up don't try to prop it up just let it collapse the people are ingenious they will rise up and they'll create governments just not to trust the people so max this is irish finance minister michael noonan. noonan. powerless to tackle bankers pay and perks powerless powerless powerless power led shameless that this character at noon and ireland claims to be powerless this completely asymmetric view of how power and democracy is distributed throughout a society throughout an economy now known and of course has all the power in the world to do what's in the best interest of the people of ireland but he for ten days that he has no power that he's powerless he's powerless over his own stupidity i agree that he's powerless over all kinds of shameless behavior that's true but he's not powerless and acting in the best interest of ireland he has the power to do that but he doesn't because he's

a social misfit and he should be removed from his place of office and mediately we were out to kill cannot mix pestle and kilkenny ireland however and this is before this headline of the finance minister saying i am powerless. right so why elect a leader why elect these governments if they're powerless to do anything so when we were down there we noticed the audience listen to the likes of bill black here's a four bank regulators who said your banks have committed crimes i could see that i as a bank regulator would put them in jail the audience stood up some of the younger people and said it's our moral obligation to pay their debts right well you know this character nan and he is one demanding society your university over there and stab city in limerick and the year after i did and then he went to town trying to remove any record of me winning the same war that he won so he's

a revisionist on top of being a powerless nincompoop and says he's powerless he's obviously on the paymasters of the lords of the bankstown or he serves and he's destroying part of this cup tucker see in ireland that's just destroying the society there well this has come to light because not only has a ib which is allied irish bank it receives a twenty one billion euro bailout but the anglo irish bank which is not referred to as a he but anglo irish bank as we see for thirty four billion euro payout and the sunday independent has also learned that fifteen of them a senior figures at anglo irish bank from the time of the september two thousand and eight are still employed at the institution on salaries believed to be in excess of one hundred fifty thousand euros so even though the taxpayer owns this bank even though these crooks running this bank these fifteen guys are still there because michael noonan says he is not legally empowered to remove them oh look when

i when we landed at the airport on our way to the. hilton omics economics festival comedy festival i saw kohlberg kravis roberts waiting to pick up banker some k.k. our private equity group goes. active and good carlisle private equity blackstone private equity these are the vulture capitalist at noon and is inviting him to pick over the carcass of the dead a country member arlen was not suffering from a debt problem before the crisis they were able to pay their social welfare system no problem it was only during that period where the government thanks to any it's like noon and transferred all the liabilities from angle irish banks of the people guaranteeing those liabilities today suddenly find themselves in a debt problem out of being asked to cut back on social services to pay for these trucks but here is the finance minister max he is saying he is not legally empowered to and these people's contracts these bankers contracts he was not legally empowered to transfer those debts to the population there was

a private contract between anglo irish bank and goldman sachs and french banks and german banks it was a private contract nowhere on that contract nowhere where the irish citizens mentioned as being legally responsible for these debts and yet why are the people rising up why aren't they ripping it up and starting again as max keiser says but man at the end is a crook coterie of crony capitalists had no legal power to transfer that debt yet they did and now to tackle the aftermath of that they are saying oh we have no legal power to reverse the crimes that we committed anti-constitutional criminality that noonan is involved with he has no basis for stand up and be responsible for that now you mentioned that all these cutbacks in the services and obligations to the citizen well known in summit admission comes as it was also revealed that the

former anglo irish bank which has received more than thirty four billion euros of taxpayer money today is the only defined benefit pension scheme in the country which is fully funded the fact is again the people of ireland you've got to rip it up. and start again because these guys are being paid an illegally induced fraudulently induce contract you were never party to that contract i never i looked at the anglo irish contract the bond deal between goldman sachs and co irish between the french banks and the german banks and anglo irish nowhere was there a single citizen of ireland that signed that contract so you do not owe this money to these bankers you do not owe them this welfare of the social welfare this five hundred twenty nine thousand euros a year for this guy to continue being a bank star schmuck right will bill black was in ireland during the nomic she said point blank the irish people have no legal responsibility to pay these unsecured

debt but the school kids in the audience these children these young people are saying oh but how about moral responsibility. you know kids suffering from stockholm syndrome whatever judge stop take it and get with the program you don't have to be abused by banking terrorists well it's not drugs it's called the the independent on sunday it's called the irish press all of the press is telling them that they have a moral obligation to pay the debts of these private bankers but you know all they have to do is read adam smith's wealth of nations to discover what capitalism is and you'll see there but actually you don't owe these debts i try to get the people in ireland to go on boycotting the licensing fee for t.v. you know that would be a great civil disobedience don't pay the licensing fee shut down the media they're doing nothing but good of violating all kinds of rights in misinforming if they're guilty by misinformation well actually just go there's

