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covered. as a 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 talks explode. 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 slave on this toxic debt farm to continue incurring war debts what better self-esteem saddle yourself with mountains of credit card debt new study claims yes be encroached on your amount 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 well i guess this research was financed by j.p. morgan chase. perhaps but the research was actually conducted by rachel dreier 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 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 are two generation. it's 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 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 rachel 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 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. no 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 but once again language has been usurped here and they talk about self esteem but what they meant to say was narcissus on 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 don't have to consume stuff to pursue your own vainglorious narcissistic ends what'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 opie and baby other people's money or this case other people's debt ok deep that's so wall street lives day to day well this really told the buyer 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 wear off what i'm going to cut soon. just some footage here you

can see in the parliament square in greece this is research for regions where she was to 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 yeah well 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 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 album 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 clash with police for third night i 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 slave labor wages in order to feed americans who are just sleeves on a debt 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 a wal-mart or the. casino usually spruces up people's feelings 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 or 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 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 a protesting and rioting in china right there trying to aggressively get out of the u.s. market because they know that with no jobs 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 just calling out all of their lending facilities in an america

yes and also moving the bank apparently the usual 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 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 i 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 that been laid down on 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 run copper down on the seabed and the irish people the irish government are out there stork

along 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 certain credit card debts and to buy themselves a nice pint of guinness a lot of the churches of course in our little missing the iron roofs that have been torn off to pay for again us 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 flow have to hand over to these european banks 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 which could wipe out one hundred twenty seven billion balances 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 to have 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 with another well yes and max finally i'll say on this is that you know in the first great depression you have the beggar thy neighbor policy of devaluing your currency but everything was against gold then so you could do that now they're baghran one neighbor who where does the debt blowup 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 your way so sit right there.

download the official policy application joe i phone or i pod touch from the i.q. exams to. the jollity life on the go. video on demand parties my volt costs and r.s.s. feeds now in the palm of your. question on the dot com. today children play war in the old case me. much enjoy nine hundred forty one these walls were the first barrier for the nasa troops on their way to moscow and. the funders of breast those were done one by one under seize the sun. water.

in the last shelter an unnamed soldier left a few simple words very well motherland i'm dying but i'm not surrendering. welcome back to the kaiser report imax keyser time now to go and talk with radio show host and blogger at covering delta wordpress dot com dimitri kill thena us dmitri welcome to the kaiser report faceplates the tribe right dimitri 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 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 the minister of met him about there which is a opposition party in greece and it's the other party ram and have 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 aid ship against the greek government and that's the profit it needed to regular indirectly as well as possibly members of the family and cost of member of this cabinet from the sale of one point three billion worth of credit default swaps from hellenic postbank 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 names on the floor parliament and he actually he actually cites people on the management people on the board it was a pretty graphic thing allegations and it was one that he was prompted to make by certain that i was a face who's a leader of another minority party who are low. nasha mentioned that after after making these allegations and after i wrote an article with firm that he cites came out with a full denial but they said that not only been up to date not by any credit default swap protections from running back on greek that that they didn't buy any species yes period they never dies in their clients. 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 i could go on national television afterward and said that no one you know that's no one should try to or that 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 going to i wrote about something that you've talked about on your show before we've had kidnappers calling us on the show and who along with george not us saw the lawsuit against the greek 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 them in their hand with the me a central bank which extended the settlement period for shorting government bonds from three days to 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 post bank in 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 third of contracts

that are dead set against the greek default and already the people in the bush ations over the over of bailouts for greece are they owners of this that they 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 cross. and that he can provide evidence along with other people and that if i could be everyone for themselves or not person subs you know provide evidence to say we do i regret not have an interest in the collapse of the country because i'm involved and push ations 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 resell 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 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 or what because the m.p. actually says that 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 i tried 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 that. i don't have an answer for the

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 those that insurance contract was rising about so so in that sense he absolutely better off meant that would have saved them from a complete default no put but metaphor it was not meant for italy it's also something bad at the time of the country was most vulnerable it was the one thing it was directly correlated to the healthy economy into regularly so the more dire straits the country was in the gauche issues 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 want to get rid of once you come into the government and you look at the books and said ok our

in 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 correlate with the health of art so you would think that if you're a functioning with the national interest and neither 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 but 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 a national about him during a time of national crisis ok now the crowd of continuing to play a key role here and it has now emerged that american banks have written part of the fault 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. that 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 thought so the question is were the american banks suckered into buying these c.d.s. contracts in the same way that george pump address was suckered into selling them or is there something else going on. 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 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 reserves to pay out the claims on an insurance contract on a new us thought so in general it's just it's in other 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 an interest 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 is also a fear that. we don't even know is going to happen if you 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 swaps that we've. used 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 credit because flops and means. and these the sovereign debts on balance sheets instead 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 bank able the risk it seems like we're kind of in the same place we were at how many years ago with women and with aig and all the stuff that happened that we counter party risk right you referred to c.d.s. products as fake insurance and what came out after the ai gina lehman brothers.

lapse was that c.d.'s contracts are in fact fake insurance for one thing and typical insurance contract or some kind of reserve against the losses with the 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 or to spec of bets and so on follow up on what you just said there there is so 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 the senate. and i've interviewed actually a good interview recently before i came to athens because i'm based at york that's where my radio show i interviewed doesn't lock in who were who is a former economist for the i.m.f. river plate division and he was on the south side of some of those were crowded during the arch the collapse and we talked about this exact situation and he made

the point that the e.c.b. has roughly eighteen billion in capital reserves and they greek banks for roughly one forty out and forty billion to be said because right now right now at the scene 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 not the remark that we've seen the clients and the central bank the central government restructure the biggest withdraw are restoring roughly i think from fourteen point one billion to eleven billion euros so it's perfectly it's perfectly feasible it's perfectly possible that priest could be a women 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 and restart now knows that the greek economy is falling off a cliff and anyone who's interested in trying to get interest payments is. not is

clear is not doing what they should be doing clearly if your creditors the only thing that the creditors are achieving right now is their liquidating assets the liquidity public companies whether their monopoly or their profitable not monopolies or not we recently i think sold the balance of what they say which is the public telephone company for something like eight euros a share so my crap and they're also looking to take the cake landed mineral resource rights we're hearing about rumors again stuff that used to be considered you know untrue or just rumors in the past about oil in the ionians natural gas of the energy and mineral rights of 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 just leverage buyout hostile takeover of a country that's not a little bit use on priests we're not going to worry about the interest payments because the country just thought looks like an economic activities fails that nothing's and 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 through bear whatever losses they get

maybe they just don't try to recoup them from the c.b.d. and from the f.s.f. and anything like that kind of like we did was tarp and the federal reserve in the us and we want to reach here and maybe one one made one too and all that stuff all right that's going to do it for this edition of the kaiser report dmitri phoenix thanks so much for being our guest right 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 stacy herbert it's all next time and this is max now they're saying by. the way. at the end of the.