wealthy british stock. market. has come to. find out what's really happening to the global economy with mike stronger for a no holds barred look global financial headlines kaiser reports. download the official location. touch from the top story.

life on the go. video on demand on tees and line gold comes and says feed stock now in the palm of your. question on the. cool. cool. morning news today violence is once again fled the film these are the images the world has been seeing

from the streets of canada. china operations are the day. to cool. top stories from r t the breaking news this hour a moscow courts announced the sentence for russia's most famous prisoner mikhail khodorkovsky the former all tycoon convicted of money laundering embezzlement has to spend six more years in prison that would mean a jail term of fourteen years in total as he's already served time for the tax evasion. europe as wary of the spread of islamic extremism following the recent arrests for a suspected attack on a daily newspaper that published cartoons of the prophet mohammed it's the latest in a series of arrests across europe throughout the year. there's no sign of consumerism

loosening its grip on american society despite the tough economic times some say the growing addiction to shopping is turned into a religion and ask to be confronted. it's seven thirty one moscow time thanks for being with us tonight next on r.t. . discover why no one should be at all surprised at the reason why america is buried up to its neck in a financial trench that's coming up in a couple of seconds time. 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 not really good headlines ok preparation for the new year i want 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 u.s. 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 sudan 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 of a 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're going to countries blow it up for the

fees that they pay the military contractors and hardware providers of the software providers to go commit genocide in various countries for a fig of course keeping it off the bell 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 end their balance sheet again another lesson learned from the warmongers on wall street and the next headline max is america the plutocracy so this is francis fukuyama and he's asking if america's a talk receive 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 whole cost movement with your underlying oil and gas industries everything else those guys are involved oppose 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 stacy herbert 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 clip talker singh 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've seen through 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. like mike savage or rush limbaugh or that knucklehead on fox news what's his name is always

shouting all the time 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 those costs 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 at the next up by 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 it's 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 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 inch than three tons of gold but the i.m.f. it officially apparently concluded the sale is we don't know who they sold the wiener 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 a 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 to 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 violin as collateral to take over island is remarkable but it is in keeping with this global plague of banking terrorists the other thing about to talk seriously we're talking about earlier is that you know you often see poodles and dogs and cats making great inheriting great deals great fortunes tony of arabia earns forty three million dollars as

advisor to kuwait while getting paid by war in stanley and the u.n. so this is i have my own where they actually say morgan stanley but in fact tony blair as they're working for g.p. more 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 un 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 in memory was responsible in large part for committing genocide. lot of iraqi murdered a million innocent civilians in iraq that's about two cents per life of iraqi so

the iraqi life to tony blair about two cents a piece he cashed in on that made forty three million dollars good boy tony blair and of course you don't pay any of that taxes any government you 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 sues e.c. be 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 john 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 to 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 yeah 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 god's work 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. see 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 derivatives clear and transactions and transactional arrangements or it's that will ensure that 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 off 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 coercive assume this is very austerity measures so the bankers couldn't joy salaries and bonuses and all these governments 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. you go through every corner you have to go through this every quarter or they say well we just found another trillion to

add more austerity measures more bonuses more salaries what are we going to get smart and wake up and figure out that these guys all need to be fired tried burke thank god the way out there out there all franken care is what it does why do you. think you could you catch that so do one more for the new year what do you weigh. what are you doing there holding a gun to your head in the u.s. and britain and a western europe and understand they're 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 now that they really needed to know this but u.k. recovery weaker than thought official data shows the u.k. see conway over the first nine months of two thousand and ten was not as strong as first thought the office for national statistics has revealed yeah vince cable

can't dance either all right stacy our 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. to be rich bright. from stimulation and some. startup team don't come.

i welcome back to the kaiser report time now to speak with ellen brown she's the author of web debt she's got a new piece out austerity fills in your old time for some a 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 bonds were just downgraded by moody's by five notches to be a category and this was after they excepted i am after you bail out i'm like greece which was supposedly a profit spender and responsible for its own. dire straits ireland with the poster child for i stared 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 the 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 we hear a 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 him to alleviate the austerity measures this 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. which is the only entity in that euro system which is allowed to actually generate more money so that solution are suggesting it's called. deficit easing but another solution which i like a lot would be to mimic the bank of north dakota 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 desperate lee bad states like california which is my own state so tonight because it 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 all are virtually all of our money today is created by banks anyway so if the state itself had a baby or that the country and ireland's case had its own bank it could be lending it to itself for one thing ireland could. refinance its debt which it's now paying almost six percent on it career finance at zero percent because it would be the bank so it would get the profits back so in effect effectively 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 would 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 a sustainable system that's an internal currency that that is required in order to have growth in the system ok so in the in the example of ireland to some grace the government can 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 they are free to do so because they are no longer being held hostage by the interest willing 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 it's all just 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 me it looks boring it's quantitative easing so just to review what's happening there the bank is taking an economy that is loaded with debt they can't be paid back and they are him 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. isn't covering them 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 debt 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 in many bad things but if you could finance your debt interest free by going through your own central bank which is what quantitative easing as a way q.e. two is. a bad idea i mean there are only certain 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 there would pursue this alternative let's talk about inflation for a second obviously when you're trimming money there's an inflation risk you're writing in your story huffington post 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 so 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 the 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 them 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 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 alan 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 a way to. let's say provide more egalitarianism in the system

and to avoid it would appear the excesses of when you have just 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 that you are somehow squeezing out entrepreneurial ism is that is that a valid argument when 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 fed this is why i brought it up because there's talk of.