a thing called the internet just go on there find some information now another headline another bailed out banks their bank and in ireland a.i.b. to write off some mortgage debts but no blanket amnesty the republic's largest mortgage lender a.i.b. it that's allied irish bank. will write off the debts of distressed mortgage holders where it finds they cannot afford to repay them but it has again ruled out blanket debt forgiveness this is only about ten thousand people that they're going to help them with forgiving some of their debts but david duffy the chief executive says no no no we can't he warned against widespread debt forgiveness when most customers we were repaying their mortgages and did not get into financial trouble by investing heavily in property b. would be a very dangerous territory where people who made mad decisions should get part of their debt magically waived he told the committee on finance public expenditure and reform max the very next sentence says the state controlled bank which received

a twenty one billion euro public bailout its debt problem was magically waved away by the same population he's saying we can't magically wave away your debts because that would be moral hazard and we had our debts magically waved away. the want to be in the business of deciding who lives and who dies when they kicked out the vatican i'd say abby was to step in and bathe and the new turn coat. well speaking of talking about the vatican being kicked out max was kicked off the pat kenny show for talking about one bank server who while we were there was sentenced to nine weeks in prison because he wouldn't for contempt of court because he wouldn't reveal where his five hundred million euros outside the country was warning of civil unrest if quinn is sent to prison not if quinn is not sent to prison this was if this banker guy was sent to prison a campaign group set up to support sean quinn and his family have warned of

potential civil unrest if he goes to jail or falls ill as a result of ongoing legal battles that's right but until simple unrest doesn't do a job and someone like don't you must think they do on an. teligent civil unrest by going on the scene protesting of this banking fraudster sean quinn spends nine weeks in president after this ruling came out i will let you know and i'll let you know that sean quinn's family reached out to me and we're going to be interviewing hopefully sean or one of his family members on the cause report in the upcoming week so he will have a chance to present his case and what i'm interested of course is their insight into their relationship with angle irish bank who of course is the capital dicaprio in this situation they're kind of like the tony soprano of gangsters in ireland but here is a quote from this woman who runs this group called concerned irish citizens for this group you know supporting someone quinn her name is patricia gill hennie and

she says many have also commented that if sean quinn or any of his family drop dead from the sheer pressure and stress that they are being subjected to on a daily basis there will be very serious consequences for their perpetrators and for those who facilitated this who are but that brings me back to the top of the show and that is rip it out and start again is poor is have been inflicted upon the american population the european population the irish and british population the asian middle east populations around the world due to these bank stores and their crimes against capital well one of ramadan people come up to me all the time to ask me max when i go to run for president. you know it may just happen salman thanks so much for being on the kaiser report thank you say ten for the second half we'll be talking to simon rose.

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play. welcome back to the kaiser report imax keyser time now to turn to simon rose of save our savers a bit like save the whales yeah and maybe save as close to extinction the way things are go i think so you know it's interesting ecology and finance they should actually approach finance like ecology because the markets are paying in talks of five with toxic bonds and toxic policies and greenpeace should open a branch on wall street i've been saying that for years anyway so i mean you've brought in a fascinating study here from william f. four x. president of the federal reserve bank of atlanta produced this report tell us about it well everybody everybody's been saying that low interest rates all the way to

produce growth at least not everybody but those people who think the way to get forward is more borrowing but they he steve actually calculated what would happen if the people who used to get their income still had it and he said that the low interest rates are costing the u.s. economy and i'm you will three hundred seventy one billion dollars in spending three and a half million jobs and two point five three percent of g.d.p. and it says with higher interest income levels output could grow more than twice as false it has on the u.s. economy would be well on its way to a vigorous recovery and that's coming from an ex central bank so this is extremely important i think because if interest rates are allowed to remain in a normal level reflective of the economy without government interference then people the savings would generate a huge amount of income on their savings and that income of course as you can be used to spend but that spending is not happening because the interest rates are artificially brought down to near zero percent and the idea being that the

