of banks hers ah well since moving to london i have of course been enjoying the austerity sandwich let me demonstrate here this is a slice of bread and of course this is a slice of bread now the austerity sandwich is when you fill this with a slice of bread you say this would be then they must already sandwich all wrong. you know that's really really good now scientists in the u.k. say that this is by far the cheapest sandwich available they did a study or go they did a study and they found that this was the cheapest sandwich now speaking of doing his part for austerity george osborne the chancellor of the exchequer is giving up his monthly welfare check yes it seems the chancellor of the fricken exchequer has been collecting child benefit for years he makes over one hundred

thirty four thousand pounds per year and some hardworking taxpaying joe pint of lager has been paying for george's children's up kate stacy ever. max this reminds me of world war two when so many brits sacrificed for the good of the nation i'm giving up my child benefit from today so that my children and yours aren't saddled with our debts forever by chancellor george osborne this week my family will not receive the child benefit we've been getting every week since our children were born any household where at least one member is earning more than sixty thousand pounds will be in a similar position where i saw i was born is a welfare bum parasite on the state and whose job is to help other parasites like it just b.c. barclays royal bank of scotland and lloyds similarly collect corporate and banks through welfare from the state the u.k.

economy is shrinking why because of scroungers like oz born cameron and the banks. now i might add he's been pretty much alone on the world stage of leaders as introducing austerity and so he's doubled down even cutting his own child benefit despite the fact that this week i.m.f. economists apologised for austerity forecasts so the international monetary fund's chief economist today acknowledged that the fund blew its forecast for greece and other european economies because it did not fully understand how government austerity efforts would undermine economic growth the new and highly technical paper looks again at the issue of fiscal multipliers the impact that a rise or fall in government spending or tax collection has on a country's economic output so max they've been looking at the eurozone and making projections based on a point five multiplier which is a very low multiplier effect of any fiscal policy but what they've discovered is

that actually this is only appropriate for a nation with low debt low fraud low amounts of fraud and a stable banking system. and it turns out that for greece for example it's one point five so for every dollar in cuts to government spending it actually takes a dollar fifty out of the economy well the i.m.f. knows this to be true the fact that they say this is a surprise is a lie they are staring measures on by the way stamps imposing austerity in the u.k. the debt service gone up so there has really been no austerity when the i.m.f. talks about hysteria in countries like greece or when they talk about here in the u.k. it's justification to buy. massive injustice against a local population that's having their wealth stolen so when the cops in greece would use tear gas and other forms of punishment collective punishment on the greek

people they say it's part of the stereotype package even though we know and the i.m.f. knows that that's false it's just justification for travelling on civil liberties and so they talk about the fiscal multiplier but of course in the city of london you have to mention the fraud multiplier as well what does that how does that factor into these models you know it for every dollar of real collateral in the economy remember there's not least one hundred dollars in fraud backing that the multipliers of fraud as you point out are not count delayed by the i.m.f. they're not calculated by the government of the u.k. it's a real problem there are trillions of dollars and trillions of pounds of fraud money that they put off the balance sheet the population is not even left when the bread of an austerity sandwich they're left with the crumbs you know we have crumbs here on the table and this is what the people in the u.k. the people of greece the people of europe the people of the united states are

suffering through now are they being they're being forced to live on the crumbs it's all about corralling the population into zones where all civil liberties are deprived and the consequences of austerity which is to say extinction and genocide are written into law so the chief economist here is a libya blond charred and he says forecasts are significantly underestimated the increase in unemployment and the decline in domestic demand associated with fiscal consolidation so again here we look at the population and all the markets all the mainstream financial press what they do is they look for every single word the chief economist of these banks and the central banks and the people advising george job's board. what they have to say about what what we should do with the economy and yet they totally obviously don't know what they're doing they're just pulling it out of a magic bag of tricks they they don't know and it's

a huge wealth transfer and they use the language of economics and finance to bamboozle mainstream media into mouthing their propaganda while they victimize a whole segment of the population that's being financially exterminated or by using interest rates we've seen the imposition of what i would call interest rate related apartheid where if you know your cost of borrowing money is zero percent if you're going to want to go for a payday loan you basically have the same rights as a black under apartheid it's financial apartheid in this country and it's sickening well talk about this wealth consolidation and this wealth transfer high stakes gambling machines suck money from poorest communities m.p.'s express alarm about five billion pounds spent on fixed odds betting terminals in northern cities and london boroughs so it seems these betting shops with these little slot machines have been consolidating basically clustering in the poorest areas i mostly labor

