four percent of the world economy now poses a threat to international prosperity as investors raise bets it's days using the euro are numbered a greek departure from the currency would inflict collateral damage says pimco at worst it could spur sovereign defaults in europe as well as bank runs credit crunch is a recession's that may spark more euro exit greek exit at worst means more money printing for the banks and they've already priced that into their stocks and their bonuses what they're really afraid of is that a country finds its inner gonads and decides to become politically independent that's what they're fearful of a country standing up for and so they want iceland to be just contained they don't want greece to stand up for itself they don't want ireland to stand up or so because then they would tell the bankers to stop it that's the real problem they threaten this financial terrorism which is full so it's false these are false attacks it was a false attack in two thousand and eight it was

a concocted over cooked attack on nine eleven it's a false. well j.p. morgan chase estimates a one percentage point slump in the euro countries economy drags down growth elsewhere by point seven percentage points exporting nations from the u.k. to china would suffer in commodity producer russia would face falling oil prices while the us may fare better even though it would feel echoes similar to the financial infection following the bankruptcy of lehman brothers holdings this is the point is this point four percent of the global g.d.p. is it greece's fault or is it the bankers fault that we have a global financial system where just the point four percent move could take down the whole house of cards well you make an excellent point and the global economy is leveraged thousands of percentage points against no collateral whatsoever and the entire world has become. the entire world has become like. global like j.p.

morgan's balance sheet the slightest little and the whole thing blows up like this but let me say this quickly about what's going on in another european country ireland you know the point is they threaten them for example with a crumbling stumbling collapsing year zero but ireland on a net basis does exportation outside of the euro zone they would benefit from a crumbling euro they want a euro to collapse just like germany wants or your article of ireland and germany are wanting the euro to collapse this is my point the f.t. agrees with me well going back to greece barry eichengreen a professor at the university of california berkeley and author of a two thousand and six history of the european economy told bloomberg an awful lot depends on what is done to limit the contagion within europe if too little is done then to use a financial term all hell breaks loose i can imagine things playing out that way these are again these are arsonists that are threatening people with more arson and

the response should be to react in a way to shut down the arsonist first of all to wield a leverage balance sheet as a weapon is not within any constitutional right of any of these countries there should be no bank able to threaten financial terrorism as we've been saying and this is just more of the same now in the euro zone and it's completely false what they're stating there these attacks are false ok well you know here in london also we had that spontaneous eruption of evil people it's kind of like the l.s.d. laced guy who bit the face off that homeless man in florida recently like there were these riots here spontaneous we don't know how it happened and well remember the at the center of that was the dixons retail chain here where widescreen t.v.'s and big screen t.v.'s and flat screen t.v.'s whatever you call them they were also . dolan well incite european firms plan for greek unrest and euro exit british

electrical retailer dixon's has spent the last few weeks stop piling security shutters to protect its nearly one hundred stores across greece and case of riot the planning says dixon's chief sebastian james may look alarmist but it's good to be prepared is a moron you know because you could just as easily make the prediction that an enormous a love planet is about to collide with earth and therefore you must go out and buy chocolates and tulips to engage in the love bomb that's about to go whoa and you could throw the money toward florestan chocolate manufacturers but instead this moron addiction's is making scaremongering to get sales over his store you know we don't have to live by hatred alone we can have a love out there in the universe and it's force money into the love market actually sound like donald rumsfeld he planned for rose isn't true that's being thrown at us troops that look what happened there max they haven't said what he he wrote that on

the side of a sidewinders in rocket propelled grenades best difference well company bosses around europe agree as the financial crisis in greece worsens companies are getting ready for everything from social unrest to a complete meltdown of the financial system now of course the einstein we're here to comment on this he would say the very act of suggesting this to happen you're preparing by preparing for a financial and social unrest that was actually a freudian slip there to a financial unrest well you're going to create the situation they're not preparing for a financial unrest or any social unrest whatsoever because they're not forcing people to buy gold and silver they're forcing people to you know they're assuring them they're corralling them into paper prisons into banks that are about to go failure to about to go belly up and that's not preparing anybody for the apocalypse that's coming they don't even know the first thing about economics i was born in cameroon are. financially illiterate well these are company bosses across europe so major

corporations across europe so what does christine legarde who yelled at the greek people pay your taxes well what does she have to say about the preparations by the company bosses the corporations that are part of our government that are part of our society that are part of the structure of this economy here well those preparations include sweeping cash out of greece every night which is that remind you of argentina the tank the army tanks of cash being siphoned out by the likes of citi group and other corporations in the middle of the night max that's what that reminds me of absolutely remember they just of the tanks and they brought all the cash they rolled out of town well the company preparations also include cutting debt well mervyn king here says you need more debt that will save the economy so why are these guys trying to crash the economy by cutting their debt no they have savers they don't call it a conundrum a savings if everyone save there would be enough debt to spur the retail boom so

