eight together but in terms of thinking through all of the details you know we've been doing it piecemeal so i just don't know what the e.u. will be in two or three years i think there will be a euro but i'm just not sure a full of twenty five countries in the in the block at that point all right chris well no i don't want to get you in trouble with the f.b.i. but did. dick did going off the gold standard have anything to do with the u.s. going bankrupt and what role could gold play if any in making it solvent again so i kind of pursue presume that work they're talking about dollar weakness they are saudi so isn't that just a presumption can you just as gold question as i said in my my book inflated gold is is symbolic is a store of value it has had a great following in the u.s. and you're right in the thirty's after your confiscated all the gold while he was devaluing the dollar to try and get the economy going. since then or even before

then we essentially had the government. imposed their monopoly on the definition of money in the u.s. so today gold is considered a collectible it's not even a monetary asset but this goes back to lincoln if you recall how did we finance the civil war with paper money bad money and the little banks fought it the big banks national banks were created to buy the government's debt so the devaluation in the thirty's was really later the refutation if you will of a gold standard starts with lincoln and ever since the government has used paper money to propel growth layers of leverage if you think about it so we create the fed in one nine hundred thirteen you have the collapse in the twenty's and in the early thirty's they confiscate all the gold and we continue you essentially equating the dollar with gold up until today so all of the leverage we've seen accumulated since the thirty's housing global lending institution. big banks

everything else or all predicated on this use of paper money as a substitute for gold in a monetary sense and we've kind of run full course if you will so if you go back to your point max gold is a haven yeah i think it is but don't be blowing toller opportunities because gold hasn't quite kept up with the inflation of the paper money world all right let's talk about paper money and the u.s. banking system in particular bank of america now i listen to you you've been interviewed a number of times on eric king's king world news and i recommend anyone who wants to catch up on the banking sector very specifically to listen to those interviews because they are actually in but can you speak about the bank of america and where we are now with the bank america story you know there was that when it was down to five or six dollars a share there was i know even i believe i heard you say that it had a lot of risk on the downside of the stock price due to their and their problems etc can you give us an idea of where we are now that bank of america story in the u.s. banking as a whole your bank america you write went down to four dollars

a share late last year largely because of the european troubles in their wisdom the european governments decided to prohibit short selling of bank shares because they're so closely tied with the government so obviously if the bank shares were falling in value so would the political prospects of the various governments in the e.u. so unfortunately when the markets get anxious they still the u.s. financials because those markets are still open and that's i think what drove bank america down to four dollars now goes to bank need to be restructured yes in my opinion the preponderance of litigation that they're facing involving mortgage backed securities the state of new york eric schneiderman new attorney general i think is going to be going after bank america for taxes because many of these deals were not put together properly so they were not exempt from state and federal taxes this is going to be a nuclear weapon max the nobody is paying attention to and let me just jump in first. chris because what about obama's latest deal with these banks i mean again

they seem to be getting a new unity so. how's a factor into this know about a limited immunity this was not a great deal for the banks what happened was the attorneys general around the country many of whom want to be governor that's what a.g. stands for by the way aspiring governor. they needed to get a deal done now because through election year schneiderman the california attorney general of delaware attorney general went along with this settlement on foreclosure abuse issues but it didn't give them immunity from more serious prosecution for taxes for securities fraud for other things that they're all facing bank america is facing over one hundred billion dollars in claims for securities fraud contractual issues from investors they're all going to go to trial and i would tell you right now i've been following this stuff pretty closely i think b. is going to lose in court so we there we restructure this company with the help of the bankruptcy court and bring this whole mess to

a conclusion or we're going to face years more of headline risk when somebody like m.b.i.a. for example the insurance company wins in court against bank america and ends up with a double digit judgment against them what are we going to do then that's what i've been saying you know we really need to bring this to an end and the way you do that is either with a receiver as we saw in the stanford group or with a bankruptcy as in the case a lehman brothers but to me that would be the good news because if we go down that road and we're going to be near the end are let me describe your situation maybe tell says more about my naive it's a then anything else but tell me what i am or where my thinking is either on target or off target it seems that every time we hear about a bailout or a rescue package or a multibillion or chilean dollar cash infusion to settle these bank debts banks suddenly from the some place called the shadow banking system say oh no we have another half a trillion dollars in debt that we didn't record last. is that ever going to stop

