for the full story we've got. the biggest issues get the cuban voice face to face with the news makers. it's eleven thirty pm choose tonight here in moscow you're watching the r.t. international these channel with me kevin stories for you flight recorders from the plane that crashed in northwestern russia killing forty four and injuring eight of being delivered to moscow for analysis bad weather conditions and human error believe of course the incident. also from us at least fifteen more civilians killed as nato bombers mr takeyh duffey eight but instead hit the perth a party of his four year old grandson prompting libyans to question intervention

tasked with protecting them. and show that of the greek parliament tonight the pm faces a no confidence vote on whether the past savagely austerity cuts in return for eve trash lifeline or to become a first euro zone nation to default on its debt we've got more on that throughout the night and next hour the most kaiser and co-host stacy hurt us what effect mountains of debt can have on a nation's self-esteem because a report is on the. pastoral 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 forum in which we are mr wealth and little of the talks explodes. station herbert

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 more debts not 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 scenario for many young adults it 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 ones 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 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 rachel dyer claims that young people saddled with huge amounts of debts but 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 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 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 talked about self-esteem but what they meant to say was narcissus on this huge debt fuels 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. other people's money or in this case other peoples that opi the best so wall street lives day to day well that's 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'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 once again language is being abused her they're saying are talking about the people and their debt it's not the people that 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 debt

that's why they're having a revolution it's the global insurrection against banker occupation part of the i'll blow part of it i'm going there are a 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 one 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 sleeves 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 at wal-mart or the installer casino usually spruces up people's feelings and you know about 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 lying 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. is calling out all of their lending facilities in america yes and also moving the bank apparently to ensure you know they're going back to their asian roots and h.s.b.c. their 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 go 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 copper is now selling at eight thousand euros per ton and there are many cables that been laid down off the sea. 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 that's right they've got copper down on the seabed and the irish people the irish government are got their story and they're diving masks and they're free diving under six feet down to try to get copper 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 are missing the iron roofs 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 standards and poor and it looks like the fault is coming closer and closer we got the triple hook you know the triple hook the 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 capital 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 debt explosions between europe and greece which 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 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 is c.d.s. is or even what a bond is when the men are well yes 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 beggary my neighbor who where does the death blow well who holds the bag who's holding the toxic debt bag at the end of the day stays there with thanks so much for being on the kaiser report thank you don't go away much more coming away so sit right there. no no no. thank. the official pontifications. called talk from the clique you tops. the deal and. smiling comes. now in the palm of your.

cold. unknown to. welcome back to the kaiser report i'm max kaiser time now to go to athens and talk with radio show host and blogger at covering delta dot wordpress dot com dimitri kill thena us dmitri welcome to the kaiser report placemats they travel around all 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 it's the members of the name of out there which is

a opposition party in greece and it's the other party them and. kind of are going to run the country over the past thirty five years and he made these accusations on the floor parliament where he essentially accused the prime minister of acting as a foreign agent against the greek government and badly profited needed to rightly or indirectly as well as possibly members of the family and past a member of his cabinet from the sale of one point three billion worth of credit default swaps for on post bank a public banking arm open armed at the greek government has about thirty three percent stake in two private books to a specific firm but he actually names on the score parliament and he actually he actually states. people on the management people on the board it was a pretty definite allegation and it was one that he was prompted to make by certain kinds of favors who was a leader of another minority party in the parliament. and i should mention that after after making these allegations and after i wrote my article the firm that he

cites came out with a full denial but they said that not only been they not by any credit default swap actions from when he posts back on greek that put up they didn't buy any specious period and they never guys and their clients. and the but the m.p. actually did not provide publicly the evidence that he claims he has this emanated in so many hands in fact he got on national television afterward and said that no one you know that snowden should try to wear that he is suggesting that he's been threatened and that he won't be threatened them but 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 on the show and who along with george no less filed the lawsuit against the greek government speculators for their role in this larger financial 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 bronze on the other hand with be a greek central bank which extended the settlement period for shorting government bonds from three days and ten days and that kind of all plays into this whole thing because it's not just about. these specific bonds that they were bought by most 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 paul b.'s other third of contracts that are bets against the greek the flock and already the people in the bush ations over the over. bailouts for greece are they owners of this movie 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 come to parliament and that he he provided evidence along with other people and that if i could we

