i am max kaiser this is the kaiser report. if you're playing a poker game and you're look around the table and can't tell who the sucker is it's you if you're negotiating a bailout for your national banking system and you look around the take or the troika in this case and you can't tell who the sucker is it's you if you've got your savings in a too big to fail bank and you look at their balance sheet and can't tell who's going to bail them out and you have an inevitability of a collapse and you're on the wrong end then you're the starter yes the suckers do

you're not a banks or you're a sucker not made man you're a sucker not a treasury secretary your stock or not a debt or sucker just a working schmo soccer soccer soccer stacie hey max the plunder ball games are on it's plunder plunder plunder now of course the guys who run the system have the advantage of just being able to plunder our savings in the banking account but we do have behind us tower bridge and we're looking forward to the kaiser report having some morning news for you live breaking news we if we see any know any of these made men these banks to strike a type people. from them one morning well they have the actual traders gate so they make no bones about calling banks or traitors in the old days they took them to the tower and they did their business you know we need to bring that kind of thing back some kind of deterrent and this you have a deterrent then expect more pillage well plunder ball the new euro banking game

this is what david malone the author of the debt generation calls it and he says the simple idea we have all believed in was that up to a specified amount our money was guaranteed by a government deposit insurance scheme most countries have one as long as your bank is in it you're covered or at least you were told this week so remember these deposit schemes insurance schemes across the world were increased during the financial collapse and ireland was the first. to say all deposits are covered now we're starting to see that in fact that was a bluff they couldn't even insure one deposit let alone all of them so they had to pretend to cover the whole thing whether you had ten million euros or twenty million euros there they would cover it they said in this insurance deposit scheme in ireland now we're learning that they can't even to cover a deposit of a thousand euros no that's not the deposit insurance schemes at these banks in various countries are not worth the guarantees anymore because the banks ters

veracious appetite for more cash to cover their their gambling debts as now gotten to the point where they need to go in and just steal your deposits and enough respecting the law in terms of giving people protection on minimum deposit guarantees and you're absolutely correct we saw with m.f. global and j.p. morgan we're seeing it in cyprus and we're going to see in pension accounts next if you have an ira or some kind of pension account in the u.k. or america or anywhere around the world those pension accounts will be stolen plundered as well that will be the next that are the next phase so today it doesn't look like they're going to take anybody under one hundred thousand euros which is the insured amount but they've already presented it to us they've already warned you they've given you fair warning in the meantime however they are plundering those with over one hundred thousand the insured amount but again going back to what it used to be assumed as a deposit or you could still lose whatever money you had in the bank that was above

the threshold but you might not your chances would be in line with the senior bond holders but as this bank debt debacle has mutated over the past five years so the old ranking of creditors has mutated with it first the bailout funds like the f.s.f. and the e.c.b. itself have made themselves super senior and as we're seeing the senior bondholders are now getting precedence over the depositors right this is why. the economy around the world has no chance of growing fast enough to pay down the debt because any entrepreneur out there who's thinking about going into business and making lots of money that would increase their taxable income and help pay down that debt realizes that if they put more than one hundred thousand pounds or hundred thousand euros or dollars in the bank it will be confiscated by these banks hers so instead of working to create jobs and create growth they're just going to try to avoid that scenario by working in the black market by joining the banks hers or by going by

some other means also they're also cutting down the daily amount of money people can get out of the a.t.m. again that's a chokehold so here in britain for example they've gone from the aspiration nation to the asphyxiation nation so david cameron george osborne have their their hands around throats of these british people and saying we don't want you to have sixty we each wants to carry and people are saying ok they're going to work in the black market we're going to use bitcoin to save. we're going to buy gold and silver they wanted everything and everything to get around the corruption of cameron born in the euro zone the e.c.b. the fed j.p. morgan so it's a reward now they're going to be survivors there's going to be losers going to a lot of casualties are people going to die a financial problem well i don't want to say it again because people are a take on bridge at this term financial hole a cost but paul their former boss paul moore did agree that when you have a one hundred million people in the poverty through to the larceny of the h.s.b.c.

