eleven am in the russian capital of thirty rather and this is our team of the headlines moscow recognizes lidia's transitional council as the functioning leave you know the wording in his statement russia's foreign minister and besides moscow has long called for khadafy to go but says nato is approach to bring him down violates international law. divisions for the navia resonate and get out his family as one of his sons vows to fan the colonel's stronghold of syria till the end shortly after his brother formally office talks to end the bloodshed. and russia remembers the victims of the beslan school massacre that shook the country

and the whole world seven years ago chechen terrorists kept more than one thousand people hostage in the siege that lasted for three days and left over three hundred people dead most of them children. so we had lines here in our field the back of the top of the work tell now for the banking big shots to take over as or to use financial guru max kaiser has them in his sights. keyser welcome to the kaiser report on stacy herbert hey did you know that slavery is once again completely legal all places max this is our first headline here modern slavery the loss of innocence and there are twenty seven million modern sleeves according to free the slaves and this includes sex slaves child soldiers

debt and labor bondage and the interesting thing about this article here max in eighteen fifty the purchase price of a slave in the southern u.s. average the equivalent of forty thousand dollars today according to free the slaves slave cost an average of ninety dollars that's deflation cost of slaves are going down so i answered quietly you've got this huge slave trade bubbling up from the global economic deflationary nightmare it's all part of this global financial crisis well they're saying that you know the cheap cost of oil in transport has reduced the cost of slavery but also that huge demand for cheap goods as jeff and much of the slavery because it's a lot of it is child laborers throughout africa and china and in latin america and they're forced basically into working and now this industry is second only to the

arms trade in terms of the black market it's thirty one point seven billion a year people should keep in mind when those are argue against minimum wage that the market should set wages they don't take into consideration that the oligarchs on the plutocrats on the cup the krauts who run the system of course are always going to gravitate toward slave pay the reason you have minimum wage. it's because you need to defend against the tendency toward slave labor again you know these people say the activists involved here and they say that the way to stop it the number one way to stop this slavery of the twenty seven million people around the world mostly women and children is to reduce demand for cheap goods that will never happen wal-mart customers will never agree to that but max let's look at the how the demand for cheap money has actually in sleep even more people look guard urges recapitalization of europe's banks so this is christine legarde head of the i.m.f.

and she was speaking in jackson hole and she's saying that the european banks need to recapitalise or else face more liquidity crunch she says that mandatory capitalization to bolster european banks balance each should be key to cutting the chains of contagion ok now you're not going to transition here from this idea of cheap goods cheap sex and cheap energy to cheap credit to cheap money which is leading to debt slavery which i would imagine is much bigger than twenty seven million people around the world and the gart the new i.m.f. . her solution for the current crisis is to actually make money cheaper which of course is going to drive more slavery and make goods cheaper and it will make the current problem much worse because after all she represents the collapse of krauts of the oligarchs in the slave dealer cesar slave master but one of the arguments

that she poses for how european banks can recapitalize is to borrow from this new four hundred forty billion euro european stabilization fund so more debt but the new euro stabilization fund starts off in debt it's bankrupt from day one so her idea is to borrow from this bankrupt institution which only means that the debt to equity. ratio for the global banking system is to be expanded the same way the glass steagall when it was repealed it expanded the debt burden when the commodity futures modernization act was brought in and expanded the debt equity bird would look are talking about is to expand the debt equity bird there's no other solution that you could possibly come up with because she's just an academic neil liberal wonk whose only purpose in life is to theoretically come up with new ways to expand the debt burden her solutions are absolutely and to thema to something that would be beneficial to anyone except debt peddlers of whom she represents well max is

speaking of too much debt as well she also called for more aggressive policies on housing to halt the downward spiral of foreclosures falling house prices and deteriorating household spending so again all of that is about more debt because house prices are too high which is why there is too much debt for the american consumer and yet she's saying american policymakers need to put a floor under the price she's saying that the government should subsidize houses so they stop falling so that the consumer can take on more debt the banks and the consumer as steve king points are already three hundred percent g.d.p. in debt the american government is already one hundred percent g.d.p. in debt so dense she's using a theory that she has a she cooked up in the back room of some classroom saying that well you know according to my cheery. as you did a bit to the since you have see all. the stuff in the

