regards to you live from moscow our top stories forty four people are killed as a class and your plane crash landed northwest russia eight survivors are hospitalized in critical condition preliminary reports are just pilot error and bad weather it's blamed for the tragedy. kinds of more civilian victims in libya after a fresh tomato bombing with at least fifty reportedly dead including children following an airstrike west of tripoli becomes was the day after the alliance

admitted to killing civilians while blaming pull back on the small function. of the prime minister of greece is facing a personal confidence vote in his recently reshuffled government the outcome could determine whether he'll be able to push through a new austerity package to secure another much needed injection of cash from the e.u. . now max kaiser and his co-host stacy herbert asked what a fact mountains and that can happen on a nation self-esteem cars a report is next. welcome to the kaiser report as we have been reporting financial melt through. the world uninhabitable for capital and so now we live in a financial no go zone you are slaves of the talks that have been created to fall

in which we are much too wealth and little of the talks explodes slow cheap so you never tell us more max well i have proof of this not only the revolution happening in greece but we have the financial propaganda to convince you the slave on this toxic debt farm to continue incurring war debts one better self-esteem saddle yourself with mountains of credit card debt new study claims yes being crushed under a mountain of debt is typically frowned upon max but new research has suggested this could actually be a dream for many young adults and claims those saddling themselves with credit card debt will feel empowered and feel more self-esteem well i guess this research was financed by j.p. morgan chase. perhaps but the research was actually conducted by retold wire an

assistant sociologist at ohio state university and her study found that eighteen to twenty seven year olds who had huge credit card debts not just small credit card debts but huge ones and university loan debt remember this is another scheme they're pushing on us all around the world is incur huge university top up fees and you'll be happier well according to our study that these people are a generation ago or two generations ago the word work imply accumulate. savings but now the word were. accumulating debt so what they're saying is you young people out there who are entering the workforce if you work really hard you will accumulate massive debt bet is propaganda isn't the whole orwellian war is peace type of newspeak well i think max is actually a post work environment we're no longer creating wealth we only have toxic debt

derivatives to pass back and forth to each other so in this world you have to come up with a new paradigm of what makes one happy and that in the study she claims rachael dwyer claims that young people saddled with huge amounts of debts also felt they were more in control of their lives but especially those in the lower economic classes so the results show that those in the bottom twenty five percent in total family income got the largest boost from holding debt again it's new speak in other words are saying that if you have huge debts you have more control in your life what they meant to say was if you have huge debts we are in more of control of your life that's what they meant to say that's what they meaning is you lose control they're in more control well she claims the more debt they held the more debt the bottom twenty five percent holds both education and credit card debt the bigger the

positive impact on their self-esteem and mastery but it again like we talk about the the sickness the mental illness of american society where these people literally the more debt you have in reality the less control you have the less options you have look at those people stranded in america because they have negative equity and they can't pick up and move because they can't sell their property they can't get rid of their home mortgage and the same thing with people with huge student loans can they. take certain jobs they have to take specific jobs for the military industrial complex for example but once again language has been usurped here and they talk about self esteem but what they meant to say was narcissism this huge dead fuels narcissism narcissism is not the same as self esteem self esteem comes from saving money and then consuming based out of savings

narcissism is spending money you don't have to consume stuff to pursue your own vainglorious narcissistic ends well let's apply this to societies that large because the first study also conveniently finds that the richest people the richest ten percent of americans feel no benefit from debt low and behold because they of course have cash and wealth and resources they don't need fake self-esteem how does this apply to for example wall street is this why they are so miserable and take so many drugs and are so destructive because these guys make a lot of money they're making tens of millions of dollars a year and yet they hold trillions in debt trillion six hundred trillion in credit derivative debts and yet look how unhappy they are they hold trillions in debt for other people all p. baby other people's money or this case other people's debt o.-p. deek best so wall street lives day to day well this rachel desire she also does at

the end of her this report on her study said that we found that the positive effects may wear off over time but they still have to pay their bills the question is whether they will be able to there needs to be additional research to answer this question positive effect wearing off of this case would mean either prison or death yeah i'd say that that qualifies as having a positive effect where are what i'm going to cut to just some footage here you can see in the parliament square in greece this. his research for rachel's wire she was to know whether they will be able to pay off their debts these people and whether there or not they need to have additional research to find out what happens when they count pay off their debt this is kind of what it looks like all lots again language is being abused her they're saying or talking about the people and their day it's not the people's that those people don't have the debt the bankers gave

