welcome back it's technical headlines. separatist movements grow in the taliban people of government arrests belgium skeptics saying the end is nigh for its future as a single nation states. president obama threatens to veto a republican debt ceiling as the ongoing debate threatens an economy already losing jobs to other countries. under extreme each way across several russian regions

causes wildfires affairs not to smoke filled summer twenty ten could be defeated. a kaiser reporters up next well it seems economic gurus make their own forecast about where america's financial problems are heading. we've got. the biggest issues get the human voice ceased to say so with the news media. guys are on stacy herbert this is the concert report gold saluting the world economy breakdown stacey tell us more max that's our first headline there gold gives a standing ovation for the obama boehner masterpiece of political theater so we've seen in america the political kooky theater getting crazier and crazier but this

is the important thing is that how gold responded and obviously always a deal is going to be done right we knew that but we have always told everybody that gold is responding to this collapse in american empire yes it is responding it's responding to the collapse and figure out mining it's a response to the collapse and the american empire exactly they had a great run after world war two but now it's run its course and now it's off owing a part and all the satellites that rely on the u.s. for their largest and all those military contractors and client states and puppet states got all that free money from a corrupt cop partner see in america they're all being choked and anyone who is real money buying gold and silver the price keeps going higher and this will continue because no amount of growth will support this amount of debt it's impossible to mathematically impossible those five hundred trillion in debt out there in the store is ten planets worth of earthlings slaving away twenty four

seven they'll never be paid back and the other important thing to note here max is i really believe that this political theater is at this point the only thing keeping the u.s. dollar afloat and use me backed by gold. and then it was backed by oil and i guess the industry and productivity of americans now all those other things are gone and all you have is this political theater to make people think that there's actually something there well they're stalling because they're hoping that at some point growth kicks in but it hit the saturation of debt and two thousand and seven and no amount of accounting fraud or trickery or bernie made off like quality scheming can now rejigger the board so that you've got any amount of growth to satisfy this amount of debt so you're talking about collapse all over the world as a global that lumps that's what we're talking about but speaking of wacko insane you know political actors political leaders analysis in debt rao hints of emerging

economy crises so here's reuters they look at the us and this silly brinksmanship in the crazy fighting that goes on over nothing debt default or ratings downgrade political deadlock such terms once associated primarily with the developing world now abound in the mighty united states i would say it was the once mighty united states and they interview a policy a foreign policy expert who says attend a lot of meetings with latin americans and we used to complain to them about the problems they had and now they like to say to us that sounds just like the us right well look at countries like brazil for example they got out from underneath the i.m.f. oh pression economic the oppression and the economy's doing great but the us how are they going to escape financial oppression from the banking terrorists how are they going to skate the likes of a void blind following or

a jamie diamond how are they going to get out from underneath that well the other thing that you saw with these military dictatorships throughout latin america the banana republics is the reason why they were banana republics is the chiquita banana company right they were actually corporate occupied. none of the countries of latin america had anything to do with running their country for real which left them just with play acting like a crazy prince where the real country and all the economy and all the wealth was taken by chiquita and other corporations like coca cola so there was nothing there but for them to pretend that they were ruling the country and they acted very crazy good united fruit i believe was what originally when they moved in and they occupied those subtle american a lot of american countries and they got such a grand exposure to such toxic militarization of those economies and the slaughter of folks and killing of union members of they had to rebrand us to cuba. we kill less union organizers. union organisation is

going to be slaughtered well let's look at these videos to see we're up america might look like the next threat the next time the deficit ceiling is hit here's india's parliament you see a nice brawl there let's turn to the punjab parliament. and then just for a little diversity here max we're going to turn to afghanistan and here's two women busting it out in the floor of the afghan parliament so i think this is the next step the tea party female modeling with michele bachmann and other sharks and once again with the glow bachmann and sarah palin to get those two in the mud money rustling for votes so i vote for. this move on to some serious stuff here look talk about what is going on for the banana republic is ation of america and the biggest corporate occupier is the banks and this is our headline here max the fed audit so this is from senator bernie sanders website he was responsible for inserting into