stuff of course because that's all she knows how to do she is the devil in a skirt well max let's turn to one of her i.m.f. poster children and that's ireland families in modern ireland skip food to pay the mortgage so remember that i am. praises how obedience and quiet and on rioting the irish are but families in modern ireland are going without food in order to me the demand of mortgage debt and in spite of this the arrears and people unable to pay their debt is going up so they turn to a id which is now a state owned lender and they have all these bad debts on their books all the mortgage debts and look at what their solutions are among the possible solutions being explored are inter-generational mortgages and debt forgiveness where a part of the loan is written off in return for the bank taking

a share of the home intergenerational mortgage intergenerational debt is indentured servitude exactly and that's that's what i'm saying at the top of the show we're talking about the twenty seven million in the black market of slavery this is open that these people the entire nation of ireland their bonded servants feudalism that's what the i.m.f. represents a return to the middle ages a return to feudalism a return to being born into debt and never being able to escape your entire life that's what things like the magna carta were about or various institutions that came out of the enlightenment liberal art is anti enlightenment she wants to bring back lords and monarchs and aristocrats kleptocrats and put everybody onto a debt form a debt slavery model that's her model for growth well again at the top of the show i mentioned that there are twenty seven million slaves that now costs on average

ninety dollars compared to eight hundred fifty s. where u.s. labor cost forty thousand now part of that reason was that they were owned for life the slaves and the american south now they're only bought for a few months a few weeks at a time and told they're torn apart not worth anything anymore anyway but only in a generous like and one other reason is that cotton has been replaced with synthetics which are petro chemical. the price of oil has been artificially low for decades and decades but now we see the reverse coming to us the price of oil is moving up due to peak oil due to increased warfare which means icon's going to come back as a competitive way to manufacture clothing and people going to come down there in the south once again but remember also in the us south they were housed and clothed so here you have the banks taking ownership of these homes debt forgiveness is called but then repackaging the mortgage to be intergenerational oh they'll be

housed and clothed all right it's called prism and this is the one of the biggest trends of the united states as the private prison industrial complex of america's got the biggest prison population in the world they're already got there in the cotton fields so picking cotton for christie like art and a new plantation model so let's move on to here here you have the i am of poster children in our debt slaves for life either working on a radical plan for banks so it's only going to get worse it's going to get worse for ireland it's going to get worse for germany france italy spain all the european nations because the officials from the european central bank and european commission are considering offering central guarantees over certain types of debt issued by banks this comes on top of information that is now emerging that this european stabilization fund the four hundred forty billion euro thing and might be overturned by the german high court september seventh but in the meantime the european central bank has been taking all sorts of toxic assets in the last few weeks from spain and italy italian banks. but who's going to take the burden who's

who are the debt slaves about who has to pay off all these bad debts well they're going to monetize these bad debts the e.c.b. under a tree say he would love not to be able to leave office having been the guy to monetize that and turn the clock back on everything the bundesbank represents but it looks like he won't be able to escape without that mark on his reputation as the ultimate monetizing machine and of course this is again why the euro is going to be weaker against the only global currency that makes any sense gold bullion well she was the head of the e.c.b. and he and there was a battle between the buddhist banks who are very much against this and this is why it's going to the high court in germany but you know when we have the slavery we often find liberation are and i want to turn to the fact that we do see liberation are happening and artists incendiary painting is his bank statement so the artwork in question is chase burning as you see chase branch in than ice california painted

by alex shaffer is burning now he was out side the chase branch painting this when he was visited by police. and they asked him do you hate banks do you plan to do that to the bank now alex shaffer the artist responded the flame symbolized bringing the system down some might say that the banks are the terrorists yeah i mean the cops are obviously harassing this guy i am so it made a good point to comments that hollywood movies did predict things blowing up all the time to show up on the studio and say are you planning on blowing up the things that you're going to being blown up in your depiction of this oh i mean it's just a restaurant by a cop so you don't understand in america particularly in california but banks are terrorists that they are basically terrorist and their children are banking offspring of their joining it's created a new generation of terrorists just like we see in other countries around the world

does nothing to stop the terrorism so they're spawning new terrorists and it's as simple as a year with the same sort of harriet beecher stowe was not with the same sort of shock and outrage by the community when she depicted in. so these are the same thing here's a guy who's painting the truth of the situation now gary kishner a spokesman for chase bank said his institution isn't sure what to make of the first art he said it's a situation we don't take lightly hopefully this is not what his actions are it's kind of scary you don't know what other people are thinking we have to look out for the safety of our customers and employees so here's a guy who's burning down the global economy in sleeves as we've just saw all these people in ireland who are starving to death they're choosing not to feed their children so that they can continue paying chase oh this artist is so revolutionary and so interesting that we're going to have mine our new saturday show oh yes. other cars report this weekend with this guy this artist guy. he's like and we're

actually he's going to get next to us a show but next saturday is our first edition on saturday edition next ok station our thanks so much for being. because a report thanking max don't go away much more coming your way after this stay there . the latest in. the future of coverage. couldn't take three. three. three. three. three. video for your media.