number run is there a limitation or are they just playing with us well they are playing in a sense i mean look at the foreclosure settlement the banks have already stolen enough money from investors in terms of raping these mortgage backed securities trusts to pay for all the settlement so i don't feel sorry for them at all now the real question is what else have they not told us and this goes to your point about the off balance sheet vehicles grey market banking everything else that marketplace is shrinking it's running off and we're not creating any new assets and say private mortgage backed securities even fannie and freddie are starving to death because ninety percent of the new originations in the u.s. today are getting a guarantee from the federal housing administration interesting lee enough so yes there's more problems here and you're going to hear more about it in terms of things like litigation and liquidated claims that nobody's heard about yet you give a good example look at j.p. morgan and the ended gesturing they're getting from bear stearns you know jamie

dimon told us two years ago the bear stearns would not be material to their results but it's going to be very material because investors of lost more than half their money on the securities that they created so there's still stuff to fall out in this whole mess we kind of know what the numbers are now max i don't think there's anything particularly new in terms of their exposures but the thing is risks that we haven't talked about like eric schneiderman deciding that these people owe him you know billions and billions of dollars for the taxes that's a new factor that nobody's thinking about now i we got a one minute left i just wanted to add a comment on something that's a bit on the technical side but i think it's very interesting while ben bernanke is talking about the need for lower rates as a stimulus you haven't quite heard yeah i've heard you talk about this then there's a need for interbank lending to be stimulated by raising rates completely against what you hear in stream got we only have about a minute i'm sorry but can you kind of run through that a little bit. because i think it's important that people understand this well again

going back to the point about extreme swings i mean the fed has had to put interest rates at zero to just trying to keep the u.s. economy moving forward it's like a shark you have to have water going through the gills in order for the creature to survive and yet at the same time by putting rates at zero you're taking only incentive away from banks to lend to one another why would you bother doing repo for example where you lend treasuries overnight for nothing you're not being paid for the risk and there is risk in that transaction like was the hole in a bank market's going to listen to jamie diamond in the most recent conference call he confirmed that they're not doing any on secured lending with other banks this is a disaster so what i've been saying is that the fed should gradually let short rates go up to half a point maybe three quarters of a point so we can again start to see the private short term credit markets revive because today all you've got is the fed the banks are dealing directly with the fed

they don't want to deal with one another if we don't get credit to expand max we're not going to fix jobs we're not going to fix the global economy but it's going to be private credit expansion the central banks doing what they're supposed to do but they've done it for too long and we get out of slowly let rates go up and imagine even if we had half a point fed funds rate that's still historically very low it's probably negative in terms of inflation but at least it would give people a reason to do business again right banks make money lending money so less rates are at a level that they can make some money lending money and you're not going to get any bank growth therefore no well that's right you know the great editor of the economist bag host said it well he said don't keep rates at zero for too long and what that we're out of time thanks so much for being on the kaiser report thank you backs look forward to it again all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacey arbor and i thank my guests first well and you can follow him on twitter at our c whalen course you can follow me on twitter to maximize or can send me an e-mail at kaiser report r t t v are you

until next time x. guys are saying. russia

has accused forces outside syria of encouraging rebel groups to continue fighting and stay out of peace talks head of the un general assembly vote on a resolution aimed that the assad regime. half in surrender is the last of the use of bailout demands to be kept in limbo and presented with more terms as austerity leaves greek hospitals struggling for the military unscathed. and iran's display of nuclear progress an offer of talks on dismissed by american israel as bluster a response to survey economic sanctions.

around the world and around the clock you're watching out. activists in syria have accused regime forces of stepping up attacks on rebel held cities meanwhile the announcement of a referendum on a new constitution does not appear to help stem the violence the vote which will take place at the end of february is aimed at significantly curbing the power of the ruling baath party for national is in damascus for. the date for the people's referendum on the country's new constitution has been announced on wednesday it is expected to be held on the twenty sixth of february the syrian government has been working on a draft for this new constitution for quite a while now and it has sad that the most important thing about this new constitution the most important change is that it implies the end of monopoly of the ruling party in syria the vast party has been in power in the country for the

last fifty years actually since the beginning of the uprising here in syria last march protestors have been calling for democratic reforms and for amendments to the country's key law in the wake of violence that followed in the show demonstrations peaceful demonstrations many opposition leaders have been only demanding president bashar al assad to go and they will not be satisfied with this particular reform with this particular referendum this news it's have has come amidst numerous reports about violence all across syria we've been hearing reports from the city of hama north of the capital damascus from the opposition activists saying that the tanks of assad's army have been deployed in the city and we've also been receiving reports from another troubled area from the city of holmes where reportedly there have been explosions at the oil pipeline since almost all these recalls have