the wall street reform bill last year a clause which demanded one time audit of the fed and that is out and what they discovered is that the federal reserve lent out emergency programs a total of sixteen trillion dollars to u.s. banks foreign banks and corporations like g.e. and according to the report however there are two very important points here is they did provide a conflict of interest waivers to employees and private contractors so they could keep investments in the financial firms that they were bailing out they mentioned jamie dimon as benefiting from this clause sat on the board of the new york fed and bailed out j.p. morgan and then the the investigation also revealed that the fed outsourced most of its emergency lending programs to private contractors many of it which also were recipients of extremely low interest and then secret loans jamie diamond dropped on

his head as a kid or what i mean here's a guy who's given billions of dollars total exemption from accountability and then he loses that but in a few more billion dollars he makes a few bucks ok that's true but compared to like a real player out there somebody like an oligarch in one of these other countries he's a pusher. the scope of the go must be a little move you know you're right you're buying his presentation this is remember it's theater max and the theater he's claiming to only make a few billion a year and he's just a poor schmuck who doesn't know what he's doing he's trying his hardest but in fact these guys own everything they've taken control of everything he could have he could be worth five trillion who knows because it's a black hole of not accountability j.p. morgan is the biggest fed bank and the pretending they outsourced it the fed is j.p. morgan so they're pretending they go we outsource the these emergency lending programs to j.p. morgan and they're having to say they outsource it to j.p. morgan to hide the fact that the fed is j.p.

morgan ok so one time a lot of the yes and there's no more of coming there's no more audit coming and in the one time order we discovered that there was massive fraud on wall street jamie diamond did morgan the whole group massive fraud. continuing on this theme of profits he brought up corporate profits a boom in corporate profits a bust and jobs so now that we're officially eighteen months out of recession try to tell that. you're. this is the banana republic and this is something like papa doc would have told us or or could alfie you know these are the same sort of statements they would make yeah we're out of recession anyway all of the alleged growth that has happened only one percent of it has gone to ages and salaries only one percent of that growth is spent fifteen percent fifty percent and twenty five percent in the previous three recessions by contrast corporate profits accounted for eighty eight percent of the growth so this is clear banana republic and some

other one percent of trickle down to prison guards. and the corporate profits of course they are staying within the corporate fear if you will because that one two percent of the top elite are have engineered essentially a sluice way directly from the fed and wall street into their pocket bypassing the general population and again you have the bifurcation of society this class war developing and the beautiful part about it is that people in america are so drugged up on thorazine other anti-psychotic drugs of their own even those you know they also mention this article that corporations have one point nine trillion dollars in cash but are reluctant to spend it and they speak to the caterpillar c.e.o. doug over how hellman and he said the reason they're not spending is lack of clarity on us deficit reduction plan trade policy regulation much needed tax reform blah blah blah but the important thing here he says the absence of a long term plan to improve the country's deteriorating infrastructure does not

create an environment that provides our customers with confidence to invest so here is the c.e.o. of caterpillar who is you know these are one of the guys involved with the business roundtable involved with the american chamber of commerce that lobby to make sure that people are so stupid that they associate any sort of plan or action on behalf of the the citizen that's marxist and socialism so here they've they've created this environment where you have to lap it needed like bombed out infrastructure that looks worse than any morocco or any up north african country looks worse than that plus they've got a lot of those caterpillar tractors in places like stein running over folks like rachel corrie so that's deflecting their attention from doing anything positive for their own country as well yeah but let's talk about the u.s. here because this is we're talking about the important thing is the u.s. is collapsing and there are a lot of political things they do all over the world but the fact is america itself is looking like a big giant ghetto and wherever you go one of the audio version of america the

