here with our to you live from moscow our top story bad weather conditions and human error could be to blame for a plane crash in northwest and russia forty four people died in the incident both eight survived and some of the injured were flown to moscow for treatment. at least fifteen more civilians killed as nato bombers miss a tough could stop the aid but instead hit the birthday party of his four year old grandson prompting libyans to assist in the intervention toughest with protecting them. when showdown in the greek parliament the pm faces

a no confidence vote on whether to pass out of its new austerity cuts in return for an e.u. cash lifeline for become the first euro zone nation to default on its debt. now max kaiser and co stacy herbert doubts what a fax mountains of debt can hop on a nation's self-esteem kaiser report is next for an archie. keyser welcome to the kaiser report as we have been reporting financial melt. made 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 a fall in which we are mr wealth and little of the toxic sludge slowly station over

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 sleeve of this toxic farm to continue incurring more debts one better self-esteem saddle yourself with mountains of credit card debt new study clean 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 oh let me guess this research was financed by j.p. morgan chase. perhaps but the research was actually conducted by rachel dwyer 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 bonds and university loan debts. remember this is another team they're pushing on us around the world this encouraged 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 accumulating savings but now the word work means 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 it isn't the whole orwellian war is peace. newspeak well i think max is actually a coast work environment we're no longer creating wealth we only have toxic 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 to

wire 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 showed 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 the 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 it's 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 they can't take jobs certain jobs they have to take specific jobs for the military industrial complex for example that once again language has been usurped here and they talk about self-esteem but what they meant to say was narcissism this huge debt fuels and narcissism but 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 you know

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 study apply to for example wall street is this why there 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 and. other peoples money are those case other peoples that opie deep that's a wall street lives day to day well this rachel dwyer 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 our well i'm going to cut to just some footage here you can see in the parliament square in greece this is research for rachel dwyer she was soon know whether they will be able to pay off their debts these people and whether they're or not they need to have additional research to find out what happens when they can't pay off their debt this is kind of what it looks like all once again language is being abused her they're saying or talking about the people and they're dead it's not the people's dead those people don't have the debt the bankers gave them they're dead. they're suffering from other people's debts it's not their dead that's why they're having

a revolution it's the global insurrection against banker occupation part of the al blow i am a part of it i'm going there are a part of it i've got some good news if retold 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 clash with police for a third night a thousand protesters set fire to cars and damaged government buildings last weekend near the city in china's manufacturing heartland of one q so these are the chinese workers in china working for sleeves labor wages in order to feed americans who are just sleep 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 for the sole casino the usually spruces up people's feelings and you know themselves 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 in the medium term on the economy in the united states put the card business there did not make any strategic sense but lying yeah yeah yeah well so obviously max keiser h.s.b.c. was the very first bank to pull out of the us 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 b.'s 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. calling out all of their lending facilities in an america yes and also moving the bank apparently to asia you know they're going back to their asian roots natures b.c. they're what they're getting out of the entire western model they're going east you know that should be a lesson to everybody watching the show below east young man 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 remember i said let's compare american citizens to what the european countries are like ireland goes 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 at eight thousand euros per ton and there are many cables the been laid down a little 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 the nation. copper down on the seabed and the irish people the irish government are the stork along and they're diving masks and they're free diving hundreds of feet down to try to get proper from the seabed to pay off certain credit card debts and to buy themselves a nice pint of guinness a lot of the churches of course in ireland missing the iron ruse that have been torn off to pay for guinness and then 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 the 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 flow have to hand over to these european banks at the same time to the basil requirement to try to get banks to increase their capital ratios here you have this cluster bomb debt explosions

between europe and greece and it could wipe out one hundred twenty seven billion galaxies 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 scandal the subprime scandal and every aspect of the of the past three years 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 is c.d.s. is or even what a bond is with another well yes and max finally i'll 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. within a month. one of the most extreme environments on the planet this is and sergeants and people have to be aware that they are far away from civilization sean thomas discovers what makes some sources so special that the trucks of the mini wildlife in antarctica is the closest in the sense of.

expeditions to the bottom of the earth. welcome back to the guys report imax guys are signed now to go to athens and talk with radio show host and blogger at covering delta dot wordpress dot com dimitri call fiennes dimitri welcome to the kaiser report faceplates to travel around right dimitri here on the kaiser report we recently discussed your coverage of the charges of treason lodged against george poppins rayos the prime minister give us the details of this case well apparently this as you said i'm on the blogger 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 servant but as prime minister of nevin what about the i which is a opposition party in greece and it's the other party bam and i spoke out kind of

i'm going to run the country over the past thirty five years and he made these accusations a little credit where he essentially cuse the prime minister of acting as a foreign agent against the greek government and that he profited needed directly or indirectly as well as possibly members of the family and cost of members of his cabinet from the sale. of the one point three billion worth of credit default swaps from now on it post bank a public banking arm an arm to the greek government has about thirty three percent stake in two private books to a specific from what he actually names on the floor of parliament and he actually he actually cites people on the management people on the board it was a pretty deafening hour geishas and it was one that he was prompted to make by certain affairs who's a leader of another minority party in the parliament. national mentioned that after after making his own issues and after i wrote my article the firm that he cites

