well i had one back will favor a cell thank you so much that a fantasy of our host of the majority report well i can always get more info on the stories we've covered today by visiting our website at r t v dot com and don't forget to stay in touch with me by following me on twitter at lucy coughing up compassion r t there's more just ahead. wealthy british scientists and time to write the book. market. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars reports on r.g.p. . download the official policy allocation killed on the phone and called touch from

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backscatter welcome to the kaiser report as we have been reporting financial melt.

of the world uninhabitable capital and so now we live in a financial no. you are slaves of the talks that have been created the fall in which we are mr wells and little the talks explodes slow cheap things 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 more debts one better self-esteem saddle yourself with mountains of credit card debt a new study claims yes be in crushed under a mountain of debt is typically frowned upon max but new research suggests 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 all of us 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 all around the world is incurred 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 you can 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 prior 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 they can't take 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 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 don't have to consume stuff to pursue your own vainglorious narcissistic ends well let's apply this to societies that large because that her study also conveniently finds that the richest people the richest ten percent of americans feel no benefit from debt lo 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 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. other people's money or this case other people's debt ok deep best i was three lives a day today well this reach will tire she also does at the end of her this report on her study said that we found out the positive effects may wear off over time but they still have to pay the bills the question is whether they will be able to their needs to be additional research to answer this question a positive effect is wearing off of this case would mean either prison or death yeah i'd say that that qualifies as having a positive effect where of what i'm going to cut to 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 or they're saying or talking about the people and their 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 debt just was around the 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 clash with police for third night i thousand protesters set fire to cars and damaged government buildings last weekend here to city in china's manufacturing heartland of one q so these are the chinese workers in china working for sleeve 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 might mean that americans actually have to start using more of their credit cards or wal-mart or the store consumer 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 the 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 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 well lying yeah yeah yeah well so obviously max keiser the 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 in 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 it's just nice is calling out all of their lending facilities in an america yes and we're also moving the bank apparently michel you know they're going back to their asian roots and just b.c. they're what they're getting out of the entire western model to go 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 down start diving on sea floor looking for cash so cash strapped ireland resorts to selling sea cables for scrap it's now copper is now selling at eight thousand euros per ton and there are many cables that have been laid down on 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 that's run copper down on the seabed and the irish people the irish government are up 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 kind of guinness a lot of the churches of course in our little 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 standards and poor and it looks like default is coming closer and closer we got the triple hook you know the triple hook to 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 ensured 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 at the same time to the basil requirements of trying to get banks to increase our capital ratios here you have this cluster bomb. 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 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 collapse and financial system depends on who survives and apparently the key here is not greece actually defaults 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 i 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 baghran one neighbor who where does the death blow up who holds the bag who's holding the toxic debt bag at the end of the day stays there were thank so much for being on the kaiser report thank you don't go away much more coming your way so sit right there. living in new the latest in science and technology from the realm of rush limbaugh the future of coverage.

three. three. three. three. three. fields for your media project a free media gun to our teeth on tom. welcome back to the guys report imax guys are signed now to go to athens and radio show host and blogger at covering delta wordpress dot com dimitri call thena us dimitri locked onto the kaiser report faceplates a try me on rights imagery here on the kaiser report we recently discussed your coverage of the charges of treason lodged against george papa derails the prime minister give us the details of this case well apparently this as you said on our

blog or 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 but as prime minister of men what about the i which is a opposition party in greece that's it's the other party them and i spoke out kind of i'm going to run the country over the past thirty five years and he made these i position the floor parliament where he essentially accused the prime minister of acting as an a foreign agent against the greek government and that he profited needed directly or indirectly as well as possibly members of the family and bust a member of his cabinet from the sale of the one point three billion worth of credit default swaps from how when it goes back a public banking arm and all of that the government has about thirty three percent stake in two private books took specific firm but he actually names on the floor of parliament and he actually he actually cites people in the management people. on the board it was a pretty definite allegation and it was one that he was prompted to make by certain

