of these of these adulterated bonds the bank of england steps in to add the filler to add the horse meat to add the additional adulteration that causes the purchasing power of the pound to decline it causes inflation simultaneously the food is adulterated as well so that that's hiding the fact that food prices are going up it's still the inflation but they also have real inflation too soon to be real inflation in the food prices so we're in an inflationary vortex here in the u.k. the first headline here reads horsemeat why did no one want to disclose full scale scandal again you know compare this to the financial crisis every single word i say could almost be the same as referring to the collapse of the derivatives market that led to the collapse of the global financial market perhaps mindful of creating an economically damaging food scare food safety officials and ministers have repeatedly stressed that the on label course is safe to eat but as the leading food

scientists don't think campbell pointed out to the independent last month how can they be certain they didn't know about the horsemeat for months and they still don't know where it comes from the money in the u.k. the british pound is full of filler every time you spend a british pound you are creating inflation because you're expanding the debt load of the economy which is meant by more money printing so the act of spending the act of consuming is debasing your currency the active eating adulterated food is encouraging more food adulteration and it's degrading your health remember this horsemeat is let's be honest it's it's unregulated and it's it's also filled with other unhealthy additives at the same time that's because of health problems which of course end up being borne by the n.h.s. the nothing no national health service which again requires more money printing and more inflation now go back. airing this to the financial crisis remember at the

time. rates were rigged partly in complicity with the regulators and the like the bank of england because they wanted people to not be afraid of being in the markets they didn't want people to know how bad it was here they're saying the same thing that the food safety officials were worried that it would economically damage the agribusiness and forget the health of the system forget the health of the participants or the customers of these products the same here is we keep on being told it's safe to go back in the markets it's safe to stay in the markets even though in the financial markets they don't know what is actually in these derivatives i mean only a few weeks ago the financial stability board remember they said we found six trillion dollars more in the shadow banking system that we didn't know even existed the week before so these food vendors will be too big to sell those say we can't regulate food we don't care what's horsemeat donkey me rat me we don't care at all

meat meat is made you got it if you stop eating it the whole system will collapse eat your bread meat you stupid british idiots reacher studios or collateralized debt obligations spreading this remarkably corrupt town we don't care just keep doing it now when you had the robo signing and mortgage fraud problems remember what it was what was it about it because nobody knew who owned the mortgages nobody own to the paper for this mortgages these packages and mortgages. creating basically the financial system instability now we turn to this horse meat which now are some are saying is some of it is donkey me it came from albert was in romania through a dealer in cyprus working through another dealer in holland to meet plant in the south of france which sold it to a french own factory in luxembourg which made it into frozen meals sold in supermarkets in sixteen countries reminds me of

a dutch sandwich you know like when the bonnano in you to pay taxes they use the dutch sandwich they are using and the barclays according to panorama the b.b.c. investigative journalist show here in the u.k. demonstrated how barclays uses all of these different banks around the world to create all these tax avoidance games that are bordering on the legal slash wink wink the legal and of course this is the dutch sandwich which used the metaphor of food and then when you go to eat a burger or lisbie flows on it you open it up the package inside is a collateralized debt obligation one of the just collateralized horsemeat goes on here to finance a multi-billion dollar tranche of debt to build some kind of meat processing plant where they can process rats and put those into the rat sandwich that they're feeding and of course all ospital breeding rat schools are eating rat people down to tesco goes on to a rat because they don't care anymore because they. do like he did horses there

have been. these poor people also comparing this again to the financial crisis we were jamie diamond of j.p. morgan has been braiding regulators around the world saying these minimum capital requirements we can't stand it because of these minimum capital requirements we have to basically lie and tell you it's all good we're part of this horsemeat or don't give me scandal is the fact that in romania in the last few months they've banned horses and don't keys on the roads so there's been an oversupply of all these don't keys and horses that people now don't want to feed because they can't use them on. rhodes so apparently this is what they're claiming is why there's honk honk he gave me to my burger you know that can be a problem you know there's so many honkies around so over the holiday overpopulation is turning into burner so it's all in. their. mind you go to hockey infestation probable the start of the lows on you is a big deal. again so the f.s.a.