welcome back to the guys report imax guys are you know you can't have cheap money without cheap oil time now to go it is to blow me a professor of middle east and balkan history and author of chaos in yemen societal collapse and the new authoritarian as a blooming great in the studio it's great to be here max all right it's a bully we've been discussing banking and terrorism in a first after these two meet in yemen well i would suspect there's a direct correlation between the kind of rise of personal indebtedness to private finance institutions that emerged in yemen starting in the late one nine hundred ninety s. and really caught on as a kind of possible resource for sensible profits for both local yemeni power holders stakeholders and the outside world world banking. and this is taking the

form usually in the micro finance banking there's particularly successful banks as far as the outside investors are concerned in this operation called almost blank was given a reward last year for distributing over sixty thousand loans in yemen. so of course what microfinance is famous for starting up small business is the sort of sort of what's turned out is that many of the clients of this thing are not either paying back these loans or cannot pay back the galley catch up right after second and get into this micro financing for a second because we all know that micro financials heralded as the solution for third world development famously they women in bangladesh where clients of grameen bank and they had a green bag yeah yanis lot of nobel prize peace prize and but now it seems as though it's a trojan horse that it's actually just a way to use debt as we've seen it is many times before to create debt slavery

situation so what which is kind of predictable first of all. second of all just could you do a bit of a digression here what's the story with the at us in grameen bank he seems that he was pushed out and unceremoniously pushed to the curb because he because they're professional financial terrorists as i call them bad move down right well i couldn't really answer to that specific case but certainly in the case of yemen there was a major meeting last year the end of last year again this amal bank was given a big. reward from the islamic development bank from deutsche bank who all applauded the success indeed yemen is the kind of shining star in the middle east region ford is michael financing and again going back to the initial point is that over sixty thousand people or projects were funded over three hundred thousand people who are actually directly involved in this transfer of the michael. of wealth to the so-called entrepreneurs in yemen but it's turning out there and

directly. yes they're taking on this responsibility of preparing those. spawn in very interesting ways by these major banks in the language of compliance with islamic law which is a very interesting phenomenon we see in the gulf in particular yet another quick. jump in here this is a very ancient situation because islamic law shariah law doesn't allow usury and which is interest and especially predatory interest and the way that they work around this is to capitalize projects in such a way as the stakeholders have a stake in the project which is amortized over time i guess you could say so now how do they get around that did the last of the laws been corrupted by the banks as well as we got corrupt laws all over the mideast who are micro finance think things are totally in violation of shariah law is that what's going on we do have the moms who issue. who issued who declared indeed some forms of usury is acceptable

according to our interpretation of islamic law which of course the one raises your eyebrows when this is happening but i browse right way up and i mean i mean i think jamie diana interpreted the qur'an in this way but the involved just busted me you know stick until they hit a plateau where unlike any industry which has their annual conference in many cases in las vegas you have similar kinds of gatherings of international companies as well as local companies are ambitious potential managers who will help manage and reassert and redirect financial wealth to the hands of the needy people of yemen has turned out to be like very much a trojan horse as you suggested and i suggest that a lot of the violence that's happening now in yemen is not has nothing to do with tribal alliances or the struggle overall between al-qaeda or political party loyalties but it's the lives of people directly been affected by such kinds of

interventions and what would they call in the i.m.f. world and world bank as structural adjustments are actually causing significant structural. chaos in these kind of rule societies that have been targeted they have wonderful assets which are particularly valuable and are used to course. uses collateral for these micro loans are the assets you have and water less labor right we have these kind of people who are receiving these grants who are somewhat responsible for the community and in many ways there's their parents they were able to leverage some kind of. access to the to the labor to capacity of their community in order to gain political sustenance usually through just the very typical kind of game in which locals are able to negotiate with the state for receive a little bit of rent from the state in return for compliance what is happening here is that the state is being replaced by these kinds of. pseudo state institutions

connected with the rich and connected with the islamic development banks of the world and now they have we have these in entrepreneurs who invest in the future of their community the land the actual land which is now being used for cash crops that are cut. as opposed to food which is now being imported in large amounts or indeed water which is becoming such an important commodity in yemen now i want to talk about water because of course water is an petroleum industry in a cage way and where yemen might not be rich as a sara lee an oil gas per se but they've got a while which is needed in the region now let's talk about an oil trading firm arcadia petroleum a recently sued by regulators in the us for rigging the yemeni oil market b.-a their agent and yemen tribal leader how many tell us about the role of oil traders play in the unrest in yemen and this character of the tribal leader.

