fifth in terms of production which you gave the russian line there are some of the best growth profiles in the industry investment how's that creative project plan as gold stock will rise twenty percent in the next twelve months and says at least a ten percent upside on poly metal that's yellowbelly court of business are to em. and that's out there for they sow but you can always find most stories on a website called slash business.

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costs and r.s.s. feeds now in the palm of your. question on the dot com. this is our headlines now fears of islamic extremism across europe fueled by the latest arrests in copenhagen which prevented what is said to be the country's biggest ever terrorism attempt. it's the fourth day of the judges reading the verdict. for more oil tycoon was found guilty of investment money laundering reaching the end of his first sentence for tax evasion. and the storing up trouble the economic crisis is proving to be no barrier to america's credit card addiction

. their way through recession. discover why no one should be all that surprised at the reason why america is buried up to its neck in a financial trench that's coming up next do stay with us. hungry for the full story we've gone to. the biggest issues get a human voice face to face with the news makers on the. mass kaiser and this is the kaiser report looking ahead to two thousand and eleven one has to ask oneself will america suck as bad in two thousand and eleven as america sucked in two thousand and ten i'm looking at those bradley manning story presume source for the wiki leaks cable gate just because this guy embarrassed

hillary clinton and proved that she was an incompetent bureaucrat the us is torturing them that's right they're torturing a us citizen it's come to that let's get more on how badly america sucks let's bring in stacy herbert hello i am so mad i really did have lines like a preparation for the new year i want you to start paying attention to these sort of headlines for what we're going to see for two thousand and eleven why the united states of america is broke tell me tell me oh great one well it turns out that one of the major reasons why the us is broke is you'll be shocked to hear this military spending. seven hundred billion dollars in two thousand and nine was spent on the military now for some reason with america then has to include the proviso the seven hundred billion dollars this just the balance spending costs you have to

actually double it if you are going to count the real costs of the military including the wars the two wars going well there's also yemen and. pakistan all of those wars are not included on their balance sheet for some reason nor is the cost of actually providing medical care for the injured soldiers so war is the number one reason but why would they everything on the balance sheet you know the war profiteering industry mimics wall street they are generated by fees not by free but by the dumb america is a growing global empiria will be dumb they go on to countries blow it up for the fees that they pay the military contractors and our providers of the software providers to go commit genocide in various countries for a fig of course keeping it off the boat and she means that the underlying

corporations who are involved in this program get to pay themselves huge stock option bonuses because the liabilities never enter balanchine again another lesson learned from the warmongers on wall street and the next headline max is america a plutocracy so this is francis fukuyama and he's asking if america is a receiver basically he says yes we mean by plutocracy not just ruled by the rich but will by and for the rich we mean in other words a state of affairs in which the rich influence government in such a way as to protect and expand their own wealth and influence often. at the expense of others why does it go far enough it's beyond a plutocracy it's a kleptocracy in a plutocracy it would mean one dollar one vote if you had a million dollars you have the equivalent of a million votes if you have

a billion dollars or many billions of dollars like the koch brothers do you can vote billions of times change the law so that the government now supports your environmental hall of cost movement with your underlying oil and gas industries everything else of those guys are involved but you can pay the media to broadcast propaganda in america on fox news saying there's no such thing as man may climb climate change or global warming so that's one thing you can do with a plutocracy but it's beyond a plutocracy stacie however it's a club talker see so it means that if anyone's earning one dollar in america that means that ten dollars are being stolen from them from the cook talker c. and those people who earned a dollar now have an additional ten dollars in debt that's the difference between a club talk or sing and a plutocracy yes and he actually points out that. part of the reason is taxation he says quote the most dysfunctional societies in the developing world are those whose elites succeed either legally exempting themselves from taxation or

taking advantage of lax enforcement to evade them thereby shifting the burden of public expenditure onto the rest of society but as we've been talking about max and the kaiser report is it's not just public expenditure like highways and hospitals that the poor or rather the bottom ninety nine point nine percent are forced to pay but also we're paying that point one percent we're paying for their crime wave as we seem to the last two three years of this financial crisis we've been paying for their crime wave out of our taxation which they're of course refusing to pay what often you hear from the conservatives are from the cold. it's like mike savage or rush limbaugh or. not but on fox news what's his name is always shouting all the time on like me who's more of a interested in good decorum bill o'reilly they say oh the rich pay most of the taxes which is the most it's completely false because of course they're only

