max kaiser welcome to the kaiser report it's a big decision day in america today but the biggest decision for all we debtor nations and in debt populations is to decide are we powerless to tackle bankers or is it time to recruit up and start again rise up stacy backs that's a lot like the front page cover i might add of the independent on sunday magazine that's max kaiser rip it up and start again. of course you're talking about the u.s. elections and it's time to rip it up and start again but this is something that hasn't happened we saw it we've just been in ireland we saw there the social contract has been ripped up by our politicians by our leaders by the heads of banks across the world that's right the social contract has been ripped up and countries

like ireland and countries like greece and the us as well the social contract has been ripped out the powers that be want to simply transform the current population to neo still serfs and that's wrong a sense to social contract has been broken as of now for the populations to rise up stay some kind of insurrection and start again that's what the point of the story is rip it up and start again let's start again we need a new declaration of independence from banking occupation that's what's happening are lots of happening in greece so while politicians and the banks are have already done half of it for you ok they have ripped it up as i said the social contract is there the us constitution is their debts as george w. bush the previous president said it was just a piece of paper it was easy to rift up he said all right well the biggest mistake the bankers central bankers and policymakers in japan and around the world is to try to prop it up is a sign of letting. rip it 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 powerless shameless that this character 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 noon 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 has that he has no power that he's powerless he's powerless over his own stupidity i agree with 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 nanon he 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 award 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 destroyed part of this up tucker sea 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 receives a twenty one billion euro bailout but. bank which is not referred to as a i b but anglo irish bank as we see it for thirty four billion euro payout and the sunday independent has also learned that fifteen of them a senior figures 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 best of all comedy festival i saw kohlberg kravis roberts have been waiting to pick up banker some k.k. our private equity group has. active and good carlisle private equity blackstone private equity there's a 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 us like noonan transferred all the liabilities from angle irish banks of the people guaranteeing those liabilities today some they 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 no where were 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 nannette the and his. 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 newman 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 noonan's of mission 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 don't know much he said point blank the irish people have no legal responsibility to pay these unsecured

debt but these 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 you're on 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 that 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 it 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 of banks or 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 that's allied irish bang. 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 for giving 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 a.i.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 right but we had our debts magically waved away. we want to be in the business of deciding who lives and who dies when they kicked out the vatican right so the n.b.a. wants to step in and bigger than the new turncoat. well speaking of talking about the vatican being kicked out max was kicked off the pack. 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 on arrest 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 simple unrest doesn't do a job to someone like don't think they do it in. teligent civil unrest by going on the street protesting at 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 kaiser 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 do cap o. 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 horror 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 whenever i am in ireland people come up to me all the time and ask me max when i get to run for president. but since you never thank so much being on the kaiser report thank you stay tuned for the second half we'll be talking to simon rose.

i mean sort of know you since you were on the host of the twenty two t.v. withdrew the particular. song. thank you. song. thank you. dog days are. the pride days a. common. theme song see it's so true i. gave. you.

you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture. welcome back to the kaiser report i max kaiser time out of charge assignment of save our savers

a bit like save the whales yeah and maybe save close to extinction the way things are going i think so you know it's interesting ecology and fine as they should actually approach finance like a college because they markets are paying in talks of cyanide with toxic bum. toxic policies of greenpeace should open a branch on wall street i've been saying that for years anyway so 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 to produce growth or at least not everybody but those people who think the way to get forward is more borrowing but they steve actually calculated what would happen if the people who used to get their income still had it and he said that low interest rates are costing the u.s. economy and annual 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

fast it has on the u.s. economy would be well on its way to a vigorous recovery and that's coming from next 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. which is usually because the trouble is they're all theoretical economists they don't seem to understand how real people behave 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 that people who had money to save a suddenly think grace's 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 we're the central. banks should actually be controlling the price of money anyway so the 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 another set of arbitrage which is the amount of negative interest rates that they can borrow against to fuel speculative beds 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 the role of increasing spending by the fact that they're saving you know it's capitalism right capitalism e capital to have capital you need an interest rate to attract capital absolutely that's what they don't seem to have a sound that savings provides the investment money we need to produce growth so what do you do in a debt crisis where let's just sit on the savings and it squeeze them to a really good we talked about six months ago at that stage of the what interest rates would save us couldn't go on 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 lending on that probably not going to and all that's happened is they don't need sables money anymore so interest rates have gone down still low simon rows of saber savers interest rates and switzerland are negative negative half a percent there are six countries in europe were savings rates in those countries

