good evening from here in moscow tonight it's half past eleven pm moscow time these are all top stories the syrian government says yes to kofi announce a peace plan for a negotiated end to the bloody conflict is calling opposition leaders seek a unified front against the assad regime guarantees or an alms race a clear choice is delivered by dimitri to washington over its missile defense system in europe that says the russian president summed up the results of the nuclear summit in seoul. on

a day these numbers summits agenda grab the media's attention and triggered a storm on capitol hill but the conversation between obama and medvedev which wasn't supposed to go public more about it half an hour but right now you're up to date next mr cars or unco. stars of this is the kaiser report oh we're hunting bunting we shall go tell you know things are tell us 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 on you you go up in the joke's on you well two things first of all he's buddies with the n.s.a. i'm sure you can just call them and say send me although not 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 the thing masses actually 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 galli della. slade 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 italian 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 are the. these of in confidence there i'm not i'm not sure there's a run of the pans of the italian grocery or what's going on there and what they're incontinent what way they're there they're not paying their bills or incontinent they're having incontinence from google and kind of struggling padded cell as a 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 on to their clients over and over they couldn't stop spewing yet maybe the policy is to go forward for the white house this is a handout diapers and dependence to these people and then they can cure their and that's it and well the reuters piece you know that gets that nation in 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 there 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 the rising tide lifts all boats and that by pampering a certain section of the economy the folks that are that are paying for their reelections of the clock tick rats 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 sorest to death even though the populations in the street and sooner or later one of us is going to get taken out in the most you know unseemly manner by the muppet hunters like the muppet hunters well i mean they know it's all. so 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 a 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 the 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 oh it was during the cultural revolution happening all over all over the world even in america that case in florida where patrolled 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 was nonsense but he killed a kid no investigation just a cultural revolution we got 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 kid is dead well let's go back to these 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 the power of these 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 rates thoughts are doing not just to municipalities and the you know the treasurer's and the people in charge and who are supposed to be sophisticated of running these towns in treasuries 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 it is merged they use the example of one budding investor jessica neurology now twenty three from bolton she ended up with an a more it's rising base rate 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 not 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 call coulter and they force her to buy this product that was used in scripted she was forced to serve in the army a legitimate banking products and amortization of a dollar collar this is just basically a way to get young person it is sort of sending 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 banks are glorious letters letters revel in the glory of the banks to you to give away your life gets sucked into this they

sell these products out of the same kind of pretense you know by product that we're going to fight al-qaeda by advertising dollars dollar swap you know it's total most of it's immoral it's illegal this poor person is going to be facing a life time. 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 exploded in 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 in the collar swat 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. . that's one of the financial services and 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. student loan borrowers mis understood or were surprised by aspects of their loans or their student loan process the 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 in a retirement account because if it is zero percent then you've got the students they've been destroyed because of the onerous student answer 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 other municipalities

functions in misspelled the roads and the basic services are destroyed by these banks and you know the kids we went down to get to indentured servitude were born into debt your debt slaves you're born into debt you died of debt this is how this creeping server crawling indentured servitude going down the jew. racial gap all the way down until you get to the dude of the birth 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 they each took a risk right the 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 neuro economic consulting 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 at all to the lender person keep those loans on their books they're not if in fact there's any trouble at all they can all was blackmailed the government for a bail out as they do so 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 breaking truong 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 save the global economy so why does everyone hate now talk about muppets they're presuming that we are all not it and they're saying the left hates them the right heat some even more but ben bernanke you see the economy it has navigated masterfully. the most trying of time well he simply expanded the balance sheet of the federal reserve bank by trillions and trillions of dollars as it as an attempt to fake it see and 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'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 austerity and real austerity so that people in the us or suffering because 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 untouchables they're the underclass america now has a permanent underclass i think that's what needs to be said is that if you zero in let's to consider the millions and millions of people who still own under the bus and then maybe he's not so heroic all right thanks much for being on the kaiser report don't be a muppet dangers all right well stay right there much more coming your way.

