port all of block halls stacey max kaiser brussels discovers a new fifteen billion euro black hole in greece's finance and is. doable. oh my max i didn't mean to tell you don't step too close to the event horizon the greek event horizon come back. oh my god i can't tell you what i saw in the black hole it was the tragedy that the humidity the gold that's all gold and they're clinging to that in a moment pressure on greece's recession stricken economy has intensified after international debt inspectors admitted an additional fifteen billion euros would be needed to fill a newly discovered black hole in the country's finances yes well we have been saying on this show for moms if not years that the game being played at the bank or

level is that they put a gun to that of the government is there any more bailout money and then a few months later they say oh look we found another trillion dollars in debt we need more bailout money and this is recycled repeated and recycled again and the amount of debt in the black hole of debt will never subside because the bailout money used to try to equalize the effects of the black call of debt is in fact itself more debt. so facto this is only going to increase the only thing different is that the words coming out of the duplicitous horrendous psychotic newscasters and bankers that you see in the mainstream media is that they confuse debt with equity well regarding greece you know its on off on off strikes violence all over the place i know you're going to be speaking to

a.m.'s fair fuck east in the second half further about that but so let's move over to the united kingdom we've still got a few quid then the bank of england's glittering stash of one hundred fifty six billion pounds in gold bars stored in former canteen under london yes according to the daily mail max cash strapped british people will breathe a sigh of relief when they see these impressive treasure troves despite the financial crisis it seems the country still has some money left in the bank of england's vault underneath london well this is such a incredible law i think not in the financial press to maven report this isn't it at all seriously because it would mean that the u.k. as the second biggest gold position in the world four thousand six hundred tons they claim they found at the very very very very very bottom of the article they do mention but sadly not all of it belongs to us some is deposited by foreign

governments as well as our own it's a complete farce i mean we know that most britain has three hundred tons of gold gordon brown sold three hundred tons of gold in the during the period of the effects of the euro and britain would love to have four thousand tons of gold because as we enter this period of global currency war those who have the most gold are going to be the big winners like germany for example. well speaking of german gold one thing you have discussed with jim records is this notion that the united states could just see all of germany's gold because germany doesn't actually keep most of their gold in their own country they keep it in new york or over at west point so. is this just like a test the water is maybe you know the bank of england is saying hey look we have four thousand six hundred tons of gold how do we get it and pretend that where they came from yeah i think they are testing the waters to say if anyone claims that if

anyone steps forward and says wait a minute that's our goal you can bet as well it took all of its gold back germany obviously is exposed they have sixty percent of their gold is actually held to the new york fed so this is leading up to get to this currency war or gold is the central pivot around what's the global currency wars fought speaking of the bank of england there in the next headline bank of england to print further fifty billion pounds so the bank of england's monetary policy committee is set to announce today that it is expanding its quantitative easing program from two hundred seventy five billion pounds to three hundred twenty five billion pounds so even that fake gold that hologram they presented in the previous headline that's worth half of what they've already just printed but all the quantitative easing so far quantitative easing one quantitative easing to quantitative easing three it hasn't produced any inflation it hasn't produced any job growth it hasn't produced any real uptick in wages i mean there's a big controversy in the us about the latest jobs statistic and whether there was an increase certain degrees of the testicle number of people with a job or without

a job which is what got the nonsense moot point going nowhere because the bottom line is that the wage real wages are flat to down so who cares about a monthly statistical anomaly from the b.l.s. bureau of labor statistics who are notoriously incorrect and false in their reporting to begin with the but here you have a situation of more quantitative easing which is more debt which means that the british economy will contract it's going to contract because you're adding more debt but they don't want to call it debt they call it. money they call it equity when it's just more debt so it's a psychotic a suicide mission you know. this country needs you know what this world needs weaving me remake that movie charles bronson deathwish with a guy a vigilante who goes after bankers that would be a fantastic movie and i wouldn't put myself forward as a storing in that film and being the charles bronson character hollywood call me i

want to do this film for scale oh i think it's coming out of the black hole that hex r.g.b. after he has come up with the film just like that here's a little clip of you confronting timmy g. hankie p. right into hating her thing there is. a horse with. those i agree. to do many.

