steve. santagati don't come. quarter horse three in the afternoon here in moscow this is our company headlines now a rather nervous wait for julian assange ecuador weighs up the death threat hanging over the world's number one whistleblower if indeed he is eventually transferred to the u.s. this before ecuador delivers its verdict on his plea for political asylum. as opposition forces in homs a stage a mass offensive against syrian government troops just spight a red cross brokered truce we report on how intimidation to join the ranks of the rebels has meant death for some who are a few years. the military backed election commission delays the results of the

presidential runoff in egypt another move has outraged many in the country who see it as part of a coup aimed at keeping the army rulers in power. now are to use our money mad max keiser takes a look at the rather darker side of the world's financial headlines of course the cars report that's right now. i max kaiser this is the kaiser report so what's going on with greece they put a gun to their head and they did the right thing. max keiser markets find chaos. yeah you know i want to look back at some of the headlines preceeding the sunday vote that happened in greece to remind you as we go forward because you see spain and italy are also now you know their cost of funds are increasing and looks

like chaos will follow there perhaps france as it got downgraded so let's look at the lead up to the greek elections world bank warns that euro collapse could spark global crisis you're facing lehman's moment says outgoing head robert zoellick as greeks are warned over a key election the telegraph warned greek election catastrophic vote to leave euro would cause bank run. well it was like a lehman brothers moment but let's remember what the lehmann brothers moment was all about the stock was down sharply and then a false rumor was started and attractive naked short sells that is this a counterfeit stock sales of lehman brothers stock flashforward to greece greece also being attacked with naked short sells and credit default swaps destroying their economy mainstream media outlets floating rumors around the world that they're about to go belly up all in an attempt to force the country to discord its

assets to the global speculators for pennies on the dollar the fact is they're always in these situations telling the peasants to do one thing well the elites are doing something else because there was another headline in the telegraph that went along with this they offered another headline about a previous riots and bank runs and sovereign debt collapse debt crisis the cost of default rioting sieges and death in late december two thousand and one the streets of buenos aires descended into anarchy thirty nine people died in violent protests which forced president fernando de la rua to resign fleeing in a helicopter as the riots intensified again a bit of nifty revisionism to put the cart before the horse argentina maintain its sovereignty as the result of people rioting against carlos menem and his gang of

course leading up to the crisis were looting there was a club to chronic occupation and the people are out there their pots and pans they maintain their sovereignty whereas greece is not going to maintain their sovereignty so once again revisionism and here you have another mainstream media outlet putting the cart before the horse and jumbling up historical facts and it's always a great idea to defer your sovereignty to global speculators well the actual head of the bank of argentina during this crisis his name was mario blamed her and he says today regarding greece. he said that argentina's economic success since the crisis based on the default and its fiscal balance a partial default isn't enough to solve greece's problems it needs to be total who think greek people are being conned in the belief that being a member of the euro club is somehow prestigious club to be a part of it's really a leper colony and it's just a race to see who's got the most fingers right now greece is losing that race and

the only thing they can do to help themselves would be to get out of this leper colony can't a nation of a europe catastrophe and maintain their sovereignty well whether it's a financial war or a military invasion the propaganda the script is often exactly the same the same ingredients go into the same plot lines the same characters so viewing this argentina story i thought of only clines the take which she covered this collapse of argentina in a film called the take and it's really quite fascinating because first of all look at this little video they have got to have sure of madame's miracle this is the front page of time magazine carlos menem miracle elmo dale o. of privatizing low taxation deregulation the same exact thing that led to the celtic tiger the icelandic miracle right they don't count debt in the case of carlos menem or in iceland or anywhere else they don't really out of states or

in the u.k. the united states's recovery so-called from two thousand and eight has been accompanied by an increase of debt greater than the increase in so-called g.d.p. and this of course leads to pushing everyone sovereignty to our global speculators which of course are issuing the debt to take over the assets but again max there are no such things as miracles and yet here's a paper for the icelandic ministry of finance. in two thousand and six it's titled the icelandic miracle and it's a whole bunch of pages explaining why we're cool sometimes do exist and on this page here max of their chart the icelandic model nine hundred ninety one two. and there's no ending but i could say we it ended in two thousand and seven or eight and the model cutting subsidies stabilizing the economy liberalize and markets privatized and cutting taxes wow that's

a miracle never heard of that one before but they don't count debt i mean remember the story of jack in the main stock and it makes perfect sense if the people reporting on jack going to be in stock were shrinking down to infinitesimal sizes like the mainstream media there journalistic standards shrink and in line with the debt increase and then their new position of being lilliputians looking up the growth of the so-called g.d.p. down by debt they say oh it's a miracle it's bigger it's jack and the beanstalk looking to growing and never commenting on the fact that they themselves have shrunk down to the size of lint of belly button lint circling a washing machine a fraud called mainstream media and then i want to turn to another clip from you meet clients film the take and as you see those tanks there max those are the wealthy once you start taking cash out of the country of argentina billions of dollars in those tanks they're being driven out of the country no i always thought

