there right now you can watch our camera crew in greece if you didn't see it in middle of protests getting attacked it's quite compelling you don't miss a you can also check out or should check out that guy's whole video it's quite entertaining and follow me on twitter at lauren lyster and i will see you right back here for more news and analysis shortly. wealthy british scientists are. time to explain the. market trying to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune in to cars reports on r.g.p. . today

violence is once again flared up first so these are the images the world has been seeing from the streets of canada best selling corporations rule today. this is the kaiser report money is getting tight i'm reading that the state of ireland is actually scavenging the sea floor looking for a copper left by the telecommunications industry to sell for scrap their drudging their own seabed first scrap copper that's how bad it is in ireland and around the

world let's get all the updates from stories you heard max actually you know that story line three of the seventies when inflation was raging and money was tight and oil in particular was out of control in price but the seventy's also reminds me of times square when you had a lot of hustlers there shaking you down my leisure suit. or leisure suit as much of the world calls them so the first headline oh reminds me of these times squares hustlers congressman pulls support for libya rebels u.s. congressman dana rohrbacher a strong supporter of the libyans people's uprising and now it's his withdrawal of support for them because the revolutionaries were not agreeing to repay us for the expenses and helping them attain freedom like i said he's a hostile or right he's like one of these con men that throw a ring a gold ring in front of you walking through the streets of paris and they say here i found this wonderful ring here how about you take it and oh by the way they and

their thugs chase you down and try to shake you down for some money for it he says the united states right now is going broke we are spending one and a half trillion dollars every year for the last three years more than what we are taking in this means that we are on the edge of a major economic crisis now and it's not right for us to borrow money from china or anywhere to give it to the people of libya to help them when they want freedom but this is. again is building to a crescendo of insanity that every time they open their mouths they're just adding to a case that can be made for what i call the american suicide cult people actually drinking the sinai of debt financed foreign excursions his own argument the libyan rebels could say to him well stop fighting wars all over the place and maybe you won't go broke is sound he sounds like louis the fifteenth you know he financed the american revolution and what happened his head got chopped off because the nation

went broke one of the economics here in other words the point supposedly is that you free the people and it creates a goal in global g.d.p. and the us benefits through this down the road at some point it's not that the us is just renting it's psychopath excess district armed militia and mercenaries for a few days and now they want to get paid is black one just to pay for assassination squad another they're saying that oh you didn't pay us the money for it we rented out our assassins to go kill us and mayhem in your country you know us money orders or i thought this was some political angle to it no it's the collapse of an empire this is how room fell apart and i actually want to show you this little video to introduce you to dana rohrbacher so you know who he is this is him performing a song that he wrote and is singing god bless your freedom and god bless the people

who were. god bless the folks who built because great country god bless our rights so the song is called god bless us all and if you look at that little plaque it let's look at a close up of the plaque there here you saying that he was shot at by russians while he was with the dean in afghanistan so of course he was behind that as well if i announcing. the rebels of afghanistan who then became osama bin laden and al qaida who then america went and has spent a trillion dollars in afghanistan so this is this this guy is like he is a racket he's at times square racket what's his name dana rohrbacher rohrabacher these the guys who played with nine eleven so this congressman then went from libya where he failed to shake down the population and he went to iraq iraq asks u.s. congressman to leave over repave remark yes congressman rohrbacher showed up in

iraq and said once iraq becomes a very rich and prosperous country we would hope that some consideration be given to repaying the united states some of the mega dollars that we have spent here and the last eight years the united states for its own oil to make its economy go go forward and the point of all this meddling is to try to keep the price of oil down so the u.s. has a functioning economy that's the point of the wars it's not about renting out assassins for a few quid bucks to help your reelection campaign this guy is not only is he a horrible horrible musician and not only does he look like elmer fought on crack but he's a donor head who doesn't even somebody should get him economics one hundred one and he should sit down over the weekend and learn how to post to with that equals because he's obviously either a incredibly stupid be on drugs or c.

