a little angel on our cheek. of our room welcome back it's now i have no say a russia recognizes libya's transitional council as a functional foresty this is nato used approach to bring down feeling violated international law and while the so-called friends of libya conference is held in paris to discuss the country's future. and all bells ring across the euro zone as the bailout savile's greek government declares this economy's out of control even this porch could not strict hold the new austerity measures to deal with its own debts. u.k. police pressure the media to hand they all fish huge of all guests riot problems in

court that should have called cost as don't comply. russia commemorates the papal seventh anniversary of the best school siege that shocked the country on the wall when more than three hundred people were killed mostly children. ok time now for the banking big shots take oliver result. has that in his sights. 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 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 to 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 consequently 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 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 that when those are who argue against minimum wage that the market should set wages they don't take into consideration that the oligarchs in the plutocrats and a collector kratz who run the system of course are always going to gravitate toward slave pay the reason you have minimum wage stay. set is because you need to defend against the tendency toward slave labor but 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 lugard 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 it mandatory capitalization to bolster european banks balance each should be key to cutting the chains of contagion ok now you're making a 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 a 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 made goods cheaper it will make the current problem much worse because after all she represents the collective krauts of the oligarchs in the slave dealer cesar slave master one of the arguments that she

poses for how european banks can recapitalize is to borrow from this new four hundred forty billion euro europeans stabilization fund so more debt. the new euro stabilization fund starts off in that 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 with a glass steagall what it was repealed it expanded the debt burden when the commodity futures modernization act was brought in it expanded the debt equity burden would look are talking about is to expand the debt to equity board 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 or solutions are absolutely and the thema to something that would be beneficial to anyone except that 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 the house prices are too high which is why this 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 the consumer can take on more debt the banks of the consumer as steve king points are already three hundred percent g.d.p. in bed the american government is already one hundred percent g.d.p. in debt so dense is using a theory that she has a she cooked up in a back room of some classroom saying that well you know according to my cheery. as you can say addict to the situ as your. own cut the stuff in

this tough 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. praises how obedience and quiet and fun 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 i.v. 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 whole intergenerational mortgage intergenerational 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 look art is and see enlightenment she wants to bring back lords and monarchs and mr krauss cut the crap out and put everybody onto a debt form of 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 and 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. and 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 pick and 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 closed all right it's called prism and this is one of the biggest trends in 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 cockpit so picking cotton for christie like art and a new plantation model so let's move on to here here you have the i.m.f. poster children and 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 and banks. well who's going to take the burden who are

the debt slaves for that 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 debt and turn the clock back on everything a 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 tree 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 a 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 chased burning as you see the chase ranch in

california painted by alex shaffer is burning now he was out side 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 aleksey for the artists responded the flame symbolized bringing the system down some might say that the banks are the terrorists you know i mean the cops are obviously harassing this guy and somebody made a good point the comments that hollywood movies do pick things blowing up all the time the cops don't show up in a studio and say are you planning on blowing up the things that you're depicting being blown up in your depiction of this oh i mean it's just a rabbit but cops say you don't understand in america particularly in california the banks are terrorists but they are basically terrorists 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

has nothing to stop it terrorism so the spawning new terrorists it's as simple as a give it the same sort of harriet beecher stowe was met 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 schaefer's 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 burnt 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. ok because a report this weekend this guy this artist guy. he's like

a reality where actually he's going to be next tuesday show but next saturday is our first edition of the saturday edition max ok stationary thanks so much for gray . the kaiser report thinking next don't go away much more coming your way after this stay there. couldn't take three. three. three. three. three. three. video for your media. free media. tom.

welcome back to the guys report imax you know you can't have cheap money without cheap oil time now to go is to blow me a professor of middle east and balkan history and author of chaos in yemen societal collapse and the new authoritarianism of looming great to have you in the studio and straight to be here mike's all right is the gloomy we've been discussing banking and terrorism in the first half tell us how 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 plus possible resource for considered profits for both local yemeni power holders stakeholders and the outside world banking world. and this is taking the

