we need twenty four hours a day this is our tonight here in moscow top stories now a spy saga u.-turn the father of a former f.s.b. officer poisoned in london six years ago says he was mistaken when he accused me of being responsible for his son's death often gets the story firsthand from alexander litvinenko father. the u.n. considers a new draft resolution on syria with no longer calls for president assad to step down the following criticism from russia it's also nightly to have references about an arms embargo removed from the text. and it gyptian police fired tear gas and a group of protesters in cairo from where we're bringing in my pictures in

a moment here on r.t. you can see there that people have been running against the way security services handled a riot at a football match on wednesday which is more than seventy people killed. but that's it for me today my colleague will be with you as the news continues in less than thirty minutes from now the meantime artie's financial guru exposes the fact cats and their financial scandals the cars report is next on r.t. . i'm max kaiser this is the kaiser report there's economics and then there's hope economics. max yes that's what we have all over the world today but economics here's the trickle down chutzpah mel gibson temple tries to shake him down a southern california temple took out a jumbo loan on a synagogue

a loan that now can't afford to pay back so what have they done max congregation beth shalom located in corona california sent mel gibson a letter requesting that he give them big money to prevent foreclosure they wrote quote our proposal to you mr gibson since you have been cited as an anti-semitic and have denied those allegations what better way to prove to all your fans and the naysayers than to endorse and help raise funds for our cause s.o.s. save our synagogue to shake down. well t.m.c. calls the move a similar to a dude a costing you for money at a gas station they want develop the fish. well it is kind of what you see happening around the globe you see banks everywhere in every single nation in the western world in which the citizens are hugely in debt the banks are hugely

in debt as well and they're saying we're so in debt bail us out so yeah exactly right it's a microcosm if you will of the entire global market where you've got folks that are shaking down governments and shaking down the citizens for bail money for mistakes that they made you know the wall street made a bunch of mistakes and they shut down the taxpayer to bail him out in the u.k. the banks made here. mistakes and they got the government to bail them down in ireland they got the government to transfer all the bank's debts to the government's balance sheet one hundred percent no questions asked they're still paying off anglo-irish debt they're still paying them out so you know there's a lot of developed offense there they'll be paying them off for decades to come max but let's look at the chutzpah happening in europe ok now greece as we know is the center of all these problems because of all these debts they can't pay but who is the one that hit their debts who is the one that forced basically greece to become

part of the euro so that the euro could happen in the dreams of france and germany so and yet germany now is the one turning around and saying greeks reject german plan for e.u. budget commissioner greek officials have reacted angrily to a leaked german proposal for an e.u. budget commissioner with a veto powers over greek taxes so obviously it was met with a lot of anger in greece and to pollute a former commissioner and now an education minister in the greek government slammed the idea as a product of a sick imagination well this is another gibson attack to the greek people they say look you know we need them in your belly give us a below zero and reckons that this demand that a budget minister from germany be installed in greece was bound to be rejected germany knew this so that they say their head says the next step is an epic l t r o

long term refinancing operation in precisely one month whose sole purpose will be to prefund european banks ahead of the greek default with enough cash to withstand europe's bear stearns right and in. the defensive mode in terms of deflation because greece is imploding this is going to be perceived as deflationary and therefore they need. to keep interest rates near that zero percent meanwhile the fact that they are essentially siphoning off the income from grayson is other countries through the backdoor through the off balance sheet to pay continually to pay the huge banker bonuses that's not really talked about because they go with that headline crisis greek collapse is deflationary oh by the way wind up with all the assets that interest rates have to remain at zero percent if in fact the market was allowed to function without the center ference you'd find interest rates

starting to rise and you'd see some losers in the banking sector and you'd start to see capitalism return to the fore but right now you don't have capitalism you have what's called some some call corporatism but i think we're going to talk about the second half or you could call it quits but i'd like to see a much more trade on the exchange you know wasn't goldman sachs take a good book public as a initial public offering you know you could be like the symbol could be kosher i'd like to buy so much but i think it's in a bull market why can't i buy what was the let's go market bring monopoly in a monopoly manipulated monopoly monopoly played it you can have a new word monopoly late and exactly take that public well ok now the point is that part of how this but economics works in terms of the eurozone is that over and over the nations like germany and france that engineered this hoots but economic zone they argue that to dismantle it for any nation like greece to leave the euro zone it would cost so much more it would be economic armageddon well the