in this case the food standards agency was made aware of the situation and once again they attended a cover up the article says the f.s.a. set up in the wake of the b.s.e. crisis we were there always set up in the wake of a crisis of mad cow disease presses yes they kept secret test results showing the bad drug abuse and meat from horses slaughtered in the u.k. last year until after a whistleblower had leaked them so they were set up. to deal with a mad cow disease which again everybody kept on saying eat eat the beef it's ok there was that minister the environment minister who was fed a hamburger to his child and then. tainted beef to his kid that's what all these do you. get with the people's money is some nice crackers and some crackers and a side of your honky beef was on the make of that you know beautiful. so this week it waited a whole day before telling the public in

a brief press release slapped on its website but not sent out to journalist that frozen beef and ready meals contains staggering levels of undeclared course me and this is exactly what the us does the late friday afternoon press releases of oh by the way there's no financial system in oh yeah we're going to give them seven hundred billion dollars to go out shopping so let's move on to the next layer of this horsemeat scandal here in the u.k. and across europe actually and let's see how it also relates to the financial crisis the same sort of misbehavior the same sort of crime and we're calling it a crime in the horsemeat scandal horsemeat scandal blamed on international fraud by mafia gangs there are claims that vets and other officials working with an average was and food production plants are intimidated into signing off meat as beef with it is in fact cheaper alternatives such as poor or horse now doesn't this sound like what happens to the rating agencies and the auditors who bless the books of

these banks and their c.d.o. those and the readers who give that those c.d.o. packages and aaa rating you know there's four big. in the city of london the lloyds royal bank of scotland they just b.c. and the other one i can remember r.b.s. are you know there there are the four financial slaughter houses and they are basically slaughtering the. me paying themselves huge trees to slaughter the economy to sell the financial products of the securitization of derivatives with with substitution of junk bonds which are collateralized by nothing which are kept afloat by the bank of england now from mark carney who is you know should be in a circus sideshow as any carney should be that was an appropriate name for mark karr user carney bark bark well he's also a carnivore right for the horse meat that is in maybe some of these collateralized

debt obligations they should have done a swap between the mortgage backed securities and the. now finally on this of course again comparing it to the financial crisis because who is the biggest derivatives wielder in the world that's j.p. morgan so it makes sense that of course they're going to be somewhere on this chain food fraud horsemeat scandal the polo player linked to findus there's some photos of here in london leave the office of the private equity firm linked to findus is a financier straight out of central casting yes because he's ex goldman sachs he's riding around on a horse they don't say whether he sold his horse one of these i would as expect me it would be like you know a aaa on your ready meal but they said end with following a restructuring last attempt or lie in capital stake this is his private equity firm in findus was watered down no pun intended i guess to less than a third with hedge funds hybrids capital j.p. morgan and northwest mutual buying into the company now and i think we're going to

remake when it's on with jamie diamond us we need to worry slicing and dicing those customers and fitting them into the lasagna burgers at least their wealth of course . is a honkey for sure. there is a sandwich thanks so much for being on the kaiser report thank you so you too for the second half we'll be speaking to david graber author of debt the first five thousand years. sleep. more news today violence is once again flared up the for these are the images the world has been seeing from the streets of canada. trying to cope ration the day. play.

do we speak your language anything about the role another day of. school music programs and documentaries and spanish more matters to you breaking news a little turn to bangles keaton's stories. for you here. to try to all teach spanish find out more visit i to our. hold it hold it hold it hold. it hold it hold it hold your mum. oh. good speech or and she named. her.

and. wished. her. good luck with the flame good. luck with. her first speech. and i'm a huge fan of her. little mouth run i made a little. welcome

back to the kaiser report imax keyser time at cern to anthropologist david graber author of debt the first five thousand years david graber welcome back to the kaiser report thanks so much for having me all right david graber all the talk is of global currency war from money printing to devaluations to gold repatriation but was it the collapse of the debt markets that happened first is the debt based system falling apart. i would say i think that we're at a point where people are coasting along because it's the only thing they know how

to do and basically a lot of them don't care if the whole thing falls apart that's why two thousand and eight happened to begin with but i get the impression that there's maybe five ten percent of the people running things who actually care about the long term viability the system i want to talk to these guys they're freaking out i mean they realize they're about to hit three different walls at the same time claymore what three different well i mean there's the debt overhang there's a logical. collapse there's a whole series of obviously not viable long term patterns going on in the spending . number years what's the trigger now is it. first was it going back to the book that the first five thousand years which is a great book which came first money or debt well into that are you define it but i mean a debt in the sense of like i owe you on an obligation that's always exist so credit in others in the book is not about credit not it came first in other words it would say oh you know let's do this i owe you so here i'll give you a gift but really you know you owe him something and they kind of invented money to

extinguish the debts as a way of yeah because normally you don't want to extinguish the debts because even if somebody gives you something give them something back exactly the same it's like saying like i don't know you anymore over the course of the many millennia because of the debt jubilee has been big actually that's get so big and going back to medieval times the debts were seen a debt forgiveness were seen as a way to prevent the population from getting in bed with their competing rulers and that's running really. was that of. essentially being enslaved and everybody ended up some flunky you know so kings would really like that was on the baron's would take over so what about a modern day that usually where are we in that because it looks as though if they're hitting all these while simultaneously someone's going to pop up and say no it maybe we need to just do it that forgot to salute leo it's really remarkable the degree to which they're starting to talk about it like two years ago it would have been completely insane to suggest that forgiveness now as i say those people

