trying to corporations rule today. welcome back you're with r t a look at the top stories disagreements between leaders plagued the bloc summit even before it starts with germany angrily rejecting the idea of debt sharing the move crushing the hopes of spain and italy two of the country's worst hit by the crisis. allies turning into anime's three out of four of pakistanis now think of the u.s. as their focus and there has grown dramatically over civilian deaths from american drone attacks and the thousands killed in insurgency triggered by the u.s. led war in afghanistan. and iran is exclusion from the upcoming international meeting on syria casts doubt over the impact of the gathering which aims to find

a way to and the country's bloodshed russia has insisted on the participation of tehran a key player in the region council firmly rejected by washington. well those are the headlines here in our team i'll be back at the top of the hour in the meantime the latest unique analysis from max kaiser and steve herbert as they expose how big banks escape responsibility for financial wrongdoings. imax counter this is a cause or report you know the zombies are everywhere in the world not only bats

salt and howling flesh eating zombies and floor but the global banking system as well is replete with dead men and zombies stacy herbert tell me more max in fact i think we need to start looking at the headlines and applying that to j.p. morgan goldman sachs u.b.s. credit suisse they have to prove to us that they are not dead because i have declared them dead they are dead the kaiser report has declared them dead max kaiser has declared them dead so it's up to them to prove that they are alive dead man runs for india's presidency a dead man is running in india's presidential election next month to prove he is alive santos kumar saying a thirty two year old cook has spent nine years trying to prove to officials that he is alive after his high caste relatives declared him dead after he married an untouchable well his manifesto contains only one pledge max and that is to be recognised as alive and he has no desire to be president he says all i want to do

is prove i'm alive if the government cannot declare me alive then i request them to kill me and issue a real death certificate in my name right he's got a good point there you need to have some credibility some accreditation that proves that you are alive and not dead now in the case of banks you see you know it started in japan right with the zombie banks now in one. stern europe and in america similar situation the banks are dead and we want proof that they're alive by simply not having a stress test but pulling away the support system tollway the quantitative easing for a day just pulled away all the life support systems all the fake accounting all of the current default swap and fake accounting clowder lies debt obligations the cross you know in europe the credit facilities they're lending with each other that's like two zombies having sex you know they're trying to give birth to another

zombie another court a facility you know and meanwhile people are reacting by storing bath salts and ripping each other's flesh off in the streets in the world we have to stop to zombie apocalypse we can do so in the banking system but prove to us that you're alone when we take off the life support system there's a ripple ok max that's the question we're asking here and many people are asking that this is bloomberg news here dear mr diamond is your bank getting corporate welfare so they know that he goes before congress and declares himself i love free market don't you dare regulate me and they said well fact if that's true why do you have so much corporate welfare in in fact they point out max in recent decades governments and central banks around the world have developed a consistent pattern of behavior when trouble strikes banks that are larger interconnected enough to threaten the broader economy they step in to ensure that all the banks creditors not just depositors are paid in full although typically

necessary to prevent permanent economic damage such bellows encourage or reckless confidence among creditors they assume the government will always make them whole so they become willing to lend at lower rates particularly to systematically important banks this bloomberg points out has provided an implicit subsidy to these big banks as of two thousand and nine the expectation of government support was shaving about point eight percentage points off of large banks borrowing costs for the top eighteen banks max this equal seventy six billion dollars. per year and that number is roughly equal to the bank's total profits over the past twelve months right jamie dunn says he loves competition or he loves free markets free markets imply competition but of course there is no competition in the american banking sector because they all work with the government all colluding and they're all dead they're all they're all basically zombies years of i propose stacy. let's

put some images right up on the screen right now there's a very famous five year old girl she's an artist her works are selling for thousands of dollars give this five year old girl one hundred thousand dollars and open letter open up a bank that runs on a legitimate banking model of basically just holding on to deposits and making simple loans to compete with j.p. morgan i guarantee that within six months her bank will be bigger than j.p. morgan because she would have an august bank and she's five years old and any five year old can open honest bank but jamie diamond is a fifty year old shmona who opens a crooked bank who's a believe with the devil and the bomb administration and he runs i think what a share of bank you just give any competition any five year old give it give give a gold fish banking license and they'll attract more deposits then this out right criminal diamond so the top u.s. banks received an implicit subsidy of seventy six billion dollars last year

j.p. morgan's share of the subsidy is fourteen billion dollars a year which is about seventy seven percent of its net income for the past four quarters so they're almost entire income comes from this one subsidy but seventy seven percent is due to this one subsidy doesn't call it all the other subsidies widely applauded this guy jamie diamond the fact that he can walk and chew gum at the same time the fact that he is not walked is not you know tripping over shoelaces all day long so we came a standing ovation but also because we taxpayers have subsidized him to this tune we taxpayers are broke and destroyed and our economies are devastated because as i point out like all subsidies the taxpayer large us distorts supply if the government supports corn farmers you get too much corn if the government subsidize banks you get too much credit as of march household companies. government