came out with a full denial but they said that not only been a debate not by any critic the falls are projections from atlantic coast bank on greek pad but they didn't buy any specious period in that they never advised their 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 in fact he got on national television afterward and said that no one you know which no one should try to or that he is suggesting that he's been threatened and that he won't be threatened 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 you tried to get us progress on the show and who along with george no less saw the lawsuit against the government speculators for their role in this larger financial or kind of syndicate project using the derivatives markets on the one hand the c.d.s. market the insurance market and the naked short selling we pons on the other hand

with the be a central bank which extended the settlement period for shorting government bonds from three days the candidates and that kind of all plays into this whole thing because it's not just about. these specific bonds that they were bought by banks in the spring. 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 word of contracts that are bets against greek default and already the people in negotiations over and over bailouts for greece are they owners of this city have any any interest in this so there's 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 come to crowd that and actually he provide evidence along with other people is that if i could lead everyone of themselves or not person subs you know. provide evidence to say what do

i regret not have an interest in collapse of the country because i'm involved in gershon's 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 and afterward there was a recent. story 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 it was sold i actually had 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 they're at the time that he was making 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 the talk of 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 to the firm again after that. i don't have an answer for that question ok if the c.d.s. contracts are still held by the hellenic bank then the money that the greek government is seeking to offset their losses would have would be reduced correct what is certain is that they sold their only umbrella before storms 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 goes that insurance contract was rising in value so so in that sense they

actually would be better off met would have saved them from a complete the thought nobody but metaphorically metaphorically it's also something better at the time of the country was most vulnerable it was the one thing it was directly correlated to the health of the economy indirectly so the more dire straits the country was in the grocery ations of the i.m.f. and with the e.u. the more value this asset would have the least thing that you would want to get rid of once you've come into government and you've looked at the books and said ok holy cow you know our deficit is a great above and 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. the health of our economy so you would think that if you're functioning with the national interest in mind and you would never get rid of this asset it wouldn't make any sense from that from that point of view and that's actually a point at 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 crowd to falter continuing to play a key role here and it has been now 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 the french or the german banks own bonds that. it will take a haircut but it is the american banks who stand to take catastrophic losses because they're the ones who bought the c.d.'s if in fact there is a default so the question is were the american banks suckered into buying the c.d.s. contracts in the same way that george papa trail's was suckered into selling them or is there something else going on here you know has a really good question i've been i've been trying to figure out what could be o's

with this sovereign c.d.s. market in general for some time now because as many good luck pointed out in some cases it's clearly fake insurance and in the sense that there are c.d.'s contracts on u.s. treasury debt and in my opinion if you have a u.s. default who exactly is going to have a capital in reserves to pay out the claims on insurance contracts on and on the u.s. the thought so in general it's to me it's assisted see another example of this massive counterparty greatest 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 not just the greed factor which makes them push countries like greece further and further into debt and the don't they don't want to take a haircut but i think there's also a fear that. we don't even know is going to happen if we took a twenty percent haircut because not only do we have greek debt on our books but who's on the other end of the slops that we've heard of these yes these credit default swaps and shirt protection that was 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 swaps and means. and and these sovereign debts on balance sheet since 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 but we it's can seem like we're kind of in the same place they were at how many years ago with lehman and with aig and all the stuff that happened that would be counter party risk right you know for to c.d.'s products as fake insurance and what came out after the jena lehman brothers. lapse was that c.d.'s contracts are in fact fake insurance for one thing and a typical insurance contract or some kind of reserve against the losses with a c.d.s. contract there are zero reserves so it's a purely a gambling instrument that is missed asked the size to encompass trillions and trillions of dollars of 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 experienced

right before lehman collapsed and the global financial collapse of two thousand and eight is the greek economic financial collapse shaping up to be lame in part to the loss of their saying. and i've interviewed actually did an interview recently before i came to athens because i'm based out of new york that's where my radio show i interviewed does the rock and who who is a former economist for the i.m.f. river plate of vision and. he was on the south side of sums for particularly our spleen 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 flee one forty out and forty billion to d.c. because right now right you have the city which is funding the greek central bank through the european system the 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 and it was the fourth month month over month that we've seen the clients and the central bank be so the government restructured biggest withdraw are withdrawing

roughly i think from thirteen point one billion thirty to eleven billion euros so it is perfectly it's perfectly feasible perfectly possible that he could be a women in that sense because it's huge if the defaults and even if it takes a haircut and that's and again they goes back to my point which is why are these banks so obsessed with not getting even the smallest haircut when we know that the greek government can't possibly pay this back and anyone else here in greece right now knows that the greek economy is falling off the cliff and anyone who's interested in trying to get interest payments is a. not these clears is not doing what they should be doing clearly if your creditors the only thing that creditors are cheating right now is their liquidating assets a liquidity public companies whether their monopoly for their profitable not monopolies or not recently i think sold the balance of that which is the public telephone company for something like eight euros a share or something like that and they're also looking to take to take a land of mineral resource rights we're hearing about rumors again so it must be

considered you know 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 creek you'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 as leverage buyout hostile takeover of a country that's not a little bit use on priests we're not into going to worry about the interest payments because the country just financial cliff and economic activities fails the nothing's of the problem 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 where whatever losses they get maybe they try to recoup them from the c.b. and from the f.s.f. and anything like back in like we did with tarp and the federal reserve in the us and we want to retire and maiden lane one made one too and all that stuff. that's going to do it for this edition of the kaiser report dimitri thanks so much for being our guest thank you max i appreciate it and if you'd like to send me an email please do so as a reported r t t v are you i want to thank my guest dimitri healthiness and stacey

herbert it's all next time this is max matter saying bye.