actually care about the long term viability the system they're starting to talk about it and i think it's inevitable some kind of mass debt forgiveness has to happen the real struggle right now i think is how they're going to dress it up whether they're going to be honest about what they're doing or figure out some way to finagle it so they can claim it's not troops they want to keep that idea that leaves poor people really do have to pay their debts and the rich people don't obviously but and you know whether it's going to be used as a way of reproducing the same system the same ridiculous unequal power structures or whether ordinary people are going to have. only have some say in what the economy looks like we're going to transform to something more sane and i mean that's that's what it is what forms of debt forgiveness going to ted wells look at the in a situation like the federal reserve bank in washington d.c. they during this crisis have expanded their balance sheet from eight hundred billion dollar three trillion dollars the leverage fifty to one so less than two percent this three trillion dollars or so is something that has any market value the rest is just an accounting figures that suggest

a market value under certain conditions is there or bennett history a time when the global banking system has been leveraged to such a degree where there is a little there there is so little collateral backing up these institutions generally speaking in the past you have temples full of gold some kind of material thing and then all sorts of people doing long credit on the basis of that i mean it is true that like the fed does most of the world's gold reserves there but it's really just a symbol. now it's made up and i think most of that fed money is just it's it's an accounting figure for a way of just giving money to the banks which is what the government policy has been since two thousand and eight you know you lend them you print money you lend it to the incredibly low rate of interest and then you let them put it back in the fed and lend it back to get a slightly higher rate of interest so you know the numbers are meaningless it's also a way of just flat out giving money to rich people we mentioned one central banks and gold there's about one hundred sixty thousand tons of gold above ground

proximately a third is owned by central banks the rest is owned by there then the population version of the population of india owns twenty thousand gastineau means its own jewellery and it's owned in other store houses and the public now is increasingly buying gold but there seems to be a scramble now central banks particularly russia has been the biggest buyer of gold really china is buying gold aggressively repatriation of gold by germany how do you interpret that. oh i think people are sort of. trying to hedge their bets in as many way as possible but they know the system's going to collab so it only seems natural to graham on something you think might be an enduring value. that they believe that the dollar reserve system if you have money system is bogus about the collapse us whether buying gold do you agree well i mean the system is basically an imperial system i've gotten a lot of flak for saying this but i agree with michael hudson's analysis that you know after bretton woods they set up this u.s.

treasury bond system which essentially functions as a way of funneling tribute money into the u.s. basically to support the american military and largely it's been the countries that are under u.s. military protection or have military bases all over them that are buying this stuff so russia is one of the countries that's calling it like it is some they've said like this is this is there is no real difference to the american military power in american financial power if we want to resist one we have to resist the other you mentioned foreign policy in a lesser ship between this money printing and the rise of the petro dollar and of course that has really been the basis for so many wars recently in the last ten or fifteen years the iraq war and afghanistan and what's happening in africa it's a mad scramble for resources and that oil industry that since nine hundred seventy cents when the u.s. close of gold and out there has been a concurrent growth in both credit and oil export rationing of the legs and on big capital and big oil of grown up together we enter into a period now where. the credit seems to be falling apart due to the banking

collapse and so the money to go out there and get oil in to explore oil and to finance the war machine that goes out there to get oil is concurrently falling apart as well if the credit doesn't start to flow again then the police state the war state is going to run out of money that's what we're hoping is going to mean anybody who likes peace in the world who wants to set the system right so the credit bubble collapsing from those who are anti-war and i resource grab and tie and. serialism absolutely there the same fan you're cheerleading the collapse of credit in the form that it's taken i mean a democratization of credit so that would be peaceful that would be an alternative to the see the part of the endless war of course has been online it appears the elite in the governments greatly fear what's happening in the digital space and of course in the digital space i don't know if you follow this or not but little bit

there's an emergence of a crypto currency called pick which is actually been cited by central banks as something they genuinely fear as being a threat to their monopoly another aspect of john line emerging online world what's going on there why haven't been following that specifically but any zone of freedom is something that makes these people worry it's all about stifling anything that looks like it might be an alternative in especially anything that might be a democratic form of of creating money that's the danger i mean if you look at the history of america the battle has been fought over and over again i mean one thing i've been looking at in my my new book the democracy project doesn't look at there is the democracy alhaji says again it's not now yet is it you can't be out on the night going to preorder this somewhere the escher was asked to go today to call the democracy and sort out my experience in occupy and how it relates to larger through democratic movements in history and and. even if you were not only known

