person ends up with a lot less money than they thought they did and we see this being played out on the global banking scandal scale and as we've been saying all along it's all based on traditional con games just played out on much bigger of a time scale much bigger size of a con a bigger con the biggest on of all member paul newman in the sting was chasing the big con this is really the biggest yes this is a global scale con now i thought of this short change con when i read this on yanis varoufakis website for europe's sake greece musri negs on its bailout commitments my op ed in the moment. it's not actually the greek part but it's this little thing he's talked about in spain and this was a mid may and he said the fiscally stressed spanish government was injecting large amounts of capital into spanish banks simultaneously to help finance the spanish state the e.c.b. has provided large loans to spanish banks at one percent interest rate which they

then read lent to their quote unquote savior i.e. the spanish state at interest rates often exceeding six percent yes so what we see is the quick change of debt for debt a quick change a con game where the indebtedness actually increases and the austerity measures are only going to have to be more severe because they're increasing the debt a lot of people think that the programs in place in europe are meant to create some kind of inflation to get some economic growth but they're actually designed to create more deflation more debt more austerity because the goal is asset stripping and futile ization well it's a con it's to take your assets and wealth and that's the simple it's very simple somebody is making money and it's a quick patient and it's not the people you know it's the folks who are organizing

the con game they're of course making out like bandits during this process and they are there every time they introduce a new fund whether it's the exchange rate stabilization fund or the emergency fund a or the emergency fund be these are all meant to just create more legs of the con game to create more fees for the con artists and to bankrupt the poor suckers like the europeans who are getting current by this on merciful confiscation of wealth so short change gay remember a lot of money has to keep on changing back and forth you have to say here's here's ten me and you give me nine back and i gave you ten and blah blah blah and they keep on changing money so you get very confused over how much you actually oh and who owes who what and who's. money is that so solidarity euro style finnish loans you see bond purchases f.s.f. tough love in a sort of horror stories from the post-modern euro workouts so this is about greece now i want to show you another more short change con operation yanis varoufakis is

writing about the bankrupt greek state was recently forced by the troika and the e.c.b. i.m.f. you to borrow four point two billion euros from the f s f so as immediately to pass it on to the european central bank so as to redeem greek government bonds that the e.c.b. had previously purchased and a failed attempt to shore up their price this new loan boosted greece's debt substantially but netted the e.c.b. a profit of around eight hundred forty million euro's courtesy of the twenty percent discount which e.c.b. had purchased these bonds. right and that profit is not used to offset the austerity measures it goes into the pockets of the administrators and the technocrats for organizing this condom well that's what i'm saying that's the the ten dollars in paper moon that ryan o'neal and his daughter were taken and walk

away with they come out they've stolen the money from the gas station they walk away with the ten dollars and the woman is left there confused the same here is the greek people are just confused they don't know what's going on but all they know is that there are eight hundred forty million you're assured right there and they they know that con artists like the european technocrats know that the victims of the con the are pandering to the greeks or the spanish or the irish they the the instinct they're too polite to question the con artists because they're some of the talking they wear suits they have nice hats you know they come in there and they talk a good game and they thought well maybe we're wrong maybe we're the ones that need to reexamine what our position and they're very polite and they con artist walk out the door with their money well they're confused as it's going on later when the lady at paper moon counts her money she's going to find out for sure that she was ten dollars short now we find this over and over in europe what we've suddenly found a black hole of debt we don't know where this came from they're suddenly in this

case is going to be eight hundred forty million euro short in the greek state and they're going to say we don't know how this came about it's sure how did this happen and people are going to blame the government but nobody knows that it was actually the e.c.b. and the bankers behind it that defrauded you right and we see at least in this before too in the u.k. for example royal bank of scotland will suddenly announce oh we have a trillion pounds black hole of debt we have no idea where it came from oh we need to be nationalized the executives get to keep the money they stole and austerity measures need to be imposed oh this bank has alpha bank in greece it's a huge black hole of debt we don't know where it came from bang. words that we don't know or came from or m.f. global and the mortgage remember j.p. morgan stole eight hundred one point two billion from customers they stole it from the customers they pretended as if in jamie diamond we don't know where it went it's a black hole of debt and he's selling off into the sunset you know drinking themselves