them their debt. they're suffering from other people's debts it's not their debt that's why they're having a revolution it's a global insurrection against banker occupation part of the i'll blow your part of it i'm going there are you part of it i've got some good news if rachel the wire is correct and that you know more debt will make americans happy well i have a headline that suggests it might be looking very good for their self-esteem soon china migrant workers clashed with police for third night a thousand protesters set fire to cars and damaged government buildings last weekend near the city in china's manufacturing heartland of you so these are the chinese workers in china working for sleeves labor wages in order to feed americans who are just leaves on a death farm with cheap plastic goods and they don't look happy they look like they want to make some more money that might mean that americans actually have to start using more of their credit cards wal-mart or the installer casino the usually

spruces up people's feelings and you know them selves you know but the thing is the prices are going to continue to go higher so americans should be very very happy their self-esteem should be booming you know forty two percent of all new jobs in america are low wage so they're going to resort to credit cards and apparently that makes you happy but. now the downside of this your happiness your self-esteem is going to be denied to you by h.s.b.c. h.s.b.c. says well run down u.s. card business if buyer not found so c.e.o. of h.s.b.c. the largest bank in europe said he was upbeat in the medium term on the economy in the united states but the card business there did not make any strategic sense. lying yeah yeah yeah well so obviously max keiser h.s.b.c. was the very first bank to pull out of the u.s. mortgage market in two thousand and six two thousand and seven household financial and now they've been trying apparently to wind down their business first they've

been trying to find a buyer for this business because they do not want exposure to the american consumer they want to expand their exposure to the asian workers striking and protesting and rioting in china right there trying to aggressively get out of the u.s. market because they know that with no jobs and no savings you eventually the credit card business will collapse including visa and mastercard that's correct and i would also note that h.s.b.c. is there for denying americans the right to life liberty and the pursuit of self-esteem so just pulling out all of their lending facilities in an america yes and also moving the bank apparently you know they're going back to their asian roots in ages b.c. they're what they're getting out of the entire western model going east you know that should be a lesson to everybody watching the show go east young that's where the opportunities are but let's look at an example max of what happens to americans when they get cut off from this debt stream this new debt that h.s.b.c. is no longer willing to supply these people with let's move to europe i remember i

said let's compare american citizens to what the european countries are like ireland because dumpster diving on sea floor looking for cash so cash strapped ireland resorts to selling sea cables for scrap its net copper is now selling eight thousand euros per ton and there are many cables that been laid down off the sea of a. ireland for the last hundred something years and they're going to go dig it up and try to sell it off and pay off some of the debts of a nation that's run copper down on the seabed and the irish people the irish government are out there snorkel on and they're diving masks and they're free diving hundreds of feet down to try to get copper from the seabed to pay off credit card debts and to buy themselves a nice pint of guinness a lot of the churches of course in ireland are missing the iron roofs that have been torn off to pay for a guinness and the entire country is being sold off on e bay and so finally now remember at the beginning of the show i said that the debt apparently does not make the rich happy no rich people hate money well because we

know wall street has tons of debt they own tons of debt and it's not making them happy because greece's credit rating cut again on higher risk of default so they have now been downgraded they're continuously downgraded this time by standard support and it looks like default is coming closer and closer we got the triple hook you know the triple hook triple hook a c c c. hoo that's a bad one well apparently. the c.d.s. contracts this is the big problem here is the debt on the bonds which french and german banks own so they own greek sovereign debt but they have insured themselves and who has insured them provided that insurance but american banks and they apparently are exposed to this greek portugal and irish debt by up to about one hundred twenty nine billion which is real cash they'll have to hand over to these

european banks but at the same time to the basil requirements of trying to get banks to increase their capital ratios here you have this cluster bomb. explosions between europe and greece that could wipe out one hundred twenty seven billion on balance sheets in america and this is really an interesting showdown in the global financial war isn't because you've got insurance and bonds versus c.d.s. products in the u.s. we've seen this played out with the a.i.g. scandal the subprime scandal and every aspect of the of the past three years of financial collapse the controlled demolition and depending on who sits where during the collapsing financial system depends on who survives and apparently the key here is not greece actually default because then american banks would suffer catastrophic losses as compared to european banks and this of course cannot be communicated to the american people because nobody in congress actually knows what a c.d.s. is or even what a bond is for that matter well yes max finally i will say on this is that you know

in the first great depression you had the beggar thy neighbor policy of devaluing your currency but everything was against gold and so you could do that now there beggaring one neighbor who where does the debt blow up who holds the bag who's holding the toxic debt bag at the end of the day stays here with thanks so much for being on the kaiser report thank you don't go away much more coming your way so sit right there. invasion cluster in the center of south korea one city has revolutionary ideas for the automotive industry your expenditures then some of the infection straight out

