there's nothing else now here mostly this is all seen sector system movements a growing the power vacuum of government belgian skeptics saying at the end it's not yet for its few channels a single nation states. president obama threatens to veto a republican the debt ceiling a plan is young going debate threatens our economy already losing jobs sell the country. moscow and washington to exchange visa blacklists in

a diplomatic run away with the death of lawyers the game magnes ski for u.k. financial linked to fraud in russia. next the cards report looks into the scandals behind the global economy this week. he states you have it look at the get see the english schools not tricks in the u.s. . so the. we've got. the biggest issues get invoiced face to face with the news makers. x.-prize or stacy herbert this is the kaiser 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 of bain or masterpiece of political theater so

we've seen in america the political theater getting crazier and crazier but this is the important thing is that how gold responded and obviously always the 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 money answer 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 awful in a park and all the satellites that rely on the u.s. for their largest all those military contractors and client states and pomp and states i got all that free money from a corrupt cop talk or see in america they're all being choked and then they want to throw 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 not fanatically impossible there's five hundred trillion in debt out there in the stores ten planets worth of earthlings slaving away twenty four seven and i'll never be 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 used to be 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 there are you know they're stalling because they're hoping that at some point growth kicks in which it hit peak saturation of debt and two thousand and seven and no amount of accounting fraud or trickery or bernie madoff i call it the scheming can now rejigger the books so that you've got any amount of growth to satisfy this amount of debt so you're talking about debt collapse all over the world it's

a global debt lumps that's what we're talking about but speaking of wacko insane you know political actors political leaders. and alice's indebt rao hints of emerging economy crises so here is reuters they look at the us and this silly brinksmanship in the crazy fighting that goes on over nothing debt default or readings 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 best sounds just like the u.s. right well look at countries like brazil for example they got out from underneath the i.m.f. oh pression economic pressure and and now the economy is doing great but the u.s.

how are they going to escape financial pressure from the banking terrorists how are they going to skate the likes of a boy 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 you know the united fruit i believe was what originally when they moved in when they occupied the social narrative the latin american countries and they got such a brand exposure to such toxic militarization of those economies and the slaughter of folks and killing of union members and they had to rebrand us to cuba were to

kiddo we kill less union organizers. to vote. union organization of the good of the slaughter well let's look at these videos to see what 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 mother sling with michele bachmann and the other shiksa once again with the glasses i'll talk man and sarah palin to get those two in the mud money rustling for votes so i vote for the ok let's move on to some serious stuff here looks talk about what is going on for the banana republic is the nation 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've discovered is that the federal reserve lent out an 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 the fed provided 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 that he sat on the board of the new york fed and bailed out j.p. morgan and then the effect the investigation also revealed that the fed outsourced most of its emergency lending programs to private contractors many of 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 became a few more billion dollars he makes a few bucks ok the true but compared to like a real player out there somebody like an oligarch and one of these other countries he's a pusher. hope of the guy must be like to live you know why you're buying his presentation this is a member 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 bad bank and they're pretending they outsourced it but 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 bernie sanders go one time or that's a 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 very donnegan driven morgan the whole group massive fraud but it wasn't 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 trying to tell that. you remember this is a 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 wages and salaries only one percent of that growth is spent fifteen percent fifteen 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 republican as i'm going along percent of circle going 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 and have engineered essentially a sluice way directly from the fed and wall street into their pocket bypassing the general population and again you have this guy for patients to sign this class for developing and the beautiful part about it is that people in america are so drugged up on thorazine and other anti-psychotic drugs as anyone knows now 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 older 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 he hears 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 dilapidated like bombed out infrastructure that looks worse than any morocco or any our north african country looks worse than that plus they've got a lot of those caterpillar tractors in places like 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 what we're talking about the important thing is the u.s. is collapsing and there are a lot of political things that they do all over the world but the fact is america

itself is looking like a big giant ghetto and wherever you go oh that over gershon of america whether it's palestine or daedalus chicago did. roid problems but there's a saying group of corporations caterpillars are enabling getafe attention in 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 the population because they're responsible for building the infrastructure and building infrastructure because we're talking about of themselves how can the people simply construed as a representative democracy we've got installers and still stealing money wholesale and claiming that the chemicals were distributed because they don't have the money to do so because they could. and finally maxed 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 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 right in fact as the next election cycle coming up the only way to get in on that ticket on the republican party is a promise to lock up more so more cost this is never an issue that's ever raised as