is interesting enough a major player in domestic politics local politics and on occasion was in a lot of the saudi arabia and putting pressure on the regime way back in the ninety's mid ninety's well into the post nine eleven universe in which you know has become an important epicenter of the war on terrorism which is very much directly to connected to the exploitive dynamics of global finance as well we just started to talk about with micro finance as well with oil yemen has suddenly discovered that its reserves has quadrupled since two years ago which means by end of october of two thousand and ten you had over eighty four companies converging on yemen seeking to gain extra access to these blocks expanding their current concessions. or indeed getting new concessions whether it's offshore on land. what

brings arcade kid into all of this is that they've been how it seems to seem through to us all a mother who is a very powerful powerful figure who sometimes is in government sometimes is battling a government for influence that they were he was used as the kind of guy who would threaten other companies who want maybe want to get into the business and offer. what's the term to use those who are these brokers are actually making bids on the oil that's supposed to be going out as crude through the local market arcade it kind of cornered the market in yemen and what's interesting that they're actually paying at below market prices at one point just in august twenty fifth despite all these efforts by the united states government to go after this arcade which is of no region owned by some norwegian. based in london. despite all the attempts by nine states governments to sue this company and somehow open up the yemenis markets

to other bidders and so bidders american companies in particular they still go to contractors and they purchase three million barrels barrels in august twenty fifth of this year i did ninety three per cent discount from the current price of brant crude so that was the underlying story here the story i think we're trying to get at is that oil gas business as a very capital intensive business and while the there was a lot of oil flowing a lot of credit flowing these two things were hand in hand moving this relationship forward but now that if it peak credit seven where credit is hard to get at you know the banking industry is collapsing so this is bringing to the surface really the nasty underbelly between banks and oil companies in there in these regions so you get the big macro scenario here it's it's easy to see why a lot of people consider the bankers as the terrorists and that the folks that are caught you know get the press the wild man what the bombs and what not they're really just. they're not minor players as compared. to the bankers and their weight

in the micro finance bankers who are of course supported by the big money center banks global banks the more against the goldman is the world are really that nasty an insidious destabilizing treat terrorists and now that you've got the oil running out the credit running out this is becoming more and more obvious so i've course as it becomes more more obvious there's a need to intensify the law i and we see this i think in places like libya where the control of the light sweet crude. is playing now a factor in the region how is that going to is what the blood back and yeah i mean that's we've got about a minute well yemenis are a little bit different because they still resist and the americans and the big players cannot find a reliable partner down there they would have removed the regime yesterday if they could have like what ultimately decided with with the resistance in libya i one point when they felt secure that they could actually back the rebels that's when the nato intervention came that's when you started to see real troops special ops

guys on the ground really taking out libya's regime that you don't have in yemen yet and that's largely because there's people's was very strong communities who are loyal to their communities first and foremost and are not easily be brought out by this kind of corrupting phenomenon so we in the world need to celebrate and embrace these kinds of micro struggles or with the larger global financial powers and i think yemen is a perfect example where there really is still a capacity demonstrated by people to resist this and only americans realize this if only people in europe realize this and saw the example of the middle class in egypt who lost everything when the stock market crash they were convinced to go and take out their savings and so their gold and go buying the stock markets and they lost everything in early january that's why there was a revolution in egypt because people in the middle class joined the poor who are always protesting they could the fact they couldn't afford food the fact that they

were. represented politically this is what's happening in the west you walk anywhere in person a simple sleeping on the streets you go drive to the highways from the airports don't tell you see all these tent cities outside the city where when is that when people actually come to come to the senses and realize that they have to do what yemenis are doing they have to do what people in egypt try to do successful in some sense of history will tell so a pretty constructive on yemen at the moment terms of dealing with the pernicious influence of it but it's they're struggling they're getting blown by drones they're getting blown by kind of special op operations it's a tragic story which nobody covers in these terms but it is a resistance people are resisting here weapons of mass financial destruction and resisting weapons of funding for the stuff i write is the blooming that's all the time for we have thanks for being on the kaiser report so that's going to do it for this edition of the kaiser report with me as or as they say ever think my guest is of let me if you want to send me an e-mail please do so as a reporter at r g t v dot are you it's all next august as nice guys are saying by

our. own home.