we want to present. something else. that there are the headlines now we aired r.t. united nations observers report a sharp rise in rebel attacks on syrian forces is nature's own chief instead of possible armed incursion regardless of u.n. backing. russian opposition activists gear up for another mass rally in moscow after similar damage to clashes with the protest trend now on the brain. and israel begins implementing its plan to expel more than fifty thousand african refugees it's not seen as a racist purging policy deepens all the races of democracy. starting

a river into sideswipe one big business is the kaiser report. i'm max kaiser this is the kaiser report top ten of those dead horses and big fish stacey however maxine as a read the script before hand these are some of the headlines i have for our three hundredth episode. of the three hundred baby that's right we're going to be batting the same as ted williams well it only took three hundred episodes for this image to erupt out of spain max this is rise up yeah you know the indignados are joining

the global and suresh and against banker occupation rise is the phrase of the decade and these people are ready to join the others up the ramparts well max use this phrase rise up for your so go it took four years before the global insurrection against banker activation caught on and you can see why this rise up has happened in this next headline this is the front page of liberace own this is save our ship you know spain is sinking right so we've gone from grex it to what they now call spanish oh my god it's a span apocalypse well here's what spain can look forward to a spanish grips spain athens scrambles as coffers go bare so of course everything is worse and worse than expected them predicted then the elites and the central authorities on the on elected officials keep on arguing just take more debt and everything will get ok just slash the wages of the working poor just slash the

wages of the middle class just slash the pensions and in fact it keeps on getting worse and this is where the big. phish comes in max because part of the debt collection problem is well the middle class and poor have actually no money to pay whatever back taxes they might owe and this leaves the big fish and this is a particular challenge lies in what mr legace tax collector calls the big fish the eighteen thousand three hundred off shore businesses belonging to wealthy greek individuals and companies there's a huge pool of money out there but they have no way of accessing it right so there's offshore money of course a lot of us institutions. j.p. morgan and but when j.p. morgan get to the trouble they reach in and just take the money from their customers i think there are them of global so there's people who think that they're going to save tax or save their wealth by hiding it offshore they're not going to keep it from jamie dimon who's just stealing money left and right right out of customer accounts they need to do something more intelligent like buy gold well you

know speaking max those who are forced to go fishing because you know their whole economy and banking system has collapsed around them due to the point one percent zero point one percent actually of banks or criminals t.d. bank issues counterfeit money without a refund so william had been with through two thousand five hundred dollars who his savings account at t.d. bank in february then he went to bank of america to deposit the money in another account only to find out from the teller that one of the one hundred dollar bills was counterfeit he reported it to the secret service and went back to t.d. bank to get a refund but the supervisor said that was against the bank's policy since here dirty left the bank with the cash i asked why a bank customer me in this case should have to serve as this bank's quality control officer well the banks are counterfeit money they were counterfeiting money of course on wall street they counterfeit money it's called a credit default swap or

a naked credit default swap that's counterfeiting the bond markets completely counterfeit currency markets counterfeited stock markets counterfeit they can. unfitted a hundred billion dollars worth of facebook stock it's not worth really more than two or three dollars a share they floated it at thirty eight dollars a share that's of counterfeits game it's a ponzi scheme but this t.d. bank they gave somebody third counterfeit money and then when they went back to say way it's counterfeit and they said no we our policy is we don't accept counterfeit money this is i think one of the plots of a marx brothers movie good about duck soup or horsefeathers i'm not sure but this is the kind of lunacy you expect on the eve of the currency colin oh how is gold doing in all those own going straight up thank you but you know this is essentially we're all bank customers now we actually all banks themselves but we're the ones i have to do the quality control the people of athens scrambling as their coffers go where the people rising up in spain they're providing the quality control they're

the ones that have to do the job of what the regulators the rating agencies the officials at the banks the well paid c.e.o.'s what they're supposed to do they're paid to do that but we are the ones having to do the quality control and then we're told oh you know what in the case of the secret service says that if you get caught with one of these counterfeit monies if you find out that you are holding a counterfeit currency well it's called the hot potato people that receive counterfeit money and find out that it is a counterfeit later generally are stuck with it even if it came from a government run office such as the post office if you receive account for the bill and are told that it is counterfeit do not try to pass it on to someone else or else you could end up in prison for up to twenty years what about some financial stand your ground laws how about this max let's look back at the giant financial crisis going on in greece in spain in europe in new york in america in beijing