silly from all the excesses of his guild gotten gains in congo designed to corps and also still funding obama we don't know where the money came from we opened the front door of this billion dollars came pouring in through the front door and ed mcmahon wasn't even there so remember the important ingredient to this con is confusion you must do it very fast you must confuse that person spain bailout terms to be agreed within a week urgency reflects a growing consensus asparagus claps might start chain reaction that could topple italy and destroy the euro spain has come under pressure from the european central bank germany and netherlands to move before greek elections on seventeen june amid fears that political chaos in greece and the weak this is spanish banks could threaten the euro's financial stability there is a need to ensure that the euro area is properly ring fenced and protected from possible greek fallout and that means strengthening spain's banks said an official step to get your pockets picked but too big to fail banks don't waste your time

with good luck and live. yun it's amazing that the same con can work over and over and over again that's what p.t. barnum said you know there's a sucker born every minute you can do the same con five minutes later or look at the i.p.o. facebook the same pump and dump. again and again and again where you say this con works over and over well here's from december twenty fourth two thousand and eleven short change con makes stop and worthington so this is a worthington minnesota right before christmas some guy pulled into a station a shop defrauded this woman a fifty dollars by using the short changed thing he confused the woman at the at the cash register and she ended up fifty dollars short. the police say now keep this in mind when you're thinking of any news coming out of europe all the chaos panic the best way to avoid a short change con is to slow down says chris hill shine the police officer involved in the situation in minnesota if you have somebody trying to rush

a transaction stop and focus on one transaction at a time they try to rush it along and get multiple exchanges going at once and that's where the confusion comes in perfect you've got these various funds in europe they're all using the same con of multiple transactions simultaneously to confuse prefer they end up with all the money and the people end up with the austerity measures but you've got banks on wall street like j.p. morgan or goldman sachs they have created funds where they invest in the con games in europe and they call it's not officially called the con game arbitrage fund but it might as well be called the short change con game arbitrage fund by goldman sachs or j.p. morgan so their investors their clients can invest in the banks ability to commit fraud in europe and around the world but that's also a lot of the whole banking model is the short changed on this whole confusion of funds on top of funds here's the five mortgages they are going to package them up

and bundle them up and roll them up into one and it's going to be better it's going to be aaa and this is what the model is for a member of the credit default swap scam in places like that fishing village in norway or montgomery alabama where the bankers on wall street come in and they say we're going to swap your current debt with this clatter was debt swap warrigal dish network bond and we're going to lower interest rates for about a minute but the second i walk out the door they're going to spike to triple what they were and you always three hundred billion dollars ok and now greece in particular has several layers of debt to all sorts of people the troika the f.s.f. but here's a new one the european redemption pact golden idea to save or do the euro germ. new ideas quickly named the european redemption pact countries with debts greater than sixty percent of gross domestic product the ignored limit under the european union's master treaty would transfer those debts into redemption fund which could be covered by joint bonds the scheme has been called euro bonds like

here's the catch max countries using the scheme. would have to cover twenty percent of their debt with collateral payable in gold or currency reserves. default on the payments and you lose your goal. of course is gold germany wants the gold this is a great way for germany to get all the gall this is so predictable we've been saying this for a couple of year over year now the end game is gold and this is clearly germany's making their play and well they say germany the supervisor of the pact and presumed inheritor of the gold if the loans are not repaid seems to be saying we don't trust the euro as it is it's too weak so give us a stronger gold backed euro they should have had a gold backed euro from the beginning it would have been a true currency union here this is been a short change con so germany and whoever the powers that be behind the e.c.b.

have used to short change con and now they know greece is down portugal is down spain is that italy which has two and a half thousand tons of gold is next and this redemption bond is going to be something for them well it wasn't country out there to jump the gun and offer a gold backed currency ahead of all the shenanigans and take the wind out of germany sale and have the best performing currency in the world or a silver backed currency like mexico or athens as we try to do with hugo salinas price when we were just in athens pushing this so over back her and see it as a way to jump the gun on germany and have the best performing currency ahead of germany hopefully the greeks will wake up to this reality exactly be prepared for the short change con absolutely thanks so much being on the cards a report thank you max ok way much more coming away stay right there. there hasn't been anything good on t.v. . it is to get the maximum political power.