yes ok that was charles bronson in a sergio leone western spaghetti western then bronson went on to make the death wish series which i like to be in a death wish living max kaiser and the charles bronson living stalking bankers in new york with a big prick and go. well max you did confront mervyn king their bank move could make pensioners poorer savers on the verge of retirement are facing the prospect of becoming permanent really poorer as the bank of england prepares to expand its program of quantitative easing otherwise it is q.e. by fifty billion pounds this week so a person about to retire will be hit by the banks who because the value of the new eighty's bought on retirement is based on returns from u.k. government bonds called gilt these investments are bought by the bank during the easing process thus driving down the yields the phrase permanently poorer stands out all the quantitative easing program so far have failed and stoking growth and

come wage appreciation they have made a few bankers extraordinarily wealthy they would like to increase the rate of wealth transference from the many who will now become permanently poor to the very top one percent of the top one percent i submit to you that this is neo feudalism this is feudalism how did not been for the black plague we would never would have the middle class to begin with if you recall your history this is why lords paid the peasants a few extra bucks because they had been wiped out of the plague well now the lords want to go back to the fifteenth century or the fourteenth century and say you know what we're back in charge forget the middle class it's all about indentured servitude and being permanently poor. well dr ross alben director of sagal the over fifty's group says that savers retiring today are being locked into a lower pension for life becoming permanently poor because of the drop an annuity

rates q.e. is supposed to provide temporary boost to the economy but we need to find less damaging ways of providing such a boost so dr altman is suggesting that instead of right now the bank of england is going to the middleman the banks or is giving the banks here's the money and saying here banks go give it to all those peasants out there and they say it's about that so if they really wanted that however why don't they just why doesn't the bank of england actually just give that money to small businesses and small business loans it goes part and parcel with this whole the way we have knew of feudalism runs on tollbooth throughout the economy that are handed these these cartels are handed to certain select elite connected to the king in this case literally connected to mervyn king so these guys whether it's hollywood or goldman sachs if they are the middleman between the king and you the peasant it's a very profitable business so they're arguing about what's the most humane way to

euthanize the middle class and poor they think well you know if we drop their heads off in the public square that's a bit too harsh so we're going to give them the needle instead which is quantitative easing or financial or pressure well speaking of central banks max facebook has filed for an i.p.o. and i want to turn to this headline here is facebook a central bank to edward castronova a telecommunications professor in indiana university says he's fascinated by the rise of what he calls wildcat currencies such as facebook credits facebook's build up of credit suggest more than just some minor dalliance facebook already takes payments for credits and more than forty currencies ranging from the euro to the vietnamese dong exchange rates are just a day. it probably won't be long until some economist tries to calculate the inflation rate money supply velocity or other traditional dimensions of the facebook economy now max you are the world's first virtual central banker you are

doctors zero say a chess set so what are your thoughts on the story that's absolutely right this is a virtual currency then you need a virtual central banker to deal in the monetary policies that will affect the virtual economy but this is basically inflationary on the one side of the equation but the net result will be hours and hours of loss from the productive economy from people wasting time on facebook so in a way it's a net deflation because although you can flood the facebook economy with more credits the net result will be people not working but wasting time so it's a way to increase the deflationary trend by issuing a credit it's not backed by debt but it's backed by wasting time this is the first currency well not the first i create the first one of course back in one thousand nine hundred six with a hollywood dollar and the central banker but this is a currency backed by time wasting well finally on this headline max is the currency

traded on facebook and the question i think is answered that when facebook filed their i.p.o. market in his letter did say that was then go was crucial to the success of facebook zynga soared sixteen point four percent and then two and a half percent in the after market on the news so i think it does answer the question whether or not facebook is a central bank thank you so much jason ever obvious speaking with yanis varoufakis after the break a greek economist. should be a friend thank you thank you ranks go away much more coming why stay right there.