government was going to increase demand somehow by having cheap rates well yeah which is usually because the trouble is they're all theoretical economists they don't seem to understand how real people behave. if so we're in a debt crisis so the people who have the indebted probably not going to be spending that much more they're going to try to retrench so the people who had money to save it suddenly think graces we've got the governor of my coming and saying this is going to go on five more years we've got a husband or resources we can get almost nothing on our savings the instinct is to hang on to your money even though you're actually losing money through negative real interest rates some to go out and simply spend as if there's no tomorrow it makes absolutely no sense and that's without talking about because where the central banks should actually be controlling the price of money anyway so the an arbitrage of interest rates on your savings versus the daily workings of a bank are been working for generations the bank offer savers a rate of interest it then loans money out at

a different rate of interest and therein lies the spread that they use to create profits for the banks but sensitive banks have become involved not with traditional banking but in speculation they feed on artificially cheap interest rates to feel and the other side of arbitrage which is the amount of negative interest rates that they can borrow against to fuel speculative bets using derivatives in the hopes of catching huge gains that they say will eventually trickle down to society at large but somehow never do and you've got this enormous hole in economics where the savers who would traditionally perform are all of increasing spending by the fact that they're saving you know it's capitalism right capitalism a capital to have capital you need an interest rate to attract capital absolutely that's what they don't seem to want to solve that savings provide the investment money we need to produce growth so what do you do in a debt crisis where let's just sit on savers and it squeeze them till they would have we talked about six months ago at that stage of the what interest rates will

save us couldn't go a little but they're going low and low and now we're in the u.k. the latest idea to help the banks out is this funding for lending scheme which is giving the banks incredibly cheap money which in theory they should be. going on they're probably not going to and all that's happened is they don't need save us money anymore so interest rates have gone down still lower so the rows of saber savers interest rates and switzerland are negative negative a half a percent there are six countries in europe were savings rates in those countries are negative people are are are are allowing a bank to take money from them to just hold on a guaranteed loss so what we're seeing is the deep capitalization of the west and it's extraordinary event surely there will be no savings left and where are we going to be then we keep arguing in this country about the difference in austerity and growth that is even understand where how wealth and growth are created in the first place the level of knowledge about the economy among the people who are actually deciding what's happening is absolutely asinine i mean the u.k. for instance we've had the prime minister the deputy promise that even the

chancellor on occasion have got confused over the difference between the deficit and the debt before the george osborne occasionally watches the show my understanding to pick up on some of the things he missed out when their. party at eton so tell him what the difference is such as the deficit disappear the amount of extra mag you're borrowing each year the debt is the total amount you're owing and then forcing the u.k. although the perception is that the government is actually the possession of many people and they're reducing the debt not to they're not reducing the debt the deficit which was jus to come down in this current financial year to about ninety two billion pounds well the latest projections are it's going to be one hundred twenty maybe a hundred thirty up on last year so it's not known as the debt not going down the deficit is going back up and we're going to be. about as a government one trillion pounds that's juwan there for cost forecasts to go to one and a half trillion in three years as a percentage g.d.p. that represents well that will go at the moment we're on about two thirds of g.d.p.

it's going to go up to like america by about three years it will be one hundred percent of g.d.p. ok that's not including of course all the considered liabilities they don't bother to put in the figures so it's pretty scary we're in a debt crisis on the debt is getting worse ok so the government debt. yes it's having two hundred percent of g.d.p. on our list of consumer debt to g.d.p. situation similar it's about one hundred percent of the moment ok we get the biggest financial support the financial sector debt to g.d.p. it depends who you talk to mckinsey figures will show if you add up all the sectors which including about three hundred percent in the financial sector you get to about five hundred percent debt to g.d.p. for all the sectors but all the people moving south he worked it out and said it's ten times g.d.p. so let's split the difference say it's seven and a half times so that's plus eight a half for the national debt plus another hundred percent for private debt so that's almost a thousand percent debt to g.d.p. for the u.k. at the moment yes ok now what was iceland before imploded i called reports about of the percent jet the g.d.p. and if in fact now this is a policy that's just not as tight knit the u.k.

every government the world's pursuing this race to the bottom devalued and its currency bringing in serb zero percent interest rates this fall the idea that by making debt so cheap that you're carving out the very essence of your economy and destroying your currency you're going to somehow stimulate export growth so like a lot of leaking life it's just which was boat is actually released let's try and jump in that one it's ridiculous he said it's a race to the boat i say get to the lifeboats both with holes in them and with people standing in those boats bailing out by dumping water from their boat that they're bailing out into the one next to them and that's going on simultaneously back and forth all over the world and the whole thing is sinking and now. the the apocalypse the paper apocalypse that's coming as all of this and by the way government bonds which are really kind of the biggest bubble in the history of the world with the u.s. ten year treasury now trading at a two hundred forty year high it's in a bigger bubble than even tulip bulbs on the sixteenth you know sixteen hundreds