source material is what helps keep journalism honest. we want to present. something else. which brightened. ruling. from time to pressure. the start time dot com. welcome back to the kaiser report i'm max keiser time now to go to seattle talk

with economist yanis varoufakis younis welcome back to the kaiser report it's very good to be back max all right yana. here we are again now spain is in line for a greek size to bail out some kind of balance that we've seen in greece already you like in the european aid to greece spain and the others as being dickensian a workouts explain what was a workhouse but work house was an institution under victorian conditions the purpose of which was to. the poor or from seeking the assistance of the rest of society and similarly the f.s.f. the european financial stability fund a significant purpose of which is supposed. to come to the assistance of member states of the eurozone that affect if i can possibly can finance themselves like spain now. they say that the conditions that are imposed by

they said by the c b i think the europeans in general. all member states that need the assistance of the f.s.f. the keynesian workhouse conditions in other words there isn't why spain has been so reluctant or last few weeks to seek the assistance of the it was a life we become the british in short we've been the f.s.f. as a demo you see the whole thing as about the reason for creating warehouse conditions for the safe for countries like beach week countries like greece and ireland was to deter countries like spain from seeking the assistance of the city but the whole business of bailouts has been so toxic commuter that now there in spain it was supposed to be deterred by the gains and conditions of the in the courthouse and warehouse of the ever so is there anything in it anyway so what next for you except what completely out of this immigration as well you know spain was making a comment to the effect that they want the money they want the the e.u.

money but they don't want strings attached so to me it's less of the workhouse and more like a whore house you know the first day in the whorehouse the horse as oh oh i'll sleep with the customer but i won't do x. and i won't do y. and i won't do this or that and then a week later they're doing everything that that the johns want them to do because that's their job as a whore now whether it's greece whether it's span whether it's ireland they've been put into possession into the position of being debt horse to the troika the e.c.b. the i.m.f. and these other whore house managers they'll make a few bucks i suppose but they lose their sovereignty they lose their integrity they lose their moral compass and they are in a bad bad way what's wrong with that analogy whorehouses potentially profitable. the f.s.f. and all of these institutions of created for saving your the euro zone the last

year and a half. impossible to sustain so our hostages your groom and then look at analogy is effectively breaking down it's going bankrupt but look max think of what was happening before spain appealed to the f.s.f. we had this minutes of the falling kind of relationship between banks this french government in europe this bankrupt spanish banks where being bailed out and being banged up you know they've been receiving spanish money now for a very long time now despite a state of course was bankrupt so what was their solution of the great the good of europe used to drive you in particular came up with their ghetto so the banks that were being bailed out by this by the state were borrowing from the e.c.b. up one percent to lend to the spanish government that was bailing them out at six percent now this ponzi austerity and it is

a ponzi of study because all the conditions for having this and that but having be at the arrow where that's the spanish government was queasy was screwing afaik they would leave this amish economy into the ground so as they do these being closed for a year a year a year and a half and that's why spain is bankrupt and has to be bailed out like ireland portugal and greece the only problem is that the bailout fund is not enough to bail out spain and the whole thing is coming down in flames yes i think you may have come up with a fantastic term there the ponzi austerity because in a traditional ponzi scheme new money is coming in to pay off the original members of the pyramid scheme but in this european reverse ponzi scheme are ponzi austerity scheme it's not new money that's coming in but new debt at ever higher. interest rates so it's a downward spiral of debt

a ponzi debt scheme in reverse that's guaranteeing without a question on the doubt what you say is the workouts i call the horrible house but it's inevitable through apologies game it's a negative berryman's game of ever imploding debt yes absolutely look it's very simple as that it is supposed to be belt tightening that these are using the amount of money that you are utilizing noted to keep your system growing whether your system is a household or state not a state could never work in in the years and given the way that that he got picture architecture work so we didn't have a state we had what i call constant state of state because we on the one hand yes we've seen. you could live and be a theology of belt tightening in the state at the taxpayers into. it kind of state but these are completely unsustainable effectively us. all economic life within a year you're creating and major recession by screwing people right down to the

ground while at the same time you are creating huge quantities of money that is being batted about between states and banks but the non-sustainable way that's where the sponsors their rights i want to i want to emphasize this so in the case of greece and now in the case of spain what what the governments are asking the people to do is to accept two things austerity and more debt the people in these countries believe that they're accepting austerity in the belief that they will have their debt reduced with this is completely false as you point out on your blog and in your writings they are being asked to accept austerity plus more debt now in the case of spain bailout will appeal like greece i think we've said it will be a sudden move on this question on to this four point two billion euro loan. greece has recently forced to take from the f.s.f.