there argentinean collapse was really the model to look at when you're looking at the greek collapse or and these other collapses the elite striven by corruption in the banking system and the political system remember in argentina the political system gave their ok to nationalizing city groups debts essentially in the country and then they impose austerity measures on the public to pay off city groups debts same model in greece greek people were foisted upon them all the outside. debt then the government said ok no you know their debt this foreign bank debt same thing in ireland with angle irish was a domestic bank they try the same thing domestically they said oh let's run up this and huge amount of debt and the government said now the people owe the debt while meanwhile the tanks were being driven out of ireland and and you know metaphorically speaking same thing with grace with all of the wealth same thing in the states the wealth is being hollowed out something that you know paul krugman at

the new york times will talk about keynesianism he never talks about the fact that the wealth been hollowed out by tank driving kleptocrats and there's that's the core issue of why the economy is collapsing oh why because he's in the back trying to steer one of these tanks well i might add that evidence is now emerging that the greek banks of which they bailout funds about sixty billion euros it's going to them they're finding gold in circles there you had gold in circles in iceland gold and circles in ireland all those bad debts lend to each other loans that went bad right and part of gold and circles are the banks lend money to insiders to buy shares in the stock as the bank the next of the price of the bank stock go up that they use as collateral to make loans the same people to buy more shares in the bank stocks and their cashing out all the way for a quick buck driving the price of the stock to highs that cannot possibly be sustained then they collapses the ponzi scheme collapses and then they end up with government bailouts which are imposed on the public as austerity measures and of

course iceland said no to that and they're the model but greece instead of looking at iceland as a brother in this fight against kleptocrats they decided to well maybe we're going to work with this group the troika i mean this is what separates saying is or maybe we can work with them no you don't negotiate with terrorists i'm sorry but you end up losing your head and though of course this will end tragically but just take a few more once well ok so i showed this video of cash leaving the country today. we have more contracts financialization of money there's no real cash and i want to call your attention to this tweet from friday nights of last week as the greeks were going into their election weekend and this is james mcintosh investment editor at the financial times and he tweeted j.p. morgan estimates only fifteen billion euros of four hundred ten billion total aid to greece went into economy rest to creditors no wonder they are cross.

well you know you see this in wartime all the time and you see this now during the financial war the combs but you know ten cents of the dollar or five cents the dollar actually makes it to the ground the rest is stolen by the gate keepers there who are negotiating these horrific aid packages that benefit only the insiders and the bankers you know this was going on in egypt for years right the pentagon would give aid to egypt as long as they bought toys from the pentagon the money hitting the ground nothing same thing in europe the central banks give aid to countries like greece but it all cycles back to the their buddies the banks on wall street a few pennies end up in the pockets of the poor schlub on the street but not enough to keep the economy growing in any sustainable way that would be commensurate with a thriving economy and they're losing their sovereignty and then finally max irish taxpayer sacrifice to prop up euro zone banks this is from order order dot com and this is from april and again i want to point out you know the tanks of cash the

this is the equivalent of the takes the cash leaving the economy taken by the oligarchs the kleptocrats the elites and this is your asman seven a member of the executive board of the european central bank speaking in ireland and he addresses this notion that anglo irish unsecured bond holders being paid off is a controversial issue so he addresses it here it to screw the the c b. then the least damaging cost to fully on and be outstanding senior of angle however unpopular that mace now is seen the assessment was made at a time of extraordinary stress in financial markets and great uncertainty. and protecting the hard won gains and credibility from the early successes in two thousand and eleven was also a key consideration. and the main. reason was to

ensure that no negative spillover effect would be created two of the i wish buildings or two planks in the european countries right this idea of least damaging course of action is in a pigsty i mean this is his perception based on being in bed with kleptocrats if in fact the objective was to maintain solvent say and to maintain economic integrity that would be the most damaging outcome you could imagine well in this case the other european banks that the contagion would have spread to had the unsecured creditors been stiffed by the irish taxpayer would have been german banks and it would have been british banks yes of course the other money we're dark. germany. and the u.k. you know at the head of the salacious larcenous tick paul i truckers that are

undermining the integrity economy and sovereignty of these underlings but as long as the greek drama continues as long as that economy falters the euro will continue to trade lower than it would be if it were just a door to mark a loan which is great for germany or new paymasters so look to germany greek people hahaha stacey herbert thanks so much for being on the kaiser report thank you max don't go away much more coming away stay right there. with the. technology innovation. developments around russia we've got the future are covered.