everywhere around the world what is this but them the banks discovering that they actually hold a lot. of counterfeit collateral a counterfeit assets they're not real and what are they doing they're passing it off to the governments on our behalf knowing full well that they hold counterfeit collateral and they're giving it to our governments look in the case of ireland well anglo-irish knew all of their collateral was bogus it was counterfeit they gave it to the irish people where is where are the twenty year sentences prison sentences who are standing there groom why are they standing their ground against counterfeiters rise up there used to be the bond vigilantes remember them they were the guys who were in the economy started to look shaky they would start dumping their bonds forcing interest rates up which would impose some discipline but they've all been bought off with the so-called quantitative easing program so the central banks the central planners have figured out oh you know what we can't let

these bond vigilantes any oxygen so we're going to buy all the bonds that we issue kind of like a dog eating its own vomit and we're going to keep interest rates low we're going to get rid of the bond vigilantes enter the gold and silver vigilantes the last bastion of real money well that goes back to this guy william hagman he is providing the quality control that the bank is failing to do and the bond vigilantes are failing to do so is just the gold and silver vigilantes at this time now max regarding how much counterfeit currency is in circulation in america so how many hot potatoes are out there it's become dangerously widespread slightly less than two percent of the u.s. money supply is counterfeit according to the secret service it's the the number is much higher than this this is one of those numbers that will creep up on people over the next few months they'll say oh it's just under two percent then revise

that like they're revised g.d.p. revised the productivities number the employment numbers they'll be revising the. percentage of counterfeit to quote unquote real money number it'll be five percent six percent ten percent twenty percent gold will keep going higher and higher and as long as you can exchange counterfeit money think about the deals they serve or you can buy silver and gold using paper counterfeit paper money it's not even it's not even legitimate money anymore you can like pick up you know go to your local laboratory take a roll of toilet paper out go down to the gold bullion dealer and they'll give you a gold of your silver for toilet paper this is the deal of a lifetime speaking of counterfeiting max the u.k. is apparently about to engage in counterfeit inflation numbers the most important article of the day is the u.k. about to engage in the stealth default this comes from michael krieger's new website liberty blitzkrieg proposals are on the table in the u.k.

to change the way inflation is calculated for bonds that pay out based on the rate of change in prices on surprisingly they are purposely attempting to use an alternative measure of inflation that allows substitution so when people can no longer buy a steak it must spend the same amount of money on spam this shows up as no inflation at this goes through it is blatant theft this is why owning tips in the us is a total fool's game they will mark inflation to whatever level they want at the end of the day to wherever is most convenient at the moment you know just like the banks mark their balance sheets this is what people have to understand stacey every time you go into a shop and you spend whether it's a pound a dollar a yen the euro understand that every time you take that unit of paper and you fork it over the counter that ten new ones are mediately digitally flooded into the system thus making the purchasing power of that piece of paper you just forked over diluted by ten times instantaneously every every act of shopping every

act of output every act of into. actually this economy increases the debt load in austerity against you it's programmed to do that this is why you your life sucks because the system is programmed to bankrupt you it's not because you are suffering from a moral failure it's because the system is trying to kill you exactly and you have said before that this notion that you know quantitative easing and all these central bank policies are financial repression is actually financial torture it's it's much harder than the simple notion of just repression because as the f.t. says about this new policy holders of some u.k. index linked gilt could see more than forty percent wiped off the value of their bottoms as a result of technical changes to the way the retail price index which underpins

these winkers is calculated i'll give an example of some deluded thinking i read recently in a newsletter probably one of most popular financial newsletter in the world saying that while people are buying german bonds built in losses for you know hundred two hundred three cents on the dollar basically they're buying a negative interest rates because they are speculating that euro separation will mean that germany's bond market in currency will explode in value and they're going to make money on the tail end of this event that's the kind of psychosis that is informing the pundits out there who are encouraging people to keep buying worthless paper meanwhile as you just described the reality on the ground is that these paper currencies are headed for forty fifty percent devaluation across the board against gold and silver and finally max this these changes to how they're going to start counting inflation in the u.k. are designed to quote eliminate unjustified causes of the persistent gap between inflation as measured by the r.p.i. the normally lower consumer price index narrowing the wedge between the two

measures now i would say the unjustified cause of course of inflation is. is essential bank while financial narcissism to persistent unjustified causes i mean let's talk about this word unjustified for a second it's not unjustified it's completely justified your unjust you don't understand the meaning of justice you're imposing austerity even because a year screw ups and you're causing financial hardship because of your screw ups that's unjustified and as a result just because you change the law to make financial crimes legal doesn't make you morally superior the street knows it and the mob knows it and that's why they're rising up. thank you being on the gaza report thank you max don't go away much more coming your way.