he's a front man for al qaeda obviously if he was responsible for the nine eleven attacks and all the above this is the way the american empire operates their foreign colonies were room and put in left behind vast you know infrastructure projects america just goes and blows apart their infrastructure projects and then shakes them down to make them pay them to pay the united states to rebuild it. block and the same a logic does not apply to israel i mean we've dumped hundreds of billions a hundred billion into israel we haven't seen the probably back pay back now i happen to be a us taxpayer that means a. result there now benjamin netanyahu he personally in the state of israel owes me five or six thousand dollars back worthless for doing so the iraqis are also asking for their money back iraqis we won't repay us for the head of iraqi parliament's foreign affairs committee called. comment stupid and said quote this provokes us

and the iraqi people as well to demand compensations for losses iraq suffered during the invasion again you know the united states chose this war it wasn't a war of necessity to go into iraq they chose to spend three trillion dollars and now they're trying to hard these people they killed a million iraqis destroyed their entire culture and looted the museums and trashed all the architectural sites and now they're demanding money is the same robotic or who sells popcorn on t.v. i don't know rohrbacher so again he's had no lock shaking down the iraqis or the libyans but we're having a lot a lot shaking down our allies in the west us foresees forty six million dollars twenty eleven military sales so the united states plans to export forty six point one billion and weapons a seer which is double what they exported in two thousand and ten now part of the

reason is that all of these nato bombing campaigns well it's apparently depleting the weapons ammunition and the resources of all their allies so the allies have to come to the united states to replenish their stocks which is a good racket for the u.s. you so in the razor and they buy the blades and so on the resort a loss but you make it up when you sell the blades the u.s. gives nato all the stuff the bone people with the run of the. bombs going to bomb or bombs it's a brilliant story it's a brilliant business if you're genocidal maniac and then another headline along this rack at the times square racket of shaking down people around the world how this pathetic empire is collapsing in a pure coincidence gadhafi and p. did us oil interests before the war so this is glenn greenwald and he's talking about wiki leaks documents which show that post the opening of libya thanks to j.p. morgan executive tony blair going there and meeting with khadafi with the farting camels of tripoli's warning camels of tripoli that's the name of my new punk rock

band by the time secretary rice conda lisa rice visited in two thousand and eight u.s. joint ventures accounted for five hundred ten thousand of libya's one point seven million barrels a day production the state department cable shows but all was not well by november two thousand and seven a state department cable noted growing evidence of libyan resource nationalism oil companies from america were actually even starting to withdraw because they didn't want to share as much as i could off he was demanding and could off he was giving nationalistic speeches saying all these foreigners are taking our oil making a lot of money and we need more for the libyan people well you know in the oil unfortunately or fortunately depending if you live on planet earth is running out as part of a thing called peak oil and of course the worst or of all rock bachar of the congressman who likes to help the kind of folks say about that well one nation not being invaded is saudi arabia saudis ready to pump oil after opec collapse that's

a false because they don't have the oil to comp well that's why i'm saying how war is in rapid decline tell the truth you saudi think. but that's not what matters max all that matters is that they show their compliance because remember this is a us empire built on an addiction to oil and easy oil and all they need to tell the population of america is that they will continue providing them with cheap oil as one oil analyst in the. the article notes saudi arabia wants everyone to understand that they are serious it's important that the saudis are signaling that they are offering additional barrels it's important for everyone to understand that the saudis are allowing they don't have the additional oils of barrels of oil to pump they feel like it's around in bergen in kuwait is in rapid decline the eighty five or eighty five million barrels that was pulled out of the ground recently during a recent year that the top is the historic top it'll never be at that level again

because it's a finite resource what is it about the word finite that you don't understand you frickin saudis well listen we have a finite show here i've got this really important story to end with so i want to move on to that so u.s. underwrites internet detour around censors so this is another thing the u.s. taxpayer built darpa internet is being offered to dissidents in the middle east select dissidents anyway certainly not the saudi arabian dissidents or are there any dissidents they want to be given this the shadow internet system for which they can communicate and and you know block now i want to say what about since we the taxpayer are paying for this shadow internet system for them what about the middle eastern people giving some quid pro quo here how about giving us a shadow jefferson memorial because americans we are not allowed to go downstairs

so why don't the middle east people give us a shadowman more jefferson memorial which we can go dance around you on a shuttle jefferson memorial built somewhere in the. for us to dance as americans well because as american adam cook s right here on our team went to dance in front of the jefferson memorial and he was beaten repressed by the police and the obama administration is deploying a shadow internet system and mobile phone systems the distance can you. to undermine repressive governments and what better dance to bed just go another genius invention of the one nine hundred seventy s. . there were thanks so much for being the cause report he came back to weigh much more coming away so it's a rather. lonely. just

keep. coming back i am max kaiser welcome back to the kaiser report time now to go to new york city and talk with safe edina moose a visiting scholar at the center on capitalism and society at columbia university