the close up team has been to the bar of. where the country's middle starts its way across the ocean. now our team goes to the area. looking to a different character to represent itself. for local businesses are striving to build the aviation capital of russia. for the four by fours are made and should be tested to the limit. welcome to the screech of. russia close up. welcome back to the kaiser report max kaiser time to go to athens greece and speak

with a condom list professor and author dr yes vero thank yes welcome to the kaiser report thank you to the libya ariana's here's the headline no we formed nobel up what's the latest drawing in the greek balog drama. it is a simple story this deal is. going to fail just like the previous one in may two thousand and ten because you have. bankrupt entity that exists and you keep piling new debt on it. on condition that the this country is going to shrink its g.d.p. its national income from which was this will have to be debated further and at some point the german taxpayers have had enough and this is the problem that germany and the german political elites are you know kind of. the general the german elected and all of this drama enough since is completely besides the point

its aims like a case or financial sadism and other words. there are a number of ways to extricate greece from the problem why not would be for example to prosecute their bank their banker say fraud certainly god's grace and of the air out to begin with but none of the obvious solutions are being pursued instead they're going down the path of very slowly beating greece to death in a very sadistic way is it the i.m.f. now christine legarde is it just a case of sadists. having fun with grace is worse than that might think it's a case of subtle masochism you always need to do with greece is to allow to default to face the truth of the it's a bankruptcy state. and then to find out what to do about the banks and it's a bit allies and if they want to do that but of course they're not doing this because it could be delays ation legally speaking means that. the current owners of

these banks will see their holdings their shareholdings of beings who believe they looted the european state and so they're about the bankers don't want to hear of this they're receiving free money from these he and from the taxpayers of germany and holland zones of wealth so that germany's leaders of that effectively. dug a big hole for themselves and if live fall in it now of course the the work we suffer in terms of. basic human costs that is hunger and. just jane you need human heart other people in the deficit countries greece being the worst but there is no doing much better than spain portugal ireland. and this whole process this simply is spiraling out of control. the average person grace is having their their minimum wage cut by twenty to twenty five

percent currently at seven hundred fifty euros per month will be cut down to six hundred euros provided. this is just their scapegoating the average person right just to get on their sadism thing they. are just basically committing kind of a financial genocide for for far right it's not too fun from their perspective it's a benefit for anyone for sure but from a perspective mrs merkel has a very important task ahead to survive until the federal election and to have her coalitions of life she needs to do to give greece's the government the bailout loans that then with the government passed into the hands. now she has because of the members of parliament in the for the parliament and she needs to convince them that this must be done but you can't come out and openly say that this is all for

the benefit of the banks so she has got to this in the language of the day now the german taxpayer doesn't want to try to slow it down it was just so they only will blockading the german. members of parliament and the elector of the present is basing them look watch those gigs suffer again if they suffer sufficiently then perhaps we should give them some money so the whole point of reducing the minimum wage from seven hundred to six hundred views and i mean there is no my group can only rational whatsoever it will this is the only point of blues used to demonstrate to the german members of parliament particular of the english and the look the greeks are bleeding so no let's give them more loans when of course those loans little bits of the gigs are meant for the banks ok or so merkel to play her constituents but it is going to continue to believe the greek people and so that they are physical visibly. because this world of then.

appears her along that she's doing all she can to it. act of horror find as a horror to these greek people now last week paul thompson head of the i.m.f. mission to greece conceded that social tolerance or political support have their limitations and of course this was before the home of the great president was here with a molotov cocktail but your thoughts on thompson statement pull thompson is a tragic figure he's here's a blue presented to the muslim wonder from. and his script from which he has to decide his lines was written by germany germany has effectively subcontract of the half and mr johnson in particular the task of imposing onto greece these days the measures the brilliant example but the i.m.f. doesn't believe it is the state's measures so this is christine lagarde is making

some quite notable and interesting speeches that are going against the kind of medicine the police is applying to the patient and his mrs domes and between those two. places the hers mindsets one is out of it of his bosses in washington and the other is with the german leaders which is contracted mrs domes to effect policies of this of dom's nose are quite poisonous not only for greece but more generally floor of the global economy ok now this is that are saying they other bureaucrats in brussels have just found another fifteen billion euro black hole greece. this seems to be a recurring theme how many more black holes do you expect to be found in great financial universe before it's all over it really depends on whether germany

is ready to let the eurozone go germany has not. decided that it wants to reconstitute the dodge martin get out they're going to be blocking the black holes. with more money either meet it by they c b or gallon the loans from the german taxpayer greece is neither here nor there it is not significant or important enough to worry about the state of its of its marker accounting national accounting or indeed or that he will call me on the. so should greece have ever taken their first i.m.f. loan bailout package out us i've made myself in credibly in this country when in even april to me two thousand and ten i was i would gauging taking the bailout loan was the equivalent of collective suicide and his would constitute one