are negative people or r r r lao in 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 you have eventually. no savings left on where we're 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 in the u.k. for instance we've had the prime minister even the chancellor on occasion i've got confused over the difference between the deficit and the debt for the george osborne occasionally watches the show my understanding to pick up on some of the things he missed out there. so tell him what they differences such as the deficit to simply 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.

all 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 due 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 therefore cost forecast to go up 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 and the debt is getting worse ok so the government deficit spending two hundred percent of g.d.p. was to consumer debt to g.d.p. situation similar it's about one hundred percent of the moment ok the biggest problem of course the financial structure of financial sector debt to g.d.p. depends who you talk to go 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 other people sally work said it's ten times g.d.p. or split the difference say it's seven and a half times so that's plus eight have. 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 it imploded i called reports about of the percentage gente the g.d.p. and if in fact now this is a policy that's just not it's tiny 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 lifeboats it's just which one is actually least let's try and jump

in that one it's ridiculous he said it's a race to both of you 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 us ten year treasury now trading at a two hundred forty year high it's in a bigger bubble than even tulip bulbs in the sixteenth you know sixteen hundreds with that enormous bubble now ready to burst and the paper apocalypse is coming upon us many suggest that those with the most gold will survive and a leper colony those with the gold teeth do best i just made that up but anyway you can say of course thanks to gordon brown is not doing well not from i don't know

golden brown them so go do so to go at the bottom but actually announced he was going to be something to go before he did so which from a trading point of view is not the smartest thing to do though i have seen also saying that in fact he was actually doing it to help out the banks at the time which had never extended position i still don't know if that's true. you all know i'm told in some quarters by people who do know about go but yeah that's the real story is still half a brain skull and operate as three hundred ten tons of gold which is not much more than grace versus the eurozone 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 are going to go to the european partners and fund. it mostly all of us who are the e.u. 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 to all banks all to what's going on in europe i mean if you know your 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 doctor there's a courage that we can just ignore it completely i don't believe for a minute i don't think most savings believe it the problem is we're getting into it really to reposition on the stalemate to themselves to pay for themselves what is the natural way out now it's i mean it's almost all the options all reporting to think a woman is the best bad option is just starting they should but isn't my point though isn't cameron painted himself into a 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 facility a new central banking facility that will be in euro and won't be in various 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 on a lie bore goes through. and it not only does one another's reputation for a i.g.m. bernie made off the m.f. global scandal that will lead us 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 let you will be dictated to by those european bureaucrats isn't it just goes to your brains out how can you argue with a straight face because he's a politician or he's concerned about his next election i'm not spot on the problem we're getting short term is publishing is running everything with what we need are people who actually are 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 a time 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 at 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 that he's retiring suddenly we're hearing words of wisdom from him though he still never admitted that the n.p.c.s. had anything to do with the situation we're in now moving king is saying reason the sensible things even even charlie be saying we're going to i think 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 transfer money from the poorest in societies the wealthiest spencer dale the chief economist who said surely one lesson people learned 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 he concluded is there a danger we might do more harm than good i think we know how to answer that i dancer for a complicated system seems to make it more complicated yeah which is of course. one of the corollary is a definition of insanity so they're just admitting. it's too complicated to do anything 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 saviors thanks for being on the kaiser report thank you all right i'm going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i would like my guest simon rose of save our savers for seven email please do so at kaiser report r t t v dot ru until next time thanks guys are saying buy a. nice big we use it then we didn't use pretty nice one hundred three you don't agree we

don't have to look for other names my surname is marina i don't know what you are going to be for you fair. share of your country. can hope to help you. you find in so many. times.

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