report that will blow up the euro zone yes the pv be far right party in the netherlands commissioned lombard street research to examine the cost of staying in the euro versus returning to the guilder now essentially what lumbered street research found was that the costs of break up are wildly exaggerated. and that the cost to the netherlands and germany in particular for staying in the euro are huge due to what they call unrequited transfers and lost purchasing power charles dumas from lumber street research says the dutch people have lost thousands of euros in purchasing power per year since the currency was introduced so a lower euro has indeed they say helped german manufacturing exports for example but the actual german citizen their purchasing power has been declining the dutch

purchasing power has been declining excited. when you know the netherlands they've tracked us a bit in the paper i love that they say purchasing power and they track it up and down the never seen any other country tracked in the public press just fantastic but the deal about breaking out of the weather is greece bust out of the euro or some other country the fact is that when interest rates are zero percent as they are now the costs are virtually nothing you have to equate it to let's say a facebook you know facebook is going to go public for somewhere in the hundred billion dollar range they have facebook credits which is the virtual currency that they cost them nothing to issue and they were able to create this multi hundred billion dollar franchise around that similarly with other gaming sites to globe has become essentially a game using a virtual currency that pays no interest that's the key to a virtual currency that pays no interest the dollar the euro soon will pay no interest all these virtual currencies and global currencies pay no interest it's a gaming currency there isn't a sign of banking system where you put a deposit in

a bank in these that is the basis for a loan as steve kean has talked about that's nonsense there are no deposits in any that banks worth anything the collateral is nothing it's negative reserve banking it's all a gaming currency food stamps it's a gaming currency the balance it's a game in currency zero percent interest rates you give away billions and billions you hope that people spend this money on line and viewing advertising which gives some bonus money on the back end to the. eggers issue in the gaming currency but the entire idea of global gross domestic product these be replaced with the go gross gaming product g g p and it's just a matter of which country's economic activity is providing more of a gaming output and virtual currency output than anything else goods and services are passe and we're now in the post g.d.p. world or in a post sovereign currency world. well you know going back to this article

here branding the monetary union a suicide pact dumont's noted that the club med nations needed about five percent of gross domestic product in annual debt refinancing more or less indefinitely this means that there would be unrequited transfers lumbered street research said of about sixty billion euros annually from germany fifty billion euros annually from france and but these numbers were based on the condition that greece and portugal left the eurozone so this unrequited transfer would be basically to italy and spain well that's exactly my point they're saying that you need a certain growth five percent to make up for the. transfer payment i'm saying that you won't have any growth everyone knows there is no growth and that the growth as we understand in goods and services that period is over they simply give the gaming currency away whether it's a euro a dollar a drama and people use it online and they view ads and they boost

a consumer economy which is all fueled by more gaming currency and as the wages around the world go to parity so that the global constellation of wages at these four thousand dollars per year mark and we have a globe of gamers that's the only economy left and casino operators now finally in the market for chutzpah we had last week the dabblers form and i want to turn to this headline here looking back at the davus forum the quest for economic and social nerve ana now this came from a website called psychopathic economics dot com the subtitle of the site is davus world economic forum for bloggers so they noted a three hundred percent increase in the traffic to their site from google searches and it became quickly apparent that people are desperate to learn about davros and what the elite are doing to quote unquote fix the. honoree some of the search terms people were using davus attendees fix economy at davos davus want one

hundred fifty trillion dollars davros is a joke city at davos davus. well davros generate a lot of inner not in a traffic which generate a lot of advertising revenue for people to participate in the zero interest bearing gaming economy but there's no economic activity roubini was at davos he uttered some platitude nonsensical claptrap related nonsense about how this was going to happen and that was going to happen but all of his utterances are based on an economic model that is now obsolete but what did happen was that you had internet traffic which got ad revenues generated from people who are basically training in a gaming currency called the euro or the facebook credit or the hollywood dollar which is the one i created back in the mid ninety's. well talk about chutzpah the

co-chair of the world economic forum last week was a victim panned it the head of citi group who saw the company become a ward of the state essentially larry summers who destroyed the financial system was almost single handedly responsible for it he was there saying ok apple is in need to be formed why don't i take over it now this psychopathic economics dot com says the clowns don't even know or are psychopathic enough not to admit that we don't have capitalism if we had capitalism we wouldn't be borrowing more than a trillion dollars from communist china bailing out the banks to the tune of ten point four trillion there wouldn't be bread lines at wal-mart that are forty six million long unemployment wouldn't be at twenty three percent and kids wouldn't be living in cars in short we wouldn't be in the second great depression but look at what appended for a second citibank look at citibank stock that's become a gaming currency it was trading down below

