well. it's technology innovation all these developments from around russia we've got the future covered. talk about the headlines for you now here about the united nations force is concerned that the rebel free syrian army may be using child soldiers or buffer against personnel inside the national police or what kofi anna says it's up to syrian society and. the u.s. seeks to prod i'm two missile shields and asia in the middle east alongside its european project but its involvement in korea in effect as a citizen to expand the influence across the region. with washington

showing no that's a promise of a suit of clothes for journalists to feel forced to sacrifice the truth here for their future. date with the headlines not next naughty our financial guru max keiser. what he calls the banks this concert for what is coming your way. this is the cause a report oh we're hunting until we shall go tallyho these are ever so much more. hunting for joining lloyd blankfein hunt goldman c.e.o.

lloyd blankfein reportedly hunting for muppets so c.e.o. lloyd blankfein told partners in a conference call this week that he's scanning internal e-mails for the term up it and other evidence that employees refer to clients in a derogatory way yeah ok so he's going through everybody's email looking for a muppet sees in their bedroom he's in the bathroom he's examining everyone looking for the word muppet looking in the mirror lloyd blankfein that's the biggest muppet of them all you you the muppet the joke son you well two things first of all he's buddies with the n.s.a. i'm sure he could just call them and say i mean all the references from my firm and number to just look at the headlines around the world because that's what we're going to do and you can see muppets everywhere you look first headline the rich versus the see the thing maps is actually could call this the rich versus the sea then muppets in a remarkable column in italy's paper of record earlier this week the columnist

ernesto galley belo. played his country's ruling class the country is witnessing he believes quote a kind of incontinence and exhibitionism without restraint a compulsive acquisitiveness rife within the highest circles of a talian society. this mind you after the departure of the highly acquisitive former premier silvio berlusconi only to be replaced by mario monti max a former goldman sachs international advisor yeah i mean what is the do you think confidence there i'm not i'm not sure i mean there's a run of dependence of the italian grocery on what's going on there they're in constant work waiter they're not paying their bills or in confidence or having incontinence probably problems certainly cut as well as the sort of berlusconi's specialty well i don't know if you think about it lloyd blankfein and all his market masters didn't they have a problem with incontinence and in terms of spewing. deals onto their clients over

and over they couldn't stop spewing yeah maybe there's a possible to go forward for the white house this is a handout diapers and dependents of these people and then they could cure their intransigence well the reuters piece you know that the stagnation of middle and working class incomes in many parts of the western world is often turning into real decreases in spending power in so far as that goes on in a fragile improvement in europe and north america may take hold and once again raise all boats or it may not then privileges treats and shows of wealth become more and more galling even to moderates not previously given to envy or militancy so noting all of the uprisings happening around the world and the increasingly apparently in italy lots of absurd and gross displays of wealth right right and the theory that there have in place there is this rising tide theory of the rising tide lifts all boats and that by pampering

a certain section of the economy the folks that are that are paying for it they reelected ins of the clubs are kratz that this is going to raise all the boats and there's the trickle down mentality again they it hasn't worked yet in forty years but it's go to work some day and. we're going to keep beating the story of the death even though of the populations in the street and sooner or later one of us is going to take it out in the most unseemly manner by the muppet hunters like the muppet hunters well i mean they note also in the article that a lot of the largest the most extravagant wealth seems to coincide with having very close connections with whoever is in power in italy itself of course it is the goldman sachs former advisor who heads the government unelected head of government in the e.c.b. it's headed by former goldman sachs guy mario draggy so then they point to china

where they say protests in china are building and they shake their leadership in a press conference broadcast live on chinese state television earlier this month they're retiring wen jiabao warned that the growing wealth gap corruption and increasing hatred of this state could jeopardize the economic gains most startlingly he warned that mistakes like the cultural revolution may happen again any government official or party member with a sense of responsibility should recognize this well we see the cultural revolution happening all over all over the world even in america of a case in florida where some patrol guy on neighborhood patrol shot a kid to death because he was paranoid that the kid mine in some way be doing something that went against florida which is ultra right wing do you have bush lead nonsense but he killed a kid no investigation that's the cultural revolution we got the citizens to kill

each other and then just let them do it you know this is a way to get rid of the have to pay and benefits anymore do you think that's one less benefit to pay that kid is dead well let's go back to the stories here because you have china this rising wealth and income gap you know hank paulson led goldman sachs into china in italy you have not only the head of government being. from goldman sachs but you have policies across italy bankrupt as we covered before because of j.p. morgan selling them interest rate swaps that have now exploded in devastated cities and municipalities now let's look at what interest rate swaps are doing not just to municipalities and the you know the treasurer's and the people in charge of who are supposed to be sophisticated of running these towns and treasuries are sold complex swap to nineteen year old first time landlord so amateur property investors are caught up in the growing controversy over the sale of complex interest rate swaps