weather is probably a stunner daedalus chicago did. royd problem is the same group of corporations caterpillars are enabling getafe occasion and palestine same thing in detroit because you got a minority of c.e.o.'s who take all that money from the government put it in their pockets and they claim that while there's a lot of infrastructure there to spread around amongst a population because they're responsible for building the infrastructure and the of building infrastructure because you're talking among themselves how can that be possibly construed as a representative democracy we've got insurgents to kill still and money wholesale including the chemicals we distributed because of the money to do so because. and finally max for the entire picture of a banana republic so they would been fighting over this deficit right eleven stunning facts about america's prisons prisons cost america six hundred billion dollars per year compare that to medicare is four hundred fifty two billion per year medicaid which is medical care for poor people that's less than two hundred

seventy five billion so us prisons cost six hundred billion to the taxpayer between eighty seven and two thousand and seven the national prison population tripled seven hundred thirty four out of every one hundred thousand americans are behind bars in the us far and away the highest number in the world and typically parole programs cost taxpayers seven dollars and forty seven cents per day per day while prisons cost seventy dollars and ninety five cents per day per inmate nationwide which is more than the minimum wage so taxpayers are there willing to lock up a huge percentage of the population one in nine black men between the ages of twenty and thirty four are in prison they're willing to spend more than the minimum wage to keep these guys in prison yeah in fact as the next election cycle coming up the only way to get in on that ticket on the republican party is to promise a lock up more so more cost this is never an issue that's ever raised as a way to lower the deficit and other building more and more persons and what

equipment are they used to build the prisons oh caterpillar. i guess are available to build prisons but not bridges maybe that's recent explains their statement that you need more infrastructure their infrastructure could be prisons more prisons horse like labor well that's a start going to have to be called hands thank you never thanks so much thank you max don't go away much more coming your way so stay right there.

welcome back to the i pads are a part of imax keyser time now to god to canada and speak our stuff on molyneux of the freedom ain't radio dot com stuff on welcome back to the kaiser report thanks max great to be here so stuff on live the u.s. deficit theater of the absurd on the brink of chaos every leader of the free or we're all of it is talking about more debt. ceiling and euro tarp plus the semantic games of the u.s. what is going on well china says or at least a private chinese rating agency says or makes the argument that the u.s. has already defaulted three devaluing of the u.s. against other currencies and that has been enormous and significant just over the

past ten years the u.s. dollar has lost forty percent or more the dow in its real returns since new year's day two thousand has lost almost thirty four percent and so what's happened is a devaluing of the dollar against other currencies that as we know is a result of two things which are closely related to u.s. debt the first is keeping interest rates artificially low and the second is just printing money and how is the fed printing money but as we all know they're aiming to buy a half bored over two trillion dollars of u.s. debt and they become pretty much the entire holder of the u.s. mortgage industry i saw if you're paying your visa with your mastercard it's pretty clear that you have already shown that you're unable to pay your debts of the u.s. is functionally in the father just has these federal reserve tricks and shenanigans to prop up the beast a little longer and so what everybody's talking about are minor tweaks you know it's rare. they say arranging the deck to chairs on the titanic and long after the iceberg was hit now you talk about the rise of the debt versus growth and going back a few decades the amount of debt that was increased would generate some appreciable

growth in g.d.p. going back thirty or thirty five years you had a dollar that you got a dollar's worth of g.d.p. growth and then as the economy began to suffer from over indebtedness and as the banks started to crowd their way into the general economy of the real economy it took seven or eight dollars of debt to create one dollar of eating pay and then around two thousand and seven two thousand and eight you had this debt saturation level where no amount of debt creation will ever create another unit of growth because you can't you know put ten pounds of garbage into a five pound garbage bag that they just can't absorb more debt so this message seems pretty clear that absorbed more debt so why does policymakers insist on attacking this problem like i'm talking about you know paul krugman of the new york times famously his solution is to add more debt how why they keep talking about it no more room no more debt well look expecting sane fiscal policy out of the federal