with that heat enormous bubble now ready to burst and the paper apocalypse is coming upon us many suggest that those with the most gold. well survive and a leper colony those with the gold teeth do best just make that but anyway you can say of course thanks to gordon brown is not doing well that's right i don't know gordon brown them so go to seoul to go look the bottom but actually announced he was going to be selling the go before he did which from a trading point of view is not the smartest thing to do though i have seen articles saying that in fact he was actually doing it to help out the banks of the time which had never extended position i still don't know if that's true or not i'm told in some quarters by people who do know about gold but yeah that's the real story it'll happen it's called that ten tons of gold which is not much more than grace versus the euro zone which has twelve thousand tons of gold what do you make of this between cameron in the euro zone it seems like cameron is sticking his foot as

mouth because if in fact there's a split in the monetary banking union stays in europe and u.k. is isolated the u.k. stands to lose because they have this huge debt burden who's there to fund the debt you can go to the european partners and fund all it mostly all of us about the year it's all about we trade so much with the e.u. we need to be in the e.u. the most important thing is how extended all banks are to what's going on in europe i mean if. you're a goes down i'm sure we'll have an appalling effect in this country too but it is going to fund this thousand percent g.d.p. ratio this is the worst indebtedness of any of the g twenty countries you've got this idea among many economists the dead just simply isn't model for every data there's a closer therefore we can just ignore it completely i don't believe for a minute i don't think most savers believe it the problem is we're getting into it really to reposition and they still need to themselves the pay to themselves what is the natural way out now it's i mean it's almost all the options are appalling to think of almost the best bad option is just stuck nation but isn't my point isn't

cameron paint himself until corner because if they bring in a fiscal union which it looks like they well that's an enormous piece of business that's not going to run through frankfurt and to manage this huge new lending to. the new central banking facility that will be in euro won't be in british pounds the britain will have isolated itself from this business and the banking center which britain prides itself on is going to be diluted not not not only do they have the scandals of h.s.b.c. which has just announced another half a billion dollars worth of money laundering charges tied to mexican drug cartels to bring that total and liability you know fifty or sixty percent beyond what it was even two weeks ago but another lie bore goes through london not only does one another's reputation for a i.g.a. burning made off the m.f. global scandal what will reduce in scandal ok so now as the as capital requirements are increased as people are big attacking u.k. as a banking fraud nexus and as the euro is taking the business over to the continent

and but how can cameron argue that you know it with a straight face to the population that he won't look he won't be dictated to by those european bureaucrats isn't it just going to see your brains out how can you argue with a straight face because he's a politician he's concerned about his next election but i'm not spot on the problem we're getting short term as publishing is running everything with what we need are people who actually thinking for the long term and working out how to get get out of the crisis like most politicians by the time it really hits the chances are he'll be off doing speeches a million pounds of tory as many are expressing as a doing now there's been some dissension in the ranks simon rose of save our savers mervyn king of course bank of outgoing bank of england and he's been really point a finger and saying that the policies of quantitative easing really are best a band-aid situation that fixes nothing and he's really i think trying to bring some reality into the mix strangers and now he's retiring suddenly we're hearing words of wisdom from him though he still never admitted that the m.p.c. has had a thing to do with the situation we're in now moving king is saying reason the

sensible things he even. the most sensible thing i've heard from the bank of england because who actually admitted in a report that the real effect of q.e. was trying to. money from the poorest in societies the wealthiest spencer dale the chief economist who said surely one lesson people learn from the financial crisis is that economists and policymakers know less about the economy and its behavior the many might have liked to believe we don't fully understand the structure of the economy all the behavior of households and companies within it not even close and they concluded is there a danger we might do more harm than good i think we know how to answer that i do answer for a complicated system seems to make it more complicated yeah which is of course one of the corollaries of the definition of insanity so just admitting. it's too complicated to do and then we've got to do something anyway and of course what they've done of the wrong things all right some of those save our savers thanks for being on the kaiser report thank you all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank my guest

simon rose of save our savers for seven email please do so at kaiser reported r.t. t.v. dot ru until next time. we use your. good news but. i sort of don't agree you don't agree with. my surname is marina i don't know what is going to be for you fair. sure of your country. you find in so many. things.

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totty. good laboratory was able to build most sophisticated robots which fortunately doesn't give a darn about anything turns mission to teach music should care about humans and. this is why you should care only.