of software to make three d. goggles free and the building blocks for russia's first nationwide four g. network tomes going top one technology optics. please the future coverage. welcome back to the guys report imax guys have time now to go to this and talk with radio show host and blogger at covering delta wordpress dot com dimitri thena us dimitri locked onto the kaiser report. write to me three here on the kaiser report we recently discussed your coverage of the charges of treason lodged against george papa drills the prime minister give us the details of this case but apparently this as you said i'm on the brother and i have a radio show in new york and this story just kind of blew up after i heard the

allegations made by a member of parliament a certain punished by members of the medical practice which is a opposition party in greece and it's the other party them in a stroke have come in and been running the country over the past thirty five years and he made his a position on the floor parliament where he essentially accused the prime minister of acting as a foreign agent against the greek government and that he profited needed to regulate or indirectly as well as possibly members of the family and possibly members of his cabinet from the sale of one point three billion worth of credit default swaps from post bank a public banking arm of an arm that the greek government has about thirty three percent stake in two private books to a specific firm but he actually made based on the floor problem and he actually he actually cites people on the management people on the board it was a pretty deafening allegation and it was one that he was prompted to make by certain failures who was a leader of another minority party in the parliament. and i should mention that

after after making those allegations and after i wrote my article the firm that he cites came out with a full denial but he said that not only been up to date now by any credit because of protections from post bank on greed. that the but they didn't buy any spree c.d.'s period and they never advised the near clients to buy any and the the the m.p. actually did not provide publicly the evidence that he he claims he is the salmon it into many hands and fake it got on national television afterward and said that no one you know that's no one should try to wear that you're suggesting that he's been threatened then that he won't be frightened and that this information is in many hands but we haven't seen the specific evidence for this specific firm out of the larger context of the article that i wrote about is something that you've talked about on your show before the fed could ever stop us on the show and who along with george no less filed the lawsuit against the government speculators for

their role in this larger financial. syndicate project using the derivatives markets on the one hand the c.d.s. market the insurance market and the naked short selling wheat brands on the other hand with me a central bank which extended the settlement period for shorting government bonds from three days the ten days and then kind of all plays into this whole thing because it's not just about up these specific bonds that they were bought by banks in the spring and summer of two thousand and nine and then sold in december after the new government came to power to some third party that that third party has not yet been confirmed but it's also a question of the larger question of who owns all these other derivative contracts that are bets against the greek the flow and already the people in negotiations over and over a bailout for greece are they owners of this so they have any any interest in this so there are these massive potential conflicts of interest and one of the things that the m.p. asked for besides everything else was that the prime minister compass and. he

provided evidence along with other people it's ok and that if i could leave everyone perjure themselves or not person subs you know. provide evidence to say what you know do i regret not have an interest in and collapse of the country because i'm involved. negotiations and that's a major potential conflict of interest ok so one point three billion in credit default swaps there was a sale and somebody took possession of these credit default swaps at some point during this period of time that you mention and afterward there was a reset al forays something along the order of a twenty billion dollar profit now there is a way to confirm well first of all can we definitively say that these were sold i have evidence to support that were sold i actually had and i don't make that claim on the in fact on the post on the article that i wrote one of the things that i

made a point early on was that the numbers didn't really work out for me i wasn't really sure how whether he was talking about one point three billion notional or what because the m.p. actually says that. basically he was making the allegations that some of these contracts that were expiring were at the time worth something like twenty seven billion euros and that if there was a full credit that they would be worth sixty so the math didn't really work out for me outright to talk to people that work in c.d.'s to explain that and i wasn't able to get any kind of clear answers so i don't know if they were if they were sold from the initial sale to the firm again after their. i don't have an answer for that question ok if the c.d.s. contracts are still held by the bank then the money that the greek government is seeking to offset their losses would have would be reduced correct but what is certain is that they sold their only umbrella before star so would they have been

better off the absolute it would be better off because it was an insurance contract insuring against the fall and even if they didn't have a default those that insurance contract was rising in value so so in that sense the absolute be better off now that would have saved them from a complete default no quit but metaphorically metaphorically it's also something that i could kind of the country was most vulnerable it was the one thing that was directly correlated to the health of the economy indirectly so the more in dire straits the country was in negotiations with the i.m.f. and with the e.u. remote value this asset would have so it's the least thing that you would want to get rid of once you've come into the government and you've looked at the books and said ok holy cow you know our deficit is way above or we've been saying it is our national debt is way worse our economy is way worse and we have this credit protection on our books it's the one asset that we know is going to inversely correlated with the help of our economy so you would think that if you're functioning with the national interest and i do you would never get rid of this