talking about reported taxes as we know most of the s. and p. one thousand last year did not report tax the record taxes because most of the income they get is go through off offshore entities where they don't really declare any taxes in the u.k. of course there's a huge pushback against companies like are kidding around by philip green and vodafone finally the year in the u.k. figured out that hey they're not the ones who should be absorbing all this cost they're pushing back and getting arcadia and philip green and vodafone that actually pay the taxes owed instead of just going through these offshore tax havens let's move on max to the the next i because we have this global kleptocracy it's not possible without a very integral player in this whole scheme is the i.m.f. and i want to talk about this because this is a big story and it's a big story going forward because one of the themes we've been talking about is we said at last year at this time we warned about the emergence of

a global currency war and that no currency is more crucial to that than gold so i met says complete four hundred three point three tons of gold sales program so you remember earlier in the year the i.m.f. announced they were going to sell four mentioned three tons of gold or they allege anyway they say they have this four engine three tons of gold but the i.m.f. it officially apparently concluded the sales we don't know who they sold that we are to but they have now said that they sold all gold sales were at market prices including direct sales to official holders the i.m.f. said in the statement or remember stacey that the i.m.f. is engaged in a hostile takeover of a. ireland and grace they're pledging the collateral of our live in greece as the collateral needed to borrow money to take these countries over because i'm up as essentially bankrupt and selling their gold just makes them more bankrupt but they use the funny money that they get by selling the gold as part of their hostile raid

of countries in western europe now to see this new corporate headquarters in washington that the i.m.f. is redecorating so make it look also plush and wonderful while they go around the world and to ransack and pillage these economies remember the i.m.f. is technically bankrupt as backed by u.s. banks who are insolvent so the fact that they've got away with taking over countries like ireland by pledging the assets of ireland as collateral to take over island is remarkable but it is in keeping with this global plague of banking terrorists the other thing about plutocracy as we were talking about earlier is that you know you often see poodles and dogs and cats making great inheriting great deals great fortunes tony earns forty three million dollars as advisor to kuwait well getting paid by war in stanley and the u.n. so this is a headline where they actually say morgan stanley but in fact tony blair and still

working three g. p. morgan as a senior advisor. and this is from the daily mail they're saying that kuwaiti sources have told them that the former prime minister with the forty two point five million dollars this year for advising the government of kuwait last year he meets six hundred forty thousand dollars as the u.n. peace envoy to the middle east paid primarily by british taxpayers and you speak three point two million by j.p. morgan no blood for oil tony of arabia if you do the math there forty three million dollars of memory was responsible in large part for committing genocide. iraqi murdered a million innocent civilians in iraq that's about two cents per life of iraqi so the iraqi life to tony blair for about two cents a piece he cashed in on that made forty three million dollars good by tony blair and of course you don't pay any of that taxes any government now just keep it sheltered offshore somewhere to pay for your smack bill and so finally max we're

moving and we mentioned greece and ireland it was mentioned that many times in the last year. and there are you're seeing emerge a theme that we've often talked about and that is that things are actually a lot worse than what officialdom says that you're going to see a trickle a constant trickle of more and more bad news and we see that his final few headlines first bloomberg suze e.c.b. two forced exclusion or of how greece's swaps deficit so according to the suit bloomberg is alleging that the dose should be disclosed to stop governments from employing the derivatives in a similar way again and to show how e.u. authorities acted on information they had on swaps e.c.v. president jiang clutch leash a withheld the documents after the e.u. and international monetary fund led

a one hundred ten billion euro bailout for greece the dossier should be disclosed to stop governments from employing the derivatives and a similar way again and show how e.u. authorities acted on the information they had on the swaps according to the suit all the facts and the be interesting to see whether or not there is any sort of information directly related to goldman sachs and john paulson who did meet in athens as we reported here on the kaiser report prior to this bailout of these swaps positions you know well goldman doesn't i think just say it was part and parcel of what they're consulting of blah blah blah blah you know because there's no rule of law on wall street. the concept that they always take take the attitude that if that takes break the law quote unquote that it's not their problem it's a problem the lawmakers haven't passed a lot of laws and modify the laws fast enough to keep up with their genius over there doing girls who are well and to you know stay with that theme of nasty