to small firms that has emerged they use the example of one budding investor jessica neurology now twenty three from bolton she ended up with a more it's rising the straight collar swap even though she did not take out the loan it was meant to protect so she was forced by r.b.s. royal bank of scotland now owned by the government to take out an interest rate swap she took it out but then they rejected her for the loan so for the last few years she's been paying this interest rate swap between the time of her being nineteen and twenty three to the point where it just keeps getting worse the worse for her the payments and she's now thirty six thousand pounds in debt because they keep taking this money from her account but they basically cold call her and they force her to buy this product was used in scripted she was forced to serve in the army of illegitimate banking products of amortization of a dollar collar slop this is just basically a way to get young person and sort of study them to the front line in afghanistan

or iraq and put it in one of these products they're now conscripted they're in this bind where they're giving their life essentially for the glory of the banks or the cultural revolution pranksters or glorious letters letters revel in the glory of the banks to you to give away your life gets sucked into this. so these are products of the same kind of pretense you know by product that we're going to fight al qaeda by an advertising dollar collar shop. told us as it's immoral it's illegal this poor person is now going to be facing a lifetime of onerous debts but it's all for the glory of the glorious pranksters as part of the cultural revolution well i'll tell you what it reminded me of is remember that banker in australia that kidnapped a teenage girl in australia tied a collar and exploding collar a real genuine one around her neck and held her hostage in hand and sent a ransom note her parents this is the equivalent of that max it's

a collar swap it's just as much a terrorist act against this young girl and yet they get away with it because it's falls under financial services and g.d.p. booster that's at the financial services somehow this is part of the crew say to stamp out the bad guys means that there's an inquisition going on and that if you're a young person and don't read the fine print of the bond you have to give your life to fight the bad guys and then another headline along this of young people being on trapped by banking terrorist student bar worst lack understanding of loan terms almost two thirds of u.s. students loan borrowers mis understood or were surprised by aspects of their loans or their student loan process a study shows the respondents had an average of seventy six thousand dollars in student debt and remember put this into context of the banking sector that is looking for muppets that's right well they go younger and younger because the senior citizens are blown out because of the lack of return

in a retirement account because interest rates on is zero percent then you've got the students they've been destroyed because of the onerous student a trillion in the u.s. for example they're all their lives are destroyed they've got the high school students now basically are going to be wiped out because of the municipality of functions in the road. the basic services are destroyed by these banks and you know the kids of the what they get to indentured servitude where you're born into debt your debt slaves you're born into debt you die today this is a creeping sir crawling indentured servitude going down the generational gap all the way down until you get to the to the to the birth stage well many in the population will have no sympathy for their students their argument is that they should've known better these people are the ones who took out the loans i didn't i was sensible i did this i did that but the way capitalism used to work max was that the banker lent to a person they each took a risk and banker is the one who had the most risk they had to know for sure that

the person could pay back in the us in the student loan market students could never escape those debts if they live to one hundred five those debts will be with them no matter what they'll have to pay those banks back now this is relevant to this quote here where haley with set the study's author and senior analyst in philadelphia near an economic consultant said there are many indebted graduates whose assumptions about how they would deal with their loans after college proved inaccurate so there you have a situation where the loan provider didn't even have to consider the assumptions of whether this person could ever pay it back no not at all going to the lender doesn't keep those loans on the books they're not if in fact there's any trouble at all they can all as blackmail the government for a bail out as they do so the the person taking on the debt is again they're being sent to the frontline in

a financial war that sort of trench warfare this is banking trauma warfare and they die in those in those trenches but they're considered glorious day god for the glory of citibank well speaking of glory now here's an front page of the atlantic and it's the hero ben bernanke you see. of the global economy so why does everyone hate now talk about muppets there presuming that we are all muppets and they're saying the left hates him the right he's an even more but ben bernanke you see of the economy and has navigated masterfully through the most trying of time well he's simply expanded the balance sheet of the federal reserve bank by trillions and trillions of dollars as it as an attempt to fake it to make it the idea being that while we're just park trillions of dollars of bet on the balance sheet and then through growth that will come in the future will never have to be paid but of course for that growth to materialize you'd have to get rid of the interest cost on

the debt which is not going to happen so there will be no growth coming down the road but there is a staring in real austerity so that people in the us or suffering because of burning they're not given any voice whatsoever they're just considered to be off the radar and we don't talk about them there are the on last year the on touchable there are the underclass america now has a permanent underclass i think that's what needs to be said is that brendan eich you zero in left to consider the millions and millions of people who strolled under the bus and then maybe he's not so heroic all right thanks so much for being on the kaiser report. dangerous all right well stay right there are much more coming your way.