asset it would make any sense from that from that point of view and that's actually a point that the m.p. makes and that's what it says he alleges that the prime minister is functioning as a foreign agent because he says only foreign agent would sell an asset that has such national about him during a time of national crisis ok now the propofol continuing to play a key role here and it has now emerged that american banks have written credit default swaps so if greece defaults american banks have to pony up one hundred twenty nine billion to french and german banks in other words if france or the german banks own bonds that. will take a haircut but it's the american banks who stand it's a catastrophic losses because they're the ones who bought the c.d.s. if in fact there is a default so the question is where the american banks suckered into buying these c.d.s. contracts in the same way that george was suckered into selling them or is there

something else going on here you know your question i've been i've been trying to figure out what the deal is with this sovereign c.b.s. market in general for some time now because as many people have pointed out in some cases it's clearly clearly fake insurance and in the sense that there are c.d.'s contracts on u.s. treasury debt and in my pin if you have a u.s. default who exactly is going to have a capital reserves to pay out the claims on insurance contracts on the on the u.s. the cock so in general it's just it's in another example of this massive counterparty grist risk that exists in the system that i think functions as a sort of massive source of anxiety for a lot of these banks so there's i just agree factor which makes them push countries like greece further and further into debt and the don't we don't want to take a haircut but i think it's also fear that. we don't even know is going to happen if you took a twenty percent haircut because not only do we have to bet on our books but who's

on the other end of the slops that we've heard of these yeah these credit default swaps and shirt protection that we've taken out as a hedge to to hedge our risk so i think i think that's the real issue with all these these credit people screw ups and means. and and these sovereign debts on balance and sense that no one really knows who's exposed and who's not exposed and how much exposure is one bank able to deal with and how much is another back here we risk it seems like we're kind of the same place they were at how many years ago with women and with aig and always thought that happened that we counter party risk right you referred to c.d.s. products as fake insurance and what came out after the a.i.g. the lehman brothers can. lapse was that c.b.s. contracts are in fact fake insurance for one thing and it typical insurance contract or some kind of reserve against losses or the c.d.s. contract there are zero reserves so it's a purely a gambling instrument that is metastasized to encompass trillions and trillions of

dollars or the spec of bets and so on follow up on what you just said there there is some much confusion about who owns what which is what we experience record for lehman collapsed in the global financial collapse of two thousand and eight is the greek economic and financial collapse shaping up to be layman part. of the senate. and i've interviewed actually in that interview recently before i came to athens because i'm based out of new york that's where my radio show i interviewed doesn't like and who who is a former economist for the i.m.f. we have a plate of vision and clear argentina and he was on the south side of sums for particularly our city in collapse and we talked about this exact situation and he made the point that the e.c.b. has roughly eighty billion in capital reserves and they greek banks hold roughly one forty one hundred forty billion to be said because right now right you have the city which is funding the greek central bank through the european system central banks and that's allowing the greek banks to remain liquid because they're

insolvent and they're able to continue to pay out in fact it was the fourth month month over month that we've seen the clients and the central bank the several government restructure the biggest withdraw our british royal roughly i think from fourteen point one billion to eleven billion europe's so it's perfectly it's perfectly feasible perfectly possible that he could could be a women in that sense because it's huge if you defaults in even if it takes a haircut and that's and again they cause like my point which is why are these banks so obsessed with not giving even the smallest erica when we know that the greek government can't possibly end this back and anyone else here in greece right now knows that the greek economy is falling off a cliff and anyone who's interested in trying to get interest payments is a. not these gears is not doing what they should be doing if their creditors the only thing that creditors are cheating right now is their liquidating assets the liquidity public companies whether their monopoly for their profitable and monopolies or not we recently i think sold the balance of our pay which is the public telephone company for something like eight euros

a share of my crap and they're also looking to take it take a land of mineral resource rights we're hearing about rumors again stuff that used to be considered untrue or just rumors in the past about oil in the ionian natural gas the a-g. and mineral rights and the gold reserves in crete we're hearing about all this stuff now and i think what what you're seeing from the creditors point of view is let's try and liquidate as much as we can it's leveraged buyout hostile takeover of a country that is not a little bit use on priests we're not even going to worry about the interest payments because the country just bought a clip of economic activity spells the nothing's going to come in so i think i think that's the focus it's not so much a focus on trying to keep the money flowing from bear whatever losses they get maybe try to recoup them from the c.p. and from the f.s.f. and anything like back kind of like we did with tarp and the federal reserve in the us of q.e. wanting to be two and maiden lane one maidenly two and all that stuff. that's going to do it for this edition of the report dimitri thanks so much for being our guest

thank you max i appreciate it and if you'd like to send me an e-mail please do so as a reported r t t v are you i want to thank my guests or me three healthiness and stacy herbert until next time this is max saying by our. own home. all.