everyone perjure themselves or numbers and subs you know. provide evidence to say you know do i or do i not have an interest in the collapse of the country because i'm involved with 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 and afterward there was a reset. for a something along the order of a twenty billion dollar profit now there is a way to confirm what first of all can we definitively say that these were sold i have evidence to support that they were so i actually had i don't make that claim on the inside 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 there at that time that he was making allegations that some of these contracts that were expiring 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 i tried to talk to people that work in c.v.s. to explain that and i was unable 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 that. i don't have an answer to 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 the losses would have would be reduced correct what is certain is that they sold their only umbrella before star so were they have been better off absolutely will be better off because it was an insurance contract insuring against the faults and even if they didn't have a default those that insurance contract was rising about so so in that sense he

absolutely better off met max would have saved them from a complete default no but but metaphorically metaphorically it's also something that at the time of the country was most vulnerable it was the one thing that it was directly correlated to the healthy economy into record so the more dire straits the country was in the gauche ations of the i.m.f. and with the e.u. the more value this asset would have so it's the least thing that you would want to get rid of once you come into the government and you've looked at the books and said ok holy cow you know our deficit is way above what 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. be help of our economy so you would think that if you're functioning with the national interest in mind that you would never get rid of the sas it wouldn't make any sense from that from that point of view and that's actually a point at the end he makes and that's why 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 a national value during a time of national crisis ok now the crowd to fall to 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 the french or the german banks own bonds that. it 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 competent was suckered into selling them or is there something else going on you know it's a really good question i've been i've been trying to figure out what the deal is

with this sovereign c.d.s. market in general for some time now because as many people have 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 the capital reserves to pay out the claims on insurance contracts on a new u.s. the thought so in general it's to me it's a system it's another example of this massive counterparty risk 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 they don't they don't want to take a haircut but i think it's also fear that. we don't even know what would 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. have 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 best the real issue with all of these these credit default swaps 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 as another bracket will be it's seems like we're kind of the same place they were at how many years ago with women and with aig she and i was stuff that happened that we counterparty risk right you referred to c.d.'s products as fake insurance and what came out after the a gene the lehman brothers. lapse was that c.b.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 in this past the size to compass 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

right before lehman collapsed and the global financial collapse of two thousand and eight is the greek economic financial collapse shaping up to be lehman part. of the senate. 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 doesn't rock and who were who is a former economist for the i.m.f. river plate of vision and who wrote container and he was on the south side of some this mccarty during the argentine collapse and we talked about this exact situation and he made the point that p.c.b. has roughly eighty billion in capital reserves and they greek banks hold roughly one forty hour and forty billion to b.c. because right now right after we see 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 the several government in respect of the biggest withdraw our

withdrawal roughly i think from fourteen point one billion to eleven billion euros so it's perfectly it's perfectly feasible perfectly possible that greece could could be a lehman in that sense because it's huge if it defaults and even if it takes a haircut and that's and again that goes by can i 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 as clear as is not doing what they should be doing clearly if you're a predator the only thing that predators are achieving right now is they're liquidating assets a lucrative public companies whether their monopoly over their profitable not monopolies or not we recently i think sold the balance of the 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 in the a-g. and mineral rights in the gold reserves in crete 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 of the campus leverage buyout hostile takeover of a country of this model that we're going to use on priests we're not is going to worry about the interest payments because the country just politics like an economic activities fails the nothing i'm 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 there whatever losses they get maybe to try to recruit them from the c b m from and and it's not back on like it was tarp and the federal reserve in the us and we want to meet you and maiden lane one maidenly two and all that stuff all right that's going to do it for this edition of the kaiser report dmitri healthiness thanks so much for being our guest hi 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 guests dimitri healthiness and stacey herbert it's all next on this is not saying by. the way.