constituencies very few in tory constituencies but they're sucking billions of pounds out of the economy from the very poorest now the labor m.p.'s are blaming the casino companies but tories blames the culture of poor people rather than betting companies for exploiting them john redwood the conservative m.p. for walking him in berkshire which has three betting shops said he had been surprised by the spread of bookmakers in poor areas so he says max that i put it down to the fact that poor people believe there's one shot to get rich they put getting rich down to luck and they think they can take a gamble. right the tories are scapegoating the poor as part of a program of genocide and furthermore the same people who run these gambling outlets in these neighborhoods are own or affiliated with the same banks that are

being bailed out by the state and are the same banks that are availing themselves to near zero percent interest rates but to the extent that interest rates are not at absolute zero there might be two or three basis points for a loan that incremental piece of interest has to be paid for and it's calculated to go into these neighborhoods so when you go in and you buy a lottery ticket or one of these one on bennett's in a poor neighborhood you put that pound in the machine it goes directly into paying off b.a. ease debt test goes debt david cameron's debt george osborne's debt they take the money directly of the pockets through the banking system which is totally consolidated there's no competition it's a it's a dead hand of banks toure's you take that money from the hardworking burnished person and it goes directly into pocket to pay off his ill gotten even legally a crane debt as a matter of fact if i look at this austerity sandwich i can see george osborne's face that said jesus was saying that a toast

a grilled cheese sandwich has there been such a miraculous sighting portraiture of the exchequer in this slice of bread. felt it i think is the chancellor of the fricken exchequer but you know here john redwood the conservative m.p. for woken which is one of these commuter belts from the city of london so there are a lot of bankers working there. he is wrong to mock the poor for thinking that first of all there's one shot to get rich there is that you can gamble that's the only way to make it rich well look at what is happening in the city of london. h.s.b.c. gambled that you know laundering money from drug cartels would pay off it did they got one shot and they won you know r.b.s. lloyds. every single bank here in london gambled that george

osborne would come to their rescue once they were selling all these fraudulent loans for a good fraud fraudulent interest rate swaps and every other derivative product that the chancellor would come to the rescue and he himself was sacrifices child benefit to make the bankers whole and the next step for us more to sacrifice his child and he would throw the child into the volcano if it meant getting a good deal of the revenue number one and number two j.p. morgan they were gambling and derivatives the so-called london whale scandal they got caught breaking the law they got caught breaking them up the proprietary desk law and they gave nine billion dollars to cover the loss and the chancellor said oh here you here's nine billion dollars and they covered the bet for them and so all of these betting shops are clustering in high street areas of the very poor poorest regions and constituencies and what they found is that betting shops are clearing out britain because they were. planning got it mines this meant empty shop fronts

that once contained banks and building societies could be converted into betting shops without any planning permission so the government here includes them as financial services that considers them financial services and the u.k. has turned over to a gambling casino economy part of the key scene a gulag economy because if you go back to two thousand and six the headline reads take from the poor to to give. super casino plan so here john redwood said he blames the poor he says it's not the casino companies that had documents from two thousand and six they clearly stated that they will not bother with areas that are not poor because they need the poorest of the poor in order to make any money in these casinos that's what i'm saying yes it is financial services when you put the pound into the slot machine and the ghetto it goes and i was more of pocket to pay his debt. it's a financial they're all consolidated it's all owned by the same glum aeration it's

a genocide of the poor that's their poll so yes the final solution jack george osborne were to get that idea all right susan thanks so much for being on the kaiser report thank you max. state and first talking to us. me if you eat. food. the.

government no longer represents the fear on the people or going to take the term. we. traditionally put into the revolution along. the way our economic system. is not. going to.

you go.

welcome back to the kaiser report i'm max keyser time out of go down under to australia and speak with. us author of extreme money welcome back to the kaiser report nice to be with you max all right let's talk twenty thirteen what do you see is the key economic themes for the new year. well the first thing i think is this is the year in which people are going to realize that economic growth ain't coming back because i think for the last few years everybody said we'll be tried this it didn't work on our we've got a new thing it will work and i think people suddenly realize that growth is not coming back at the levels we saw it's a pretty two thousand and seven the second thing which will slow from that i think is that people will focus more intensely on the policy to which is fiscal policy the monetary policy which is zero interest rates as you know we might have negative

