in robes but who gave them the authority nobody but who gave the i.m.f. and the european central bank and the new york fed to collect the debts basically from the populations of these nations around the world this is a reverse santa claus somebody dresses up like a guy who gives away gifts. but that's fake there are so many dresses up like

a court room to take away stuff but that's fake as well in this article talking about the european debt crisis they put into context they look at for example the greek rescue package which quote allows banks and funds to shift roughly one hundred fifty billion euros of liabilities onto e.u. governments or the european central bank or the i.m.f. greek citizens are being subjected to the full pain of a stared under false pretenses without being offered the cure of debt relief and that's the thing that's important thing here is that the greek citizens in this case they're highlighting was not offered the cure of debt relief just like the people in pennsylvania they do have the cure of debt relief but because these guys are dressing up as fake authority and law enforcement they're able to force these people to give them debts that they don't have to pay right and as you pointed out earlier as far as the bond market goes in the bondholders there are training these

bonds back and forth claiming they're worth one hundred cents on the dollar like the fed when they are going to go down this path of what they call quantitative easing they're going to take another one or two trillion dollars worth more of mortgage backed securities that are collateralized by ghosts who live in haunted houses in trailer parks somewhere in towns that don't exist with nonexistent judges and trade those for hundred cents on the dollar and of course pay themselves bonuses based on training center securities with each other so the bondholders of course are playing an economics arena which is completely nonexistent but they're paying themselves huge days at the end of the year they've they're the real santa clause they get fees based on training phantom securities but everyone else gets a big lump of coal but not totally more coal is more of value now with the commodity prices skyrocketing they get virtual coal they get virtual coal. all the burn in their virtual farm bills in the virtual online environment well to go

further on these european austerity measures the debt crisis and the bondholders who refuse to go away ireland greece debt woes refers sovereign debt swaps rally so swaps on arlen soared to four hundred seventy four basis points from four hundred twenty eight as recently as october twenty second as the government became locked in a standoff with anglo irish bank no holders over who should bear the cost of rescuing the nationalized lender now remember this isn't a lender that was lending to the citizens of ireland it was a lender who is lending to these big corporations bondholders include goldman sachs whose chairman and europe is peter sagal and the former attorney general of ireland who has been visiting brian lenihan the finance minister of ireland so these bond holders are able to go directly to the government and say you know basically we don't know what they're saying behind closed doors really only bob you sense it

opened a bag. of the iraq would've been a lot more successful like anglo irish bank they would have been more successful shaking down these governments and they opened a bank so there's irish banking terrorists there is a pot of gold at the end of their rainbow but everyone else now is getting beat upside the head with a show lately stick of debt one of these programs they're imposing on these poor irish people for what so who is a guy rosebank in two weeks of names or who is john fitzpatrick i know he's involved in one of these one of these financial irish terrorist schemes how come he's not the many who were next to the cell were bobby sunset how come these bankers from ireland in the. suffering through. punishment from the state for big financial terrorism laili stick wielding nightmarish little green goblins why well the article goes on and says that alan dukes the chairman of the bank said he wouldn't negotiate with creditors who. pledged to block a proposed debt exchange that will impose almost two billion of us what is lumbered

what he won't want to go she what i mean i'll let them go should on the ball the economy. that's again these suicide banker i'm going i'm jealous of enough being in that they're not. well the reality is max as we've been talking about for the previous few minutes is that this guy's leverage is he has a fake judge and a fake sheriff who has held up the population who has convinced the population of ireland that they're the ones that have to hand over their assets to pay off these other guy's debts he has a fake sheriff right there on his side that's right they have no authority and sheriff has no authority whatsoever to impose these austerity measures that alarmed irish people submitting to a fake authority question authority to any question authority for the acute quantitative easing think about q. and a question authority they've got no authority to impose austerity measures on you irish people don't you understand potatoes through my friends one of course the

difference between. this national situation for ireland and what happened in erie pennsylvania is midterm elections in the us so the attorney general of pennsylvania is now running for governor so he's he's obviously up for election and is thus pursuing the fake sheriff in the fake judge but with the case of ireland there is an elected officials and nobody alexy i.m.f. they are not subject to these votes most of the protests going on i believe in the summer or early part of the summer and there's a big march on the call to do it all the doyle or the doorbell or element or some of the dole that's mostly on purpose well and then the final headline goes to the heart of this whole fabric to the heart of it of corruption you still all of that story see the bank of england head mervyn king proposes eliminating fractional reserve banking. what so this is actually what the this is that the buttonwood

