here you headlines now heading off into the streets the. first group calls on u.s. citizens to organize protests. now heading for the senate. spain's economic pulse. staggering new unemployment figures. and ukraine's prime minister. yulia timoshenko fails to attend the hearing off the claiming she was beaten by prison. some of the headlines for the day for you right there on. digging

up the secrets behind today's business headlines the kaiser report it's right now. this is the kaiser report about the cattle prod economy. even more yeah consuming it doesn't matter if they lose all the right. yes max there's good news in the global economy and that's petro panic a warm weather may have kept u.k. out of recession now of course it never happened max warm weather and widespread petrol panic helped drive the biggest increase in british retail sales in more than a year in march i call this the. economy

literally finance insurance real estate. was another disco hit in the seventies. you're. you know there's cameron you know manufacturing of petrol scare people jumping on the forecourt by pressure on the president. by more oh that's g.d.p. growth yeah make any sense absolutely not the most sure of. terrorist well it's excellent news max and this you know what more excellent news along these lines coming from america gun industries economic impact skyrockets during the obama years the economic impact of the firearms industry is up sixty six percent since the beginning of the great recession providing an unexpected shot in the arm for the economy according to a new study the national shooting sports foundation says the economic impact of firearm sales a figure that includes jobs taxes and sales hit thirty one billion dollars and

twenty eleven up from nineteen billion in two thousand and eight well this is the biggest scam of all was a barrack obama going to be elected president and i want to go buy a gun because you might take away our guns we're going to go buy more drones course this is the most friendly n.r.a. president in the history of charlton heston reborn and become president i states people buying guns for their kids six year old kids buying guns well it is election season and i thought barack obama could possibly in order to help the economy of course he could make his own willie horton type bads yeah it's sort of having no name prisoner in that revolving door in the willie horton that barrack obama in the revolving door very. colmes again he's coming out you're again people are horrified that this man is going to be president i states you know by god obviously that's my first response and my god is. we're going to by god well it becomes even more apt when it truly is a revolving door. and jeannie dime in blank line and and john

corps dying and william daley and every single banker you could think of that you might need a gun to yourself. and he's been stoking the gun sea air and he's been making a few cents on every gun sale goes into those folks financing his campaign millions do is go on to the end of america it's like i'm going to bomb dogs are dogs and schools guns in classrooms don't just work guns it goes in the family go into the living room you got to get more guns again once again it's the. you know that usually is illegal in like a theater a crowded theater but in our crowded conny it seems to be one sure way out of depression and a crisis liquidity is panic buying is driving the entire economy is a panic panic shortages panic buying panic markets there's no rational decisions anymore if anyone sat down to rationally thought through their decisions they would stay home and not buy a single thing and save money to save themselves but now when you get the present

as things working with box mean you know oh there's a firkin tonics situation go buy a go and of course going to drive sells well you know there's also panic in the student debt market we know it's passed a trillion dollars but coming up this july first apparently the interest rates on the federal loans federal student loans is going to double so barack obama is crossing the country going to talk to young people saying unless the republican party comes to the table you're going to pay twice the amount political wrangling continues on student loan interest rates the white house is pushing for an extension of the. current interest rate of three point four percent without at the rate will climb to six point eight percent for more than seven million students across the country and the average loan recipient would be another one thousand dollars in debt according to the white house spokesman matt laverick well this is clearly a intergenerational war is clearly a class war it's clearly the new jim crow laws as applied to interest rates if

you're a friend of ben bernanke you can lobby for low low interest rates near zero percent if you don't give me a zero rates on the blow up this economy come up by natural terrace like goldman sachs or jamie diamond but if you're a student you got loans to create a job we're going to build the economy to create the savings then you're going to have a doubling in our interest rates that's a financial jim crow law well but it's also this notion that the solution to everything is cheap interest rates and cheap interest rates will make every single human problem go away a quote here from cecilia munoz director of the white house domestic policy council said we must keep rates low so more americans get a fair shot a more affordable education and a clear path to the middle class well interest rates have been low they've been declining max for thirty years why then has the middle class also been

declining if the only way to the middle class is low rate you tell me max where is the middle class because selective interest rates engineering the financial engineering is also applied to interest rates and is reporting out if you're not somebody with a huge lobbying effort in washington you get penalized with higher rates predatory rates payday loan rates if you're on the inside if you're a clip the credit if you're a polluter crack the cost of your money is zero percent and if anyone questions that you threaten to destroy the economy this is why we're talking up or manky and blankfein and diamond as being the. with a real gun the american said this is what we mean and the results are in the street almost poverty engineered on purpose by these schmucks. who mucks that's my signal to goof to the next headline max but speaking of if you thought american students with all their debt were schmucks read this headline