and a professor of economics at lebanese american university safe welcome to the kaiser report thank you for having us all right save you recently wrote a piece for the financial times called too much hobble the arab spring first tell us what are our economic the issues economic issues behind the arab spring and then when. western aid and debt will address any of these economic issues a lot of these problems were economic it was an exclusively economic a lot of it was a comic and the real economic problems i feel are the government control over the various sectors of the economy which was something that was strengthened over the past couple of decades through international institutions supervision of privatization programs which ended up strengthening the hand of the mubarak and banal regimes in those countries and allowing them and their cronies to control more and more of the economic activity of the country and of this which enrich them while at the same time denying

a lot about the canonic opportunities for everybody else in society i think this was the thing that the people of those countries revolted against and if you look at the slogans if you look at what the revolutionaries were saying on the street it had a lot to do with this that had a lot to do with the corrupt people that surrounded the regime that controlled all the economic activity the ban on now after those regimes are thought old it's very unfortunate i feel that we're seeing a repeat of all the same economic policies and all the same economic stakes that led to this situation of the first place and most markedly i think the the biggest problem right now is the emergence of these same international financial institutions that have been bankrolling the mubarak and ben ali regimes are now reemerging to bankroll the new emerging tunisia and you imagine egypt with a lot of money and a lot of debt and a lot of central plans stopped in washington for giant economic. projects that will supposedly bring about economic transformation in these countries i'm

very skeptical of that happening and i think that it's more likely that we'll go to see a repeat of the same structural problems that these are these sort of initiatives have created in those countries previously and will continue to create for a while now their revolution in cairo is pretty sophisticated and the people on the ground seem to be following day with this pretty closely what about the idea of are really ready. lucia just keep revolting again and again until they get a right i think the majority of people in egypt are under no illusions that their revolution is over if this is what most people in egypt and tunisia continue to say they've removed the head of the regime they've removed the president they've removed a lot of the people who surround them but they by no means feel that their revolution is over and i think that's a very true and important thing for them to continue to believe and in fact you know a lot of people had dismissed the revolution after mubarak was removed and people said well the ruling establishment that is around the bottom is going to continue

and mubarak is going to have to be put on the show from behind the scenes but the the egyptians continue to go down into the streets and they continue to protest and they continue to demand more be done and they succeeded in getting mubarak tried they succeeded in getting more and more people removed from office they succeed in getting more and more parts of the old regime removed so it's still continuing it's still continuing right now as we speak egypt and tunisia people are doing their best to get rid of these. all of these old regimes ok imagine the i.m.f. who was active before the revolution now they're active again as you describe it it's just more of the same and that the egyptian people need to and and are very much aware of this now the i.m.f. just loan three billion dollars to egypt that's the latest deal are they also lending money to tunisia who is in power actually to receive these loans the i.m.f. the world bank the group of the g eight and a lot of other international seducer are lending and granting all sorts of money

the u.s. government hands of various other european governments they're all engaged in this game of giving more aid and more debt at this point but the very interesting question you ask is who is in charge and actually. i don't think anybody knows how to ask the question exactly in either egypt or tunisia because i don't think anybody is really really chars. the country at this point you know under the previous regime it was clear who was in charge it was mubarak in egypt and then ali in tunisia and you know he was the person where you know the buck stopped everything had to go through him or through somebody that he had delegated so it's not really clear clear who is in charge of the country and i don't think there is anybody in charge what i think is happening is that you have various different groups that are competing for turf competing for funding competing for money and influence and power in the new tunisia and in the new egypt and i think what is what we're seeing now is that among these various groups one of the groups that has been. at the forefront of this new egypt in tunisia attempt to get back

into the international financial situation is. lending and. borrowing schemes basically is. an elite of the better educated western oriented economists and politicians who were friendly with the previous regime who are part of the previous regime but more of the technocratic side of the regime those people right now are continuing to basically a with the cell it's to do the same sort of projects that they used to do under the mubarak regime they think that you know getting more funding from the i.m.f. and the world bank from you know say id from the british government is going to solve the problems of egypt and tunisia. they don't seem to realize that they were there they were getting the same funding they were spending the same sort of money two three years ago when people were getting ready to revolt for against this regime they have not gotten the message that they are part of the problem and not

part of the solution the majority of the egyptian of the reasons the people clearly feel that these loans and what comes with them is a big part of the problem that these countries face because this money has not to lead to economic development it does not lead to economic growth it has led to a growing gap between rich and poor it has led to a growing amount of economic power it was concentrated in the hands of a few people and it is that. political corruption i think this is the main and most problematic impact that the state has which is that it allows the people in charge to be unaccountable to their people because they can just be accountable to their foreign donors to the foreign funders they get the money from the funders the money is very large it allows them to build their own security apparent as it allows them to suppress any dissent they don't need to cater to the needs of their people they can just answer to their foreign funders and i think this is the to be the case of the this is the best way to understand the ben ali in the mobocracy that the people revolted against and sadly this is what we're seeing today being repeated we're