you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harkin welcomes the big picture. welcome back to the kaiser report imax kaiser time now to turn to charles hughes smith of the website of two minds dot com charles welcome to episode three hundred of the kaiser report thank you max i'm honored three hundred and nice round number

absolutely charles the financial banking a debt crises continue we see austerity sandwiches in europe food stamps in the u.s. obama is blaming europe europe is blaming obama who is right what can they all be wrong. i mean i think we could talk about austerity as a as a sort of fraudulent concept because we have to ask why are we tightening our belts and so kind of picking out your gulag casino state reference from a previous show it's sort of like we're being told we went to vegas a las vegas and blew our paycheck and ran up our credit card and now we're protecting our belts but. actually what we what we did was we went to las vegas and we watched major bank and speculators but all the money and then transfer that debt to us so we're tightening our belts to pick somebody else's debts that

doesn't seem like the austerity that you know we were raised with you know we're not we're not saving the money for ourselves we're saving somebody else yeah well it doesn't really matter if the official policy is austerity because the economy is collapsing and causing credit to dry up and jobs are disappearing and people are having austere lives regardless of whether the official policy is austerity are not correct yes that's true and i think we might we might look at the. one of the problems which you've covered many times is we've got like this inverted pyramid in which the collateral disappearing all this tremendous debt and leverage keeps getting smaller while they keep adding more debt you know at the top and most of that debt is of course being added to the taxpayers and so how do we pay for that debt well they have to take money away from from consumption and investment and pay

interest with it so there's your austerity death spiral so. one of the first reactions from barack obama when the crisis say they launched i think was an eight hundred billion dollars stimulus program these were make ready jobs shovel ready jobs and this net impact the economy nothing of zero but you have guys like paul krugman of the new york times who says well the problem is that it wasn't big enough it could have been you know double that or three or four trillion worth of of a stimulus package would have solved the problems and yet his message one has put forth on a panel and let's say a recent a pair. yes in the u.k. where there is austerity he was laughed off the stage at that it doesn't appear as though has his keynesian notions i'm working on that idea has any play at all either charles no max it it i think the problem with the neo keynesian uproots is that there's no way to differentiate between throwing money away and actually doing

something useful with it so like you know here in the united states about thirty percent of medicare is fraud or completely unproductive you know multiple tests and basically a form of financial skimming and so if we're just borrowing a bunch of money to throw away for fraud in financial skimming then of course we're not going to get anything for the money and of course this goes back to the idea that if we were going out for a couple trillion dollars into the economy then it would have been better just to write checks in the hand of two households charles just met him recently run out the financial chickens are coming home to rist as we say around the world at the moment because we did nothing to fix the situation what should have been fixed and by whom well max as you've often said what should have been fixed what is bad debt the debt that is was piled up by speculators and banks that will never be paid

cannot be paid that has no collateral anymore underwriting it that should have been written off and everybody that owned bank shares and bank bonds it should have accepted losses and so we could have cleared the financial system of one pitiful debt that would have been step one and in step two would be to raise interest rates so that savers would have been rewarded for saving capital and it speculators would have had to pay a market rate for their money to gamble with. and i would have inhibited gambling and encourage saving and we'd be in a much better financial situation let's look at across the u.s. in europe every single head of state whether elected or imposed has decreed that bondholders shall accept no losses again we see all the major g. twenty governments in the world appeasing the bankers and ignoring their their

constituencies of citizens but even in the case of ireland in which unsecured bond holders transfer tens of billions of euros of debt to the state which in turn had to go to the i.m.f. for a loan so the i.m.f. going forward it seems like it's becoming a big player as these other central banks are over indebted and overstretched and over and cumbered with trillions and trillions of toxic loans is the i.m.f. going to become kind of like a world central bank like the bank of international settlements some people think that other people think that we have another situation where there's a pop gun being aimed at a tsunami and the holder of the pocket is saying i'm going to fight this gigantic wave of debt and we're going to solve it all i don't know that the i.m.f. is is big enough because as you say the debt and leverage tsunami heading our way is unprecedented in world history so i'm not sure they have the wherewithal to