interest rates at also all the money printing the quantitative easing people will start to ask questions like this is stuff actually work and if so when will it work all right and also the us let me come in for a second because you said the curate the thing here in twenty thirteen will be lack of growth now what we've seen in the past is our policymakers when faced with lack of growth they change the definition of growth for example though change how to calculate g.d.p. they'll change how to calculate c.p.i. now we have a new central banker coming in to england is name is mark carney they're bringing him over from canada he's talking about nominal g.d.p. growth isn't that just basically more of this shuffling around definitions to hide the fact that the economies are in freefall your thoughts. absolutely i think we've got to change that i mean the french are experimenting with gross national happiness so if you live in france and need a few could include things like the amount of garlic in your food and the beauty of

women and the sort of length of it they g.d.p. would be just monstrous so people will change all the definitions around you're absolutely correct the most funny one of that was in argentina when inflation went through the roof they decided basically to exclude anything which was going up to for us on the basis that nobody could afford it anyway so i think we'll see a lot of that you're absolutely correct and i think that's going to be a theme of more lies more hypocrisy more manipulation on the part of politicians because we all know without delivering prosperity they'll have trouble getting reelected it's just simple as that back to us you know smart sela i've got my own theory that i would like to present a year to get your thoughts on and i caught the zombie economics and it works like this there are those in the economy who have access to money at zero percent so every time prices go up they simply dig deeper into their zero percent infinite credit line so i never feel it those who have to pay three percent or six percent

or sixteen percent or thirty percent or a payday loan at four hundred percent they actually feel it when prices go up therefore the central banks are talking about deflation but they're talking to people whose cost of money is and you have an end infinite credit line they live in a parallel world correct. absolutely i mean the classic one is in japan if you actually look at japan that the phrase zombie economics actually comes from japan because after the bank of japan started to flood the system with money print money had zero interest rates what we saw was exactly what you're describing except that fact financial assets didn't go up in price in japan but in terms of the real economy what we saw was that businesses because they could keep their loads in place didn't sell you know bad assets they didn't do anything they didn't do any of the steps necessary and effectively what the zero interest rates do is a massive transfer of wealth so if you've saved money if you've been a good boy or a good go and all the things that you were taught to do thrift and all of that sort

of stuff you basically pay the costs off all the people who've borrowed more importantly as you correctly say will keep borrowing i mean but not last year people missed this is one of his press conferences admitted that chordate easing has very little impact on the real economy what he's trying to do is based financial asset prices and read from that he's trying to help out the financial sector i mean basically the world is one gigantic carry trade we do you know interest costs and that's what we think and the poor guys of say are going to get killed but you know at the end of it we have to remember a simple truth people have made bad loans and the bad loans a result of one of two ways you either write them down or you pretend not to write that down and stretch them out we just retching it out and the people paying it are the savers and that's the tragedy and i wonder how long the red t.a.a. the middle class who savings are being wiped will start to protest not to mention the other group which is the people who don't have jobs the twenty five percent or twenty seven percent in spain but twenty percent in greece the fifteen percent in

places like portugal and ireland where are they going to take to the streets and basically case the buildings i think that's the key issues going forward right so the central banks are stopping social unrest because their definition of their mandate a central bankers is. to act like a hedge fund and to stoke asset prices even though it's destroying the real economy so they are creating the social unrest that you are are you are suggesting is only going to get worse down one place an economy where we see a massive distortion is in the sovereign bond prices the u.k. guilt or the sovereign bond market nikkei is trading at a three hundred year high treasury bonds in america are trading at a two hundred forty year high when is the bond bubble going to burst you've got bill gross over at pepco suggesting it's going to burst soon that's why he's moving into some other assets when what do you think about this bond bubble bursting is it

going to burst in the near term or are they can they keep the ponzi scheme going much longer das. well i hope they can keep the ponzi scheme going and i think it has a bit more to do but you're absolutely correct to my mind sovereign debt and money are synonymous and i think james grant called the moment really well when he said that government bonds basically once gave you risk free return they gave you a return for your risk and they just a basic that but the most important thing to understand is why those ills the way they are people seem to have missed the fundamental fact which is the fed was buying sixty to seventy percent times as high as ninety percent of all new u.s. treasury bond issuance so basically it was like financial masturbation between the u.s. treasury on the one side and the fed who are basically circling the money around from each other but i'll give you some idea of how the game is got you we're talking about the bank of england and mark carney but the bank of england has now