welcome back i'm max kaiser this is the kaiser report's time now to go down under in australia and speak with das author of extreme money masters of the universe and the cult of rest das welcome back to the kaiser report max good to be with you all right dot's what about germany and is it at risk is applying and crazy game is it a game of chicken is german are the german people mad what's going on in germany and all those euro fandango crisis the germans are a bit odd as we all know but i think the real issue is people have been focusing on the peripheral countries of europe which is greece spain italy the reality is the infection has now reached the call because germany is on the hook for a staggering sum of money firstly the european central bank has either board bonds issued by the peripheral countries or funded banks in these peripheral countries to the tune of over nine hundred billion euros and germany has indirect or direct

depending on how you want to think about it the liabilities to bear out fund which is about two hundred and eleven billion euros and that's going to rise because once you fund spain's banking no longer guarantee these phones so binny's obligations will probably be rather bad to eighty then the bundesbank has actually lent to the other central banks in europe which is to find they current account deficits because of trade shortfalls and also capital flight to the chewed of the seven hundred billion euro now the problem is the peripherals cannot and probably will never pay this back and if the germans have to write this off the losses to germany will be in the range of eight hundred billion euros to one point four trillion euros that has to be put into perspective of the german economy and the german economy is about three trillion euros so these losses would be say twenty to thirty

percent of that. so you know they would literally risk wiping out a big chunk of its economy the other thing is if you look at the germans favoring this is the ordinary german mr and mrs smith stood god they basically have four point seven trillion dollars i hope mr and mrs smith but all of them together and that would wire about a good twenty five percent up to twenty five percent of that and i don't think the germans real and when they realize all hell is going to break loose because that german politicians who are great fans of the will be seen as having bitrate the german people and i think it will set off radical politics much as we've seen in greece much as we can to see in the netherlands and to some extent we see in france all right well if i am in germany right now and i'm already doing to the bank which is a huge multi hundred billion dollar hedge fund masquerading as a bank and i've got very good relationships with the e.c.b. the european central bank which is the old bundesbank and i've got this massive off

balance sheet liability part of it on the balance sheet i know interest rates remain near zero and i know that if the euro remains cheap relative to these problems in the periphery then i generally i'm making out like a bandit because my export markets are booming my employment is rising my social in title and programs are in surplus so i'm making our bandit here and what's going to stop that from happening interest rates are going to go up we're in a deflationary global deflation so why why is this not benefiting germany continue to benefit germany as it has been benefiting germany they get to play all of europe something i've been trying to do for hundreds of years and it's been working out for him what's going to stop us from continuing ok well let's take your argument step by step let's take the first document be the euro making the ultra competitive that's absolutely true that's made them ultra competitive which is one of the reasons i'm less pessimistic than other people about the breakup of the euros because the germans got a fourth the euro to break out because that would. excess abate their losses

because they would lose competitiveness but then they look at where they markets up sixty percent of german exports go to europe about forty percent goes within the eurozone and they two largest markets are spain and italy those two markets are in recession so they can't export their way out of that most people think german exports to places like china and india and they do but they're a small component china for instance is only five percent of the export line cannot of its and work in that sense but the second thing is europe's attempt to devalue the euro is not going to necessarily be a one sided game because i can see the united states basically using quantitative easing or other tools to try to competitively devalued so it can't be one sided so i don't think germany will get out of this with the sort of get out of jail card which is the export card and we also know that growth in places like brazil even

india in china is slowing and so it is not the panacea to the german economy and if you look at the two thousand and eight to two thousand and twelve great figures it's basically exports that have driven that and also idea of germany reflating their economy they're not going to do that they just doesn't fit their character to do that so i don't think germany is quite as able to get out of it through the export dietrick as they have in the past sorry max no no i'd have to counter that by by putting forth a couple of points or number one sure of the internal export market within the euro zone in large but they're picking up a huge play on managing the year old bond market wants their own line to take over at some time in the very near future as these economies go belly up they'll roll all their debts into euro bonds and across european lending facilities that will be run out of frankfurt run out of berlin that's a huge moneymaker for them number one number two know there's. inflation in germany

but acid prices that is a real estate has doubled in the last few years in many places it's up sharply war this has been a more a bond market for generations real estate in germany and in berlin these places was flat now in the last two or three years it's up fifty sixty percent because all of the rest of the world is frightened stiff and they're plowing money into germany they're plowing money into berlin so i went to berlin paris and london this is where all the klump the crabs are parking all their billions and hundreds of billions of dollars and now that's collateral on the books of these banks so now they're as the prices are going up the collaterals up they can make loans against that so they're more winning on that as well so once again germany wins hence they went elsewhere he loses i don't see any negative here i don't see how germany loses losing i mean you say the germans are quirky people and whatnot you know but they nevertheless have a long history of being able to finesse their way through these crises in one way or another and come out in relatively good shape so this to me it appears once