room with imax ties are welcome back to the kaiser reports i'm not a go to scottsdale arizona and talk with former radio shows a new york times best selling author charles going yet author of a new book red and blue and broke all over charles welcome to the kaiser report next it's great to speak to you again thank you for having me on charles america is broke it doesn't matter if the rest of the world continues to provide you with a free lunch yeah how long is that going to go on you know it reminds me of her slime so that something can go on it won't. you know it's been

a pretty good game while it lasted and we've all been the beneficiaries of well the dollar reserve standard that's all the sleeve breaking down with dollars working down every throat the american economy is breaking down the american people are becoming more or we're moving backwards the american dream is fading i promise max that i won't use any more statistics but i'll just say this it the book is red and blue and broke all over not only is the country broke with the red party and the blue parties are intellectually and morally bankrupt and you know we've had you know back and forth between red and blue and blue and red and still over the course of forty years according to the milken institute study you know the middle class median median incomes for american in a work forty years then with a college degree down twelve percent of men with a high school diploma only down forty seven percent there are american dreams i want to thank the counter argument for a second during the crisis they found was an expanded its balance sheet by three trillion dollars during the european crisis the european central bank has expanded

its balance sheet by about three trillion euros the bank of england bank of japan. they're all expanding their balance sheets and in so doing they are supporting the dollar they are creating a market where the dollar is never allowed to find its true price and no matter how many people go to jail no matter what the unemployment rate is no matter how bad wages are are no matter how disgusting the social inequality gets the dollar is a made currency is protected by the central bank mafia he can f. with the dollar or you could be accused of some crime and end up in the prison industrial complex tell me why that's not true though you know actually you're right of the dollar it was the beneficiary of the fact that everybody else's dude is doing the same thing but you know it doesn't matter to the american people in my view whether the dollar is up today against against the euro or some other fee upward currency people don't look at the exchange rate or the bumper index when

they go to work in the morning when the alarm clock goes off people work and save for what the dollar will buy them and you're right you know the monetary base has exploded it's like a hockey stick graph and it's you know it's been it's become a wobbling only on the balance sheet of the fed you know a critical mass sitting there and now the containment unit has started to breach and it's started to leak out into the economy and we're seeing it already in gas prices and grocery prices and so on and so you know this is not i mean do they think max and they think that they can create a couple of trillion dollars to bail out the banks to create a couple of trillion dollars so by you know to buy american debt and that there would be no consequences of this what kind of man who says that well again the headlines and today's papers are that watch the profits to this year two thousand and twelve are going to hit record highs and the bonus pool is going to hit record bonuses so the gas price of twenty or thirty percent food at ten percent it's meaningless doesn't make any difference to the people who run america and as far as

the people being they can. biologists who cares they're just frickin peasants presents are dime a dozen trials going on why should we give a flying hoot about the peasants yeah you're absolutely right it's like i'm one of them i guess but i you know i deal with this in the book revenue group all over i talk about you know crony capitalism and the splicing of of corporate and cover middle d.n.a. in this way in the you know the of the toxic brew that it creates and it's true that the cronies are made better off with the whole country was destroyed so they're going to inherit you know they're going to inherit a little missile body with the broken country that has less opportunity less up prosperity among the masses you're right they need to carry well in their insulated communities but at some point you know because it's the peasants call ace hardware store and ask what's the price of a pitchfork ok so throws away at the pass and the peasants out a bit of an uprising last year occupy wall street then the winter came and they had

to go back to the mommy's basement and cuddle up for the winter now it's spring time and they're back on the streets rabble rousing and waving placards and having sex and tents in zuccotti park what tactics can anybody in the me of it mention pitchforks metaphorically we do on this show as well deity but there hasn't been any traction on that whatsoever i mean while on the top one percent they finance wars they go into foreign countries they commit heinous acts of dismemberment murder and mayhem and they spend a lot of money right so that if you see any i could tell none of the pain spending goes a better fact it goes for example in the ryan plan the other day yesterday it goes absolutely untouched it's true it's paper to become a country and the people don't get it and they're still partisan and are still loyal to either the warfare state or the you know welfare state and so things will continue to deteriorate i don't know exactly next wouldn't you know when when we reach a threshold a critical mass in which the people just stop but you know it was the stuff you

don't just keep it piles up to it's such a way to go to think that the. there's going to be a collapse of some sort in the people's attitude toward this i mean how could anybody watch the director of the f.b.i. in congressional testimony and they ask you now can the president of united states you know unilaterally order the assassination of of americans so severe i don't even soil inside the country any order of america to be sensitive and the head of the f.b.i. says i'll have to check bill we'll have to check and then you know the same week john mccain is running around it's never been a war that he didn't like and he's saying well he didn't bade syria we need to go to war in syria and he's haranguing the president you know you're not a real man if you don't invade syria i don't think it at some point the american people have got to realize what the constitution says or cut mccain wants a war in syria he can damn well introduce a declaration of war as a member of the united states senate and then we can debate where the view of these are in syria and go through it to get how much we're going to spend it who the enemy is and what victory consists of and when we can leave and as long as the