form usually in the micro finance thinking. there's particularly successful banks as far as investors are concerned in this operation called blank was given a reward last year for distributing over sixty thousand loans in yemen. for of course what micro finance is famous for starting up small businesses etc cetera but what's turned out is that many of the clients of this bank are not either paying back these loans or cannot pay back these let me put you off right after a second and get into this micro financing for a second because we all know that micro five adults heralded as the solution for third world development famously they went in bangladesh where clients of grameen bank and they had a green bank yeah yanis want to nobel prize peace prize but now it seems as though it's a trojan horse that it's actually just a way to use debt at least 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 you and i think i mean by he seemed like he was pushed out and unceremoniously pushed to the curb because he because the professional financial terrorists as i call them bad move down right now i couldn't really answer to that specific case but certainly in the case of yemen there was a major meeting last at the end of last year again this mall bank was given a big. reward from the islamic development bank from which a bank who all applauded the success indeed yemen is the kind of shining star in the middle east region for it is microfinance ing 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 michael. level 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 repaying those debts spawning 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 various things that i should because islamic law shariah law doesn't allow usury and which is an interest and especially predatory interest and the way that they work around this is to catalyze projects in such a way as the stakeholders have a stake in a project which is advertised over time i guess you could say so now how do they get around that the last of the lies bankrupted by the banks as well as the we've got corrupt laws all over the mideast who are micro financing things you know 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 growl was raised way up i mean i mean i think jamie guy may interpret it in the qur'an in this way but at the end moms are supposed to be you know stick it to the to the plan here and like 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 and this is a potential managers who will help manage and reassert and redirect financial wealth through the hands of the needy people of yemen has turned out to be like very much a trojan horse is just 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 qaida or political party loyalties but it's the lives of people there. we've been affected by such kinds of

interventions in what would they call in the i.m.f. world in the world bank and 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 they are used to course. uses collateral for these micro loans what are the assets and you have an wider lens labor rights 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 past they were able to leverage some kind of. access to to the labor to capacity of the community in order to gain political sustenance usually through this 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 that which connected with the islamic development of the world and now they have we have these you know entrepreneurs who have invested the future of their community the land the actual land which is now being used for cash crops like cuts. 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 it's not a lot of because of course water is an petroleum industry and a gateway and where yemen might not be a rich justice early and oil gas per se but they've got a whale which is needed in the region now let's talk about oil trading from arcadia petroleum they've recently sued by regulators in the u.s. for rigging the yemeni oil market via their agent in yemen tribal leader how many are tell us about the role oil traders play in the unrest in yemen and. this character the tribal leader alomar lamarr is interesting enough

a major player in domestic politics local politics and on occasion was in a lot of the saudi arabia in putting pressure on the regime way back in the ninety's mid ninety's well into the post nine eleven universe in which yemen 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 arkady arcadia into all of this is that they've been had since seem through this 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 coaled companies who want maybe want to get into the business and. offer. was a term that we use those who are these brokers are actually making good on the oil that's supposed to be going out as crude to the global market arcade it kind of cornered that market in yemen and what's interesting that they were actually paying paying at below market prices at one point just on august twenty fifth despite all these efforts by the united states government to go after this arcade which is a norwegian owned by some norwegian fellow based in london despite all the attempts by united states government to sue this company and somehow open up the yemenis. markets to other bidders also bidders american companies in particular they still

go to contract 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 when 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 in a lot of credit flowing these two things were hand in hand moving this relationship forward but now that if it peak credit let's say in two thousand and 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 the in these regions so we get to 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 and the the wild man with the bombs and whatnot they're really just the they're not minor players as compared to the bankers in the

region the micro finance bankers who of course supported by the big money center banks global banks the mortgages the goldman's of the world are really that nasty insidious destabilizing true terrorists and now that you've got the oil running out the credit running out this is becoming more and more obvious so of course as it becomes more and more obvious there's a need to intensify the lie and we see that 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 blowback and yeah i mean that's we've got about a minute left 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 who would have removed the regime yesterday if they could have like would ultimately decide it was with the resistance in libya and 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 russia lob skies 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 bought out by this kind of corrupting phenomena 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 it 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 could join the poor who were always protesting they could the fact they couldn't afford food the fact that

they were not represented politically and this is what's happening in the west you walk anywhere in paris and you think will sleeping on the streets and go drive to the highways from the airport to downtown you see all these tent cities outside this 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 successfully or unsuccessfully history will tell so a pretty constructive on yemen at the moment terms of dealing with a pernicious influence they think they're struggling they're getting bombed by drones or getting blown by kind of special ops operations it's a tragic story which nobody covers in those terms but it is a resistance people are resisting here weapons of mass financial destruction they're resisting weapons of mass financial stuff all right it's a blow me that's all the time for we have thanks for being on the kaiser report myself and that's going to do it for this edition of the kaiser report with me either as they say heard or my guess is and let me if you want to send me an e-mail please do so at the report at r g t v dot are you it's all next august and i guys

are saying.