that guys like richard branson who's a big consumer product guy wouldn't have the ability to go on t.v. and flashes big teeth all that's on well they're also weeding out badly paying customers so remember every single time you hear about another greek person going into some thomas square and blowing his brains out well that's them weeding out badly paying customers yes we've seen this script before i think it's called the final solution yes and they're also readying for a switch to a new greek drama if the country is forced to abandon the euro again this is all propaganda to put fear into these people and say you must vote for the pro bailout party i you must take on more debt while these companies are cutting debt they're saying you should take on more debt but as we spoke to hugo salinas price recently there are other alternatives you can vote to say forget it we're not paying your debts we're not. saying french banks that we're not paying the german bank debt

we're going to seek freedom and we're going to acquire a silver standard yeah so you've got an agenda for the corporations you've got agenda for the government and then there's the unstated agenda of the population which can't seem to figure out that there are cross purposes with both the corporations and the governments who are there in the business of pushing debt laden interest bearing worthless paper and as a result you have a society that's indentured servitude ridden as opposed to having a free society a democratic society in your left a tent technocrats on elected officials throwing dictates down and it's a fricken autocracy and it's not at all you know as the dude would say the big will bow ski we don't know why. well chief executive james of dixon says the company has contingency plans to shutter up sixty nine wholly owned and twenty nine franchise greek stores and close them in the short term to

protect against any threat of civil unrest and prepare for a switch to a do drama you know this is always their response the corporations who own our governments their response is not to fix the system that they created it's always to. hire more police build more barriers put missiles on the top of buildings and said if just maybe abiding by abiding. well i really believes that there should be a contingent of greeks traveling to ireland there should be irish people travelling to athens they should be mingling and they should be co-mingling and they should be generating cross european border coalitions to fight the banking terrorists because through the economies of scale of purpose driven and paper mongering nincompoops at the head of this paper pyramid and ponzi scheme is the solution so you've got to have

a swap of activists you can't have spain the indignados in spain and the folks in grace and the folks in portugal in these other working in isolation in a silo they're all together you know maybe i should start to love bomb i am the love bomb i'm exploding in your face with law and i say to get together with your athenian brothers and your irish sisters and come together in your pushback against the paper hatred the devils paper. be together and embrace each other and that's the way that the wicked witch of the federal reserve system will crumble well max with that love bomb remember there was. the cozy love story between merkel and sarkozy well that's falling apart with the most terrifying words of all d.s.p. the problem in high in this is former german finance minister peer steinbrück

interviewed him build an english headline reads book sees hollande proposal affecting credit so here are the germans and the french the two biggest creditors to all these debtor nations. who are the ones forcing you know the peasants of these other nations to pay up their debts that their own banks made and now they're starting to throw bombs bombs to each other steinbrück warning to build that investors and rating companies will naturally take a close look at the course france sets this was in response to holland's new proposals to lower the retirement age and tax top earners at a higher rate and he says that can have consequences for france's credit rating yeah these two are at it again that was predictable stacy ever thanks for being on the kaiser report thank you max don't go away much more coming your way right after the break.

well. technology innovation all the developments around russia we've got the future covered. welcome back to the kaiser report i'm max kaiser time now to go to debt schlichter author of paper money collapse the folly of elastic money and the coming monetary breakdown debt of welcome to the kaiser report things from much marx all right that

love flecked are in the book you talk about the coming monetary breakdown are we now in the monetary breakdown well i think we are getting closer i don't quite there yet because i do think that most people still have quite a lot of confidence and you know that paper money and feel of money and the. you know even the euro but i think one of my predictions was that the current imbalances the current economic problems we have monetary authorities will try to paper over them by having to print ever more money by issuing ever more money and providing ever more bank reserves to the banking system and i think since last we spoke to that this is exactly what we're seeing we see the e.c.b. is injected more than a trillion dollars in the you know the bangle thing that has just conducted another round of quantitative easing tended to do another one this constant talk of the fed doing another round of quantitative easing so i think we go in that direction but we're not there yet ok so the word around the monetary campfire is possibility of capital controls in switzerland possibly in greece talk about what that means how

would that work do you see that as a possibility but what does it mean. i think it's very likely that at some stage we will see capital controls think it's only really a matter of time and i think this is a strategy by policymakers that it's called repression and i think that's those of the new work that is being used for it and what that means is obviously we have too much debt in the system and now in particular public sector that government bonds and already we had a stage where most of these bonds were being bored by the central banks last year sixty one percent of u.s. treasuries were bored by the u.s. federal reserve so they are practically paid for with a printing press and what one of the strategies is simply to suppress interest rates and keep interest rates be low inflation rates and therefore sort of work off the debt load over time through high inflation trying to inflate it away and for that for that i mean you need to encourage people to hope that that to own it despite the fact that the coupon doesn't even play pay for the inflation rate