barclays lloyds and royal bank of scotland many will die many more then the whole cost of world war two so this is a mega hole of cost are going to revise that phrase make a cost so let's go back to the story of what we're talking about here about the deposit insurance and how people see their savings to save well first of all in cyprus allegedly there's been a bank holiday for a while but we do know that in fact there have been massive exports of capital in cash from these banks somebody has been able to withdraw their cash we don't know who yet also the german paid. reporting that the cypriot president. he was telling his friends to get their money out of the banks there this is what the german press is reporting now a lot of people think oh this is just cyprus and it's ok because they're plundering just the russians this is what they're told but whether or not it's going to come to us here is what this article points out is that new zealand and spain have already introduced legislation and no uncertain terms saying that your cash will be taken. and back in december two thousand and twelve the f.d.i.c and the bank of

england published a joint paper outlining their new approach for how to resolve any future collapse of one of the too big to fail banks called resolving globally active systemically important financial institutions so the paper is a blueprint for how they will deal with the collapse of a g. syfy globally systemically important financial institution and what they say in section thirty four is under such a scenario deposit guarantee schemes may be required to contribute to the recapitalization of the firm so of course may used to mean it could possibly use in today's world may means it will be legally covering their butts because they're going to not honor the minimum deposit guarantee scheme look we've seen with hank paulson he told his friends before he worked out a deal through tarp like tim geithner and goldman sachs they profited on inside

information and we saw in greece when papa grayle stole money from the greek people put in his mom's account is suddenly showed up in switzerland how did that get there who now are seeing it with the leadership in cyprus stealing money from people who've seen the story before it's a corrupt elite they're stealing money either kicking interest rates down to zero which is a form of theft you see that is quantitative easing here in the u.k. in america or they're just outright stealing money whether it's jamie diamond in m.f. global out of your account so once again there's a war going on there's two sides there's the corrupt banking bank stirs and then there's people who are trying to hold on to what they have and i think if i'm not mistaken a bomb went off a couple of days ago in cyprus look for more of those types of things happening because this is a bloody war well actually on twitter i was told by my greek followers that bombs go off all the time in greece this is no. just starting in cyprus this is because it was the first one it became news but you also mention that people are going into

gold silver and and this is another thing we've heard for the last. at least four years since we've been doing this show is people say all the time well why would we buy gold when the government might confiscate it but the joke's on you buddy. gold and silver is still there meanwhile the confiscating your cash exactly yeah and you mention big point i have to tell the viewers it's the late breaking news the first time ever in the history of the world is that a hollywood movie is now being financed entirely with big coin on the pirate my film side so you can go check out all bailout to the sequel to bail out i'm in the movie actually be entirely financed with bitcoin the first time ever in history so we're going to follow that going forward so you know we mentioned the fact that people were saying that the government might confiscate your gold and of course they're now confiscating your cash in the bank but even if you have cash and you hide it under your mattress they they're fine for you to do that you can do that all you want because they can still confiscate it through inflation to quantitative

easing so again doubly you're unsecured and people have also been warning for months or years that we've been talking about bitcoin oh what if the government shuts down the internet well what if the government shuts down the banking system and introduces capital controls and bank holidays chief and i think it's fantastically ironic that people have been worried about gold and silver because they might get confiscated meanwhile the people with gold and silver still have it and those bank accounts are being confiscated so the joke's on them as you point out similarly it's a it's a new currency like gold and silver it has all the characteristics of gold and silver you can store it offline so people who are saying well they shut down the internet doesn't matter you can store it offline so that's not a valid criticism you earlier mentioned that your pension will be taken yes the greatest retirement crisis in american history this is written by a former legal counsel for a mutual fund and this is in forbes he says americans know the great for a one k.

experiment of the past thirty years. has been a disaster why to resell it gil our dukie. professor of economics at new school estimates that seventy five percent of americans nearing retirement and twenty ten have less than thirty thousand dollars in their retirement account why because it's been slowly confiscated month after month year after year quarter after quarter it gets plundered by the four one k. advisors the bank stars who control their pensions and now the pension fund industry itself the banks who convinced american workers convince the government to allow their formerly previously good pension funds to be transferred to them they say oh that average is one hundred thousand dollars in these four a one k. but what the new school found was actually seventy five percent had less than thirty thousand dollars that's not going to get you probably more than six months retirement i know we saw a perfect example of that with the facebook i.p.o.

as i predicted on the show facebook i.p.o. would drop by a lease fifty percent when it became a public company but most of those account holders would be passive pension account holders so they wonder at the end of the year why their pension accounts are down five or ten percent is because the pension managers bribed the banks on wall street like goldman give them cash in the form of research and then they take a pig like facebook stick it in the pension account and watch it drop fifty percent for the fees people want to hold while lost my money from going you know for years and years and years i've done it myself many times and then finally do capital controls mean cyprus has already left the euro zone this is an interesting piece because it says if you can't spend it is it really a euro and even when the banks reopen it is assumed that capital controls will be imposed to prevent euro's from leaving the island so a french euro be able to purchase goods and services in germany but a cypriot euro will not it seems then that a superior eroei is unambiguous lee worth less than