i'm max foster welcome back to because the record time now to go to scottsdale arizona and talk with former radio show host a new york times best selling off. author charles goyette author of the new book red and blue and broke all over charles welcome to the kaiser report max it's great to speak to you again thank you for having me on charles' america is broke why does it matter if the rest of the world continues to provide it with a free knowledge you know how long is that going to go on you know it reminds me of her son who sort of simply can't go on it won't. you don't it's been a pretty good game while it lasted and we've all been the beneficiaries of the dollar reserve standard debts all these lead 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 has faded i promise max that i won't use any more statistics but i just say this with it 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 milken institute study you know the middle class media median incomes for american middle were forty years then with a college degree down twelve percent a little high school diploma only down forty seven percent there's your american dream i want to talk to 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 are no matter how disgusting the social inequality gets the dollar is a made currency is protected by the central bank mafia he can't breath with the dollar or you could be accused of some crime and end up in that prison down. complex tell me why that's not true but you know actually you're right and the dollar was the beneficiary of the fact that everybody else is doing 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 awkward currency people don't look at the exchange rate or the dollar 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 on the on the balance sheet of the fed you know a critical mass sitting there now the containment unit is starting 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 and so we're you know this is not i mean do they think banks they think that they can create a couple of trillion dollars to bail out the banks first 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 wast the profits to this year trying to solve are going to hit record highs and the bonus paul is going to hit record bonuses so the gas price not 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 victimized by all of this who cares they're just frickin presence presence are a dime a dozen sales guy at why should they give a flying hoot about the peasants yeah you're absolutely right except i'm one of them i guess but i you know i deal with this in the book red and blue book all over i talk about you know crony capitalism in the spiciness of corporate governmental

d.n.a. in this way in 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 you know a mess of pottage with a broken country that has less opportunity lesson. prosperity among the masses you're right they need to carry well in their insulated communities but at some point you know the peasants will peasants call hardware store and ask what's the price of a pitchfork up in a suit for australia to 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 dances economy park not tactics can anybody is any of it mention pitchforks not a foreign play we do on this show as well d. at teens 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 fence probably you know as a matter of fact it goes for example in the ryan plan the other day yesterday it goes absolutely untouched it's true it's begun to become 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 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 you know you think that 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 a of american citizen here out in soil inside the country and the 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 as they were going to war that he didn't like me saying oh you 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 think it at some point the american people have got to realize what the constitution says of john 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 communities are in syria and go through it begin how much we're going to spend it who the enemy is and what victory consists of and when we can leave and is 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 man has freedom from the

government classes and their prosperity and if they get sick and tired of their waiting prosperity and 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 while prices rise and right and it's not having to do with iran and or money printing it's all his doing through this 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 you're going to trot out next the gnome's absurd you know you know this man would post is a great example of me she's the one that told us the other day she came out with some keynesian nonsense about oil now unemployment checks you know create demand in the economy that really good for our economy and she's the one that said you know about the health care bill we have to pass this bill in order. in order to find out what's in it so i you know i'm surrounded by met this man actually you know you're

right you have he did right you haven't been up against the wall and still you know i think people are something going on in america and it may not be you know in my generation or may not be another job but clearly look i talked with ron paul back in the eighty's about creating a committed. to abolish the fed you know it's one small step for man pony and you know we talk about it 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 julie has told supporters there that later that day ron paul comes the high school juggler packed to the rafters of the goods or shouted into the pit so i mean bruce there is something going on and it may not happen at least not transpires quickly as i like and we be go through this very difficult period and as often happens things turn out to be much worse on the other side but you know the record in certainly decades but you know i think it's kind of enjoyed the fight and so

sure sure there's some traction for ron paul but and let's take a look at the last few months when occupy wall street when they found jamie diamond on his upper east side apartment and they surrounded his apartment and they say come out jamie come out 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 kill a few palestinians and say that's the price tag for challenging r r r r here in the region so it's the jamie dimon price tag if you attack last rate they'll just kill your 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 steal your money they still your money openly charles goyette would

you have you keep your money in a bank in america by the way do you did you do that i keep my money in a variety of different places and i guess that's a book. about it but to look at you 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. 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 that the bailouts and the crony capitalism in 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 owners of the opportunity that you know maybe they will raise their pitchforks and stormed the castle gates right well we've got about thirty seconds left but let me ask you this aside from 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 beyond the people new people need to shed the illusion but the state is the provider of all blessings of the staters the state is the provider of their prosperity the illusion that the state has product problem solving the capabilities of the state as i wrote a piece today that uses federal did cohen if you meet the buddha on the road killing in which the state is the buddha if you're on the road to restored a prosperity on the road to restoring your freedom and you meet the state with a state solution along the road you've gotta kill the state that's the only solution you've got to show the steady. short of that 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 dow there is no state in america let's be clear you've got peasants and you've got banks there's this. it is left the building i'd love to see an operating full functioning responsible representational government but it doesn't exist and that's why the country is not worth that that's it doesn't say all right well we're out of time throwing it thanks so much to bring kaiser report maybe it's good to speak if 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 charles go yet if you want to me now please just as a reporter r t t v are you until next time ask either saying. world. technology innovation all the developments

around russia we've got the future or covered.

all.