this is a perfect example of your ev your schema of a ponzi austerity who exactly forced greece to take the loan was it in the interim government that accept the loan who profited from the loan so go into greater detail in the pond just barely reversed ponzi scheme as it relates to greece and the fs avlon you will recall about that last month we had this supposed economic about being installed that's what i mean is that i'm in an election but i mean is that a if that means that probably means one of the worst central bankers in the world given up together with missing to shape increased interest rates a month before human brothers went up and i went down in flames this gentleman mr bob i mean this will happen to be a colleague of mine of university of bath and. effectively presided over the negotiations that led greece to signing a second memorandum of understanding second bailout the right i spoke of that the. second memorandum that mr pope of the most because i think that what greece. was

committed to is a cd of three things. loan installments that it would save from the vika. payments that it would make to the troika from those loans and thirdly a state of the measures that these screw the population into the ground. the government has been the interim government but economic traffic supposedly government was. a lie and on the. parliamentary support of the major parties. such as in the so it's sort through this computer so the greek government people it's part of being now let me give you a good mention of particular pain of the people the people if you mention to. do and a half weeks ago according to the show journal of the lonesome of the bay mints greece was was it was daintily c. five point two billion years from the epicenter of which five point two billion is

it would have it will be able to keep one billion for the use by that extent for buying those from a suit because for them for hospitals and rain for schools and pensions and stuff one out of five point two and four point zero would go back to the european central bank now explain why that was part of the now they're trying again interesting really broke that agreement so that one billion that was going to go to the good state never reached the greek state so the five point two only four point went to greece but not to greece because greece had to pay every sinking of the four point two billion to the european central bank now why why do these should be easy be in its wisdom if you recall a year a year and a half ago entered the secondary bond market then bought stressed bonds of these islands on support of the problem up that failed of course and nevertheless it ended up with billions of worth of greek government bonds in its books now in march

those bonds for all other bond holders would have got savagely of the c.b.s. so this would be wanted to take its money back to have its bonds get government bonds that it didn't and it had them to be at face value even though the they said he never bought them at face value that bought them a twentieth or thirty percent. discount which means that the greek government and that's how i finalize the whole thing. to have weeks both focal you could billion from want of the european union from the epicenter in order to give its all say to the e.c.b. so that they simply could profit from the bankruptcy of the greek state where the greek population was being screwed to the ground that sponsors that ok so you have the population being forced to accept austerity plus more debt at the same time plus the specter of the people who are perpetrating this ponzi scheme enriching themselves with billions of dollars by manufacturing and selling and constructing

this ponzi austerity scheme and there's a lesson coming up in greece in a few days yanis the new government what's the first thing they should do day one whoever gets in office watch what they do one thing i'm not going to say it's not going to be good he seems to accept the next loan installment for it from the troika look insight into the eyes of the german taxpayer and say you are back stopping these loans to me to us. those loans are not helping us restore our economic activity our society keep our hospitals running those loans we have to take unsustainably and give them back to the c.p.u. or somebody at some other creditor now we're not going to be able to keep doing this because we had these you know sort of collapsing and imploding so you'll good money is going to be thrown off the by the money and in all conscience and. on

the basis of just simple solely that of the of one european to another we've been going to tax the government and looking at you the german taxpayer and saying we have no granted accept this money and if this means we're going to come we're going to go bankrupt well so be it because we have bankrupt we have to find another way of making this yours own of ours work or let it just go to hell all right yanis varoufakis is we're out of time thanks so much for being on the kaiser report thank you max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests yanis varoufakis if you want to send me an e-mail please do so at kaiser report in r t t v dot ru until next time ask either side by our. own home.

ransford asked the u.n. to open up syria's skies for western bombers and another broadside on the assad regime. number two endorsers the rebellion. egyptian relief over the end of a thirty year emergency rule. as authorities again allow the army to detain civilians at the presidential election runoff it's the country's women who feared the worst. and the sinister walk in the woods with infuriated general opposition journalists claims led to a showdown russia's top investigator over an article accusing him of my feeling. international news and comment twenty four hours a day you're watching r.t. france could ask the united nations to allow a no fly zone over syria the country's foreign minister also says he hopes the u.n.

would authorize the use of force in order to bring about peace within syria blasters injured two people near a hospital in damascus just days after the rebellion was given the blessing of the second in command a video of. the u.s. as was killed in pakistan a drone strike one on this list worldwide to go to syria and join the fight against president assad has been a financial reports it's further evidence that extremists might be taking advantage of the country's civil war. this video is a clear indicator that in the conflict here in syria you kind of global terrorist organization has taken sides and supporting those who are fighting. president bashar al assad and they extended their presence in the country it's not the first message of its kind to early in february we heard al qaida is leader calling on all muslims to support the syrian rebels president assad has been blaming militant groups and international terrorists for violence in his country.