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this is the kaiser report i'm max kaiser hey you know the globe is run by corrupt kleptocracy we've talked about it on this show before news on this front stays here max that's correct and we see this in the first headline the subtext of it all. fed's fischer says monetary policy not cure for a nation's fiscal pathology so this is federal reserve bank of dallas president richard fisher and he said that monetary policy isn't quote solve for the nation's fiscal pathology and that congress should focus on reducing the federal deficit and creating incentives for companies to grow yet all fiscal meaning tax tax they're saying that there's only so much tweaking the plumbing of the banking system can do

at some point people who are elected to govern must govern they simply can't sit back and hope that you can turn a dial here and turn the dial there and do all the work for you you actually have to do work when you're elected to an office somewhere you actually go to do some work well also our monetary policy is about feeding the oligarchs and trenching this all of darkie so you need to do something to change that and i mean the last federal open market committee that met last month voted to push ahead with its plan to stimulate the economy by purchasing six hundred billion of bonds through june fisher says of this program this roughly means we are purchasing the equivalent of all newly issued treasury debt through june well twenty years ago for every dollar of debt that was rick created you got about a dollar in g.d.p. up until two thousand and seven this was kind of working more debt more g.d.p. but it took five six seven dollars of debt to create that same one dollar of g.d.p.

then starting in two thousand and seven the economy flatlined it die and now pumping more credit into the system is like giving a blood transfusion to a corpse it's not having any effect at all they're already got interest rates down to zero so he's saying we can't make interest rates any lower than zero so there's not going to growth coming from pumping the economy with interest rate man. nations you've got to do something on your side on the fiscal side on the governance side but of course all the people who are in a position of governance are in the pocket of the bankers who lobby for a zero percent interest rate so don't look for any cure there either where exactly in all the zero percent interest rate it only helps the bankers it does not help the population as we've seen and we've been reporting there have been food riots and riots all over the world because of the economic crisis whether it's in europe or in latin america or or in north africa we're seeing riots and this is a direct result of this fiscal insanity really that the refusal to light to

decrease the size of these oligarchic banks that control the money supply and to stop giving them free money they have to be pushed away yeah the free money makes it cheaper to speculate on commodity futures contracts driving the price of paper cotton paper wheat paper corn and paper food hire starving people and also the cheap money makes it possible to buy credit default swaps in the sovereign bond market in europe and crash the sovereign bond markets and to impose austerity measures and i.m.f. control in europe so the cheap money causes deflation in europe and inflation in india it all goes back to the cheap money and the cheap money of course is controlled by the speculators who like a cheap because they don't want to pay any money for them any anything for the money they used to speculate with and whenever they do get into a bind by losing a penny they get the government to bail them out then the government imposes a steady measures and the whole thing is turn into one big kleptocracy well this

follows in the next headline this kleptocracy we see at work quote of the day bill daley will get it done so he's quoting simon johnson the former chief economist at the i.m.f. and he's talking about the completion of the banking sector takeover of washington d.c. when he says let's be honest with the appointment of bill daley the big banks have won completely this round of boom bust bell out there. risk inherent to our financial system is now higher than it was in the early to mid two thousand we are set up for another illusory financial expansion and another debilitating crisis bill daley will get it done barry ritholtz says in other words we are what. so in other words this whole period's book and it nicely with two thousand and eight hank paulson and for the congress putting a gun to congress as an extortion three quarters of a trillion dollars we now know that went to overseas banks his buddies at goldman sachs the purpose he stated he would use for the money he switched to was

a bait and switch and that was a fraud in the crime and a heist the biggest in history up until that time flash forward to now at the other side of that particular phase in the clip cock prosy of america caucus stocker see rule by the least qualified the caca stocker city and you have what you're talking about now this guy daley who is put in place by j.p. morgan to become the chief of staff in the white house under obama former j.p. morgan so paulson got the money stolen and now the j.p. morgan to make sure that they put up barriers no investigation no prosecution no bankers in jail like in the eighty's when over fifteen hundred went to jail it's a perfect crime well because recall during the crisis and this was also during the last elections the biggest problem across all party lines everybody said it was because the banks were too big to fail and we needed to reduce the size of the banks well according to simon johnson and the latest available data q three of two

