it's technology innovation all the developments around russia. the future earth coverage. around thanks for joining our parents are actually with a quick recap of your headlines syria's president accepts the u.n. and arab league envoy for peace plan that says lebanese media contradicting reports of syrian troops home country's territory. guarantees or an arms race this is how president may did seize the outcome of the last of the russia tops on the missile shield in europe while washington considers more radars across the globe. and with washington showing no let up on its pursuit of whistleblowers journalists feel

forced to sacrifice the truth hearing for their future. now that you're up to date with the headlines and up next on our t.v. our financial guru max kaiser reveals the secrets of what he calls of the banks there's a kaiser report is coming your way. this is the cause a report oh we're own thing until we shall go tallyho days are over tell us more. hunting for moffitt 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 referred 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 are they and i say i'm sure he could just call them and say me all the references from my firm and number two 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 you going masses you could call this the rich versus the see the muppets in a remarkable column in italy's paper of record earlier this week the columnist

ernesto galley dela. 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 talent 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 having 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 there in continent what way they're there they're not paying their bills or incontinent they're having incontinence probable and kind of struggling card as well as a sort of a berlusconi's specialty well i don't know if you think about it lloyd blankfein and all his muppet masters didn't they have a problem with incontinence and in terms of spewing. deals on their clients over

and over they couldn't stop spewing yeah maybe the possible to go forward for the white house this is a handout. dependent to these people and then they could cure their own that's a dense well the reuters piece you know that there's that nation in the middle and working class incomes in many parts of the western world is offering turning into real decreases and 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 so the 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 been placed there is this rising tide theory the rising tide lifts all boats and that by pampering

a certain section of the economy the globes that are that are paying for their reelections of the club to crass 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 the populations in the street and sooner or later one of us is going to get taken out in another most unseemly manner by the muppet hunters southern lump it well i mean they know it's 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 an elected 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 the retiring wen jiabao warned that the growing wealth gap corruption and increasing hatred of this state could jeopardize the economic gains 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 road to the cultural revolution happening all over all over the world even in america the case in florida where some patrol guy on neighborhood patrol shot a kid to death because he was paranoid that the kid mind some way be doing something that went against florida which is ultra right wing jeb bush lead nonsense but he killed a kid no investigation this a cultural revolution please get the citizens to kill each other and then just let

them do it you know this is the way to get get rid of the have to pay benefits anymore do you think that's one less benefit to pay their kids did 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 in treasuries r.b.s. 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 an immoral ties doing these three color 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 rates up between the time of her being nineteen and twenty three to the point where it just keeps getting worse and 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 that was used conscripted she was forced to serve in the army of illegitimate banking products and amortization of a dollar collar and this is just basically a way to get a young person and instead of studying them to the front line in afghanistan or

iraq you put it on 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 the bankers are glorious little 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 we're going to fight al-qaeda by an advertising dollar called stop. total nonsense it's immoral it's illegal just 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 real genuine one around her neck and held her hostage in head and sent a ransom note to 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 this falls under financial services and g.d.p. booster that's the financial services some now this is part of a crusade 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 trapped by banking terrorist student car worst lack understanding of loan terms almost two thirds of u.s. student 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 a 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 and

retirement account because interest rates and it is zero percent then you've got the students they've been destroyed because of the older student debt 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. and the basic services are destroyed by these banks and you know the kids to be wiped out they get to indentured servitude where you're born into debt your debt slaves you're born into debt you die today this is how it's creeping sir crawling inventor of servitude going down the generational gap all the way down until you get to do the do the growth stage well many in the population will have no sympathy for the students their argument is that they should have 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 and they each took a risk right the banker is the one who have 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 paley 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 out on the lender doesn't keep those loans on their books they're not if in fact there's any trouble at all they can all was blackmail the government for a bail out as they do so the person taking on the debt is again they're being sent to the front line 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 they don't die 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 not that they're presuming that we are all market and they're saying the left hates them the right hates me even more but ben bernanke you see the economy and has navigated masterfully through the most trying of times 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 till you make it and the idea being that well we'll just park trillions of dollars of debt on the balance sheet and then through growth that will come in the future that will never have to be paid but of course for that growth to materialize you 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 the they're not given any voice whatsoever they're just considered to be off the radar and we don't talk about them they're the on watch they're the on touchable dirty underclass america now has a permanent underclass i think that's what needs to be said is that. you zero in let's to consider the millions and millions of people who strolled under the bus and that maybe he's not so heroic all right facing our thanks so much for being on the kaiser report don't be a muppet dangers all right well stay right there much more coming your way.