been coming from one source from the opposition there has been a feeling that another part another side of this conflict in syria has been kind of ignored. well a new draft resolution on syria to pressure the ruling regime will be put to a vote at the un general assembly later on thursday moscow has warned it won't back the document and this suggested amendments are taken into consideration the changes have already been dismissed by some arab delegates at the u.n. parties are in a point now reports now from new york. after the united nations security council could not agree on how to end the violence in syria the un general assembly will now be taking on the issue the one hundred ninety three member body will be voting on a draft text that was drafted by saudi arabia and circulated by egypt this draft essentially supports the arab league plan for syrian president

bashar al assad to step aside and relinquish his powers now the assembly draft essentially demands five things you from the syrian government including that the government stop all violence release all those detained during the past eleven months of violent unrest does the government withdraw all armed forces from cities and towns guarantees of peace peaceful demonstrations and the assad government allows unhindered access for all our of league monitors and international media this draft resolution being voted on in the general assembly thursday is very similar to the draft text that was proposed within the security council about them a week and a half ago now the resolution adopted by the general assembly essentially have no legal force but one cannot dismiss the fact that it does a symbolic message on the international stage when it comes to having the security

council agree on how to approach the circumstance in syria they are still divided with russia and china both wielding veto at the last vote that took place about a week and a half ago when russia maintains its position and that is that it's best to have both sides halt violence put their guns down and come to the table to engage in dialogue. you can always find a compromise but only. this is. from the opposition refused to do dissuaded by some external players who burned huge responsibility for the ongoing violence for the deaths of peaceful civilians so we will see what happens with the general assembly thursday and how that action or subsequently a fact what will take place possibly again within the security council or the white

house has criticised the syrian government's promise to hold a referendum describing it as laughable and accusing the regime of making a mockery of the unrest that's made a swelling chorus within the u.s. calling on washington to supply anti assad fighters with weapons and as r.t. is going to chicken reports many believe that would make peace impossible. hawks in washington calling for the arming of the insurgents in syria we should start doing all options including arming the opposition i give them training i give them communications equipment and then ultimately i give them weapons. experts say arming the fighting groups among the opposition is a sure way to drag the country into a protracted civil war it will also further marginalize those in the opposition who have advocated nonviolence or who advanced political strategies that the more. plied to the to the factions of the syrian opposition the more that happens the

less likely it is that they'll be a negotiated solution pleasing to a cease fire in a peaceful settlement they're encouraged i think very much by the united states the civil war in lebanon went on for fifteen years absolutely appalling bloodshed and you can easily see that that could happen in syria like the u.s. all qaida has indorse the rebels fighting in syria under president assad syria has been a secular state some analysts argue that one of the reasons why al qaeda supports the violent uprising in syria is that in a less secular environment it's easier to recruit new terrorists so if the government folds they will be looking forward to just a very long period of complete disintegration and they will be able to attract more and more fanatical recruits look at the civil war in iraq in two thousand and six and seven it was absolutely appalling the calls to arm fighting groups in syria sound even more alarming given the u.s.

history of arming radicals afghanistan one example that it was a placing itself in alliance with the mujahideen including osama bin laden and these people who now of course it is lately been deploring as fanatical fanatical enemies that the united states said these these alliances. totally cynical and totally opportunistic there's not a shred of grounds. but despite the hawks outcry the obama administration is taking a more cautious stance with regards to syria we don't think more arms into syria is the right answer some analysts say arming the very much fractured syrian opposition would contribute to its further radicalization and would make a political solution virtually impossible a number say washington might support arm supplies indirectly through its arab allies as of now the administration denies having such plans but will that position hold. down reporting from washington r.t. . what it's turned to a country now which the arab spring has already passed through

a missing to national has accused libya's ruling national transitional council for failing to stop human rights abuses it says thousands of gadhafi supporters are being held without charge and tortured by former rebels since september reported at least twelve prisoners have died as a result of torture report comes as opposed to the first anniversary of the start of its nato. despite the celebrations the sea is struggling to get the situation under control groups of former rebels are now vying for power and for its disarm the civilian population a failed on the country's economy is in ruins before for more on the situation in libya and its possible developments we're joined by dr mussen concisely he's a human rights activist and professor at bethlehem university thanks for joining us now the m.t.c. in libya has been praised by the countries that backed the revolution but on the ground we're seeing many libyans outraged about corruption and the will self-serving policies of the council do you think their criticism is fair.