a french euro well we already know that. all the euros and their own are printed with serial numbers corresponding to various countries and germans only do business in euro's printed in germany per the serial number on those german is already a two tier you're all right now germans don't deal in them stink and cypriot ticket down in a french euro's well nothing to do with them they only deal in german euro and cyprus is not leaving the euro zone because germany doesn't want to have cyprus leave the eurozone because it's the extent that they have these commies on the periphery that are screwing up it keeps the euro relatively cheap helps our export market and they get to run the entire eurozone this is the fourth reich germany four point zero i was two and a half years ago i warned you about it people said you can't say that the fourth reich the cafe that well i did and it's true and he didn't believe me and you're stuck in a cypriot a bank account having it confiscated tough tough nokia's on you body you go watch the show and pay attention paid for it going to tension i stay here with thanks be

on the guys report thank you stay tuned for the second half i'll be speaking with misfire stein of plan a ponzi dot com. choose your language. we can without any financial system still some. choose good consensus. choose to use that to great to. choose to stories could you. choose to access to your.

live. speed. limit. will.

be very little. welcome back to the kaiser report have you got yourself a copy of this book yet mitch fire stein's planet ponzi yes this is the book mitch welcome back to the kaiser report great to be here again on this frosty spring day let's talk about cyprus how does a fit in to plan a ponzi well it's basically it seems that it's an e.u. sanctioned confiscation of funds it's not really america and it's not really a tax it's a confiscation and it seems like an egregious violation of contract law once again it removes the capital struck. sure which is a problem for anyone to have confidence in the system in the e.u. banking system capitalism relies on contract law and relies on the side to have private property people want private property they gave in capitalistic endeavors

but if that's now longer going to be protected then we're not we're in a post capitalist society that's right and i think that it's our bit arbitrary and capricious nature of what they've done here sets a precedent no matter what they say it's not really credible and you can't believe that this won't happen again elsewhere so i would say that most people or people that are injured parties if you had one hundred what's the difference if you had one hundred thousand and they impose forty percent confiscation so you're left with sixty and if you had ninety five thousand and you get away with nothing so it's the arbitrary and capricious nature would lend itself to these people going in front of an e.u. commission to get an immediate injunction to stop the process from moving forward that is why should those acting like a royal court where people calmly and the supplicants and they ask for favors and the king decides who this who that's the we're back to medieval ism we're in a post you know before the enlightenment before the invisible hand before adam smith we had princes you know petitioning the lords for dispensation and

here in the u.k. of course they just outright bring interest rates down to zero and confiscate your wealth that way but how does this what's number one on your your list of things that you're looking at well i think i think one of the biggest issues is moral hazard began when long term capital management was bailed out by the fed and if you look at what's happened since then i mean long term capital was one billion dollars which at the time was a lot of money and then the exposure was four point six billion you know you've seen with london the london whale incident with j.p. morgan it's six billion in losses and it didn't move the markets at all i mean this is really political theater and maybe it's putting a balloon out a test balloon cyprus could be seen as a test balloon to see how how much they can get away with how far they can push the ball. with other countries such as italy and spain and portugal and ireland because basically those countries not basically ireland what i meant was that ireland already bailed out of going to the going to come back to ireland the coming back right but here's my point there's reach everywhere right now and these countries

are in a depression and i don't understand why the media isn't picking up and calling it what it is it's not an economic recession italy has had i think nine quarters of negative g.d.p. g.d.p. growth and you know in spain you've got youth unemployment approaching sixty percent so now you're going to have a total revolt against the euro this is not a good thing you know it basically is a signal now that the euro is not safe and anything can happen anything is not taken off the board i mean germany is the paymaster here and i think that what it indicates is preposterous ahead of the german election because this is an itsy bitsy you know it's a bit steep payout which was ten billion and if you think about the first bailouts like greece bailout one was one hundred ten billion euros and then bell out two and then bailout three bailout for bailout five i mean belo infinity has become the new normal in terms of what the government is doing to us in germany that mean they

benefit by these countries going into collapse because it keeps the euro relatively cheap and this is a big export business at the same time they're introducing measures they give them a play on the entire banking system across the euro zone and they're trying to boot out britain from the euro european you. so germany is getting a lot of flak as being tempting to impose their imperium across the the european nations is that a fair characterization well i think we have and i think that people are going for it right now what you see you know and i would advise the u.k. i think you can't listen to the same people all the time which is kind of the problem when you have people trying to use solutions that created the problem to get out of it something like einstein said. regarding the u.k. they should say look this is enough we don't want any part of this because why should we join a system that's going to take away our flexibility to do what we want with our

banking system and ability to. an ability to impair the government here that's already headed towards a triple dip recession but the total the debt in the u.k. include private banking government and corporate is close to nine hundred percent of g.d.p. is the worst in the world it's the highest in the world so going forward will the country of the u.k. they've already brought out zero percent interest rates in quantitative easing the economy sluggish at what point does the chancellor george osborne simply start confiscating money from people's bank accounts well that's actually being done with the currency wars i mean we write what i said in the summer so what are they just start stealing money well i can cyprus basically the pension funds are being robbed right now because if you put interest rates at zero it takes the money away from the pensioners and the people who are keeping money in the bank account right studies came out that two hundred billion pounds has been stolen from pension accounts by keeping rates artificially near zero so for every pound of people save