in the u.s. had amassed debts of thirty eight point six trillion dollars or two point five times the country's g.d.p. that's up from one point three times in one nine hundred eighty right there. thing about this is that if you're not part of the banking mafia you can't get any credit and there's a recession slash depression where we live in greece you live there you can't get any credit there's a depression but the bankers are taking over your country doing a leveraged buyout of you stealing all your assets they've got an infinite line of credit at zero percent interest rates they've got no problem in credit using your life as their collateral for their cheap loans what kind of insight is that of course by this mis allocation of capital because of the overly cheap rates that these subsidised too big to fail banks have received the economy has collapsed and now remember the total for eighteen just eighteen us banks the total subsidy just from the low interest rates was seventy six billion for the year u.s.d.a.

budget would rise eleven percent on food stamps spending so this is from last year max the supplemental nutrition assistance program or food stamps will cost eighty five point two billion in the year starting october first two thousand and eleven up fifteen percent from levels in two thousand and ten so eighty five point two billion to feed over fifty million americans or seventy six billion to feed eighteen guys. and you know they don't want americans being solved supporting self-sustaining growing their own farms growing their own food they'd rather have them on food stamps which is a by the way a program mostly run by jay jamie dimon and j.p. morgan and they want americans begging like chihuahuas for their scraps down at the food stamp supply what they don't want to be self-sufficient but i'm saying here that here are fifteen million human beings in america fifty million that some of

them could not live if they did not receive these food stamps there are little children their one year old two year old three year old there are seventy eight year olds who who rely on these food stamps fifty million and for almost the same exact amount of money there's a subsidy provided by those taxpayers to subsidize jamie diamond and jamie diamond then gets to lord it over them saying here maybe i will give you a food stamp card maybe j.p. morgan won't this month right so the subsidies that morgan gets are roughly equivalent to the food stamp program yes and but in america turn on fox news who are they hating on who is the one that are the welfare queens you know if those fifty million people all of you know about solves that would be a really interesting zombie apocalypse amounted to fifty million bats sold zombies made a march on j.p. morgan speculators book employee of love this is that well just to confirm this we

look at moody's remember they downgraded fifteen the top banks around the world j.p. morgan trading loss drove three level stand alone cut however according to moody's max j.p. morgan benefited from the assumption that there is a very high likelihood the u.s. government would back the banks bond holders and creditors if it defaulted on its debt according to moody's statement. without the implied federal backing j.p. morgan's long term deposit rating would have been three levels lower and its senior debt would have dropped to more steps says moody's so remember that american population when jamie diamond goes up in front of your congress your elected representatives donning the the presidential cufflinks and saying. those little peasants well fifty million of them rely on me for food stamps. i am the cop would be a cop oh he is

a welfare queen just as much as anybody relying on food stamps just as anybody relying on medicare or medicaid i love the language of the the assumption that they're there braless it will be backed up by the government otherwise it would be downgraded more so they're using their gambino john gotti metaphor there is cufflink jamie you know the congress. fellows that want is almost. that you're not going to downgrade me more than two categories or i'm going to have to cut off all your joint and it goes and i'm going to have to make sure that you all can get gas to even get home today because i'm jamie up with a couple and you know there's still the same kind of language you're wiretapping when you drop in on the mafia they're like so choky the dead fish love bongo is saying that you assume that you could only get a big rigging done in a certain period of time or it's going to come over there to soome that you know it could be living much longer i came back so we're going back to the top of the show

i was saying that here's a man who is having to try to prove he is alive because they the elite of his country have determined he is dead and they won't let him access the global financial system or his own national financial system so i want to say here's another test to see if these banks are alive burn the bondholder see if they're witches see if they're like living unnaturally burn the bondholder over one billion euros of engle bonds will be repaid irish bank resolution corporation the new name for anglo-irish well we pay more than one point one billion of debt next week as the controversial policy of paying all unsecured senior liabilities continues the bonds are mainly held by foreign investors many of whom bought the debt at steep discounts over the past two years when the original lenders feared the collapse they owned banks might remain on the ious yet why don't we why are the i paying this dead bank whether paying this bank well let's see burn the bondholders see if the bank collapse. says now i r.b.c. this new fake bank that isn't even a bank it's a virtual mirage of

a bank that is exists only thanks to the unwilling large yes of the irish taxpayer well let's see if you burn the bondholders whether that bank still speculative if you burn the bondholders if they were not going to pay this bond over angle irish would they get any pushback we're saying that you're talking to a dead cadaver on the other end of the phone they're not going to push back there are good people why are you paying dead people irish government that they're there they're psycho they're sniffing the shamrocks over there this worse than bath salts stacey ever thanks so much for being on the kaiser report thank you max don't go away much more coming your way stay right there.