thousand and ten the big six banks had assets worth sixty four percent of u.s. g.d.p. this is up from before the crisis assets in the big six at the end of two thousand and six were only about fifty five percent of g.d.p. and this is not massively from one thousand nine hundred five when the same banks were only seventeen percent of g.d.p. this psychological profile of jamie dimon lloyd blankfein goldman sachs j.p. morgan this guy daily is that of the arsonist the arsonist likes to burn things down their pyromaniacs here on wall street you've got debt maniacs they like to destroy things with debt and they like the price of debt to be as cheap as a pack of matches. if the price of dead is as cheap as a pack of matches as it is now they can continue to burn things down to destroy the economy like they're doing at this very moment and what is the obama administration

doing they are giving the pyromaniacs and the arsonists more starting fluid more lighter fluid more matches whatever they need to destroy the economy so you have to ask the question is obama in the pocket of the financial terrorists yes he did is doa i mean get it through your thick skull it's a clip talker see he's just part of the kleptocracy who you talk about arsonists here's a headline from the u.k. the other half of or the other proof ten percent of the global financial terrorist class bankers will take bonuses because they weren't praised last year says lord jones is a former labor minister and now he's the chairman of h.s.b.c.'s international advisory board you know they jump back and forth between politics and business he said that bankers will take bumper bonuses this year because those that sacrificed big cash rewards they sacrificed big cash rewards last year they did not receive

not one jot of praise who showed explain to me why you're not stealing the money if you can come on the show that's a tacit admission that you're committing fraud which is why my contention you're committing fraud has to be barclays citigroup j.p. morgan goldman sachs you commit fraud on a daily basis it's a law against it you're not being prosecuted doesn't make it right it just means you have a weak prosecution in place you still committing fraud and you're causing inflation markets around the world people to die every day you're killing people from starvation you are murdering people right now and you have the temerity to say that you deserve a bonus well he's saying it like this to be fair when the chief executives of the major banks sacrificed their contractual entitlements to bonuses of over the past. a couple of years or gave the cash to terry not one jot of praise or even understanding came their way well what about us sacrificing our human rights our

constitutional rights are rights to. a monetary system that isn't destroyed by these very same bankers and to be free of debt that they impose on us whether we want it or not even the people who were not in debt had these bankers debts thrust upon them via the this kleptocracy that goes back and forth between politics and the banking sector and these contracts that they refer to are about a sound as the contract between the mortgage lenders and the borrowers relating to now the foreclosure crisis in other words these contracts are not worth the paper they're printed on their fraudulently induced fraudulent conceived and that's another part of the criminality the syndicate of crime that's plaguing the global economy and these fellows here are as i've said there are sinister best of best a so nicest thing you can say about them so at the top of the show you mentioned that the fed the dallas feds president fischer commented on the over use of

monetary policy we're going to end on another result of this as we're seeing in the global markets or oil prices help widen you case trade gap so britain's trade gap with the rest of the world unexpectedly to them touched another new record in november as the high price of oil helped push up the bill for imports so experts were expecting that the trade deficit would actually decline and said it increased sharply and that's because the u.k. has suddenly become a cheap and of oil importer after being an export our net exports or for the past few decades it's now an importer and because they're all of the monetary policy is about destroying our currency in the name of trade policy and yet it's causing inflation and economic. insanity in your own economy so there's this tug of war that the currency war is basically that the oil is winning the keyword there is

unexpected that the oil ran out unexpectedly you know this is the magic putting theory that if you have a ball of putting you can just keep eating from this ball and the ball never runs out of putting it's the magic putting i've never heard of the magic you see you learn something new on this so all inside the u.k. ministers believe that you could just keep drilling and pumping oil from the north sea and it just replenishes itself magically that there is no bottom to the end of that ball and it's unexpected they unexpectedly ran out of oil in america in the seventy's they are expectedly run out of oil in kuwait in the bergenfield over the phone expectedly run out of oil and cancer in mexico the world unexpectedly hit peak oil in two thousand and seven along with big credit and it's all very unexpected unless you've got a fifth grade education that is go belly productive all and you can predict that it's going to get worse from this final brief headline regarding this a consequence of the increase in oil imports sterling falls after u.k.

trade gap widens to record so the u.k. trade gap widens because of the increase in oil imports thus causing the sterling to fall thus causing naturally the price of oil which is priced in dollars to be more costly to the u.k. well george soros it's nineteen ninety three a time to kill the pound sterling all right stacey newman thanks so much for being oh it was a report thank you max don't go away much more even if you're on the way to the gate to go to the airplane stop and watch the second half of the show because it's more interesting they were never did you think you're going so stay right there. and greet for the. we've got to see. the biggest issues did you voice see. to face with the news makers on the t.v. .