support. what i call the phantom wealth and you know there was this problem really starting from you say whether trying to create or sustain the illusion of phantom wealth you know and always phantom wealth is eventually going to go away well talk about the phantom wealth for a second so break that down for us well say we have a good in spain or a house in the states or. mcmansion in ireland and in the real in market value about houses maybe. hundred thousand euros or a hundred thousand dollars in today's market but the mortgage is five hundred thousand euros or five hundred thousand dollars and that's held by a bank the bank sort of that mortgage to a pension fund or a town in norway and it's still held on the books as if it's worth five hundred thousand well of course three hundred thousand of that is phantom wealth it's not real it's being held on the books and somebody is paying me interest on that and as

we talked about you know stupidity it ends up being the citizens who are paying the interest on the net debt to to can sustain the illusion that that phantom wealth is real and of course it's not real if if the house were so then good somebody is going to have to suck four hundred thousand euros or dollars and once and i think the same thing is true in bonds if the bonds were on the open market someone's going to take a fantastic gigantic stupendous loss and that's what needs to happen and that's what the financial status quo is desperately trying to stave off all right so the situation is that while. in his pursuit of the road runner has ran off the cliff he then looks down and realizes that he's no longer standing on solid ground he plummets into the canyon but we do see a puff of smoke still where the wiley coyote was just at that's the phantom wealth

that's the illusory piece of the economy that these governments want to maintain as being real even though the coyote is there out the bottom of the canyon splattered all bits across they want to pretend that that bit of smoke is worth something and they're willing to charles use meth to keep interest rates down one percent isn't quantitative easing because they want to make sure that the interest on this puff of smoke and all those three wealth and phantom america which is gobbling up the global economy that the. interest rates are as low as possible to get to so they keep rates artificially low which of course ends up penalize ing savers doesn't absolutely max in fact that's one of the main financial skimming operations is you know in the old days people who saved money were rewarded with six seven eight nine ten percent interest on their capital and now they're being punished and hundreds of billions of dollars have been transferred from them to the banks which has been

good to borrow the money at zero and in speculate and play with carry trades in currencies and and bonds and so on and so yeah it's a huge transfer of wealth away from citizen savers to financial skimmers and con artists fraudsters and banks tourist oh george osborne who's the. the chancellor of the exchequer in the u.k. he had just imposed a new group as it's called the granny tax which is another wholesale fact from savers to the speculators this is five billion pounds on top of this sixty billion pounds already taken from savers and his justification was well these grannies these older people these pensioners they were spared all of the ravages of austerity so far so they need to pull their weight as sacrifice for the greater good but didn't they and fact underwrite by having all their savings decimated by zero percent interest rate at the bank of england same thing all around the world

to sacrifice an incredible amount of income already aren't they the ones the ball work that's kept this thing floating by sacrificing all their income to keep the speculators operating that's exactly correct. they have already sacrificed hundreds of billions of pounds euro's in dollars in income wise two or three years of zero interest free policy that's also smith unbelievable to me anyway is that even though shows like this one have warned people for months that facebook. to. ponzi schemes and group on another ponzi scheme were getting all public on the public i.p.o. market in america and probably trade down thirty forty fifty percent or more it despite all that information out there that these are just listed ponzi schemes run by rackets and criminals people still buy into these things is it just because it's a casino mentality they're basically addicted to gambling or they gamble all expressively. that they've they've been trained by the last fifteen years of

financial and credit bubbles to think that the next round in the casino is going to be the winning one for them you know the whole dot com speculative bubble in the late one nine hundred ninety s. and then the whole housing bubble which rose you know globally in the mid two thousand so everyone's looking for the next. casino table to go and make a big winner and of course maybe the casino is a rigged game and there isn't going to be any more big winnings well in a casino at a real lot well there is a chance you could make money whereas on a facebook i.p.o. the chances are zero so casino actually offers better odds than a lot of these i.p.o.'s on wall street finally charles is with protest movements from the tea party the occupy wall street it started out agitating for economic backing trying to be punished but each movement quickly disintegrates and it kept outs or corporate buyouts your thoughts on the u.s. banking war protest movement welcome the banks across our own the political

machinery so and political machinery controls the police force and the forces of repression so. public protests of any nature quickly get stomped on by the status quo machinery of suppression and repression and so that leaves a simmering pot of dissent and rebellion that is. the pressure cooker you know they've suppressed it so so far by you know pepper spraying people and denying permits for peaceful demonstrations and so on they haven't sort of anything the pressure cooker building pressure all right charles you know spread throughout time thanks so much for being on the kaiser report thank you so much max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests charles you smith if you want to send me an

e-mail please do so at kaiser report r t t v dot are you guys are saying. well. it's technology innovation all the developments around russia we've got the future covered.