reserve and state sponsored state supported economists like paul krugman is like expecting gambling addicts to suddenly walk away from the table what is the only solution that the government has when it faces a crisis caused by its own corruption and decadence and thievery double down baby double down double down that's all it can do is continue to do the same thing now i think it's important to remember that the political class like the ruling on the darks they're fine i mean they've got their holdings probably in swiss francs in gold and they're all set they can do whatever they want it's the average person and particularly the poor person in the retired person who is going to face a real calamity when this mess hits the fan and so they they're sort of secure they've got their escape hatch they've got their golden parachutes everybody out so they can continue to mess around. about any particular fear of their own finances going in the toilet i imagine double down double down and i mean they got me thinking of the martin gal betting system are you familiar with the martin gal betting system i am not ok the martin l.

betting system is the gambling system where you go to the roulette wheel and you bet on red if you lose you double up and if you lose again you double up and he keep doubling up on every bet until eventually hit red and then you make a lot of money and the problem is you go broke before you hit red now on wall street they engage in this martin they are betting system because the money that they get to make the bets is free from the federal reserve and zero percent interest rate and they never have to pay off any they're losing bets meanwhile the average person is in the stock market any time they suffer a loss they actually have to suffer a loss show you've got this diametric you know of opposition in the investing world where people are saying well there's a lot of opportunity in the stock market but it's different if year out of wall street and you have unlimited credit and you never suffer a loss so why do the average people out there whether it's canada america or anywhere else in europe why do they insist on all was getting the short end of the

stick either they get the worst rates on their credit cards they get the worst gambling percentage in the stock market they get the worst jobs or get the worst of everything and why are they settling for the worst of everything well i think that most people are very afraid i mean this is going to be a long term historical perspective but i'll keep it short most people are very afraid to change the fundamental social order and what we're talking about here is a fundamental social order that is much closer to fascism than it is to the free market you do not have a free market when government controls the currency you do not have to mock prosy when government controls the currency what you have is a bribe ocracy where government prints money and steals from the unborn in order to bribe voters for power. our in the here and now so the fundamental system has to be gotten rid of you have to get rid of government control of currency currency has to be privatized that way you can't run deficits you can't fund these god awful wars

with your currency and debt and the whole system is going to change fundamentally you have to get government out of currency and you have to get the government to stop manipulating the market with interest rates we all know that the reason that the government is driving down interest rates so much is too private friends to give them basically free loans at the taxpayers' expense and also to cut down its own costs of having to repay its debt i mean if the government had to repay its debt of any kind of reasonable mortgage loan we would be in the fault already so fundamentally you have to change the system and it has to be a very fundamental change in the system people are afraid of that sometimes it goes the american revolutionary way sometimes it goes the russian revolutionary way or the french revolutionary way and so people are very scared they're just going to kind of handle and hope things blow over and hope things get better as they have in the past remember bailed out the savings and loan banks in the one thousand nine hundred eighty s. bailed out long-term capital management in one thousand nine hundred eight a bailout to be going on for a long time people think oh it's going to get better it's going to get better this time it's just not and until people realize that they're not going to get off their

couches stop watching t.v. take to the streets take to the blogosphere confront their neighbors with the false hoods that they believe until people recognize that the system is dead down and very they're not going to really advocating change and it's taking a while for that to sink in for people right wellstone is a long crisis was bailed out also fifteen hundred bankers wanted yeah long term capital management not only did not braggers go to jail but greenspan lowered interest rates thus having savers and retirees subsidize the bailout and the payments for a few guys in greenwich connecticut and when you talk about the stealing from the unborn course i was my contentions are as whether this is why the tea party is against abortion is because i need new clothes to inherit the debts and to. go to prison and let me. i ask you this the prison system in america cost six hundred billion dollars a year is a possible that a small government in the highest prison population in the world other than what i just mentioned at the tea party need to justify their religious extremism well the