normally people won't do that so policymakers have to force them to hold it one way is to not allow them to leave the country another one is to force banks to hold lots of government bonds to force your pension funds to hold government bonds via regulation by legislation and i think we see a lot of efforts in that direction as well ok so you're saying that people the monetary authorities have been trying to control the flow of money around the world using monetary policies using interest rates to steer capital as it's flowing through the economy but these distortions are widening so now we're going to like a phase two where people into insulin are saying we don't want the money to come in at all because we don't want the swiss franc rising because it's hurting our export market so they put in hard controls no money can come in here meanwhile in greece they're saying no money can't leave right so instead of having this fuzzy border that went that is being massaged through interest rates differentials and it's all

very big it's very hard stands so is it practical in the eurozone under the euro rubric of the euro can you actually put a cap. control because you have this e.c.b. of the i map you have all these mega organizations overseeing the euro is it can you practically put in these kind of capital controls is or is it as easy as flicking a switch now i think it will be technically not that straightforward i think in particular within the euro the euro zone so. obviously if greece does leave the eurozone and then sort of exits lots of some of these commitments even commitments potentially extant commitments to free capital markets and free capital flows or bets off and then things could change i think within the eurozone as a set up right now it will be difficult to introduce it but remember that behind sort of closed doors this is practically already happened happening you know if you look at what the e.c.b. gave as we know what new euro is to the banking system and you know many of these banks turn around use that money to buy government bonds and to some degree they

are being encouraged by regulators to do so sometimes to do this to increase the tier one capital to sort up their balance sheets but it's very clear that these banks are being asked to by their own domestic government one market so one of the ideas of monetary union obviously to have a free market of capital allow people to put the money where they like to put it i think we already see that you know people are retrenching from this and there is certainly pressure on spanish or italian banks to buy their local markets by the way i just heard that the spanish banks already accumulating massive losses on all the spanish government bonds they're bored with with the e.c.b. money in december and february because you spent a sponsor still selling off a lot about two billion euros in non realized losses isn't that somebody is taking the pain isn't that a ponzi scheme of course yeah this is what we just kicking the can down the road here we're going to call it down the road i can understand the length of the

maturities and that's kicking the can down the road but a ponzi scheme is you're creating this relationship between the e.c.b. in the satellite countries where you are you're actually engaging in a lot of massive fraud at the e.c.b. level to fund fraud on the spanish regional level in this bernie made off like ponzi scheme where you're chasing good money with bad money was good to perpetuate the illusion that this is a functioning economy. but i want to move on i want to ask another question which is something in here a lot now in the past week across the wires it says there's a dollar shortage there's a u.s. dollar shortage that there's a scramble for safe assets there's a scramble for u.s. dollars however that would imply that the world is running out of trees that the world is running out of electrons. right because how there's no sense that that's really propaganda isn't there's no such thing as a dollar shortage that's ridiculous yeah i think that's yeah it is a thinking that's that's that's a that's

a bit but it's strange you know there is no dollar shortage the you know even with the problems in the eurozone right now and the prospect at least of a eurozone break up or greece exit i mean you euro us dollars trading and we're one twenty five fifty right now and if you look back first to us you want to two years of the euro we went down to what eighty eight cents on the euro some women too much so the dollar went much stronger you know during those periods so i don't think that we have a very unusual u.s. dollar strength the other point i think will be do see right now is the market shifts and the interesting way if something rep's the headlines as greece does right now people just look for something to perceive to be the safest of right now and that it's maybe guilt in the u.k. in the u.k. government bonds in the u.k. it's german you know bonus online in germany it is even u.s. treasuries and some degree u.s. dollars but again it's just shifting the problem to another area is that really a safe haven i think it looks like a safe haven right now but we all know the u.s. has its own problems mess of you know budget deficits as

a matter of fact the budget deficit in the united states is probably not too dissimilar from that of greece right now and very very few convincing proposals to get that under control as i said before right now many u.s. treasury securities are not being placed with savers or you know the free capital markets they are being placed with with the own central bank or other frankly central banks so the whole thing is very very thin ice isn't that another kind of capital control and that the u.s. is not allowing for the free distribution of capital as a way to you know they think they challenge china as being a currency manipulator but the u.s. is a currency they're all part of manipulators limited as often as money right absolutely right and i'm the one of the reasons why over the last sort of obviously the throughout the twentieth century we've made a continuous move away from gold. and of gold and then of the gold standard and then you know as we know since nine hundred seventy one even the benwood system which was the last of link to gold we and one of the reasons was that each