conference in new york just recently and mervyn king said eliminating fractional reserve banking explicitly only recognizes that the pretense that risk free deposits can be supported by risk assets is alchemy if there is a need for genuinely safe deposits the only way they can be provided while ensuring costs and benefits are fully aligned is to insist such deposits do not co-exist with risky assets and it's clear out to me the whole the whole phantasmagorical nonsense called the fractional reserve banking model support of the currency and phantom judges adds up to one big goose egg and that's lorded over a sense of judges with no authority anyone is being victimized by these austerity measures has the option at this moment to opt out don't pay the credit card debt don't pay the mortgage debt don't pay any of these debts because they were fraudulent and know who the thirty's trying to impose them upon you and the only reason you would pay into these debts is because you're a glutton for punishment well and of course finally on that all say max that we've

been talking about fake judges and you could say the head of the central banks have been fake judges because they've been operating since the one nine hundred seventy s. under the pretense that they provide a gold standard and now we've found out that actually there are fake gold standard they are not a real gold standard as we see with this ever increasing amounts of quantitative easing and money being printed into the economy learning jang the ghost of christmas future rattling around central banks since december thanks so much for being on the cars are important thank you max don't go away when we come back we're going to ireland to speak with david mcwilliams.

the close up team has featured. claire russia's first free elections were held up thousand years ago. no party goes to the area that used to be a place of exile since the seventeenth century. where businesses take advantage of the wild growing products. more rich academic life gives birth to the innovative idea to come to the tomsk region crusher close up on r.g.p. . news today violence is once again flared up. these are the images the world has

been seeing from the streets of canada. china corporations are today. oh a cell phones would be useless without this mineral. a tiny piece is needed to make them work but every piece of coltan is extracted at a cost to human life. going back to the cars are a part time now to go out to dublin to talk with author blogger economist david mcwilliams david will soon be hosting kilt canonic so ireland's first ever

economics festival in my for announcing that correctly david you are absolutely max it's in the medieval town of kilkenny which used to be the capital of art and many many years ago and what we're doing is something quite different bikes were actually bringing colonists both from international law go through the list in a minute out of local economists were bringing stud of comedians in to discuss so it's a kind of a milton friedman meets kind of lenny bruce tulgan age for the weekend of the eleventh twelfth thirteenth and fourteenth november all right well some would argue of course that ben bernanke and his presser alan greenspan who are basically comedians dressed up as economists now these are economists now coming forward with some straight at comedy now i did acknowledge to talk about the economy for a second you're right on your block who will invest in a country that being ireland with an obvious debt the way how unwise ireland committing nation aside what we have at the moment max said this morning our bond yields were almost one hundred basis points there took in close to eight percent so

in effect the game is over for the present strategy of the government for the start of the government was to. try to convince the markets that a small economy like ours was biking system is bust because consumers vary from charging savings rates you know has risen dramatically will be able to carry enormous and very immediate front loaded cuts in our budget deficit the government's trying to convince the markets that we could do all of this by front loading fifteen billion of cuts and starting very very quickly to the markets clearly believe that it's not possible to do it and rather than by the government's announcement last week. so did the government's announcement and this again is being compounded by events last friday where the european leaders came up with a sort of the stop stop which is america realizes that the european stability pact the disability fund which is up next year that will have to be

reinstituted again simply because there's many of us here in europe who believe that it simply amounts to a bailout for german french banks that lent hastily and i would say recklessly to greek irish spanish and portuguese consumers but in the case raise of greece the loan to the greek government so what you have is a sort of a tug of war at the center of europe where the going to merkel needs to protect a banking system or biking systems exposed to us we in the other hand are in a situation where a country like ours and probably needs to go for a very rough debt renegotiation simply because a present levels of debt particular private sector people will not be able to pay and the economy will be dragged downwards consumption will fall and demand will fall unemployment will rise and we will get a nine hundred eighty s. style failed fiscal adjustment the sort of thing you saw in a lot of american countries in the 1980's where the governments came in they talked a great game but they couldn't deliver because the economy contracted and the

middle class took their money out of the economy and you got capital flight of the time when the economy was very very weak so you have two or three forces max going on the upshot of course is that ourselves of portugal this morning look as if we are moving very swiftly towards the greek position which is moving directly into the european stability fund you know the greece has opted to do that on the side of the market for three years the irish government decided not to go back into the bond market until next march claiming that we had enough money but in many ways that's like a drunken guy leaving the pub late at night and saying don't worry the party is not over because a fire six bottles of vodka stashed behind the kitchen in the kitchen sink the problem is of those bottles of arc or drunk you've got to go back to the market so we seem to have hit a brick wall where the. force of the irish public's

inability to stomach these new cuts and the market's scepticism about what the economy will look like after the cuts is forcing people to drop irish non-tonic lyons the key component here is a bunch of irish real estate developers made a multi-billion dollar gamble that falco blew up in their face and they got the government to impose austerity measures on the population to clean up their mess so the irish public is not responsible for these debts for this austerity as being forced down their throat the irish public has no responsibility for debts that were frauds only induced why should the irish public pay a penny of this debt this is what i've been arguing for quite a long time is that we excuse you gary t two years ago which i think was the right thing to do in order to find out just how certain banks were and then you as the clock that was ticking as the guarantee got to a notes to kota creditors into