surprises being pulled out of a hat whenever it's necessary another nasty surprise from ireland anglo and a i b c so max this was in the european commission we found out from a press release they issued in the past week or so that hidden in this press release anglo irish bank will furthermore receive a guaranteed cover certain off balance sheet liabilities derivative is clear in transactions and transactional arraignments rates that will ensure the angle irish bank can continue its daily activities as a going concern so we know about the on balance sheet cost to the irish taxpayer of angle irish and that is about what seventy billion euros now that european commission alludes to our balance sheet derivative costs that they

are covering at the moment i call this i've been calling us for two years even gordon brown you know in his recent book which he was talking about on t.v. he talked about a shadow banking system the shadow banking system trillions more in debt that they have yet to disclose that they're using as a way to extort more coerced from the souness's via austerity measures so the bankers couldn't joy salaries and bonuses until these governments should take these banks and start new banks with clean balance sheets and none corrupt executives who are not terrorists this problem will continue for years they will always show more debts there's another twenty trillion of bad debts. to go through every corner you have to go through this every quarter or they say always just find another trillion debt more austerity measures more bonuses more salaries what are we going to get smart and wake up and figure out who these guys all need to be fired tried oh thank

god the way out there out there all right can care is what it does why did you get to catch that so i do one more for the new year where you don't go away. to say what are you doing there holding a gun to your head in the u.s. and britain and western europe and are said never playing with your bud why did you wake up and do what you're supposed to do what you were elected to day oh well max one final little headline on that this pulling the bad news out of the hat this one was pulled out during the quiet period when all brits were away for holidays not that they really needed to know this but u.k. we comrie weaker than thought official data shows the u.k. see congress over the first nine months of two thousand and ten was not as strong as first thought the office for national statistics has revealed yet vince cable can't dance on either all right stacy hammer thanks so much for being on the kaiser report thank you max when i come back i'll be talking with ellen brown and her

ideas about reforming the banking system for real don't go away. bright. moon. from time to pressure. don't talk team don't come. in

and. i welcome back to the cows report time now to speak with ellen brown she's the author of web of debt she's got a new piece out austerity fell's in euro land time for some deficit easing world with a cause report on brown thanks max tell us about this deficit easing well what prompted me to write this piece was that ireland's fines were just downgraded by moody's by five notches to be category and this was after they excepted i am after you bailout i'm like greece which was supposedly a profit spender and responsible for its own. dire straits ireland was the poster child for i stared he for doing everything the bankers asked them to do they slash services raise taxes generally squeeze the people to bail out the banks and it didn't work because there's a fundamental flaw in the euro system the euro system is a fixed money system it's a zero sum game there's no one that can create more money in order to allow the

growth and profits that are necessary in order. to generate more taxes so that governments can bail themselves out of debt so they're all in debt and there's nobody that they can borrow from except each other so they're all going down together so now what your solution going forward would be i guess first of all for ireland and these other countries to simply default on the debt now. because they're never going to pay this debt and they're never going to create enough phony ponzi scheme money to. alleviate the austerity measures there's just default right that certainly works for iceland which is now back showing president growth but i did suggest a couple of other solutions as well one would be something on the order of quantitative easing which would have to be under taken by the european central bank which is the only entity in that euro system which is allowed to actually generate

more money so that solution i was suggesting was called. deficit easing but another solution which i like a lot would be to mimic the banker night the cut. in the u.s. of course the u.s. states are in the same position as the. euro land countries which is that they cannot print their own money but what they can do is own a bank for only one state actually does this that's not because it's also the only state that is showing a major surplus while virtually all the other states are in deficit and many of them are in desperately bad states like california which is my own state so decoder has its own bank and therefore they have their own credit machine so you don't actually have to print money you can generate credit with the bank or all all of virtually all of our money today is created by banks anyway so

if the state itself had a bagel or that the country and ireland's case had its own bank it could be lending to itself for one thing ireland could. refinance its debt which it's now paying almost six percent on it or refinance it at zero percent because it would be the bank so it would get the profits back so in fact effectively would be paying zero percent right so you're talking about as a bell out with currency. that's not interest bearing currency and this goes back historically in america there have been instances of non-interest bearing currency the used and as you point out in north dakota this is a similar plan in that the banks of north dakota have the ability as you say to create their own credit machine which is not the service of outside interests but is purely there as utility to facilitate the economy within north dakota correct and that that's the secret to you if you're generating your own credit you don't