of those instances in world economic history that would be taught and of example to be avoided in economics departments for the next hundred years how about the. oil iran or oil embargo going into greece the same like really another for us for us take away your thoughts alice. of a year or two years ago mr george papandreou who was responsible for getting us into the bailout mark one disaster nevertheless it's one thing before all that happens which was quite ahead of its time and i think correct he said that if we are ever to fall into the bosom of the i.m.f. and the european union we lose our national sovereignty and this is precisely what has happened greece has that it is not in control of its fate anymore not troops overseas a thing of the past until and unless some new greek government. simply say no

to the bailout loans that are being offered to the. right now most germans according to a poll last weekend while greece. greece play of the euro or germany i believe the. where you know is where not been you pull back in just before the industrial revolution and people were asked whether they want the industrial revolution. most of them would have said no that didn't stop the industrial production similarly even of all this. and all the greeks who want greece out of the euro and. let me inform you that most greeks would like to get out of the euro now we've had enough we're being treated like the brightness of the euro zone. is immaterial this is that currency which is never have entered into neither us nor the germans for that matter but tragically it is a guarantee that once you enter you cannot escape. if we get out of it we're not

going to return to where we would have been had we not constructed it and of instead the way that this currency has blocked our economies together and has created this because of insolvency as we did banks and states if greece pulls outlets it was thrown out of the hole if it will collapse germany is going to end into a huge recession and the rest of europe is going to be and you know an option of the conflation so i think that we're again we're we're between a rock and hard place. the only. part of that would minimize somehow the human cost of hugo would be one of the xining of the year and they didn't get back from whether called bankrupt or krissy and putting it in the service of europe air saver saying that despite the crisis in greece are still buying weapons they're still spending on lots of money. it's kind of interesting

for two reasons number one they're really our money to buy weapons that. if they really want to fight the war they should be buying fire weapons like they should be hiring financial lesson aires to attack germany with credit default swaps if they really wanted to be on a level playing field and try to fight for their survival but isn't this buying of conventional weapons again another piers waste a body bag is worse than the users humoring the gringo and this is a bad thing not to do it it's not it's being pulled by germany what to do if you even look. he purchases the procurement of weaponry. it constitutes a very large group of german exports and in one sense you know germany's saying well i'm giving you the money and i'm going to tell you what to do with it without money of course greece's debt and also the sort of the german

industry so it's quite interesting the cost could those having to do with. a more sophisticated instruments disease the minister of defense is not given the opportunity of counseling all due for german tanks and submarines ok well there are many is going to look like they're going to pick up a lot of nice beach front property on the cape that's all the time we have for dr yanis trafficker's thanks for being on the kaiser report thank you max and that's going to do it for this edition of the kaiser report with max kaiser and stacy herbert our guest dr yet as for a fake as if you want to send me an e-mail please do so at kaiser report at r t t v are you. guys are saying. the world with. its technology innovations all these developments

around russia we've got the future covered. russia warns against outside military intervention in syria saying the only way to end of the bloodshed is for both government and opposition to enter talks. in the u.k. as editorial terror suspect is to be freed after the european court of human rights boxers extradition abu qatada is wanted in jordan where he has been convicted in absentia of a plot to kill tourists. and egypt remains firm on prosecuting foreign funded governmental. ization to get accuses of fueling instability in the country this despite threats from washington it could cost more than a billion dollars in military aid to egypt. and up next we'll cross to washington to take a look at where business and politics meet in capital account with lauren lyster you're watching our.

good afternoon and welcome to capital account i'm laurin mr here in washington d.c. here are your headlines for wednesday february eighth u.s. republican presidential hopeful rick santorum won all three republican voting contest last night let me remind you of some of his thoughts on foreign policy. on occasion scientists we're going to do your program in a wrong turn up dead. i think that's a wonderful thing. a wonderful thing he's also advocated airstrikes very nuclear facilities in iran now as we hear the drumbeat of war from the west towards iran we often see war and politics as separate from the economy they are not putting.