well. technology innovation all the developments around russia we've got the future covered. in the. welcome back to the cons report imax keyser time now to go to toronto and speak with economist professor steve keen who is currently in toronto working on his mathematical models with researchers at field's institute you can find all of steve keen's work at debt deflation dot com or on twitter at professor archer say profit steve keen professor steve keen welcome back to the kaiser report write me back max ok steve king this talk about european debt crisis is it mathematically possible to bail out europe all if we have by the mathematical logic of math that

shot my quit my part of course always way that's. why he replied so you got me to write them down. from products like ones i'm so bad stop this is an insoluble problem well steve king the seems like what they're attempting to do is to lever up a bad situation by increasing the number of lending facilities the acronyms the european lending facility one two three three one hundred and then they borrow with each other they lend to each other they create this massive ponzi scheme and they have the federal reserve of as a model because and in america they've got fifteen sixteen trillion in debt in the whole entire eurozone they've got another ten trillion euros to go before they even match america so why can't that game go on so a bit longer steve all originates because they actually behave like the american central bank you might actually go to get out of this because nobody. having a pretty house right now and nobody in california is declaring bankruptcy. expected

. so why the heart but that's the situation there in europe because the european central bank isn't actually a central bank is probably more like a european central disciplinary already where its role is to discipline the sites for all of the fund their activities so because that is the central bank doesn't have the deficits of the individual countries but i have to go to them awkward to do it because they specialise in all rights and now your site is saying what borrow this money from us and all our rights are it's a recipe for disaster what they're after doing actually soros amounts it much the same thing today they have to wish to genuine central bank in europe which funds the activities of its over the side of various national treasuries so let me follow up the other top three central banks to give you an example of how the central bank virtual reality is exploding. the u.s. fed the or the c b that virtual acolytes the bank of japan twenty five percent of

the developing developed world g.d.p. is now tied to this floating of fake securities that the so this is again this ponzi scheme is continuing steve the worth of words words of words that was a bubble going to be punctured well about a function of the problem first night which is the problem here the state can get away with it certainly sounds like you can get away with it indefinitely two decades now that's that's really real they can do it indefinitely but the running a trade surplus my printer i'm never told this is a green and so on and they're except in japan and i don't run out of them as i would like to try to get away with it i don't believe america can do it indefinitely because running its right to try to deficit with the rest of the world on and europe has also been on the edge they would like to continue and down the road to some substantial time but the reality is they're leaving the biggest can still have a unaccounted for that's

a little profit and if they actually want to get rid of it what to do was create. probably pencils private actually gets rid of it and then we might get rid of a millstone around the necks of the public because even though we took an optical way about how they would get wise down all of us blah blah blah the reality is that we're going to die we buy a. product x. when that is so bright we decide we can't afford to go shopping or economy or to invest then we pull the sort of economic funk were in right now and we stay there indefinitely but it's going to focus on the really important debt and that's the private debt granted by banks that like on z. financing is rotten thing and finances of industrial capitalism that's honest ok well let's explain spain spanish banks have just given sixty two billion euros in exchange for their private debt so they can't predict down the road in spain and the austerity steve kean is where the rubber hits the road right i mean this is

where the a sturdy is where is where people pay for this ponzi scheme right there what they should be doing is rather than quantitative easing the banks that should be on a public what they have a special built with which should be going in. the banks because the banks don't deserve to be baloch the banks in your receivership an old debt they generated you go down they go down the good when they get hurt they should let me first weiss me rescue the public from the burden of it that's what the central bank should be doing certainly rattled and i'm quoting austerity on a public light no role really a. passive role being dragged along in it and i. mean actually causing the growth place and causing the imbalances the responsibility in europe's what's time to the bureaucrats it is on something as stupid as a mastery treaty and the banks went along in finance this stupid and across like that until it fell right up and now of course we're putting the pain on the public rotten rather than in the bank back on the banks and the bureaucrats were longs ok

bailing out the citizens versus the banks let's go and refer. to your book debunking economics the newly expanded version and let me ask you this question keeping here book in mind when barack obama was asked why he bailed out the banks and not the citizens back in two thousand and eight he referred to the multiplying effect of lending to banks bailing out banks creates a multiplier effect in the economy it sounds like neil liberal economic steve came and he just wrote a huge book debugging that entire notion talk about it yeah it's the whole model of how that money and mine used aguada going just have to be in the first class because economists believe a little theory of how money is generated which the question what i used in the book from an american satirist it's an ace also bill and wrong theory of coral obama bang a moral boy and he's honest well i just thank him and then went by white america so what do ya get the american public was fitted up by