we'll. bring you the latest in science and technology from around russia. we've got the future covered. i welcome back because a report already you know everyone's concerned about the whole explosion in debt for governments for corporations and i for him people let me introduce a first name all your job to go in there buddy let me introduce tim the load author of debt generation one of the kaiser report david thank you very much for having me on the show mark all right david bello first tell us about your book debt generation who is the debt generation and why are they in so much debt well sadly i think we are the generation and as far as i'm concerned the reason we're in so much that is because all governments have forced us to be in so much debt and not for our benefit well let's walk through how the government forces that upon us my

understanding is that they bailed out the banks and then they didn't want to keep that debts on their balance sheet so they decided to force it on the population is not about the size of it that is exactly the size of it no one else me i don't remember there being any discussion and that's the bit that rankles most with me all right so you've got folks in the u.k. in the street protesting that banks are protesting folks like philip green over their top shop who was abusing my tax code who took a billion dollar dividend in his wife's name avoided the taxation put the company arcadian a leverage position if you have protests against vodafone you've got anger in the street from this debt generation so they seem to be getting smarter in terms of pushing back what these flash mobs of these protests as a debt generation going to be successful in getting the government may be reexamined how they've gone about doing things well i think so i think was crucial

this year if if the protests continue to be isolated with a protest against schools closing here and a protest against hospitals closing there then i think the protests will fail because it's too easy to turn want to get to the other but i think if this year the protests. can find a common cause and instead of saying oh don't cut hours cut there is they can say why are we having these cuts who is all the money being given to then i think that that generation can fight back to back effectively now it would be interesting if the people protesting against the banks and what's going on in this debt pushing did not have an example of a country that did fight back but they do they have iceland to point to iceland let the banks fail the economy went through that wrenching re restarts restart restarting process and now they're back on the way to growth what what what what is this government how can they with a straight face say that they couldn't possibly let the corrupt banks fail when

that's clearly a lie well i could agree with you more i mean here everyone says two years ago a voice said oh look an island i live this doing the right the arlen will be the first one through and look at ireland they're not even on a knees they're only backs now whereas exactly as you say iceland took a long pause and said let's off the people in the people said no thank you no why should we bail out these reckless banks and they didn't and here they are already beginning to pull through no one saying it wasn't painful or that there won't be a lot more pain there's no pain free way out to where we are but they are pulling through in a way which are losing our island is sinking the supposedly shining example and how the banks and the government here can make sure that nobody looks at iceland. i don't understand of the fact that they have the whole hearted collusion of the media propaganda and you know in the case of these banks

that are holding the government hostage and forcing other people to pay debts that they had no part in incurring to begin with it's really a form of larceny and find him. still rate now it was reported recently about two million people are using credit cards to pay their mortgages or rent now we're just going no way good i mean once you start using it what would it be eighteen percent interest to pay off your mortgage well that's like many sailors in a boat cost to drive to start drinking sea water it might make you feel better for five minutes but then it will kill you i cannot understand how the financial press can look at that and see it for the warning sign which it is there's no good way out once people start using credit cards as a last gasp unless they're being machiavellian and saying right well i'm going on

to why not just max out the credit cards and then go out with a blaze of glory sadly i don't think that's what it is i think it's basically honest and desperate people making a mistake yeah you're right about the financial press just recently the financial times wrote an editorial about the goldman sachs facebook dail goldman sachs violated securities laws by over and over over shares relative to the c. laws and financial times simply said well there's nothing magical about that number well there's also i guess there's nothing magical about the whole concept of rule of law either now you say that the response to the financial crisis is a crisis of democracy what it was i mean exact what it means to me is i don't know how it was in the states but here when the crisis got going properly say two thousand and eight there was never a moment when there was an open debate when people said well what are the possible responses to this should we be bailing out insolvent banks is it really

a liquidity crisis or is it in fact a crisis of solve it see there was no debate we simply had a long chorus of politician aided and abetted by a supine press all saying exactly the same thing there's no way it will turn it if it's a crisis. if we could if we must bail out the banks and there was no discussion no point. was a discussion opened the people could hear different points of view it was claimed there was no different points of view a that's a lie and b. the decisions that have been made have been greater than the decisions involving was we hold generation will be blighted by those decisions nobody was oft led me to think wait a minute if this is democracy or isn't it are we going to be treated as adults or are we going to be condescended to for me it's one thing to have your wallet stolen which i think is going to happen to us it's another to then be coned descended to by the man who stole it yeah imagine