want to be issuing money to pay off for foreign debt that's where that's where countries have gotten into trouble and gone into high for hyperinflation like zimbabwe or like germany in the one nine hundred thirty s. i'm sorry the eighty twentieth's but if you just create credit for your internal purposes in other words for your own infrastructure so you create the credit to pay the workers pay the materials to build the thing to generate the profits which will then pay back the loan that is stain a bill system that's an internal currency that is required in order to have growth in the system ok so in the in the example of ireland and greece the government could simply create a new bank called the new bank of ireland start floating money that's non-interest bearing money to liquefy the economy and at the same time i would imagine that they would want to prosecute the bankers that in fact bankrupted their country and they are free to do so because they're no longer being held hostage by the interest

wielding banking thieves who are basically holding the entire economy hostage the reason we call them too big to fail is there's no i'll turn it at but if we set up an alternative or free set up an alternative banking system we could let them fail and just move over into this more efficient sound sustainable system that's also talk about what the damage that the. fed's quantitative easing program will do they're doing it in the u.s. they're doing it in the u.k. they're doing it around the world the e.c.b. is rumored to be it will explore in its quantitative easing so just to review what's happening there the bank is taking an economy that is loaded with debt that can't be paid back and they are in cumbering these economies with more debt so. this i make any sense on brown. well i would

say yes and no well that's what's happening in ireland they're being in congress with more debt and they have no way of getting out of it the i.m.f. is in covering it with more better debt what the. u.s. is doing what the federal reserve is doing with quantitative easing is putting some more currency out there what you have to understand is that all of our money is generated as that and when private debt collapses public debt must expand in order to maintain a constant money supply and that is one of the mandates of the federal reserve but we can't increase our debt anymore our debt has increased by fifty percent in the last four years and the. total paid in interest has stayed the same and the reason is that interest rates were pushed to ridiculous levels and that's what's caused the carry trade of many bad things but if you could finance your debt interest free by going through your own central bank which is what quantitative easing has or

what q.e. two is. a bad idea i mean you're only serve the banks but you need to actually helps us because it allows us to fund our deficit which is a budget that the congress has already said i mean they're going to they're going to issue those bonds whether the federal reserve buys them or somebody else buys them but if the federal reserve buys them then the interest is rebated to the government and it's effectively funding our debt interest free and i would say ireland could do the same thing if they set up their own central bank i mean if they had a publicly owned bank would pursue this alternative let's talk about inflation for a second obviously when are trimming money there's an inflation risk you're writing in your story nothing's imposed to avoid inflating prices when the economy reaches full employment the money could be taxed back to the government or returned as user fees for a poll. service. talk a little so in other words to avoid inflation you're saying that there is

a way to. manage the money supply and the metric that you're using is full employment so full employment is the desired goal of increasing the money supply and that's the barometer you use weather to determine if in fact it's time to take some of that money out of the system again by taxing it well that wasn't quite the point of what i was saying there are models for instance in argentina when that currency collapsed in two thousand when the government for several years just printed pesos and used that money to finance infrastructure and get the economy going again and that was not inflationary it did not drive prices up as long as there was still some unemployment the reason is the money goes to the workers it goes to companies which hire more workers which build more goods and so you have supply and demand going up together and so prices rise when prices did

start to rise with when they hit full employment so at that point where you had for him climate then you can you need to bring the money back out of the system and you can do that with taxes or you can do it with user fees for example let's say one of your projects with all this money that quantitative easing would be to build high speed trains across the country. you could charge fees for those for the trains and then the fees or go back to the government and that would help to pay back the loan that we should use to build the trains now your model ellen brown is very centered on full employment and jobs and wages and then look you're looking at the central banking system in terms of the way to. let's say provide more egalitarianism in the system and to avoid it would appear the excesses of when you have just of a few bankers controlling the money so. why and then draining off most of it for their own ands in claiming that there's

a trickle down effect that will trickle down to the wage earner at some point but you're taking the opposite approach you're saying central banking works but if you're if you focus on the wage in the worker you can create more of a balance system and you can always tweak the flow of cash but your emphasis is on the worker and is on the wage so the argument to that would be a vet you are somehow squeezing out entrepreneurial ism it is that is that a valid argument well maintaining full employment is actually one of the mandates of the federal reserve it was put in there in one nine hundred seventy eight yeah and there's talk right now about removing that clause because they feel that the federal this is why i brought it up because there's talk about removing that clause now and that mandate of the federal reserve but alan browne thanks so much for being on the kaiser report thank you max all right that's going to do it for this edition of the kaiser a four with me max kaiser and stacey.