there's a look that's been going on for sixty years danny that's all the time we have for today thank you so much for weighing in that was danny schechter filmmaker and blogger for news that sector now that's going to wrap it up for now we'll see you right back here tomorrow. i started this is the cause a report oh we're hunting until we shall go tallyho plus more. hunting for joining lloyd blankfein 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

muppets in their bedroom even the bathroom is 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 he can 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 the masses actually could call this the rich versus the sea then not bits in a remarkable column in italy's paper of record earlier this week the columnist ernesto galli della moshe flayed 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 been confidence they're not i'm not sure i mean there's a run of depends of the italian grocery or what's going on there they're incontinent what way they're there and they're not paying their bills or incontinent they're having incontinence from doubling condoms tripling cut as well as a survey 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 now maybe the process will go forward for the white house this is a handout diapers and the kindest of these people and then they can cure their incompetence well the reuters piece you know that gets that nation in the middle and working class incomes in many parts of the western world is offering 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 so the wealth become more and more galling even to moderates not previously given to envy or militancy so they 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 folks that are that are paying for they reelected ins of the kleptocrats that this is going to raise all the boats and there's the trickle down mentality again 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 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 you know i'm seemly better by them up my them up at. well i mean they know it's almost. 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 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 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 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 the ultra right wing jeb bush lead nonsense but he killed a kid no investigation just a cultural revolution li gets to decide to kill each other and then just let him do 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 the 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 municipalities 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 r.b.s. sold complex wap 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 a more exciting 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 taking 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 conscripted she was forced to serve in the army of a legitimate banking products and amortization of a dollar collar this is just basically a way to get young person and sort of study 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 of 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 go buy a product that we're going to fight al-qaeda by an advertising dollar collar shop you know most of it's immoral it's illegal this poor person is going to be facing a life time. 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 exploded in cholera 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 yeah that's it they've put financial services on somehow this is part of the crusade to stamp out the bad guys means that there's an inquisition going on

and that if you're a young person and go 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 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 over 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 on it 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 other municipalities

functions in misspelled the roads in the basic services are destroyed by these banks and you know the kids be wiped down so you get to indentured servitude where you're born into debt your debt slaves you're born into debt you die to death this is how it's creeping sir crawling adventure of servitude going down the. racial gap all the way down until you get to do the good the broad 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 and 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 said the study's author and

a senior analyst in philadelphia near 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 or over the lender doesn't keep those loans on their books they're not if in fact there's any trouble at all they could all as blackmail the government for a bail out as they do so the person taking on the debt is again the being sent to the front line in a financial war that sort of trench warfare this is breaking truong warfare and they die in those in those trousers but they're considered glorious they died for the glory of citibank well speaking of glory now here's a 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 some even more but ben bernanke you see the economy it has navigated masterfully the. the most trying of tang's 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 a make it the idea being that well we'll just park trillions of dollars of debt on the balance sheet and then through growth that'll come in the future this debt 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 who are 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

there are the on watch there the untouchables there are 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 are still under the bus and then maybe he's not so heroic all right place armored thanks much for being on the guy's record don't be a muppet dangers all right well stay right there much more coming your way.

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. i. will. imax fans are welcome back to the casa reports on now to go to scottsdale arizona and talk with former radio show host of 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 does it matter if the rest of the world continues to

provide it with a very large you know how long is that going to go on you know it reminds me of her son who said it's ok to go on it won't. you don't it's been a pretty good a while it lasted and we've all been the beneficiaries of both the dollars are standard that's all the sleeve breaking down the dollars were going 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 part of 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 median median incomes for american in a work forty years then with a college degree down twelve percent middle the high school diploma only down forty seven percent there's your america agree 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 and matter what the unemployment rate is no matter how bad wages are are no matter how disgusting. the social inequality against 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 a prison industrial complex tell me why that's not true but you know actually you're right of the dollar as 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

free 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 only on the balance sheet of the fed you know a critical mass sitting there and 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 so you know this i mean do they think max and they think that they could 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 book 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 the bonus paul is going to hit record

bonuses out 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 victimized by all of this who cares they're just frickin presence presence are a dime a dozen trials and i add why should they give a flying hoot about the peasants yeah you're absolutely right except i'm one of them i guess with the i you know i deal with this in the book red and blue and group all over i talk about you know crony capitalism and the splicing of of corporate and government all 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 up prosperity among the masses you're right they need to very well in their insulated communities but at some point you know the peasants the peasants call is hardware store and ask what's the price of

a pitchfork other so it's all it's going to pass and the peasants had 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 tense and crowded park not tactics can anybody in any of it mention pitchforks metaphorically we do on this show as well dia teens but that's not 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 if you see any i could tell none of the fan spending though 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 it's paper to become country and the people don't get it and they're still parson and they're still loyal to either the warfare spade 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 this the stuff you don't just keep it piles up to 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 of americans so severe out our native soil inside the country in the order of america to be sasson it at 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 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 that at some point the american people have got to realize what the constitution says it can 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 knees are in syria and go through it again how much we're going to spin to who the enemy is and what victory consists of and when we can leave. as long as the people are willing to be flimflammed by the john mccains of the director of the f.b.i. is in 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 madness freedom from the governing classes and their prosperity and if they get sick and tired of their waning 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 down the presidents who are can't look at themselves that they want to go kill some other somebody else they also pretend that president obama is magically making oil prices rise and it's not having to do with iran and or money printing it's all his doing through this machinations and magically can't ations your thoughts this is

typical i think alosi 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 with gnomes observed you know you know this bet with close is 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 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 madness now actually you know you're right you have me dead to rights you haven't been up against. the wall still you know i think pickler something going on in america and it may not be you know my generation or may not be another but clearly what i talked with ron paul back in the eighty's about created a committee to abolish the fear you know it's one small step for me tony you know we talk about it but it would never have gotten an attraction of the time but today you know it's out there on the campaign trail of mitt romney shows up in the high

school julie just told supporters there and then later that day ron paul comes the high school juggler packed to the rafters of the give their show. so i mean bruce there is something going on and it may not happen it may not transpires quickly as i live in we be go through this very difficult period and as often happens our phones turn out to be much worse on the other side of the record in certainly day but you know i think it's kind of enjoyed the fight it's all true oh yeah sure there's some traction for ron paul going on 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 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 us here in the region so it's the jamie dimon price tag if you attack wall street will just kill your money so where does that get anybody i mean there certainly is a lot of people are saying 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 it 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 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 of the

well parents were wrong and 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 but there's an opportunity that 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 france or is monopolist operating rackets protected by the government so is the move barrick way the only way out and by this i mean and 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 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 propped problem solving the capabilities the state as i wrote a piece today that uses that holds in poland if you meet the buddha on the road kill it in which the state is the buddha if you're on the road to restore enough prosperity on the road to restore your freedom and you need the 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 and. 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 gold when doubt there is no state in america let's be clear it got presidents and you've got banks there's the state 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 the that's it's doesn't say all right well we're out

of time thanks so much for bringing kaiser report very very good to speak with you thank you very much all right and that's going to do it for this edition of the kaiser report with me max kaiser as a server and i want to thank my guests are always going that it was an email please just as a reporter r t t v are you until next time ask either saying.