seeing that the international community the world bank the i.m.f. they're basically trying to create a new bin ali and you know in the box i don't think they're doing this willingly in as much as they're doing it as a matter of the situational habit there you have to dispense loans because they believe their loans will solve the problems of this country and they think whoever gets those loans is going to stun them like an honest technocrat would but they're completely oblivious to reality which you know if they would look at their own track record they'd get a much better idea about the actual impact of this sort of project is going to have lost our economics for a second the cause of the revolution in part was the skyrocketing cost of wheat now when you throw a lot of that money into the mix coming in through i.m.f. aid let's call it you're actually exacerbating that trend and you're going to cause the price of wheat and other commodities to continue to go higher which is only going to inflame tensions on the street so there's

a basic economic disconnect for those offering these loans and the effect that they have on the price of wheat and how that price is creating the revolution is it the i.m.f. are just simply. incapable of basic arithmetic or are they just all political hacks looking again. some kind of free ride on the back of an impoverished egyptian population excellent question max but i don't think i could psychoanalyze i'm. alone officers and economists to be able to analyze it but no you're absolutely correct in that. this idea of spending a lot of money doesn't make sense to treat the problem of inflation it's the basic economics tells us that that's nonsense unfortunately not a lot of people around the i.m.f. or the world bank but part of psychology is that clear out president bush and obama have said that the us is addicted to oil so how can they possibly act as

a broker in the region when they are pathologically unable to do the cause of the rising prices of wheat and basic staples obviously was not an egyptian or tunisian explosive issue but the reason for the right price rises global i thought i personally believe that it's it has to do with a flourish an era monetary policy of the us federal reserve but the the local policies of those governments took against these price rises also exacerbated so in egypt and tunisia they try to impose price controls they tried to impose subsidy try to put subsidies this is before the regimes fell this is during the rule of mubarak and ali the government did all these very wrong guy enough. prescriptions like subsidizing food in the. and you know it didn't work it only exacerbated the problem because basic economic common sense tells us that it doesn't work and there's not the they're going to continue doing the same thing now we noticed that

in tunisia one of the big funding plans that they applied for funding from the g eight for twenty twenty five billion dollars and the first heading item was their first item for which they want to spend money on laws massive food and basic staple subsidies but this again completely ignores the point of what the real problem was behind the. it was not that people wanted more food it was that they felt that they were being denied the chance to get to work on their own to make their own food to build their own economic future and on the economic future front is egypt can it diversify across different industries to give themselves more of a heterogeneous economy or are they wed to commodities and oil and therefore subject to being captured by the oil industry there's no reason why the egyptian economy could not diversify and could not grow very impressively i think egypt has knots of potential i think the problem always has been and always

will be. state control of economic sectors this was a problem under the mubarak regime this was a problem for mubarak in power and this is a problem after mubarak left but although i'm sort of optimistic that some of these institutional factors are being removed but there's no question that when you have the government in charge of all the major industries then it is the government the decides who can enter who can exit the market this it puts a major major major impediment in front of industries evolving in front of the most successful succeeding in front of the failed businesses going out of business and freed up capital and labor for other productive businesses so there's a been a very systematic. structural failure within the way that the egyptian government has handled the sick on it for the past twenty thirty years in no small part thanks to the measures implemented by the world bank and they are enough and so if the new ease of the euthanasia managed to shake off the world bank

and i.m.f. conditionality and manage to get out of this of the claw of the debt then all of this vicious cycle of taking on more debt than then having to implement more policies imposed upon you by those institutions if you can break out of it and if they can liberalize their economy and if they can let individuals and entrepreneurs have the freedom to do what they want and if they can liberal. even the basic labor market which is i think the most important thing at this point so that normal young people could just go and have normal jobs without having to ask for licenses from politically connected people i think there is massive potential for both the egyptian on the tunisian economy however if they continue down the road of central planning of the ages of the i.m.f. and the world bank if they continue to take loans i think the i think the future is bleak we're going to take to see more and more of the same a few at the people of the top continue to enrich themselves and make more money whereas the majority of the people find it impossible to make a living all right safe again i'm visiting scholar the center of capitalism in

society at columbia university a professor of economics and lebanese american university thanks for being on the kaiser report thank you must all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy when i was i guess a for a daytime if you want to send me an e-mail please do so at kaiser report at r t t v dot are you until next time this is maxed out or saying bye oh. we'll. bring you the latest in science and technology from around the world. we've got the future covered.