it's impossible to mathematically impossible those five hundred trillion in debt out there in the stores 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 us dollar afloat it 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 right 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 but you hit peak saturation of debt and two thousand and seven and no amount of accounting fraud or trickery or bernie madoff like ponzi scheme ing 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'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 we 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 u.s. right well look at countries like brazil for example they got out from underneath the i.m.f. or pression economic or pression and now the economy's doing great but the u.s. . how are they going to escape financial oppression from the banking terrorists how

are they going to scape the likes of a lloyd blankfein 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 kita 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 and they occupied those central american a latin american countries and they got such a brand exposure to such toxic militarization of those economies in the slaughter of folks and killing of union members that they had to rebrand us to cuba were to

cuba we kill less union organizers on what's a kid to run a. union organization is going to be slaughtered well let's look at these videos to see what america might look like the next 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 on the floor of the afghan parliament so i think this is the next step then a tea party female moderator sling with michele bachmann and the other sharks and once again with the glasses of bachmann 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 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'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 the financial firms that they were bailing out they mentioned jamie dimon as benefiting from this clause then he 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 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 that's true but compared to like a real player out there somebody like an oligarch and one of these other countries he's a pusher. helping the guy must be like to live you know right you're buying his pretty 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 they pretending they've 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 bernie sanders got one time on it that's a yes and there's no more of coming there's no more audit coming and in that one time or two we discovered that there's a massive fraud on wall street jamie diamond j.p. morgan the whole group massive fraud. continuing on this theme of profits you brought up corporate profits a boom in corporate profits a bust in jobs wages so now that we're officially eighteen months out of recession try to tell that. you remember this is the banana republic and this is something like papa doc would have told us or or khadafi 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 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 republican as i'm you know the one percent of trickle down to prison guards. and the corporate profits of course they are staying within the corporate spear 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 bifurcation of society this class war developing and the view of beautiful part of god is that people in america are so drugged up on thorazine and other anti-psychotic drugs they don't even notice 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 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's 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 at the north african country it looks worse than that yeah plus they've got a lot of those caterpillar tractors in places like palestine 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 they do all over the world but the fact is america itself

is looking like a big giant ghetto and wherever you go well that over social america the weather is probably a stunner get chicago did. problem this is saying group of corporations caterpillar is a enabling benefit cash an unbalanced on something in detroit because you've 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 infrastructure and they are building infrastructure because are pocketing the money themselves how can that be possibly construed as a representative democracy we've got insiders and still stealing money wholesale and claiming that they can't possibly distribute them because they don't have the money to do so because they stole the money and finally max for the entire picture of a banana republic so they were 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 right 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 to 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 prisons and have what equipment to they used to build the prisons oh caterpillar. i guess there are the 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 more slave labor well that's a stock i'm going to have to be buying with both 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 kaiser report i'm max keyser time now to go up to canada and speak of stefan molyneux of the freedom a radio dot com stuff on a welcome back to the kaiser report thanks max great to be here so stuff on the on air the u.s. deficit thinner of the absurd on the brink of chaos every leader of the frio world is talking about more debt. ceiling and euro tarp plus the semantic 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 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 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 master card it's pretty clear that you have already shown that you're unable to pay your debts that the u.s. is functionally intifadah 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 the deck to chairs on the titanic 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 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 pe 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 and they just can't absorb more debt so this message seems pretty clear they have 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 this is no more room no more debt well look at expecting 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 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 that 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 the 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 without any particular fear of their own finances going in the toilet all right imagine double down double down and i mainly 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 eventually hit red and then you make a lot of money now the problem is you go broke before you hit red now on wall street they engage in this martin dale 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 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 you're on 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 is 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 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

a 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 read. isn't that the government is driving down interest rates so much it 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 default already so fundamentally you have to change the system and it has to be a very fundamental change in the system people are very 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 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 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 falsehoods that they believe until people recognize that the system is dead down and buried they're not going to really advocate for change and it's taking a while for that to sink in for people right well savings and loan crisis was bailed out also fifteen hundred bankers went to jail long term capital management not only did no bankers go to jail but greenspan lowered interest rates thus having savers and retirees subsidize the bailout and the yacht 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 always bear that this is why the tea party is against abortion is because i 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 was put 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 punish us because the people in prison are working for sixteen cents an hour and but 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'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 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 all right now talking about counterfeiting said had a little audit thanks to bernie sanders and they revealed sixteen trillion in loans that were made to know a foreign banks and j.p. morgan goldman sachs and jamie dimon got exemption as far this bailout money and

loan program to add to his other nefarious activities and even for. that sixteen trillion dollar bailout figure and why would it 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 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 in fact 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 is bankruptcy of 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.n. jet 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 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. i mean frankly this is complete peak feeding shark attack trough feeding 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 isn't it exemption 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 or get away for your fine it's madness i let one last question finally the latest polls show that ron paul could possibly beat back. obama twenty twelve is it too late for ron paul and his promise to end the fat i.r.s. cia for military bases except for a yes i do know that let me give you the short answer that a very slightly longer one which is now i don't think we have time for the longer one i know three quick don't go anywhere near the government do 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 stupidly of the mess stand back speak the truth don't get involved all right steven miller 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 i want to thank my guests stefan molyneux if you want to send me an e-mail please this kaiser report at r t t v are you until next time this is nice guys are saying bye off.

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the pressure of the coming spacing over its nuclear program the possible way out of the deadlock. blacklist diplomacy between walked into the moscow's u.s. bound travel for russian officials believed to be linked to a death in jail even though the probe is it not yet but also. a very warm welcome this is live from moscow belgium may be an international by word for unity with its nato when e.u. headquarters but it faces a messy breakup of its own with an era parable north south divide as i know bush and explains the split that's tearing the country to get echo throughout here up.

some wait till they're divorced before planning their next marriage but not one load near the southern region of belgium the country's been with delta fictive government for a record fourteen months french speaking looms in the cells and flemish speaking flanders in the north disagree on pretty much everything many analysts think the most likely outcome will see the country break into as soon as it splits with flanders is complete the world losers will look to hook up with france for richer or poorer but mainly for rich. going it alone when your small region is clearly not appealing they say political clout is important the main appeal is money and when the loonie is part of france in everything but name it we have the same language we watch french t.v. not belgian that above all our economies control better interims. poll suggests that whole foods and sixty percent of the french want to become one.