growth will continue the world economic forum is promoting the fairer sex in business new rules are being implemented to improve the gender balance at the annual meeting of movers and shakers in the swiss ski resort of doubles the delegations will now have to bring at least one woman in every five senior executives he male delegates made up around just seventeen percent in the forum last year. so we have time for now the headlines are next on our c but if you want more business stories go to our website r.t. forward slash business that's it for me.

wealthy british style. markets. come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on our.

more news today once again fled. these are the images the world has been seeing from the streets of canada. china corporations to rule the day. hello this is the r t news channel money in our top story tonight poland excepts the majority of the responsibility for the plane crash which killed this president last april but asks moscow to carry out further investigations however the authors

of the report say it sounded there's nothing more to. production treated with the u.s. and relations with the e.u. and nato are highlighted by russia's foreign minister sergei lavrov summed up the kremlin's international actions in twenty ten out of press conference in moscow. the cholera outbreak and torturously slow reconstruction. after the earthquake thousands of haitian immigrants in the u.s. might be forced to go back to the island the grim reality on the streets there was more from us on our website.

i am max kaiser and this is the kaiser report boy lots going on stacy herbert starts in may well max i have the first headline here greenspan challenges critics to prove him wrong really tell me about alan greenspan so this is him on wall street journal your career at this point almost mind me someone of brett farve who was america's best love quarterback and now in retrospect his legacy looks somewhat target just tarnished and do you feel that that need to defend your like to see what do you want to be remembered for. well my benson view is that. you know a lot of the facts to fall with your i have answered. my critics i've put. on basically some of the can prove that i am wrong that if my analysis of what the criticisms were. accurate. which i think they were then i would

prefer that people turns their minds but. if they prove i'm wrong. which they would be as bipolar disease areas i'm still proving himself wrong where you are wrong. partially in other words your view of the world your ideology was not right it was not worth your precisely your art that's precisely the reason i was shocked because i've been going for forty years or more where the very considerable evidence that it was working except for me well i want to go over some headlines because we of. course our critics have alan greenspan you know and i want to go over some just the headlines that prove him wrong china safe official warns fed monetary policies are creating inflationary bubbles stimulate global f.x. intervention so this is lew way of china's state administration of foreign exchange and he said that the fed's quantitative easing program may have some stimulus

impact on the u.s. in the short term but also that it would add to global inflation pressure and fuel asset bubbles well let me explain something to stacy here but about the global financial situation you see you've got the central banks you've got the commercial banks you've got the global banking system as it is and this system is held together by various financial transference mechanisms trading markets that goes on in two thousand and eight it broke since two thousand and eight central banks have been flooding the globe with credit but because the basic plumbing of the global finance is broken the credit that they are expanding with goes into two places number one paper derivatives that are driving the cost of food higher and paper credit default swaps that are crashing the european bond market so people say well is it inflation or deflation it's not under inflation or deflation it's a busted global finance system that's the central banks are responding to by

flooding with more credit which is going into the derivative market in such a way as to force food prices in india higher and bond prices derivatives credit fault swaps in europe lower that's should be plain to anyone watching this thing even to. believe. goal. so it's what you might call schizo flay shannon or psycho fallacious it's side cycle flow should. flow should it's a truck. oh it's a beautiful. well that's broken so that's my point station i want to system is broken but you see you can't get up and say all the system's broken we need to fix the system because because it would mean that well who broke the system won't bernanke you broke the system and alan greenspan broke the system then i want to admit that they broke the system but you know what you broke it you won't it yes but perhaps alan greenspan is admitting it we don't know he speaks in fed speak and remember that's all code so always after the fact he could say well that's what i meant by those code words i used. these you know speak and in fed

speak another term for that would be the law i hear you speak it out of both sides of mouth here's an example in this next headline of inflation ken tayo tolls price your feet east so rising maize prices could force the price of tortillas up by fifty percent maize remains central to mexicans diets each of them gets to ninety kilos of tortillas a year we've seen this movie before stacy ever in two thousand and eight there was a huge spike in paper commodity prices that cause all kinds of dislocation again this is nothing to do with the sound policies that should be implemented to encourage equilibrium in the system this is a broken banking system and the more that they that they flood the system with credit thinking that's going to help the worse the situation becomes well that's exactly correct and alan greenspan as we were reporting at the top of the show he