for the discretion of the occupy movements i was one of the early people involved and the occupy movement seemed to lack a specific goal but here we have defined a specific goal which is to crash the credit system as a way to capitalize the war machine so why was an occupy able to make that point more clearly well i think that there was a problem in the left in general they haven't really talked about that relation between forms of money creation. and military power why is that so difficult for the left to figure out because i have thoughts is also left yours about this and they idea of incorporating economics into their manifestos or platform they seem completely. put off by that idea why is it why are the left why is the occupy movement why those people fighting the imperial. presence of america and others

told us when it comes to economics i think that there are a lot of people increasingly realizing that this is important just hasn't traditionally been a traditionally there's been a sort of marxist emphasis on production anybody talks too much about finances or what's to structure you know. so there's been a you know tendency to pooh pooh that kind of stuff and lose and lose and that way when i gave one hundred five moved to the smartest people you know out there on the street and you had people like peter schiff who is just a common garden variety stockbroker able to just pick apart their arguments at will without any pushback whatsoever and i do when i would be here for so obvious to make him well i mean i don't know who he is debating but like we have some very good people there i don't i don't know they put him up against. a michael hansen room why not michael hudson walk on michael and i don't know why not i'm the eyes of michael hudson more visible in this whole movement he's got the intellectual chops or he's written the books about it he doesn't seem like these embraced by

home i think people people really like michael hudson they normally don't push him up there is meaning there are chief economist for example he could we don't have a chief economist of democratic movements like many different people in many different points of view now like when strike debt for example now there we have an analysis that's where you go those are the people specifically dealing with that you see the thing is look this is a movement a year old like what social movement has transformed the world in one year it's a long haul thing changing people's perceptions changing the way the left looks at things changing the way the ordinary people look at things changing when. i mean it's going to take a huge process of building and we're trying to do a lot of things at once we're both trying to create a culture of democracy we're trying to make connections of people that had been making at all between you know sort of class power the one percent government. coercion. police state and that you know it's a it's a potent symbol that you know actual stores are being replaced all over america by these sort of glass cubicles that don't sell anything but are full of guys with

guns and they're hurting symbol for what america has become let's move on we have less than a minute left and swartz activist in the digital space his parents the state killed them their thoughts well i mean it's telling isn't. that some of the brightest most creative. and most principled people in america are simply being singled out to peace destroy it and we've become a culture of sort of sheer brutal violence and sadism i call it like macho decadence you know we know we're going down release we're tough guys about it you know and this seems to be the attitude anything that points towards an actual viable future it's like stomped on and that's what you know aaron was i consider him a friend he was a great gardens news he's brilliant news principled and drove the people in charge crazy because he made a point through people who are producing or just totally totally frozen out of the situations become a system of rent extraction even idea like you know you go to jail or. one link in

the chain but you know if i write something i don't get paid for it which is fine but like yeah yeah yeah these are active scholarly work the scholars don't get paid for that stuff but they do have to pay to see what other scholars are saying i mean these these executives like inserted themselves in the conversations between you know intellectuals scholars and now are charging them to talk to each other i mean what could be more obscene well in the phrase their rent seeking gatekeepers or trolls exactly that that's what it is it's a red system and so in that way what aaron was doing is exactly the same as we're doing in occupy we're just pointing out the. what we've got now is a system of people don't make do anything that's worthwhile to anyone but they just sort of sit there privatized things put armed guards around didn't figure out ways to like charge you for doing what other people have done and others don't get a little yeah yeah it's very close i mean all right well we that's the time we have the book is called the democracy project coming out said david graber thanks so much for out time with me today that has a report my pleasure all right that's all that's on we have for this edition of the

kaiser if you are with me max geyser and stacy herbert i'd like to thank our guests david graber author of debt the first five thousand years and the newest the democracy project if you'd like to contact us you can e-mail us at kaiser report r t t v dot ru or tweet us at kaiser report back either saying by you. do hack work. get caught lobbyists money and lawmakers are combined together that's where the problem of corruption comes from.

i don't know the document's. keep up a smart look. there is also. another world behind which is how to influence the institutions to steer clear of provocations don't answer any question. came into the office and found banners. and lots of strange faces around and said what company will somebody please tell me what's going. and they said oh we've come to occupy you believe. possibly they wanted a confrontation possibly they wanted me to ring up the police have the police come in through the mile that. didn't seem to be a good idea to. learn the european way with brussels business and. it's one person one fault in brussels baseness it's one euro one fault.

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