a dollar down below fifty cents ten cents a nickel and they didn't do the reverse splits to get it back up and they'll do another reverse split bank of america stock crashing you know down to five dollars we think it's going to go to fifty cents a blow so the stop. going these banks are going to the gaming currency level of pennies per share meanwhile the people who are responsible for issuing gaming currencies like the facebook or google or social networking their stock is going up because they're in the game in goal like a scene industry business that is now dominating the globe and as the incarceration rate goes up food stamp goes up gaming currencies go up there is no g.d.p. there's only g.d.p. the earlier first of the guys the report they sever thanks so much for being on the kaiser report thank you max doug oh a much more coming why so stay right there. i

max kaiser welcome back to the kaiser report time now to go to beirut and speak with the safe and being a professor of economics at lebanese american university and foreign member of columbia university center for capitalism and society is most recently published article co-written with nobel laureate edmund phelps is titled blaming capitalism for corporatism sifting before last week's davos world economic forum founder klaus

schwab said capitalism in its current form is no longer fits the world around us larry summers also at davos claiming we need to reform capitalism your thoughts what are they going to agree with them the world we have right now does not really fit the world around us where i would disagree with them is that they seem to think that what we have is a capitalist system although that is very different but he looks at what's going on that it's really not a capital system it's much more of a corporate a system and by a corporate a system i mean it's a system where the government controls the workings of the market economy in a sense of deciding who gets to produce what in a sense of putting priorities on economic production beyond the overstep on the individual freedom of citizens in the country so in corporate the system you find the government interfering in order to save companies that fail under the pretext that they're being too important or too vital for the working of the market economy

that is a feature of a corporatist economic system in a capitalist system companies that don't do well get weeded out so the only companies that continue to perform and continue to survive under a couple of systems are companies that have demonstrated some success in serving their customers willingly right in a capitalist system you have both the risk and reward and over the past thirty years or so any united states anyway whenever a bank or a corporation experian. it's any kind of risk or any kind of loss they lobby the government to change the financial laws to make it impossible for them to sustain any losses therefore they're not taking any risks they're just rent seeking they're just vacuuming at cash which leads me to my next question the concentration of wealth in america and britain has grown rapidly unequal in the past forty years as these banks and corporations simply vacuum up all the equity and take no risk what

does this matter yes i mean clearly these sort of economic systems any time you've seen them when we've discussed previously the examples of egypt and tunisia what they and you know the they come under the pretext of being good for the economy being good for the national greatness of the nation or they always find nice sounding pretext for why these just these interventions into the market economy are justified however the real consequences of it is always that it ends up either benefiting the status quo benefiting the people who are in charge or no no this isn't this the real problem with this is not just that it's not fair the real problem with it is that it's very destructive economically because what it means is that you keep the productive companies in the unproductive firms and industries you keep them alive and they continue to survive sucking up valuable resources that would be used otherwise in society and channeling these resources capital land labor office space the computing power all of that stuff they channel it into

unproductive uses of capital and the result of that the product that they produce is something that is obviously not desired by society as evidenced by the fact that they fail on the free market serve you by giving corporations the incentive to both be able to make profits and to make losses you give them again the idea of risk reward there is always a risk associated with when you try to make reward so if you take out the punishment if you take out the risk if you take out the possibility of losing. from this you're going to end up with corporations that are unproductive and i think this is this is this is really the reason that the economies of the u.s. and britain i would say are stuck in a recession because so much of the productive capital of the country so much of the smart people so much of the office space so much of the computers in the country are being used in unproductive enterprises and unproductive industries and if these industries were allowed to fail people in them would move on to other productive

avenues of economic activity and that would be much better for everyone in society right so you end up in britain and in the u.s. with financial dictators and meanwhile the middle east the dictator corporatists like adopt the ben ali and move barack. they've been overthrown more last or in the process of being overthrown are there is this arab spring has been going on so what does this mean for the west of course the dictators in the west who rely on the resources that they were getting from the dictators in the middle east well i think the interesting thing is to see how if you look at a place like egypt right now we're seeing the revolution is continuing in the sort of struggle between the old order the of the remnants of the mubarak regime who are still in power versus the current. the versus the new forces that are being unleashed by the revolution i mean one of the key issues that is being fought over the issue of the loan from the eye enough to egypt there's

a lot of back and forth between the i.m.f. and different members of the egyptian government about whether those laws are going to take place or not and whether they're going to be provided low interest rates or not and what sort of conditionality is attached to them. a lot of talk about it but sir for yet the egyptian government has not officially taken on those loans what's happening is that the rating of the egyptian government is being downgraded by. rating agencies and the bottling costs of the egyptian government are getting very high so people now are expecting a fiscal or possibly a monetary crisis. egypt which is you know obviously thought to be a very bad thing the unfortunate thing is that this is being used as a justification for rushing through the i.m.f. loan and for getting into even more debt than other people looking at it logically and saying this road of spending and borrowing has brought us to the brink of disaster and we should just quit this idea of continuing to think that we could borrow from outside in order to build our country it has not worked for thirty