is saying that you know his policies of trickle down basically flood give the bankers as much money as they need and it will trickle down to everybody else what we're seeing is the exact opposite all that's trickling down to the people is inflation on the ground and asset. i says go out of control while wages remain the same paper inflation so food prices in india they're not going up because the demand for food in india is going up mexico or mexico either it's where you see price food inflation is because the derivatives are trade inflation being fueled by burning same thing in europe there is to see bond prices crashing as at the current the fall swaps fed by all the currency and credit being put in the system is forcing traders to speculate more on crushing bone prices and the other important consequence of this inflation to know isn't the phrase common among mexicans it's called seeing maize no i saying there's no point in that one without corn there is

no country without corn and nothing then nothing without corn so we're going to see that in this next headline deepening crisis traps america's have nots so the u.s. is drifting from a financial crisis to a deeper and more insidious social crisis says the telegraph in the u.k. and to this they point out the economic not the actual sales numbers sales the cadillac cars have jumped to thirty five percent porsche sales are up twenty nine percent car to a louis time on have helped boost the luxury good stock index by almost fifty percent since october in the meantime down below where the poor people in bottom ninety nine percent shop best buy target and walmart have languished doesn't again this is the result of a broken financial system let me give you the knowledge of when the water main in your town breaks and you look out your window in the street is flooded with water but you can't get any water on in your town ok this is exactly what's going on the

system is being flooded with credit at the top end with paper acid speculation and paper commodity inflation paper futures speculation which creates the collateral for the people who are manipulating and benefiting from the situation to. gotten by leave it to home stuff meanwhile other people can't get anything out of town because it's broken and they're experiencing quote unquote de flée sion but it's cause both of deflation and the inflation are caused by the exact same thing broken plumbing at the global financial level which is like a water main break this is a central bank mechanism break that has affected the entire global banking system is effectively broken since lehman collapsed in two thousand and eight we're living on borrowed time the system is completely frickin broken and none no central banker no government policymakers no leader in america anywhere in the world is stepping up to the plane saying the system is broken we need to fundamentally fix the only

guy who couldn't fix the system is paul volcker and he's being asked to leave so the article goes on to point out that fourteen percent of the population in america is on food stamps the u.s. conference of mayors is reporting that visits to soup kitchens are twenty four percent this year they telegraph says such as the blighted fruit of federal reserve policy the fed no longer even denies that the purpose of its latest blast of bond purchases or q e two is to drive up wall street perhaps because it has so signally failed to achieve its other purpose of driving down borrowing costs getting back to my water main break analogy the people who are being flooded by the problem are repackaging the water and marking it up in price and selling to the people who are now running out of water they're taking advantage of the situation that's fundamentally cracked and broken and wall street is that's what they're doing in the city of london as well system crashed and they're making a market like side bets like you find in any kind of disaster zone where suddenly the price of water skyrockets in a disaster zones all over the world and

a disaster strikes here the banking disaster has given folks like goldman sachs and j.p. morgan and wall street banks they're taking advantage of the situation reselling water or credit or money or liquidity that should be reasonably priced guaranteed as part of an equitable market and they are making a killing literally because not. people are dying on the street when you mention that paul volcker was ousted the headline reads the truth comes out paul volcker was forced out because the white house is going more pro-business and we know a pro-business means now nowadays and that means massive monetary inflation that helps them and destroys the purchasing power and quality of life for the bottom ninety nine percent volcker known for taming inflation in the one nine hundred eighty s. was disappointed with the way his advisory group became a public relations tool for the white house as its meetings with the president were televised live making honest discussion difficult to conduct the person familiar

with his views said you know the first pro business is code for corporate pro genocide we have to remember there in fed speak everything is fed speak it's all code to communicate something just to these insiders while actually you know confusing the rest of the population that brings me to this final headline cash for gold offer bolsters h. and t. and this is in the united kingdom and this pawnbroker in the u.k. their profits are soaring their margins are now about thirty percent and the reason is because there's been stunning gold purchasing volumes going on people are turning in their gold for cash do ransack the proles up the bottom suckers of chorus at the top it'll be reversed you'll really have the signal that gold or silver has reached the top of their price action and so the reverse is true until you start to see people hawking gold and silver on t.v.

in this way and in the ghettos as we see and now we have a video that came in actually max from the ghetto and this is from big b. keller and he's responding to a flyer he received asking for him to send their gold for cash it was a study of this guy's on the ball. before the show. so. brochure this little worthless brochure came to me from someone small. some little small hired out roshan out of baltimore it's called precious no look would be. trying. to bring me into giving out my gold soon presses models for worthless ok. let's say you want a whole new. only assume this right here back to them. with

a letter. that sat silent. that's a little more. stay sara thanks so much again for being on the kaiser report thank you when we come back much more. don't go away.

