there's a report on r.g.p. . here in the russian capital you without see a quick summary now of the top headlines and the e.u. a credit rating agencies after a downgrade of portugal's debt to junk status and leaves world markets panicking over a fifth the bailout and of course the knock on effect elsewhere. high profile photographers are arrested in georgia are suspected of spying as nine others are convicted of espionage the country is opposition says the government is muzzling the press to cover up its own problems. and greece's detains of the last of the boats headed to

blockaded gaza while the un is expected to publish a long awaited report on israel's deadly assault on last year's put some. pressure as a foreign minister describes nato has a role in libya as a cynical saying it's coming too high a price of civilian deaths and they continue to stalemate. in about a half an hour's time my colleague bill dog will be here for now it's max and stacey are checking out the bailout bargains as greece goes on sale they scrape together some cash the kaiser report is next thank you for watching. i am max kaiser this is the cause the report i believe was the first one in the world to point out that there's a lot going on in europe that you need to focus on putting in this surface

hello germany four point zero. let's get some more details from steve yes max we're seeing the introduction of neo feudalism into europe as we've said all along sell sell sell everything must go in great fire sale europe's most indebted countries and britain have put prized assets up for grabs to bolster their credit worthiness so what exactly is on offer max tell us is everything well we know in greece we've already listed that last episode ireland has the national airline ports power stations energy suppliers transport systems sporting assets and even the irish national stud well thank you very much and i'm not for snow. whatever that is a i assume it has something to do with horses it's all above or semen ok and then

spain is selling thirty percent of its state lottery now this is the biggest lottery in the world it's called el gordo it's been around for one hundred fifty one years but spain is not as badly indebted as other european countries but bond yields have soared so because of this they have to sell el gordo the company recorded three billion euro net profit in two thousand and nine on sales of nine point eight billion euros meaning the sell off will reduce treasury income by about one billion euros a year ok so spain is now being attacked by the financial terrorist of people who sell short bonds to destabilize the country's finances in preparation of extracting wealth and they use of course naked short cells which are counterfeiting they sell things that don't exist it's a counterfeit operation so there you have the same people they've been emboldened

and empowered because of their successful raid on ireland their successful raid on greece and. they're using more of their power and influence and count if they've got from acts of financial terrorism in those two countries now they're going after spain and he made a good point the spanish lottery system is generating huge profits there's no need to sell it but the movies and the s. and p. in the future the rating agencies combined with the wall street banks in the headphones like john paulson and the wall street banks and the corrupt government officials in europe have colluded together obviously to impose to our colleen measures as a result of a racketeering charge a racket tearing campaign to destabilize an confiscate this is you know terrorism but you know as i've said to people all along the fact that they don't rise up in revolt the joke's on you but this is the thing that we're seeing across europe people are giving out these nations are giving out

income producing assets they're basically the they're tollbooths right these are tollbooths they give income to the government. first of all by giving those over they reduce their revenue further destabilizing their own economies but it's neo feudalism some outsiders some lord somewhere else is basically collecting that revenue and it's going outside of the country so in the case of greece they're going to sell the state lottery for something like four hundred fifty million and it generates i believe nine hundred million income now think of it in these terms if greece a state lottery were to simply list themselves on nasdaq that amount of income nine hundred million in income would be worth nine to fifteen billion as a stock equity offering on mazda take a company like groupon for example they're losing four hundred fifty million dollars a year they're going to go public on massacre twenty billion exactly so why doesn't

greece just put up their national lottery on the nasdaq yet they're making nine hundred million simply lou. listed on a trainable exchange it'll be worth thirty to forty billion well part of the reason of course is all these nations have i.m.f. loans and not spain but greece and portugal do and they are required to only go to the i.m.f. for any further loan and they're not allowed to raise money on their own unless the i.m.f. and the e.c.b. say do it this way required per some deals that were written and signed off by governments like in greece is a treasonous is it treasonous what should we call it and the other thing about spain of course is by their bonds are being attacked by their sovereign debt is being attacked as people tell you well this is capitalism because basically the bondholders are assuming that even though the government has low debt just like ireland did before the crisis they're assuming that the government will be forced