a room with a very nasty liquidator take away the key and say don't come out of this room until you do a deal in the liquidator should have said exactly to these the creditors who lead to the irish property speculators there is no money and even if there was money we wouldn't be much to give it to you because it's not our problem it's your problem you look to the banks they go to the developers it's your average irish person although many many hundreds or thousands got involved in this case your average irish person was small fry and is already suffering negative equity from their rather rushed decisions in the last five years so the big money is the developers as you point out the big lie a bit and the big concern is the foreign creditors who led to the bikes not to make the i believe that capitalism should see its course and simply. if you lead to the irish bikes whether it's a boatload or are as

a stockholder you pay and then your crisis is over max now isn't a dublin a few months ago in a lot of the business publications in in ireland they're trying to make the case that the irish public is to blame for taking on these debts and yet we know from studying the way that the real estate markets were financed and engineers around the world particularly in the us are in this foreclosure crisis which is part and parcel of the global foreclosure crisis and the global misrepresentation in terms of packaging mortgage backed securities into fraudulent securities the public is been victimized here and what recourse does the public have now you're putting on the fast of all in that beautiful town of kilkenny i believe to try to gather attention to this but the irish press by and large is obviously siding with the developers and the people who fraudulently

paddled fraudulent mortgages and are dealing in fraudulent securities why is the irish press is it just too cozy with the establishment well i suppose if you look you go look at the big picture here the irish press in the may cheer led to the boom those of us who were earth very skeptical about the boom were warning about the boom were largely dismissed as cranks. people who didn't really understand the new dynamic i mean it's if you look back to my control you know you the same sort of carry on again with your harvest if you look back just before the crash you know all sorts of journalists in the columnists and leading academics saying this is a new era of productivity has changed this new technology and this time it's different and no timidly prices are sustainable level where all those goats who came up with the flow during the arash who are the very same guys who are today. telling the irish people that we have to pay for the mistakes of the developers but

those cheerleaders in both and in the first place so what you have is a simply a very cozy cartel in a very small country and we have really is that our homes looks more like a rapidly developing country like one of the asian tigers that we saw in the in the one nine hundred ninety s. and what we saw in the asian tigers you take a position similar times you get a small oligarchy which is very close to the political class they get laws changed for them to enable their own speculation to be incredibly profitable. to borrow a huge amount from banks that they can count tongue they invest enormously in local in the case of thailand was actually local property as well and then when things go belly up they expect the people to bail them out so i mean the story of that of the of the wall street crush the story of the asian crush euro broadly similar and what makes art and more unique is the sense of the country is small so the power of

a. tiny minority to really affect what i would regard as a lesson many years ago a financial clue d'etat is actually rather rather real david mcwilliams i understand the comparison to the an asian country and some of the in the financial crisis around the world but in ireland they just bent decades fighting an irish independent movement only to be now colonised by the angle irish bank words on fire about where's all the revolutionary where's the you know where's the bobby sands of this movement but what is interesting max is that the greeks and the portuguese some particular french you've been writing the last couple of months are looking at the arch and saying why how do you guys taking what is a much deeper adjustment much deeper cuts why are you taking this online than it strikes me that we've only seen the tip of the iceberg yet and i believe politically it's very very difficult for this government to stay in power they're very. popular they're here eighteen percent of the popular vote that's the main

political party feature for. the most r.'s people believe there will be a an election in the next twelve months and preceeding that election i suspect what we will see is much more active protest from the irish people the sort of thing we haven't seen for the last two years let's talk about the other festival nature putting together account county it's called pelican omics it's it's an economics fast really got some pretty high profile gas coming to the festival you've got comediennes and i and i guess as you mentioned before to try to educate the public if you can use popular comics and entertainment theater at least to get people up to speed on why they should be angry forget about the fact that they're not angry yet but at least trying to get them to understand why they should pay the issues very simple economics is far too important to be left to academics and public servant to economics is us it's our lives it's our money and it's our careers it's everybody's family and ultimately i think if you take brilliant international

columnists like peter schiff is one of our keynote speakers and peter's arrived for the whole weekend and he known very well to watchers of the kaiser report and investors in america and peter rather than having kids or discuss with other economists like about peter discuss what one of our best out of comedians a guy code does bishop who is originally an american an irish american from brooklyn i would desert is going to be doing is he kind of gives the rest of the audience the permission to ask peter question and that might not necessarily be so easy if you've never gone to an economics festival before would you go to istanbul before so in a way what the stumps are doing is they're asking the questions that the average guy in the street wants to know so we have by peter schiff we have bill black who's nov you know very well in the united states bill back with a fantastic book the easiest way to rob a bank is to own one and i think that's a simply describes what has happened here in this country we also have from iceland we have the most famous eyes.