england student debt unprecedented as government shifts funding as the us grapples with record high college costs and outstanding student loans of one trillion dollars england is embarking on a plan this year that shifts much of the government's burden of paying for higher education to students and saddle's graduates with unprecedented debt some students in england after borrowing for housing and living expenses will leave school with as much as sixty four thousand two hundred dollars in debt that compares to what they say is twenty three thousand three hundred in average debt for an american student that's why in today's time on may first massive outpouring around the world to try to address this breakdown in the social contract when david cameron brings in higher interest rates for students in the u.k. what he's saying is there's no place for you in our great society please just go somewhere and die and these people are saying wait a minute we don't want to die we want to be part of this is siding well as they say

here the debt burden means graduates will defer buying a home it makes it harder for people from lower income backgrounds to catch up so remember in the previous article i just mentioned that the white house is saying we need the low cost loans in order to get more people into education and therefore get them into the middle class but as we see cheap money has caused the middle class to decline and it's still debt it doesn't matter how much the interest rate is if it is era percent debt it doesn't matter you still owe this money right and to solve these debt issues of course they simply more in. more layers on top of the current debt burdens to create a the debt layer cake that is the poison chalice of perpetual indebtedness going forward into indentured servitude which is the feudalistic model cameron of course of the tory toffs friends are familiar with coming from the feudal class from a two or three hundred years ago they'd like to bring it back of course they would

well it's actually the absolute numbers are worse in the u.k. that absolute amount of debt that the student is worse in the u.k. however it is dischargeable you can go bankrupt and you can say i don't owe this money in the united states they say the american system is brutal said tim leunig who teaches economic history at the london school of economics because in the u.s. by contrast u.s. education debt cannot be discharged through bankruptcy and almost two million americans with student debt are over sixty according to the new york federal reserve and about eighty five billion dollars in student debt was delinquent in the third quarter of twenty eleven so there are sixty year olds on the verge of retirement still carrying student debt from thirty years ago some of the food at one of the cafeteria thirty years ago they're still eating it's still good it's

a genetically modified variety you know like pasta you know that i used to have a shells on and tomato sauce that's thirty years of still good you're going to eat you're the last remaining cot of pasta from thirty years ago and paying off the lowest student debt to the to the government to get that extension course on that credit you probably got the gym credit to get your degree though you are qualified to go to the airport work for the t.s.a. and growth people well finally here in the u.s. and in terms of debt and intergenerational that social security fund to run dry earlier so this is another one of those are. finance insurance real estate screech panic debt but i know you are where all right well the government's retirement benefits programs will run out of money in three years earlier than previously thought its trustee said on monday increasing the pressure on lawmakers to reform the federal safety net for millions of americans the trustee said the

social security fund for tyreese will become insolvent in twenty thirty three but it said the medicare funds will run out in twenty twenty four the same forecast as last year medicare costs max rose by five percent last year to five hundred forty nine billion dollars but this is the other panic that it could be a solution to the economy it could be why all these gun sales because it seems like they're trying to foster you know the fact is that all these baby boomers are retiring i think by guys home is out paper it is. the little kids with all your debt maybe we're going to live off the income from your student debt but that's right they get that while the getting's good and they're living this next generation with nothing but that for as long as they can see well it's a ponzi scheme it has been a ponzi scheme for decades and now it's blowing up you know bernie made up of eventually had to come clean that's a ponzi scheme so social security it's by definition a ponzi scheme the way it's constructed the fact that the government has borrowed

against social security to invest in their friends on wall street to create trillions more phantom paper assets to drive the cost of living higher beings that social security won't be able to cover the cost of living if they had not left the if they just left the cash in the accounts then that would not have happened in the movie would have lasted another fifty years but because it's been unmercifully pillaged by government now it's running out it'll run out a lot sooner than that statement but i predict it will run out in ten years well max one final thought there is you know the youngsters left behind when all these retirees and baby boomers go south to mecca. the cocos three could to retire you have a fence there a border fence you could keep them out i told you when they put that fence between mexico and america that this was not about keeping mexicans out it's about keeping americans in ok they don't want them escaping they want to keep him on the plantation paying that debt already so stay there ya'll your jim crow laws the

financial world are in place don't try to escape the debt plantation states never thanks guys report thank you max dug away much more coming away so stay right there . we'll. talk about one mean cleaning machine from university labs to the outer reaches of the stratosphere the russians are going to find eco friendly solutions to big city travel take a spin with us and enjoy life on the green side. note you hear on. the future coverage.