a war it's an interesting comparison because in the states they say well the debt to g.d.p. ratio it's not any greater than it was during world war two of course the point of going into debt for world war two ended up in winning all the arts and the us was a fantastic position to go forward in the face off that dad with a period of growth here the u.s. is in the same amount of debt but they just lost they lost the war against kleptocrats they lost a war against predatory bankers they lost the war against wall street bankers who have stolen all of their wealth so they're starting this period having just lost a war and they're in the same period debt and all the prognostication going forward is to three four times times more debt now also you mention ireland in the u.k. it's funny because the u.k. banks indebted to the irish banks and vice versa so do other words the u.k. population is actually bailing out irish banks yes but they all waiting out our

banks but what what's always annoyed me even more is here is the beginnings is the beginnings of the sort of xenophobia backlash with the germans saying oh we're bailing out those feckless greeks and the tabloids here saying muffing docu about bail. now the irish where is you and i both know the half of the money that's going to be taken to ireland to the irish banks will then be smartly returned to british banks because it's the british banks who where ultimately bailing out so we will blame the irish but get them to bail us out seems to me to be doubly on just right so you have all of this this bailout money and debt extending and pretending ending up generating fees for the very bankers who create the debt to begin with no g.d.p. growth no one to line growth unemployment is skyrocketing now let's get back to generation debt for a second how do they get into this debt what we know that for ten or fifteen years they were told in the u.k.

that by any means necessary you must buy a house even if it means taking out one hundred twenty five percent mortgage from bradford and bingley or northern rock in boston on the property ladder and now the real estate markets crashed the equity is underwater but the debt remains on the books that's how this generation ended up in debt for the most part is this crash of this market now does this generation debt understand the mechanics of how they got into debt i don't think they do because they constantly told that it was their own fault that they were greedy that they were reckless that they took on that which they shouldn't have and it's being turned as if it's a moral story of the failings of the ordinary person and the bit that doesn't doesn't work for me as for that story you've got to suppose that some. com a comic in sheffield or a comic kind of you know in california wandered into a large bank and managed to bamboozle the bank manager or bamboozle the smartest

men in the room and wall street and got them to give him a movie in which you couldn't afford does that does that ring true to you that the average person here outsmarted the banks and the banks went oh damn accompli think managed to persuade me to give them a mortgage which i can see that doesn't work now banks the banks said exactly as you said you know if you don't get in the property market you're a fool and by the way we can help you do it right and we now know that those mortgages were fraudulent lee and is fraudulently packaged contracts are frauds only written they sell them into the secondary market to securitization which was also fraud and now they're trying to foreclose and this committing additional fraud but basically let's be honest barclays h.s.b.c. refereeing bailey northern rock royal bank of scotland they are rapists they have raped on mercifully these poor young people and now they want to be portraying themselves as the victims they're the rapists so why can't they pass in the u.k.

and the financial rape laws rape are still illegal in the u.k. last i checked and these banks are raping people why can't they take them down to the old bailey and string them up for rape i agree with you that the the the rule of law is part of what's being on the minds when i say it's a crisis democracy it's i seriously wonder about the rule of law but i go back to you when you were doing the analogy with warfare i mean it's an old cliche but the first casualty of war is the truth and i think that's what's happened i think the financial class have said this is a war and it's a war. they're fighting for their for their survival as they see it and they think therefore any amount of lying any amount of dissimulation is justified ok well it and any war the role of propaganda is key and. this generation debt seems to me what they need is some proper propaganda to get themselves organized and to fight back the propaganda coming out them with their

own propaganda is anyone organizing some good propaganda to do battle with these financial rapists there is a minority of people who. buying into the propaganda i mean you know that neither they read my blog and they watch your show no though they're still a minority i think the banks and the government should be worried because it's a growing minority your viewership is growing the people who read my blog they're growing and so i think there are more and more people who are waking up and saying wait a minute. this doesn't make sense and i don't i'm no longer going to blindly believe the high priests of finance when they say only they know what's going on so i do think there's the more than the beginnings there's a maturing office issues who are beginning to get the courage to think to themselves no i think this priesthood is corrupt and i think that they're just selling us whatever message in which is then to our detriment all right well thanks

for being on the cause report to have the law and author of that generation thank you very much been my pleasure my writing that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest david malone author of debt generation if you want to send me an e-mail please do so at kaiser report at r t t v dot are you all next on this is nice guys are saying i.