years almost in which mubarak has been in power it has only served to enrich mubarak and his cronies and it has not brought development of the country all that it has done is increase the indebtedness of the country and make people liable for paying more and more and more of their income towards taxes to go towards paying off interest on that and i think egypt needs to make a clean break with the past with these policies of the mubarak era from the respect of particularly by making a statement on the debt. letting the foreign debt should be basically repudiated and mubarak's have made liable for it and the domestic that they need to reach a sort of agreement with the domestic creditors that you know save the save the banking system advance it from a collapse by recapitalizing the banks in case they have a problem with liquidity because of the treasuries and then after that they must have a balanced budget that is no alternative to fiscal responsibility as you look at europe and what is happening in europe or in the u.s. or in arab countries there is really is no alternative for as an individual or as

a country there's no alternative to being fiscally responsible so the path through it is to eliminate interest payments as a massive part of the budget and reformulate the budget in a way that doesn't hurt the poor and in a way that stops giving favors to the connected people from the regime and as a result leaves the budget being able to be balanced without having to resort to foreign borrowing because this is really the main problem if you get involved in form it leads to puppet regimes. i don't have that it's a must see for other people as mubarak and not his regime are and it also leads to a massive giant drive on the economy as people continue to generate more and more and more money that goes simply towards paying off taxes to go towards paying off interest on the debts right move barack has gone but now it's time to overthrow the real dictator that being of course the i.m.f. now we've had the arab spring and then we found the occupy wall street movement now a new movement is taking shape around the world these are up protestors who are

protesting again so people are the stop online piracy act and related intellectual property laws that are attacking the internet from the corporate side the corporate says want total control of the internet and is that a fair statement are is this a case of the corporate test who are attacking the innovators the entrepreneurs of the free marketeers do you see this playing out as as an extension really of this global insurrection absolutely i think it's what we're seeing with the internet is very interesting because as markets in the real world continue to be strangled and controlled more and more by the managerial state by governments all over the world the internet is really the place where the market where the free market has gone because into it you can click anywhere you want and you can design to use any website you want and people have the freedom of choice and because they have the freedom of choice and their choices aren't and forced upon them upon which what so they should read which website is used for their e-mail they end up making choices

on the providers of these services that are for i would argue better than what would happen if you had a central planner trying to dictate this to them under the pretext of some of the usual corporatist excuses so because the internet is a wonderful place where you can exchange all this information very freely it leads to good information marketplace as well as a good example of a proper marketplace what we're seeing with soap and people is just a very strong attempt to try and bring in the power of the state from the real world onto the internet and so now the fairly and successive websites will not understand about whether on. whether people want to click on them or people want to view them but the failure will depend on what some particular bureaucrat decides in some position of authority in the government so this of course it would be very dangerous you know from the from the perspective of the freedom of information because what it does is it leaves the knowledge of the information that is available for members of society to be decided. by particular people who get to know everything and then decide what you should be able to know the optimistic

thing about it is that the internet is just it's a very resilient thing and it's really hard to clamp down on international connectivity and you know it was very encouraging what happened with this. with people. in terms of actually. alerting a lot of people to the reality of the problems of the intellectual property paradigm it's the problem is much deeper than just these two acts which are probably going to die in congress now the problem really is in state and force in the intellectual property which serves. very pernicious way it harms both the artists who produce the art or the authors who publish the books as well as the the fans or the readers who want to consume this material neither of them really benefits from intellectual property laws they go towards the middleman basically and the technology is allowing us more and more ways to cut out the middleman more and more ways for fans to communicate directly with musicians they like to listen to or readers with authors and this cuts out the profit that middlemen can make and

so this is why the this industry is trying to bring in the government in order to keep their old antiquated model so that they can continue to keep their job as the middleman and they want the state to enforce that that's exactly the definition of corporatism and so you see people like chris dodd going on about you know hollywood creates jobs or hollywood is an important part of the u.s. economy was asleep you know it's a tiny part of the u.s. economy to study part of the world economy and you know most importantly it's very easy for them to find other. in this models business models that actually serve the artists rather than serve the. production industry the greedy is out of date and out of place today ok save it in a moose that's all the time we have on the kaiser report thanks so much for being on thanks let's that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert thank my guests say for dana moose if you want to send me an e-mail please do so at kaiser reported r t t v dot ru until next time x.

guys are saying bye.