imax kaiser welcome back to the kaiser report i'm going to david graber author of debt the first five thousand years david welcome back to the kaiser report thank you all right now david graber you wrote the book debt the first five thousand years of anytime during the past five thousand years as debt ever been let's say that weaponized like it is now pretty much continually. it's been a continual problem for five thousand years that people who consume access. to the ability to make credit try to weaponize that basically try to enslave the rest of the population is the great social crisis of antiquity if you go back to people like aristotle on robbie confuses when they imagine the great social crisis weaponized debt was what they had in mind this tiny percentage of the population essentially enslave everybody else they would start losing their flocks their

fields eventually the episode members of their family or even themselves into slavery and the way i always put it if i were alive today he would probably see the distinction between being so deeply in debt that you have to sell yourself to work for others and being so deeply in debt that you have to rent yourself to work for others as something of a legal if that distinction people say well that's a needed to a part of the economy but we're talking about here is fraudulent conveyance or deadly force on people like we saw the colonies and in britain where the british would come in and do contracts with the the colonists for debt that was table before the crops came in and then the interrupting control of these these assets classic colonial technique i mean with european powers at the same thing in india they did it all over africa they essentially said all right well we conquered you you have to pay the expense of our having conquered you so they would have taxes which they would lend money for in such a way that they would end up necessarily deeply in debt it was all completely

calculated the same thing with least alright greece absolutely then are moving in to take the assets absolutely and almost all of that was military dad i mean the reason why greece is so in debt is that the most militarized society in europe and i always say if they were really serious they could just repossess their battleships but nobody's even talking about about a no one talks about the military spending matter of fact that all the reports that we read they rarely mention the fact that they despite the austerity they're still spending a lot or most amounts on the military in fact turkey actually offered greece a mutual twenty percent military card as a way of undercutting the greek debt as a gesture of friendship and greece refused to grammar student loan debt as fast total outstanding credit card debt your thoughts. well it's kriti much amazing this is a trillion dollars worth of debt and just to put that into perspective consider that all to listen that is paid in america if you added the whole thing up would come to seventy billion dollars so now we're up to a thousand billion in if actually owed in debt and this is what kind of interest

people are paying here it's also an interesting insight because if the government wanted to make to us and free for everyone in america it would cost less than the bush tax cuts right now it's also there's a softening phenomenon in that the debt is easy to get so it actually drives the cost of education higher and this increases the debt burden and so it's a self meaning phenomenon isn't the terrible self-defeating phenomenon but it's also combined with the fact that you need certificates for more and more things so you need a degree to do things that never needed to a degree to do before at basically at this point in america if you want to have a job that gives you have many health benefits for example you pretty much have to have a degree and chances are increasingly have to have an m.a. in those disciplines so that debt is basically the cost that you're paying for having any kind of secure a life in the future and in the u.k. it's even or system it's terrible in the u.k. and in the u.k. well the positive of the u.k. as you can see was totally calculated i was there when they issued the brown report

which is a classic sort of neoliberal document where they say well of course nobody would ever want an education except to future there to further their you know future life income it is assumed that everybody is a selfish greedy bastard like themselves and isn't actually interested in education understanding of the world who cares if i just want more money of course this is what really offended students in the student movement the most every single occupation began by saying no education is a value unto itself we're doing this because we love it but here's the interesting thing what they then did was they tripled tuition and they made everybody effectively take out student loans which effectively poorest people to act like those sort of calculating greedy people they had a ridge. really imagine them to be now it's funny in the u.k. of course it started off with this notion of a top of c. which sounded so innocuous and then it grew from there right exactly well i mean the fascinating thing is the complete betrayal of the political class because the liberal democratic party that essentially was responsible for getting this through

ran on a platform of the limited in the student b. that did exist they did work and they signed a pledge a solemn promise that they would never raise tuition fees course the moment they came in they tripled them they broke collectively broke their promise and. would say well he's point out think about this a debt what is the debt anyway a debt is just a promise why is a debt to bankers held to be absolutely sacred and this is what they said well we all this money we can't actually do this but that a sacred debt made to the public isn't sacred why not all the debts between the bankers are abrogated all day long but salute to the public their sacred exactly one of the things that i discovered that one of the things that really came through if you look at the history of debt is that rich people can be down diddly understanding forgiving and when dealing with each other it's just when you owe a debt to them suddenly it becomes the sacred thing that no one would possibly think of abrogate right now lissa's a question celeste thought you know exercise that the social security so-called trustees claim this week that the fund will go bankrupt soon you talk in your book

about the out current season commodity currencies if we live in a fee out system as we do today how can the government fund go bankrupt it can't there's absolutely no way of there essentially lying to us about the nature of the money system that we now have and in two thousand and eight we figure that out i'm only ns of dollars of debt can be made to vanish trillions of dollars going to be produced out of a hat if they want to do so again it's a question of who's actually doing the asking they could have easily bailed out the banks simply by printing the same money that they printed and giving up mortgage holders they chose instead to give it directly to the banks they could just as easily print this enormous amounts of money that they're print printing and use it for all sorts of social purposes they. as i say they could easily pay everyone's tuition in america and it would hardly make a dent in their budget instead they seem to want people to be in fact are now in terms of history of debt and money the past thirty years only time when we've seen one hundred percent fee our currency backed by just more debt and post nine hundred