government wanted to have their own printing press their own money and of course for the purpose of manipulating it. absolutely right the u.s. government is also a currency manipulator to try to get their currency down and they are furious with the chinese because they picked their currency to the dollar not allowing it to devalue but you see this is why i think we have now among these few currencies sort of an implicit race to the bottom and we see one ev a country you mentioned switzerland kind of a country like switzerland runs a more conservative monetary policy as the swiss have for some time this mess of pressure for that country obviously to see its currency appreciate the internal political pressures from the export industry and so forth and we've seen that last year now that the that the swiss government is taking all these measures on the central bank to weaken their currency or now even introducing capital controls are you mentioned bretton woods came after world war two in attempt to stabilize global trade global currency markets and that was the last time really people were

seriously talking about it a global currency remember the bank or discussed by keynes now people are coming back to that camp as a possible solution they're talking about a global currency some say the i.m.f. with their special drawing rights this is the ability to expand a global currency others want china you know they want to step in with maybe something like the bank or what what are your thoughts on this idea of a global currency and if one were to take shape what would it look like in your view i mean to mind on the one hand i am a big fan of a global currency and as i argue in my book. i think the gold standard was not perfect but in a way it was the closest we've got to a very well functioning global monetary system i think whenever you raise that topic a lot of people push back and. immediately say whether it was responsible for the great depression and we spoke about that last time i was on your show i think that's wrong but not going in that direction just looking at the gold standard was

an international monetary system that worked very well from eight hundred seventy nine to nine hundred fourteen and the interesting thing it was not under anybody's control because gold is obviously an anchor that it's a political it's not being manipulated by any you know political entity interests in the little people spoke about sort of britain being at the time the leader of the gold standard the leading nation but if you look at how the gold standard work you know britain could not be manipulated and to its own ends the bretton woods system is very different because now off the second world war america was under control so if we go back to a global one global currency i would argue strongly it would have to be something that is not under the control of any of these governments and it would have to be completely a political and again i would see you know a gold standard would actually work i do think we could go back to some kind of gold standard but i think my concern is that the politicians don't want to give you know this up now this ability to manipulate their currencies to set interest rates to stimulate the economy artificially in my view by printing lots of money

injecting bank reserves whenever they want into the banking system well i mean let me put on my barack obama hat for a second and say that it's not about going back to the gold standard it's about going to the future of the gold standard you say therefore it's palpable you know go to the future hope change gold standard well up you've got it figured out ok buddy now you've got the policy now do it now what about britain right here in britain they you know the i.m.f. is calling on the bank of england to cut rates introduce more quantitative easing. in britain what's the effect not good at that from my point of view and that this is why i'm so suspicious of like having a global paper currency because my fear is it will be under the control of the i.m.f. and as you just said i mean the recommendation from the policy elite and beyond. if it's always to print more money do another round of quantitative easing stimulate your economy again i mean we've done this for many years now and in my view we are in this mess because for twenty thirty years whenever the economy rolled over we

lowered interest rates and print more money the reason why banks overstretched why governments are highly indebted all around the world is because we always stimulate our economy by providing it again with with cheap money and we always come back to gold the gold star detlef selector at a time thanks so much for being on the kaiser report things so much thank you max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert or thought my guest at the selector is going to send me an email please do so i kaiser report at r t t v dot are you guys are saying.

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start on t.v. dot com. america closes the net around julian assange the f.b.i. now harassing his contacts in an apparent attempt to gather dirt on the world's most famous with. the student union putin is looking for some of china's economic fortune cookies moscow and beijing continue to read from the same page when it comes to world politics. and egypt's muslim brotherhood sides with moves for a million man protest calling for mubarak's execution hoping it will also sweep aside the presidential election right before anyone even votes. on air and online twenty four hours a day this is our take. the latest installment of. who is premiering today here in

r.t. with the f.b.i. now apparently among the ranks of loyal viewers the agency is said to have been given the green light to the launch of surveillance mission on the prominent whistle that everyone in contact with him when number of his guests have been stopped and interrogated by agents with one even offered the chance to turn f.b.i. informant what he's going to teach you can has more now on the story. u.s. officials say there is no indictment against julian a sausage but apparently the u.s. is going after him after all in their quest for evidence they might he watching the sunday shows here on our t.v. or else how would several of the shows guests be interrogated by u.s. officials about the we keep leaks founder in this week's episode features one of them that's jeremy zimmerman an internet freedom advocate who's based in friends at the airport traveling from the united states to friends he will stop by self identified f.