people are willing to be flimflammed by the john mccains of the director of the f.b.i. is that the red party in the blue party you know their lives will continue to deteriorate i tried to draw what should be self evident parallel between people's appreciation for freedom freedom from all of the state may have less freedom for the governing classes and their prosperity and if they get sick and tired of their waiting prosperity if they want to do something about it when they're going to have to attend to the issue of their freedom so these same cloth thirsty folks there the presidents who are can't look at themselves but they want to go tell some other somebody else they also pretend that president obama is magically making oil prices rise and right and it's not and they do with iran and more money printing it's all his doing through this machinations and magical incantations your thoughts this is typical i think palosi said it best she said oh it's you know it's those those evil

speculators and i thought what she going to trot out next the gnomes of zurich you know you know this man would play. she's a great example of me she's the one that told us the other day she came out with some keynesian nonsense about l. o. unemployment checks you know create demand in the economy get really good for our economy and she's the one that said you know about bill care bill we have to pass this bill in order to. in order to find out what's in it so i you know i'm surrounded by madness i actually you know you're right you have any good or right you have been up against the wall and still you know i think that we're something going on in america and it may not be you know my generation or may not be another tip but clearly look i talked with ron paul back in the eighty's about creating a committee to abolish the fair you know it's one small step for mankind and you know we talk about a bit would never have gotten attraction of the time but today you know he's out there on the campaign trail of mitt romney shows up in the high school gym he has told supporters there and then later that day ron paul comes the high school juggler packed to the rafters of the kids or shouted to. the vet so i mean there's

there's something going on and it may not happen it may not transpire as quickly as i like and we may go through this very difficult period and as often happens things turn out to be much worse on the other side of the reckoning certainly that could happen but you know i think it's kind of enjoyed the fight to tell which are sure there's some traction for ron paul but i'm let's take a look at the last few months when occupy wall street when they found jamie dining up on his upper east side apartment and they surrounded his apartment and they say to match a meta man the next couple of weeks jamie stole one point two billion from m.f. global customers as a way to show that he's got the power and if you attack me i can reach into your account your chase manhattan account and i can still your money with impunity no investigation no questions asked so it's like you know the israel palestine situation right every time israel wants to show the world their strength they just

tell a few palestinians and say that's the price to. for challenging r r r r us here in the region so it's the jamie done price tag if you attack australia i'll just tell you money so where does that get anybody i mean there certainly is a lot of people understand the fed is now terminal racket but so what i mean they'll just tell your money they still your money openly charles goyette when you have to keep your money in a bank in america by the way of you did you do that i keep my money in a variety of different places and i guess that's above. it but the looking of course of course you're right and things always look very very dark and like you know i've written a book that tells the american people if you don't understand how you're being poisoned by the machinations of the state if you don't understand but your partisanship is being used to destroy you if you don't understand that the you know the occupiers you don't understand the bailouts and the crony capitalism the wealth transfer the wrong in the tea party people have some sort of incipient

understanding the best stuff is wrong too if they can shed their partisanship and and realize that they are all being equally fleeced when there's an opportunity the you know maybe they will raise the pitchforks and stormed the castle gates right well ok we've got about thirty seconds left let me ask is the size of the cuts another way to solve the debt problem is to grow the u.s. economy however seems increasingly stymied by conmen fraudsters monopolists all operating rackets protected by the government so is the move barrick way the only way out and by this i mean what we're saying here is does the u.s. need a regime change and not necessarily the current occupant of the white house but the entire crony class itself needs to be swept away yeah i mean people need people need to shed the illusion that the state is the provider of all the blessings of the staters state is the provider of their prosperity the illusion that the state has product problem solving the capabilities the state as i wrote

a piece today in the news that all the coal and if you meet the buddha. on the road kill in which the state is the blue if you're on the road to restore to prosperity on the road to restore your freedom you need a state with a state solution along the road you've got to kill the state that's the only solution you've got to show the steady. short of it of course nothing's going to work there hasn't been a state in america since lyndon johnson it's been run by kleptocrat of bankers sense starting with nixon going off the gold standard closing the goldwyn doubt there is no state in america let's be clear you've got presidents and you've got banks there's the state is left the building i'd love to see an operating full functioning responsive all representational government but it doesn't exist and that's why the country is not worth that that's it's doesn't pay all right all right it's not true it's going it thanks so much for being on the kaiser report maybe it's good to speak with you thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert and i

want to thank my guests trials going yet if you want to see me ma'am please is our kaiser report r.t. t.v. thought are you until next time ask either saying. well. technology innovation all the developments from around russia we've gone to the future or covered.