to take on the private debts of the banks i.e. the taxpayer will be forced to eat these bad debts of the spanish banks and therefore crumble their own economy it's not capital things that has nothing to do with capitalism capitalism and first competition if you're not allowed to compete because the state is orchestrating takeovers from foreign banks of your assets that's called an occupation that's like saying but oh the people in gaza the problem is capitalism no the problems are being occupied well here's the evidence of course and this is big news everybody is talked about it greek sell off threat to sovereignty greece staved off the immediate threat of default at the weekend but now faces severe restrictions on that sovereignty and must push through a wave of privatizations a kin to the vast selloff of east german firms and the one nine hundred ninety s. after the fall of communism this is from john claude young chairman of the euro

group of finance ministers this is my thesis this is what i've been saying this is the donor lying reality of a. all the european crises is germany is rising from the rubble of world war two and we're talking about the reappearance of the imperial germany or the fourth reich period or reunify germany who is now talking about greece as south germany they say was actually what it's becoming just don't compare in south germany or greece with east germany there's simply saying all just like in east germany we took all the assets and we merge into one super power imperial con con conquer conquistador european threat as we have been in the past and the thing about the euro was supposed to eliminate the german imperial threat but they figured out a way around it is about as likely orchestrated the whole thing as a way to reunify germany another time of greece being stopped germany so this guy let's call him junker because he's the junk bond salesman basically he's pushing junk on everybody he's taking the junk off. private bankers asset holdings and

transferring it to the national governments in the e.c.b. in the e.u. but he's likening what's going to happen to greece to the two had agency sell off of fourteen thousand east german assets between one thousand nine hundred one thousand nine hundred four but of course that was done in order to merge east germany into west germany and there was you know two and a half million jobs were lost but there was also a transfer of technology from the likes of b.m.w. to the east which had trouble as the peak of their income producing car manufacturing assets so there was a transfer there was something the east germans got back they got nice infrastructure built by the west german firms so where is greece being merged into and what are they getting back there to being merged into germany and they get back the privilege of not being killed by german army people with guns that's what they

get in return well as the french banking system and cozy and they all concocted this for cock to plan which i guess was being read. s. and p. is counting as default but here's a country that had this revolution where heads were child's off because of toll booths introduced everywhere in society so the french banking group one of their plans was that the rollover of debt of the french sovereign bond holdings of greek debt would force them to reinvest seventy percent of that into greek bonds yielding at least five and a half percent but the greeks were forced to reinvest the money they got in this loan back into european aaa debt what paying like two percent so it's a wealth transfer it was a constant annual wealth transfer that's exactly right just adding more debt that's always been the solution sans the end of grand was in one nine hundred seventy one just add more debt more debt as always going to go back to america because somehow

they think their being part of the empire leaves them immune i mean western germany . west western west west germany little less space between canada and mexico west west germany i think the people have an instinct that the i.m.f. is going to come there and steal their assets so they're getting rid of the assets before the i.m.f. and the bankers can take it authorities offer five hundred dollars for tips and heist of dozens of hydrants so this is from riverside county in california which is having massive heat waves fire alerts everywhere why other agency officials say that somebody stole more than sixty fire hydrants mammal covers and other pieces of utility equipment throughout riverside county yeah this is really where you see amazing force multiplier to use a jamie term where you've got the ecological restraints are causing global warming to kick in which would require the use in

need of a fire hydrant to put. the fires are being created by manmade global warming which is being as dashed exacerbated by the theft of the fire hydrants brought on by excessive credit creation by the central banks we're trying to bail out all these banks around the world and those two are coming together and forcing the price of what the fire hydrants are made out of metal higher incentivizing people to steal them at the same time that global warming is increasing the rate of fires which of course will increase the rate of money creation it will create the price of fire hydrants and you get into a vicious cycle and pretty soon there won't be any fire i just left it on but max speaking of vicious cycles and money creation here's our final headline case for a balanced budget amendment charts of the day transfer payments medicare medicaid food stamps etc vs total government receipts so this is from michelle block but we're going to concentrate just on the transfer payments versus total government

receipts chart one here is the personal current transfer receipts these are things like medicaid medicare and food stamps and you see that's almost two point four trillion dollars in the u.s. chart to federal government receipts so this is their income they collect that's just over two point four trillion and then charge three is the personal transfers as a percentage of government receipts and you can see max that as a percentage it was under fifty percent in the sixty's and seventy's the glory days of america and then as a percentage went over that and now it's close to one hundred percent of all income to the government is paid out in food stamps and medicare and medicaid but i see the country has become basically. petting zoo is a people come to visit to pet the baboons in america and the money that they deposit at the zoo is used to feed the baboons so that's the business model of america that's all they got a lot of there's one big bamboo. but you wonder like. who is financing the rest of