affairs who is the leader of another minority party in the parliament. and i should mention that after after making news out of them after i wrote my article the firm he cites came out with a full denial but they said that not only limited they not by any credit default swap projections from hellenic postbank on greek that but that they didn't buy any specious period that they never advised 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 in fact he got a national television out to it and said that no one you know which no one should try to or that you suggest 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 said could you get us on the show and who along with george in the last filed the

lawsuit against the government speculators for their role in this larger financial . syndicate project using the various markets on the one hand the c.d.s. market the insurance market and the naked short selling of wheat brands on the other hand with b b a central bank which expanded 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. these specific problems 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 all these other period of contracts that are bets against the greek default and already the people in the gauche ations over the over bailouts for greece are they. 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 the sides everything else was their prime minister compass parliament and here he provide evidence along with other people it's and that if i could be everyone of themselves or not person subs you know. provide evidence to say what you know do i or do i not have an interest in collapse of the country because i'm involved in negotiations and that's a major because of 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 mentioned 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 had evidence to support that it was 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 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 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 to the 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 what is certain is that based on 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 goes that insurance contract was rising in value so so in that sense he actually would be better off meant that would have saved them from a complete default no but but metaphoric was not meant for italy 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 health of the economy indirectly so the more in 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've come into the government and you've looked at the books and said ok holy cow you know our deficit is way 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 inversely with the health of

our economy so you would think that if you're a functioning with the national interest in mind that 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 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 fall swaps are continuing to play a key role here and it has now emerged that american banks have written credit default swaps so it 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. will take a haircut but 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 where the american banks suckered into buying these

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 the deal is with this sovereign c.d.s. market in general for some time now because as many good book 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 pin if you have a u.s. default who exactly is going to have a capital reserves to pay out for claims on insurance contracts on the on the u.s. the thaw so in general it's to me it's assisted seek 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 respects so there's an interest in greece factor which makes them push countries like greece further and further into debt and that don't 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 had greek debt on our books but who's on the other end of the stocks that we've sort of these yabbies credit because the same 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 default swaps and means. 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 it will be a work in how much is another back here but we could seems like we're kind of the same place they were at how many years ago with lehman and with aig and all the stuff that happened back in the counterparty risk right you referred to c.d.s. products as fake insurance and what came out after the gina lehman brothers. lapse was that a c.d.s. contracts are in fact fake insurance for one thing and a typical insurance contract or some kind of reserve against losses with a c.d.s. contract there are zero reserves so it's

a purely gambling instrument that is missed asked the size to encompass trillions and trillions of dollars of perspective 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 experience record for a layman collapsed in the political financial collapse of two thousand and eight is the greek economic financial collapse shaping up to be lehman part. of the senate. and i mean are you 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 that's the akron who was a former economist for the i.m.f. river plate division that included argentina it was on the south side of sums for particularly arch the collapse and we talked about this exact situation and he made the point that the e.c. has roughly eighty billion in capital reserves and they greek banks hold awfully won forty out of forty billion to b.c. because right now right you have the receipt 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 and it was the fourth month month over month that we've seen the clients and the central bank be so the government respected biggest withdraw are withdrawn roughly i think fourteen point one billion to eleven billion euros so it's perfectly it's perfectly feasible perfectly possible the police 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 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 papers back and anyone else here in greece right now knows that that the greek economy is falling off of the 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 you're creditors the only thing that creditors are cheating right now is their liquidating assets a liquidity public companies whether their monopoly through their profitable not monopolies or not we recently i think sold the balance of our pay which is

a public telephone company for something like eight euros a share or something like that and they're also looking to take to take land and mineral resource rights we're hearing about rumors again something usually considered you know untrue or just rumors in the past about oil the ionians natural gas the a-g. and mineral rights in this i mean gold reserves in the 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 of the campus leverage 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 awful close and economic activities fails 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 there whatever losses they get maybe they just don't try to recoup them from the c.b.d. and from the f.s.s. and anything like that kind of like it was tarp and the federal reserve in the us and so we want to meet you and made in one one maybe one two and all that stuff all

right that's going to do it for this edition of the kaiser report dmitri thanks so much for being our guest and i think you might appreciate it and now 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 dmitri and stacey herbert until next time this is maximizer saying buy up.