welcome back to the kaiser report time now to go to denver and talk with steve keen steve keen is a professor of finance and economics in australia he's also the author of deep bonking economics and blogs debt deflation dot com steve keener usually in australia today you're in denver welcome back to the kaiser report thanks max as a great be back on with you again so what brings you to denver well i've actually thought i could think of a title of an old tom hanks movie to say what i'm doing here you know the old sleepless in seattle i've been down to join clueless and denver and i think there was a movie called eight things to do when you did in denver would not have had not thought of as they did in urban economic association annual conference which is what i'm just on so i gave us a session with a lot of informed people about why the process occurred and whether it's over yet and i just had to a lot of probably expression but economic morons noted it in being would it was

a process and nearby civil economics always began from the belief that capitalism is fundamentally stable is almost actually presume it always occurs and it. has its behavior in equilibrium and they continue to think that why after a financial process we've made it extremely obvious that that's not the case as i what i did was go into a number of sessions with neo classical economists really giving their ideas about what caused the process. and in fact that had no cause whatsoever or way they were saying would they change the way they thought because of the cross and the fundamental answer was not. so that to me was just not that remarkable i'm wearing it to show which says it all is of a pup of a screen i'll show you the two should have worked well in the camera this is a quote from campaigns back in not in thirty six when he wrote a general theory which none of these dogs of rape even if they call themselves kinds and what it says is that you can rid of all sight out aloud the difficulty was not. new ideas but escaping from the old ones and kinds continues

a bit when given a t.v. show and all to say that ramify for those of us have been brought up thinking this way into every corner of animal on and that was clearly because of the new across the economist at this conference all right now when i listen to you speak i think a little bit about jim records i don't know if you follow jim rickards work or not but he is also calls himself a systems analyst and he looks at economics as a systems in a way you look at various systems you know that's the best word for it and engineering is that that's the basis of engineering that is die so seven for seven is a system now one economist it seems to have gotten it is i mean minsky i thought a little bit about minsky and are in the minsky moment what that means and are we at one of those moments we've been one of them would have been in not in the moment i think we call though that we've got almost a movement schema because of the minsky millennia because minsky talked about a series of financial stock old age which led to the economy having

a high level of debt at the end of the sokal and it had at the beginning leading ultimately to one with as much to the system of the collapse under its own wife and i will to finance the debt and that's exactly where we are that's been my whole theoretically or you know max modeling miscues hypothesis but in the mathematical form we can put it in a cycle that regard work as fundamentally a systems it systems engineering model of the economy and yes it does have those characteristics and you contradict the future in this even they can say what's likely to happen when i look at it i can say it was certainly in the in the regime where i mean ski breakdown is going to occur and that's why i came out publicly in two thousand and five like two thousand and five and said we're going to the biggest process of all time to souls and of course the new quest goal economists who live in this will they see the system boys beings equilibrium and if it gets shocked or tuning to equilibrium they would simply incapable. of seeing this happen

ok now the neoclassical economists and the typical way that economics is being reported in the mainstream press it works if you don't include the debt and what's key here is that the debt that you talk about building up over years for the most part is held off the balance sheet and is invisible to some degree because interest rates have been trending lower and have been kept low recently in last couple years through the machinations of the central banking system but this huge off balance sheet debt pile which no one really knows exactly what the size of it is estimates come from are from five trillion to twenty trillion eclipsing in fact the size of the visible economy but this this is where a lot of this the permutations and the subtle convolutions of unpredictability are occurring and now they're bleeding in to the system in terms

of these sudden crashes and flash crashes and economic events most of it's held off the balance you desire anyway to get policymakers to force the banks to be transparent about the trillions of dollars that they're not disclosing well so i'd actually say that if the visible stuff a. large enough to cause across us and the visible stop in america's case in terms of the private sector debt level to get through just under three hundred percent of it's true it is now full and two hundred seventy percent of it should it be that's the on the books so that a lot was enough to cause the process and the reason that the across girls didn't see this coming fundamentally they do not include private debt in their modeling at all so they don't even have that it would be by column emitted variable problem that they've got the right variables in their equations even and their equation themselves are wrong but that's the hope of a. the folks is awful because it's always worse than the record numbers this is

what people like bill black or red brilliant at finding out you go back into the forensics later you find that this so much lying and a fraud going on and fundamentally putting stuff off the balance sheets is legal fraud that africa was in my situation was in their code numbers tell you that the only way to get the banks are caught that on the books is after the banks have already completely collapsed and of course if you keep on trying to prop the banks up what they're doing is a bit like the situation of the greek economy which of course they help in the mendacious this by goldman sachs they say oh now i thought this is a level that we can type with this and of course it's not that level of debt they continue going down you tried rudolph and by somewhat that you're telling us their problem they continue collapsing and only falling off that i really collapses see just how much they're carrying the cost of the new time they've accumulated gitmo did so want to deny in reality which is the i think that we call that the net the true profession of central bankers by denying reality you make the ultimate reality