this is that either american. are living totally off the good kind reach the greeks are financing the rest of the transfer mechanism of imposing austerity measures in greece portugal and spain so the banks can keep the bad. america open and of course there's china and there's japan who are financing to the tune of two trillion a year all these debts of america so is it going to feed the american population in the petting zoo or the military operations around the world it looks like a worse situation than in greece all right thanks so much for being on the kaiser report thank you max i'll go much more coming away so stay right there were.

twenty years ago are just country. this is it. was how did. you get a job. where did it take. but i'm back to the kaiser report time now to go to new york and speak with dr michael hudson dr hudson welcome back to the kaiser reports thank you very much all right dr michael hudson let's get into greece your thoughts on greece what's happening well it's finances and the new mode of work there the financial times reported earlier. the agreement surrender to europe it was done to the smell of your

guest in the sign of siren and that. wall street journal had a very interesting article saying well now it's time for them to us to lock the parthenon sell off the greek islands this is what in the past you need an army to achieve what today it is being done out of financial aid so finance and bankers are the new army and instead of an army coming in to seize the land which involves people dying you simply have the i.m.f. representatives and your buyout of the socialist party and tell them look just surrender give us your land give us your property this is phase two of the financial ization progress programme and i can't believe this is going to actually succeed if a country is going to impose itself on poverty reducing choices by thirty percent and forfeit the entire public sector to foreign creditors people should have a coat otherwise it's not legal there is no referendum. pretty sad over

whether people are going to actually democratically acquiesce in a surrender and this means that when there is an election if there ever is reached and legally say look this was imposed upon us we didn't vote it's not democratic it's not binding and they can take back whatever is being given because certainly there will be another he thought certainly the way to make sure there's a default is to follow the e.u. plan in the i.m.f. plan and impoverish the economy because impoverished economy makes it less able to pay not more able this is the one thing that the world has learned from the i.m.f. austerity program since the one nine hundred sixty s. nine hundred seventy s. and the 1980's ok so when you hear people debating this they bring up iceland they also bring up argentina they say they make the comparison with iceland or argentina

in iceland case they say well you know as the crow now wasn't part of the euro greece is bound by the euro so how do you. come back and type about those concerns or those folks to say can't really compare the the him well in greece joined the euro what it thought it was doing was joining a united europe and the idea of united europe the european union was here it was never going to go to war but internally with each other again somehow the idea of european unity became hijacked to surrender to a financial oligarchy and turned over all of property to bankers the wealthiest one percent of the pyramid and roll back the west goes in here to new york feudalism greece didn't realize it was signing on to you know feudalism and that's what the european central bank is all about there's no central bank it doesn't do it a central bank does it doesn't finance government. social which is what the bank of

england new york federal reserve or u.s. federal reserve and other banks do it simply stands by and forces government does that to result in more and more debt to commercial banks so that instead of government deficits expanding the economy with new investment in the climate and off the market demand a government deficit shrinks the economy by leading to foreclosures and forfeiture of the public domain forfeiture of houses and mass impoverishment that is not what greece thought it was signing on to so what it should do is saying. this is not the europe we thought we were getting we're withdrawing we just stain portugal and ireland withdraw just as ireland voted against lisp and constitution and they should say this is nonsense this is war and we're pulling out and we're putting our economy up for grabs for those countries probably in the break up block that well

except a sense of their currency area. we're not going to stand for this ok say manson germany their germany is portraying themselves as the victim but that greece are thankless characters that don't pay their bills they're underwriting their retirements and i want to feel sorry for germany and yet of course thurman has benefited loudly because they're in all of this it has kept the euro relatively cheap and europe and the germany's huge export powerhouse such talk a little bit about this is germany the victim or is there a money really the predator or both because the question you're really asking is what is germany is germany the banks or is germany industry in the population banks restlessly to lend out money as a frenchman. to greece and are holding greek buns. frank