seventy one nixon gold window closing nephew have turned seas weren't there when they usually backed before this buy gold or something was ultimately something backing them up i mean they were credit systems rather than the out systems for the most part even the chinese system occasionally it turned into something you could call it the out currency but essentially these are credits from as a people used to have each other the governments then it all interesting in the book debt the first five thousand years it really starts off of this conversation which came first the debt or the credit i would say is and this opens up an interesting debate and i think we need to be talked about a little bit there can can you run us through this well you see we're all taught this little fairy tale and everybody seems to believe it but you know once upon a time there was border and that became inconvenient because you know people used to sit around singing and tell you what i'll give you twenty chickens for that cow twenty thirty chickens and you know you kind of come to a deal everybody do a spot trade and eventually there's all sorts of problems with me i want chicken z.

don't have anything i want you got to walk home. so you make up money and then eventually credit comes out of that the problem this of course assumes that like a bunch of meal if it delivers are going to do it will spark trade because come to the same you know if i if i don't need this guy's chickens he's my neighbor i'm going to need something i'm going to need something he's got eventually so what actually happened is kind of a credit system where we can rough and ready credits this might give you a cow you owe me something kind of like a cow so maybe i come back and ask for a pig or maybe i explain that my son is in love with your daughter you know it's a social things on questions how that turns into something you can precisely quantify twenty seven of these people fifty seven of those and that's it is actually not happens with trade of all but through law. when people are really angry that they get very specific you know i mean we get into a fight and you cut off my ear or my i or opt out or something like that then it's always twenty seven heifers and that's exactly right you know exactly what it says or this means war and you know if you don't have twenty seven after that then we've got a substitute so as always when there is that

a tinge of these potential clients there the people start getting really specific about the numbers right and the specificity for quantitative units of money always associated with damage and eventually wars before that you mention that essentially credit or money was a system where it is very common in the ancient world anyway to say well you know let me have that chicken out paying it later yeah you don't even say that you say oh take the chicken it's a present don't even think about giving me anything back course everybody knows really but it's a credit yeah it's a credit because it wouldn't be in the pot by syria exactly hamburger today pay you on tuesday yeah but this is a wimpy was alive five thousand years ago essentially precisely that's the way they can progress source burger market and it's all caught up in like friendships and enemies and everybody has a strong personal feelings about each other and you know maybe i don't you know maybe i want to give you something that you can pay back as a newbie really embarrassing you know every time you see me i'll be right we're going to have these overlapping credits in obligations then become the social

fabric precise and lead to institutions like religion and others in institutions grew up around this this idea this network of obligations and often it's felt everybody should be indebted to that's good but just a little you know if you give me a present i'll give you something else that's worth a little bit more a little bit less but if i give you something exactly the same it's like saying why don't we want to have anything to do with you write your zero summing it out yet it's very cold exactly is no no listen let me ask this you're been of all the occupy wall street debt and student debt or big issues in the occupy movement how do you think occupies done as a movement successes what do you consider it success or does it go. from here well we're ready for our spring offensive and it's going to be a bit. i can assure you it'll be a lot of interesting things starting to happen because what we what's happened is a diversified. we have a slogan much for i can say it on television what i can say that the bowdlerized version of screw us and we multiply and this is pretty much what's happened we we

got kicked out of the parks but in the mean time the number of different initiatives on every level from housing starts to occupy farms they have eleven occupied farms in new york alone we have projects on debt we have projects on art we're all over the place so we're going to just show up on a thousand fronts at once very soon this is thing that made a as such has never existed and states there's labor day labor day was created to be as far as possible in the year over from a day to talk a little bit about the fact that now we are entering a real may day will be and then isn't thing this is celebrated all over the world but it's a celebration of something that happened in chicago everybody in the world has been celebrating an event that happened in chicago that nobody like you chicago and even those about anymore what's also yeah well it was the fight for the eight hour day which was led by energis traditionally anarchist tend to be the guys pushing for less hours if you were the marxist want more money in the labor unions in the

nineteenth century so there's a great deal of anarchist mobilization around the eight hour day and. a lot of police repression and at some point nobody's quite sure how somebody threw a bomb a bunch of cops were killed and injured and what they essentially did is they rounded up all the most outspoken anarchists had a show trial and had them all executed and that was the haymarket riots this event it was obvious kangaroo court these people out clearly had nothing to do with the incident if it indeed was an anarchist at all this became a cause celebre a and has been. honored by people as far away india bolivia china to celebrate something happened in chicago in the eighty's david graber at a time thanks so much for being on the kaiser report good to be here that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i would like my guest david graber author of debt the first five thousand years if you want to so many mail please do so a kaiser report at r t t v dot ru until next time next causing bio.

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