again that there is there that people are underestimating what the germans are up to i think you're quite correct about the property prices collation in germany but it's foreign body it's like capital second thing about that is that's going to obviously be depended on germany continuing as a safe haven but if the beach is ation of debt that we're talking about takes place what you're talking about takes place germany's debt to g.d.p. is eighty one same if they create these eurozone bones then the total debt burden in the eurozone is about ten and a half trillion now let's assume we split that equally between germany and france the two largest economy and that means that the debt to g.d.p. would go up astronomically and obviously the interest rates would have to go up simply because it would be like an average of all of europe just as the euro as a currency is the average of all of europe and that means their interest rates would go up to three to four percent let's assume they did to g.d.p.

is just. hundred that means you're taking roughly three to four percent to finance that and that if you look at the tax day is starting to come up to ten twelve percent of the tax take that's the first thing the second thing is once you actually have that position that we're talking about then the amount of money that's going to be around in europe other than through the schemes of governments lending to banks who then lend the money back to the government is going to be nonsensical which means supply of credit for buying real estate and so forth we'll talk about the capital markets will tighten up quite a bit so i think you're right germany won't do as badly as everybody else but i certainly cannot see them doing quite as well as other people are making out certainly i don't see booms the booms of close to zero as big fairly priced in terms of the risk of that and the other thing is you're underestimating i think the political ructions i don't think these will be on the hausfrau is going to take very well to having basically

a currency diluted by all these dirty farnaz be having her interest rate forced up and see taking responsibility for old instead and i think the risk of radical politics in germany is quite great so i'm not quite as rosy as you are on that particular front well you know people are paying in negative interest rates for german paper right now they're willing to buy german bonds and except a lot in laws from day one they're getting a negative interest rate on their german paper and when you say you're looking for rates to jump to two or three percent or four percent i don't know where we see that happening anywhere in the world were central banks are able to buy back their own debt through quantitative easing there's also apply on demand the price of covering these debt markets is completely manipulated by central bankers who have no accountability they don't use any any economics that anyone is familiar with other than the economics of outright fraud why the deutsche bank we know it's just like the wall street banks they commit massive accounting fraud on a daily basis and the government is in league with that by. and they want to play

in the entire euro zone and the going to get a lot of money as a result of this and that's what the greek people underestimate that's why they should be on the streets revolting against being occupied by foreign banking terrorists like germany and so on and just bending over and taking it and hoping for a better day some day it's pathetic well i think calm down max i think the greeks are confused the greeks are confused because essentially seventy percent of them want to stay in the euro and seventy percent don't want to actually have the austerity conditions they're not going to get greece is a look greece is options are very limited either they go down the austerity alternatively they can try to leave the euro which in the short run will be very wrenching and very very devastating to their wealth but i think the fundamental thing you're assuming is all this money circulating around europe it will end up in germany i think there is already a sign of these two signs you correctly mention that interest rates went to zero on the two year shots very very briefly but the rates have been rising and i think that is actually poppy reflection of some of the things we've been talking about

and that capital will end up in the as you call it the clipper caddick banks but not necessarily germany to end up in switzerland it'll end up in the u.k. and well first it might even end up in american banks so i think europe itself is basically going to have a de facto if not a de jure a beach lies ation of debt to all of this crisis and the germans are going have to pay for all of this and that's going to dampen european great for a very long period of time i don't see the germans being winners out of this they've got to be a loser along with the rest of them remember main john maynard keynes famous saying if i owe the bank a thousand pounds i have a problem if i owe them in this case they truly and. they have a problem and i think that's what's going to play out all right so clearly the planets are revolving around germany melissa ask is determining going to live is it going to stay. up in germany where your thoughts how they're going to play out this is a wonderful song by the bottles which goes should i stay or should i. but the problem

for germany's if they go all these countries i'm going to pay them back they're going to lose on that front if they stay they lie believe he's going to build up so they actual risk goes up but they at least get the benefit of the euro the cheap euro which helps they export industries and they can benefit so i think the best way to describe the euro at the moment is a whole bunch of driving people in the water none of whom can swim and you do each other for mutual support tougher out of time thanks so much for being on the kaiser report it's nice to be with you max all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert are they my guest thus going to say i mean email please do so at kaiser report at r t t v dot are you until next time x. guys are saying.

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