yes indeed. correct in its criticism many people were tortured. and the situation in libya. part of the main reason for this is the fact that no revolution can succeed if it comes on top of foreign tanks and basically the libyan revolution has come with violence instigated from outside unlike the egyptian and the tunisian revolution. now here in right situation in libya has been drawing attention hasn't it with reports of food detentions in the torture of gadhafi supporters can the m.t.c. ever hope to build a stable state against that kind of background. well the problem with the sea is that it was a concocted group of people primarily western supported nato people who were put in

power basically to topple moammar gadhafi because simply he was an unreliable dictator for the worst even though he had approached the west in two thousand and three and has repair his relationship with the west but they wanted to change because libya has basically and this is why they have pushed for a change in government in libya. and they put this transitional council which is a council that is supposed to serve western interests not serve libyan interests and i think that's why it will fail and has been failing. mission but with libya's infrastructure including oil production by the war a foreign companies are rushing in to rebuild don't they i mean what's going to happen to the country's economy in your view.

well i mean libya has huge reserves of enough wealth to feed its people and actually make everyone in libya fairly wealthy and well to do but their location of these natural resources has primarily go on the supportive few elite people mostly expatriate libyans and foreigners who came into libya as a result of this there is basically the power struggle in libya now is the struggle of good really the struggle of the more of libya's role and this is a struggle of dividing libya's resources among greedy people. taking libya's resources and giving it to the libyan people that is why seems to be failing and i think it will continue to fail and in the process this is the u.n. human rights commissioner has also said there are severe human rights violations in

libya with those violations i mean do you think the m.t.c. will ultimately be able to keep libya's rival tribes together as the doubted it. well the libyan government now of this transitional government that's supposed to prepare for elections is trying to to keep the internal peace by taking selected individuals from certain tribes in certain regions and putting them in positions of authority this is not going to work because yes you may satisfy one or two individuals from a particular region. claim that you have satisfied the region but there is not going to service by the aspirations of the libyan people the libyan people want freedom and democracy they don't want a transitional government that's made up by subdivisions of power structures

basically and greed comic manipulation. of mass and comes from bethlehem university thank you for joining us. well on our website r.t. dot com you can find out how the shock waves of the arab spring are still being felt a year now on this case of deja vu in bahrain where protesters who took to the streets calling for democracy reforms are confronted with a harsh police crackdown. and also online vandals with taste find out the security measures needed to protect moscow's newest vending machines red caviar the touch of a button. greece has fulfilled the last few preconditions needed to secure a second one hundred thirty billion euro bailout but that cash injection may yet prove to be elusive i think through final cuts on wednesday committed to

a written promise to stick by austerity after elections that's still not enough for the e.u. which now once financial monitors to ensure the terms of the bailout are being followed greece has already struggled to meet the terms set the idea of financial surveillance has provoked an aneurysm points from some quarters any national ferrar says it's part of an effort to bring athens to heel what the e.u. is now doing it's trying to influence the outcome of the greek general election not satisfied with getting rid of the last democratically elected prime minister and putting in a puppet in the form of mr papademos it now says it's now saying to the greek people unless you vote for the right parties or less you vote for parties that are happy to be subjugated do you control we will not give you the rest of the money and you will go bankrupt i suspect that despite the dissatisfaction that is felt by many german politicians i think the german parliament just as the greek parliament did last sunday will continue to toe the line and continue to say the buyout so the

answer as far as i'm concerned it's rather like saving accounts or not saving the patients. well the human cost of austerity in greece is being felt like never before cuts and spending slashes have left workers short of cash hospitals short of medicine and greeks out of luck but it's our teams that take a greaves now reports not so the military me the nato chief and this rasmussen's visit to greece highlighting a sector seemingly immune to austerity. for many athens has been a battleground in recent years fighting against unpopular stared sunday's events are showing there's little hope for a cease fire one shot being fired by those discontent is a discrepancy in spending when it comes to the military something serving m.p.'s from a defensive on relations with turkey remain for some as ever present a threat as a current debt crisis for our nato partners don't seem very keen to help us not to need to spend so much i mean think about it we have been through we are being

threatened from a member of the alliance that we belong and the alliance doesn't do anything. so we have to spend huge amounts of money but the nato chief arise in athens the talks other things may be on the table among them weapons but you're meant to believe i mean there is a kind of negotiation if i may say sure between our major partners germany or france. if we spend a little bit more on you procurement of course that major part of that we crunch in general jim france she's the major creditors such potential buys include a contract for greece to purchase a number of french frigates still under review the last talks remain afloat another threat looms it be meanies but what we've been advised to do is to sell copies of medicine relay.