a way to lower the deficit the other building more and more prisons what equipment of the used to build the prisons oh caterpillar. i guess there are valuable to build prisons but not bridges maybe that's explains their statement that you need more infrastructure in their infrastructure could be prisons or prison or slave labor well that's a stock i'm going to have to be buying with both 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 kaiser in part quote i max kaiser time now to go up to canada and speak of stuff on molyneux of the freedom in radio dot com stuff on welcome back to the kaiser report thanks max great to be here so so far no one is the u.s. deficit thinner the absurd there on the brink of chaos every leader of the free world is talking about more debt. ceiling and euro tarp plus the tsunami games in 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 through 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 jarrow in its real returns since new year's day two thousand has lost almost thirty four percent and so what's happened is the 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 or have bought over two trillion dollars of u.s. debt and they've become pretty much the entire holder of the u.s. mortgage industry and so 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 that the u.s. is functionally in the fall that 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 as they say arranging detector chairs on the titanic long after the iceberg was hit but 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 of debt you got a dollar's worth of g.d.p. growth. and then as the economy began to suffer from overindebtedness 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 video 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 pounds of garbage into a five pound garbage bag they just can't absorb more debt so this message seems pretty clear that absorbs more debt so why does policymakers insist on tackling 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 this is no more room no more debt well look i expect the same 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 the 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 and a retired person who is going to face the real calamity when this mess hits the fan 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 without any particular fear of their own finances going in the toilet are you imagine double down double down and i mean we got me thinking of the martin gal betting system are you familiar with the martin del betting system i am not ok the martin 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 you keep doubling up on every bet until you've actually 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 gayle betting system because the money that they get to make their bets is free from the federal reserve is zero percent interest rate and they never have to pay out money 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 a proposition in the investing world where people are saying well there's a lot of opportunity in the stock market but it's different if we're 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 i'm always 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 then 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 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 fear 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 but the real. isn't that the government is driving down interest rates so much is to bribe its friends to give them basically free loans at the taxpayers' expense and also to cut down its own cost 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 people 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 how it all 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 and one nine hundred eighty s. bailed out long-term capital management in one thousand nine hundred eight the 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 faucets that they believe until people recognize that the system is dead down and buried they're not going to really advocate the change it's taking a while for there to sink in for people for a while savings and loan crisis was bailed out also fifteen hundred bankers went to jail long term capital management not only did the bankers 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 of course i've always my contentions are as bad that this is why the tea party is against abortion is because they need new drugs to inherit the debts and to. to go to prison and let me 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 report about by deregulation when regulations vastly increased under the 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 you totally 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 wealth on the stock exchange 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 want to count that i mean it's the statistics are completely meaningless we're living in this sort of

profit or house of cards you know like the soviet statistics no five year production plans that are going beautifully 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 to 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 the free market right now talking about counterfeiting said had a little audit thanks to bernie sanders and everything else sixteen trillion in allowance that were made to foreign banks and j.p. morgan to goldman sachs and jamie dimon got exemption as far this bailout money and

loan program to add to this other nefarious activities and even. that sixteen trillion dollar bailout figure and why what is america 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 saved us from not has them in the great depression and the government helps the poor and sick and the old you get all their 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 bankruptcy is 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 its holdings is because they did not want to create the appearance of a conflict 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 outsource 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 that morgan stanley got one hundred billion dollars to help manage the fed bailout of a.i.g. i mean frankly this is complete pig feeding shark attack trough eating 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 if it's all right one last question and finally the latest poll celeron parker possibly be fair. obama two thousand and twelve is it too late for ron paul and his promise to end the fat i.r.s. cia foreign military bases etc yes i do know that if you let me give you the short answer a little very slightly longer one which is now i think we have time for a longer one i know three 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 in all anyone will remember as a libertarian was in power when everything went down it was just credit freedom for another thousand years so i say stupid of the mess stand back speak the truth don't get involved all right stephen ali thanks so much again for being back on the kaiser report based on that's all the time we have for this week out of the kaiser report with me max kaiser our thank my guest stefan molyneux if you want to send me an e-mail please this is a report at r g t v are you and i stand this is nice guys are saying by our.

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