made quote unquote a profit on its quantitative easing simply because it's creating reserves which doesn't cost anything and is buying deals on the other side of the positive kerry gave them income they had to distribute that up to the government as a dividend and basically the government is going to finance a corporate tax cut from this i had to read the actual announcement about six or seven times trying to work out how do i get in on this but to give you some idea of that this is not uniquely an english experiment in the states what they're talking about is the fact that the fed issues the bonds the treasury the treasury she has them it buys them and then the arms of the same government so basically what they're talking about is why don't we just forgive the did it and i said well what happens to the balance sheet of the central bank which also all the stuff that's in that's just an accounting technicality this is just a basement of fundamental principles of sound money on a level that we haven't seen but i think the game has got a little bit to go simply because everybody wants to believe nobody wants to look

at the other conclusion which would be devastating and damaging to everybody and nobody wants to go down that path and certainly the politicians are going to lead us into that particular decision. monetary theorists who also would fall into the camp of the financial masturbators i have a feeling what are your thoughts on the magic one trillion dollar platinum coin m.m.t. fandango oh well this is brilliant actually ever empty which is you know it's. very i actually call it magic money tricks because basically all day saying it's

a money but at the ultimate point money has to represent something real real goods services and what they forget is if you keep printing money which is the gideon going to which as you remember was the head of the central bank of zimbabwe effectively people just stop using the currency they moved to other things whether it's to precious metals or to no alternative currency and basically this game with the platinum coin is just meaningless at the end of the day you've got to meet that money is just a means to an end it's a claim on real goods and services you go to be able to eat you've got to be able to buy things and debasing currency debasing trust does not in any shape or form get you further down the path to financial sound but human beings are capable of infinite delusion you and i both know that it will delude ourselves for just a little bit longer right it's also schizo frantic because the same people who are talking about platinum based monetary theory hate goal so of course out of the

square that circle now let's move on it's almost been six years since the global financial crisis began there's a new swaps clearinghouse and new tier one capital ratios will any of this help and what has yet to be addressed before the system can ever hope to cover using these kind again accounting tricks changing the tier one ratio there of course are now including gold is one hundred percent margin collateral value in their tier one capital so that seems to be recognition anyway that we will end up on the back of the gold standard but what about this this type of trickery by the bank of international settlements and others by us. you'll be amused to know that i was asked my opinion on the central clearinghouse about four years ago and i basically said at that point in time look the fundamental problem of the derivatives market is that there are too many derivatives notional is about six hundred to seven hundred trillion which is ten to twelve times what global g.d.p. is in a single year and that's just too much you've got to reduce it and everybody looked

at me like i was insane and gave me all these reasons why that was a not correct and b. could be done and i said it's easy you just make sure that you can only have a derivative when it said genuine hate each and if that was the case the volumes would fall and all this kind of party risk which is why you need the central credibility in the first place would go away instead of that we've got this very very complicated structure that's been set up which would work because basically the first thing is it's going to be monopolized by ten to twelve banks and they set up the structure they realize it will lose the battle of transparency and a few other things so what they did was they actually create this structure where they are now the gateway to the c.c.p. for everybody else and so basically it's a way of enshrining the position of the existing money center banks that's all it is but i would go one step further essentially i think until you change a fundamental assumption about the way the financial system works which is the financial system has to be supporting the real economy you can have

a financial system which assumes the real economy is sort of just there for them to create financial claims which they can trade as the only basis for an economy and to change that perception you can't do that but to change that perception you've got to weaken the banking lobby and the banking lobby a winning and i think you will see an overnight on i think was the weekend that basel basically weakened on the liquidity standards that they were going to put in place they've now given them till two thousand and nineteen and somebody actually said to me two thousand and eight i said is that this century or next because it'll be pushed back we know it'll be pushed back it's being watered down essentially. i don't know why politicians get paid by the people they should just get paid by the banks because that's essentially what's happening all right outside of time thanks so much for being on the kaiser report good to be with you max all right and that's all the time we have if you'd like to get in touch with us you can do so you can tweet us kaiser report or on facebook dot com forward slash you can reach us there

as well and so next time max guys are saying. whether you die from high or to the. catch the power of the wind or drift in the beauty of the currents. the well prepared is a must and if you're lucky. you'll never forget your experience we only need a screen that's going to be heavy. into flight see just below the ice on our t.v. . choose your language. because we can we know if you're going to kill some of. the consensus here. choose to use that to great to.

choose the stories that impact your life choose access to your. which brightened a few songs from funniest impression. for instance on t.v. dot com.