imax times are welcome back to the kaiser record time not to go to scottsdale arizona and talk with former radio shows the new york times best selling author charles goyette author of the 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 why it doesn't matter if the rest of the world continues to provide you with a free lunch yet how long is that going to go on you know it reminds me of her sons that it's ok to go on it won't. you don't it's not

a pretty good game while it lasted and we've all been the beneficiaries of both the dollar reserve standard that's all the sleeve breaking down with dollars working down on every front the american economy is breaking down the american people are becoming more poor 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 that if it's 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 middle of a college degree down twelve percent middle of a high school diploma only down forty seven percent there's your american three i want to thank the counter argument for a second during the crisis the federal reserve 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 no matter how many people go to jail no matter what the unemployment rate is no matter how bad wages are no matter how disgusting a 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 well you know actually you're right of the dollar 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 today against against the euro or some other fee upward currency people don't look at the exchange rate or the dollar index when they go to work in the morning when the large part goes up 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 sit in there now the containment unit is started to breach and it's starting 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 i mean do they think makes them be thinking pick a key create a couple of trillion dollars to bail out the banks create a couple of trillion dollars to buy you know to buy american debt and that there would be no consequences of this what kind of madness is there well again the headlines of today's papers are that was the profits this year two thousand and twelve are going to hit record highs and a bonus paul is going to hit record bonuses out of 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 peasants are a dime a dozen trials going on why should they give a flying hoot about the peasants yeah you're absolutely right so i'm one of them i guess what i do i deal with this in the book red and blue group all over i talk about you know crony capitalism and the splicing of of corporate and governmental d.n.a. in this way and the you know 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 mess of pottage with the broken country that has less opportunity less prosperity among the masses you're right they need to carry well in their insulated communities but it at some point you know the peasants the peasants call a hardware store and ask what's the price of a pitchfork ok so throws going 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 cut

a lot for the winter and now it's spring time and they're back on the streets rabble rousing and waving placards and having sex and tents and the kind of park not tactics can anybody is i mean it mentioned pitchforks metaphorically we do on this show as well dia teens but there hasn't been any traction on that whatsoever and meanwhile 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 if you see any i could tell no defense spending you know is a better credit 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 they're still loyal to either the warfare state or the you know well firstly 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 this the stuff you don't

just keep it piles up because it's such a way to go you think of. 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 in the asking now could the president of the united states you know unilaterally order the assassination of the american so severe i donated soil inside the country can he order an american to be sasson it and the head of the f.b.i. says i'll have to check the bill have to check and then you know the same week john mccain is running around it's never met a war that he didn't like and he's saying well he would invade 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 that at some point the american people have got to realize what the constitution says of can mccain wants a war in syria he can damn well introduce a declaration of war is a member of the united states and then we can debate where the view of these are in syria and go through it and how much we're going to spin to 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 try to draw what should be self evident parallel between people's appreciation for freedom freedom from all of the state may have less freedom from the governing classes and their prosperity and if they get sick and tired of their winning prosperity if they want to do something about it then they're going to have to attend to the issue of their freedom so these same bloodthirsty folks they're the presidents who aren't can't look at themselves that 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 had to do with iran and or money printing it's all his doing through this is machinations and magical incantations your thoughts this is typical i think pelosi said it best she said oh it's you know it's those of those evil speculators and i thought what she going to trot out next with gnomes of

circular hope you know this met with her. most of the great example i mean she's the one that told us the other day she came out with some painted nonsense about well now unemployment checks you know create demand in the economy get really good for economy and she's the one that said you know about the health 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 i met this man actually you know you're right you're he did right you have become the up against the wall and still you know i think people are something going on in america and it may not be you know my generation it may not be another job but clearly what i talked with ron paul back in the eighty's about created a committee to abolish welfare you know it's one small step for mankind and you know we talk about it would never have gotten any traction at the time but today you know he's out there on the campaign trail of mitt romney shows up in the high school julie has twelve supporters there and then later that day ron paul comes the high school gym there packed to the rafters and the kids are shouted in the. head

so i mean there's there's something going on and it may not happen it may not transpire as quickly as i like it would be built through this very difficult period and as often happens things turn out to be much worse on the other side of the you know the record in certainly back it happened but you know i think it's kind of enjoyed the fight to tell which are now sure there's some traction for ron paul bannon let's take a look at the last few months when occupy wall street when they found jamie diamond up on his upper east side apartment and they surrounded his apartment and they say come out cheney come out the next couple of links jamie stole one point two billion from m.f. global customers as a way to show that he's got a power and if you attack me i can reach into your account here 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 think just tell

a few palestinians and say that's the price. for challenging r r r r l the doppler here in the region so it's the jamie gun price tag if you attack wall street they'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 criminal racket but so what i mean they'll just tell your money they still your money openly charles goyette would you have keep your money in a bank in america by the way you did you do that i keep my money in a variety of different places and i guess that's above. but the look at you of course of course you're right and things always look very very dark and right 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 that 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 to wrong in the tea party people have some sort of incipient understanding

that that 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 their 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 mubarak 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 blessings of the state or as state is the provider of their prosperity the illusion that the state has product problem solving capabilities the state as i wrote

a piece today it uses that old sid cohen if you meet the buddha. on the road kill in which the state is the buddha if you're on the road to restored a prosperity on the road to restoring your freedom you need to 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 study. 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 kleptocrats of bankers sense starting with nixon going off the gold standard closing the gold wind out 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 the debts and doesn't pay all right well we're out of time zones 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 not going to do it for this edition of the kaiser report with me max kaiser and stacey herbert and i want to

thank my guests charles going yet if you're honest i mean email please is our ties report r t t v that are you until next time ask either saying. well. technology innovation called the ins developments around russia we've gone to the future or covered.