tea party the prison system has become just another handout it's become just another subsidized industry which is one of the reasons why you can't get rid of these crazy ridiculous laws like drug laws and sarbanes oxley and all of these regulations which add up to precisely nothing people say all of the current crisis is part about by the regulation when regulations vastly increased under the year two bush jr presidency so you know the prison industry and the prison industries counted in g.d.p. of all the insane things that count in g.d.p. you can't people getting sick in g.d.p. you can't the prison system in g.d.p. this is complete nonsense i mean if you thought only part of this is because the people in prison are working for sixteen cents an hour and what the prison builders and operators are making fabulous while they're starting say so they're saying this is economy is growing yeah because you know slave labor is such a positive aspect of capitalist economic growth of course you'd want to count that i mean it's the statistics are completely meaningless we're living in this sort of

profit a house of cards you know like the soviet statistics the five year production plans that are going to deflate i mean this is all complete nonsense we're living in a propaganda delusion and it's not going to take long for this to to come crashing down and for people to wake up the only danger the only danger max and it is a significant danger which is i think why it's so important that we take the airwaves and yell the truth as much as humanly possible the great danger is that people are going to think that freedom is the problem the problem is coercion the problem is monopoly the problem is the violent counterfeiting of currency the selling off of people's future through the coercive power of the state it is violence that is causing all of these problems it is not peace it is not trade it is not property rights it is not freedom and it certainly is not a free market all right. now talking about counterfeiting the fed had a little of it thanks to bernie sanders they revealed sixteen trillion in loans that were made to foreign banks and j.p.

morgan to goldman sachs and jamie dimon got exemption as part of this bailout money and loan program to add to his other nefarious activities and even following that sixteen trillion dollar bailout figure and why would the americans so concerned about bailing out these foreign banks unless of course america reports to foreign entities. i think america as a whole is pretty clueless about the fed it's really complicated it's pretty abstract and of course it's the last thing they're going to teach you in government schools and government schools they can teach you how the government ended slavery and the government saves us from non-system in the great depression and the government helps the poor and sick and the old you get all that propaganda you're not going to get the actual basis of government power which is counterfeiting and theft so yeah it's monstrous and what is truly astounding about this is the way they're handing out these waivers for conflict of interest c.e.o. of j.p. morgan chase served on the new york fed's board of directors at the same time that his banker saved almost four hundred billion dollars in financial assistance from the thread william dudley now the new york fed president granted

a way for to keep his investments in a.i.g. engine and general electric at the same time that they've given a bailout funds and the reason that the fed gave for not making this guy sell is holdings is because they did not want to create the appearance of a conflict if and i mean so it's ok to have a conflict of interest you just don't want to create an appearance that the fed outsourced all almost all of its operations for these emergency lending programs to private contractors j.p. morgan chase morgan stanley wells fargo the usual suspects these guys all got trillions of dollars in federal loans at near zero interest rates and two thirds of these contracts were no bid contracts morgan stanley got a one hundred billion dollars to help manage the fed bailout of a.i.g. and exactly this is complete peak feeding shark attack profiting at the taxpayers' expense and it just shows you that the government doesn't have rules the government is an exemption from rules it is an exemption from the rule of theft through taxation it is an exemption of the rule of counterfeiting for the federal reserve and it is an exemption of any reasonable rules of conflict of interest by just

handing out a get a waiver a get away for your fine its impacts are a lot one last question finally the latest poll saying that ron paul could possibly beat barack obama point twelve is it too late for ron paul has promised an affair and i.r.s. cia foreign military bases etc yes. i you know that you let me give you the short answer that a very slightly longer one which is i don't think we have time for the longer one you know very quick don't go anywhere near the government you don't want to be promoted to captain of the titanic after the ship is just about to go down because then all anyone will remember as a libertarian was in power when everything went down it will discredit freedom for another thousand years so i say stupid of the mess stand back speak the truth don't get involved all right stephen only thanks so much again for being back on the kaiser report thanks to all that's all the time we have for this week oh the kaiser report with me max kaiser our thank my guest stefan molyneux if you want to send me an e-mail please this at kaiser report r t t v are you at all like scientists and

nice guys are saying by our.