a lot of banks because of dollars given the banks he would surely sit this generous i had with ten dollars in additional a lot of money into the economy and they call the multiplier fix they actually use try to explore economic cool way through obvious about ing out the bank struggling after trouble is anybody who's signing up not to swallow who i am pretty quickly worked out why that's nonsense for stockmen of the say that americans have borrowed the starch and product they've already two trillion dollars worth on a four change trillion dollar economy slated to shoot out three south groups are using. in a little bit by typing on by a bomber getting insane or truly involves the money model part big especially in americas with an athlete going to having sure you got it and being straight when i use work and get broken only three is. no way that was going to work so as a rule my dear what would it be. but also when you put the money in the banks and

it just sits there because they don't want to end up. doesn't want to borrow so the reserves aren't up no archon rationing markets. and this is because we're now down to fifty years pretty much. thanks that nate reserves the land banks lent money creating to others in the process and i look at the reserves light up so if you actually want to if wanted generate wyman's you have to have a willing to take on debt in the first question and of course they're not willing to take a hit so that the trillion dollars that through all pretty much the chen jury in detroit in since process began would have been far better being given to the public on condition that they must write their staff right and to to add support to what you're saying there all the scandals of the past five years have been tied to a similar type of problem having no collateral a.i.g. blew up because they had no collateral current credit a false wop is a virtual security of no collateral all of the recent j.p.

morgan's two billion dollar ten billion dollar loss of the policy had to do a training securities that had no collateral they're just trading thin air now i can't i can't totally blame barack obama because after all he gets all of his information from reading the new york times and in the new york times or paul krugman and paul krugman is an academic who believes the multiplier effect of money even though makes absolutely no economic or academic or logical sense and he had a bit of a dust up with paul recently i think basically had a bit of a debate he is continuing to be interviewed and outlets around the world as you are to steve king but how does paul krugman survive his his ideology which is clearly completely corrupt. well because he lives in little fantasy world of people who are white and call it theory but the never possible school of economics is actually one of the most radical. but i sit begun to recede of armchair notions cinemark sharing your imagined what world. without actually going in check and seeing with your

imagination actually match reality and then you go to sort of model and so he starts from this idea that winning is a bit like you know statins a bit down on his luck the ghost is my max carson borrows a million dollars and therefore max has actually to spend money drops by million six passengers and rises by i know we're not those macroeconomic there was no impact so that doesn't really matter i mean to speak with banks it between me and max and that whole process you can ignore banks as well and you can model capitalism as if it doesn't have x. and it doesn't have money you sectors that are going to include it that's just sort of debt when you're in a rock and actually back. now frankly it's i mean it's like trying to model out birds fly by pretending that happened but wait it's good luck if the market interesting theory but it's going to give you no explanation of what will actually write well i mean krugman getting the nobel prize in economics i mean is ludicrous it would be as ridiculous as if let's say barack obama got

a peace prize from the nobel committee of course that would never happen to one of the most warmongering presidents in american history now one last question steve king in terms of hyman minsky modeling and of course he is inspiration for a lot of your work and he's the one to kind of outline this idea of how markets feed on themselves in these bubble machines in the in the u.s. we see that the median household wealth fell by forty percent mostly among those under fifty in the middle class what role do wealth and income gaps contribute to the ultimate minsky moment when it pops and you see the the big one well it's the contributor to old wires that are. rising inequality if you and if you're that all . when you go to try to borrow money. of course the banks so you that you can buy a house and a house and you're on the apples lost in the process that will leave you taking on more debt but in a mathematical model i'm going up your bills and just wondering whether stablish order unexpected result is that work is ing is negatively related to the level of

interest rights and the level of even the workers are the ones doing the borrowing so we look at a social class to look at the bottle of the bankers capitalists some workers capital on foreign money while the ones actually invest their borrowing money and a little bit technology wrong then in fact they were in constant change much less like to regard a sample it's the workers as in it's so fundamentally rising little's of debt cools the decline in the work. so it actually rising debt causes them equality as well of course inequality losing the rising debt so it's not a positive thing about soccer any engineer will show you a positive feedback cycle up to a break now that's the situation with now aren't all right steve came out of time thanks so much for being on the kaiser report thank you matt i wasn't going to be here now right now to do it for this edition of the kaiser report with me max kaiser and stacy herbert i don't think my guest steve keen going to send me an

email please do so at kaiser report on r t t v dot ru until next time that's not a saying by a.