worse ok so just to review the actual debt in the us is not the roughly almost one hundred percent that they talk about when they raise the debt ceiling to fourteen trillion and this is equaling one to one the g.d.p. when it's closer to four hundred percent if you include private debt corporate debt but i want to move on to australia for a second now when you look at things like the floods that are going on in australia steve cane which are expected to cost billions of dollars as it shuts down the mining industry what sort of impact does this have on a highly leveraged economy like australia when you know we leverage you very fragile and a full simple shop that you could easily handle when you're in a robust situation because one that can knock you over the edge now i'm not saying that the floods will do that but i think it's looking like the straightest getting close to a physics storm because all the things that managed to make us shine through that process and so and now turning in the other direction and the floods really one of those classic. exoticness events economists like to say that every every stock

wycombe in every every day the ocean from equilibrium is caused by an exhaustion of seven that's nonsense the system hasn't gotten this instability to it but of course if you're indulgently unstable and you need the edge and then something truly exhausting this luckless wasn't because the flaws went caused by the economy coming and wackier than bank you to suddenly go from looking like a marathon athlete to being in intensive care but certainly that could be it's yet another factor which might make two thousand and eleven not the year the antipode are there just to check in on the australian housing market famous laying housing market as resisting the global deflationary pressures that have sunk the housing market in the us and other places because the government australia of course came in with a huge subsidy package to keep it afloat. and given the current stress now with the environmental impact where are we in the housing in australia market at the at this time is it still hanging in there are that starting to turn or is it going to

shock everybody and just continue to go higher now set aside as it is quite amusing watching the change in rhetoric by the property spruikers down here or is their property rather down there isn't a company in denver that was saying house prices go is ra's now the saudis so they much will the money rogers quickly. the classic fisher house process rich what if you'd been a peep is to be a permanently high plateau that's that's pretty much summarizing what this the stats are saying something different when that when the government was taken out of this game they called at the time when they doubled the amount of money they gave to prospective boss to buy an established house from seven thousand australian dollars which is roughly seven thousand us their size to fourteen thousand australian a twenty one thousand to somebody buying a new place that regarded the property bubble that was starting to burst back in two thousand and six and the house project rose twenty percent pretty much in one year and there also was this not about. well the government helped cause the bubble

of course the financial sector funded the bubble so mortgaged it rose by another six percent of g.d.p. to be even higher as a reporter today paid in america now the process is attorney otherwise so the first quarter to the first i've been to scheme is i quote because they the vendors got the money not the bogs after that expired house prices rose by five percent they're about to do about three percent this quarter after that two percent last quarter zero point one percent op and that's all that because milton with the city still had a bubble going on the other capital cities in this trailer all had a negative about a modest two percent and now the news is coming through that when the nick said it because come out on the beginning of february we should see a negative figure for this stray and housing market as a whole and ironically that's probably the worst in the morning states could and grizz been doing it seems that the rest of the country even out of supposedly benefiting from the shot of stimulus so the housing market in australia is folly coming off the boil and i don't think the government can turn up the oven and the stove once more so in australia the environment is proving to folks that it's

unpredictable that environmental catastrophes happen in ways that you cannot fully be prepared for due to the fact that the environment part of a huge unstable system now in economics and of course going back to adam smith the jew a lot of it's inspiration from observing nature when you run wealth of nations and during the enlightenment which brought us neoclassical economics to begin with it seems to have been ignored but he looked at nature he said systems need to be mimicked in certain way so he they mimic the systems except the part about the fact that they're highly unpredictable because these are very fluid systems so folks are in denial about the ecology they're in denial about the economy my last question is if you were to do an arbitrage between denial in australia and denial in america now that you've been in denver a little bit where is the denial deepest about the ecological. economic disasters

of or and the ecological economic disasters in australia which population is deeper in denial always try it without a doubt america is truly in a depression let's stop with the fist and stop calling it what it is might as you and i both know the real bout of unemployment america is closer to seventy percent than it is to the records not at the close when somebody stopped looking for work the three would measure america publishes a sexual component right drop them off the list while they feel for not tonights nonpoint four percent most recently so about one in said one in six americans is out of a job and they the mood of eight is depressed even the economists about some realization of that in a stray it's still happy days and this is really the original story or avoided the processes by recreating the conditions that caused it in the first place they restarted the housing bubble a debt finance housing bubble but they still thinking happy days are here again and ever going to go i and most of the top and instructors about how we handle.