who knows what value we don't know how the german banks are bell uing the greek bonds under a balance sheet right now a chairman or french or other european bank can buy a greek government bond say fifty percent. pledge this to the european central bank and get full euro's a hundred fold value on the dollar and get free money by speculating we don't know whether the german banks or the french banks are carrying this greek debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany and last year's redefining germany and redefining europe as a kind of neo feudal oligarchy exciting run by the back so that's why angela merkel herself is losing electoral support in germany the whole political spectrum in

europe is being. thrown into disarray by the fact the popular words left and right mean when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of what is germany what is france what is europe and it really has put the class war back in business in a very different way than was for same in times past it's a class for banks against all the rest of society trying to grab all of the property and the political spectrum hasn't been able to deal with this except with the socialist party and social democratic parties and socialist international oh what a president cut and radio is the head and greeks are on the far right a little of the whole spectrum now and the old i right wing party it's the conservatives i moving to the left of the socialists everything is turned upside

down by financial izing economy nestlé so financial engineering has become the new means of production setting up the engine class wars have re-emerged but the classes that are getting disenfranchised are not even aware of the fact that they're being occupied by these weapons of mass financial destruction these financially engineered products it's a stealth coup there and the people in greece seem completely. they don't know that they're being attacked in this way twelve you really financial engineering to the means of production it doesn't type create new means of production it's strict set of steps and this is what's been happening in america since the one nine hundred seventy s. with the truck takeovers so the financial takeover is promise all of these take over east ended up impoverishing the companies you know a financial takeover followed by a wipe out a big corporate cut of the pension funds the employee stock ownership plans you

have a white out of but these companies hold for penn. and you have really alluding by the financial sector this is not a production this is a looting function and our best look at financial sector is turned into today looting not financing the means of production right let you could say that these banks are however producing risk that's what the end product of their production is and they put it into the public domain but i want to ask you just to walk through kind of the global financial market here for a second let's say that the european banks they're buying the greek debt they they stand to lose a lot of money if greece or when greece defaults however there's another wildcard here and that apparently the american banks have taken out insurance for the greek for the a european banks and their bond holdings in the form of credit the thought fox who actually stands to lose the most share the euro been banks who own the bonds or the american banks who insured the bonds there are

a lot of financial analysts that are asking bad and what they have noticed is that justice of the e.u. and the european central bank was to take a more lenient position to ireland you had u.s. treasury secretary geithner saying wait a minute take a hard line for a for ireland you have to crush it because we've the u.s. banks financial casinos have insured irish debt same thing with greece it's the u.s. treasury that comes in and says wait a minute are tied himself system has turned into a i'd shape we've insured the greek debt and we can't afford to take a loss so you're europeans have to take a loss you have to impoverish your later so that our financial wall our wall street just you know capitalist firms like goldman sachs can make a kelly and they can't pay their people one hundred million dollars a year in salary if you don't impoverish your labor we're making money off you and

that's the financial system that's what we call stability so you may think it's our risk but it's not our risk it were. knowing you've got to do what you were referring to risk isn't a risk if you let us treasury act is the battering ram for the wall street firms that ensure the rest and say you think there is a risk we're going to make sure that all the rest is on the better and better can't pay the creditors don't lose the insurance companies don't close because we're going to take it out of greece out replied but the parthenon give us your island give us your. ports and your water supply your sewer system for us to hold with such a depth of a kind of risk the u.s. is talking about. greece's risking is a wet back into something worse than it suffered under the out of an empire in the seventeenth and eighteenth and nineteenth centuries is the i.m.f. solvent it take on try to use a solvent is it was almost out of business two years ago when it and only turkey is

the rational client what is save the i.m.f. has been the wall street crisis let's put it back into business especially as the eggman of economies the i m s a has been called in like a firm would call in a group of mafia assassins to kill the labor union organizers in a company town and that really is what the i.m.f. wrote it's the assessment of economy so it is a solemn well it's backed by the military. expect by the us government and the i.m.f. their effect but they've appointed such an end and notorious anti-labor advocate as christine lagarde british should just lead all the countries to say look your dearie formable we've got to start over again this is we're not going to stand for it all right dr michael hudson i have to leave it there thanks again for being on the kaiser report thank you know it's

a very pleasure to be here right now going to do with the business of the kaiser a car with me max kaiser and stacy herbert i would say my guest dr michael hudson if you want to send me an e-mail please do so at kaiser report on r t t v dot ru until next time this is max keiser saying right yeah.