on their mortgage they lose three in their pension accounts and savings account so it's an economic policy of suicide but when it's going to put the gun the people said like the hank paulson or grayson just steal money he looks he's got that look on his face like baby face nelson gangster like give me your money what make me make it was your head fund manager or the odds of this i mean what would you what's the over under when will george osborne steal money overtly from people's bank accounts in the name of of of whatever e whatever god he prays to mammon well i think that you could get into a situation where there are right now creating a ponzi scheme ish funding for housing as part of the new budget now who does that really benefit because housing is at the peak of the market so do you want to create a society of debt slaves they getting at the top of the market you know in the book my book i describe this scenario in every scenario and how to protect yourself but quite frankly the government is issuing guarantees for loans on housing with no

contingency for these to go down so in other words. they're assuming zero default when we lend this money i mean it helps the developers and it helps the construction industry to build this stuff there of the city of london who can write all these money back it's all these mortgages when inflation hits which it already has i mean i can show you here on a chart that i brought along well look shirts up a chart again which is oil prices since two thousand and eleven have gone up thirty six percent and i think when they show you an inflation rate and you said on b.b.c. yourself that the packages have gotten smaller the quantities in the packages are smaller yeah but the prices remain the same or the prices go higher yes i'm going to stand that inflation is there stop inflation but here you have it when george osborne by putting this together which is help to borrow or help to buy our big governments backstopping your purchases if only there was an example of a country that tried to do this before to see whether or not it worked or not the

one that wait a minute there is it's america not a failure freddie and freddie mac. it totally blew up it was the root cause of the two thousand and eight collapse so i just want to say what we learned from the two thousand and eight collapse is do a bigger do work harder and do with even more stupidity is that basically what we're saying well i don't know if i would go that far but let's take a look at royal bank of scotland and lloyds the two bailout brothers that we've already got here and the assets that they have a none of these banks in the u.k. have really delivered so you haven't had any systemic the leveraging of the european banking system and you know cyprus if we go back to that is a kick the can down the road until something some idea comes along i think the euro is a failed project there's no there's no way that you can compare economies like germany who's a powerhouse of europe to portugal italy and spain i mean beppe a grillo is a perfect example in italy right of what happens now if they were to hold a vote tomorrow he would get probably forty five percent of the popular vote that's a guess off my cough but quite frankly i think most of the people in europe i know

the people. and italy with two point six trillion in debt which makes cyprus is ten billion you know look like a pockmark quite substantial so people are saying enough we don't want the euro anymore i mean beppe a grillo part of his. promises were look we're going to revisit our euro participation and what we're going to do with the outstanding bonds that you see in the video pentagram low talking to people his economic policies talking about money time off the currency talking about a reserve i've seen his videos if you have he does a lot of pontificating on this score many people say this guy knows what he's talking about when it comes to banking you're a banker would you concur well you know i think he's got new refreshing ideas and he's bringing in new ideas where the politicians will just say anything that they need to do to get reelected and they have the same people rotating. in different shifts and that's part of the problem you need new ideas you need changed drastic times call for drastic measures the credit crisis far from over he's the only politician known as calling baxter's out and saying we've got to get rid of the

criminal banks or before we have any progress i mean is a bit of it is you know it's not only it's not just the criminal banks there's i mean. alan greenspan came out a few years ago and said during the credit crisis there was fraud but quite frankly nobody's taken picked up the ball you had attorney general holder that came out and said sorry the banks are too big to prosecute i mean you're the attorney general of the united states of america saying banks are too big to prosecute ok so you're throwing the ball into the court of the politicians or it's not i mean what place what i say in the book max is that people have to take personal responsibility the way you can do that is by going out and saying look i'm going to designate my vote to who i think is going to make change you need change to alter the system to get us back on track if you thousands like what are you going to mean that's used to defend a rapist in other words a woman because she happens to have physical attributes desirable by men should not be forced to live in

a concrete suit and she should be allowed to walk freely in society without fear of rape so i what i'm saying is people should be able to live in a society fear of financial rape from bags in the city of london and this be just not personal responsibility there needs to be some protection from rapists from financial rapist like h.s.b.c. a park police royal bank of scotland and lloyds from the average person that may be why it's not such a hard thing to comprehend. they choose to enforce regulations that they want to enforce as you pointed out and regulations don't get enforced enough on the too big to fail institutions which need to be broken up mediately i think that that's the problem here with firestone we have to leave it there thanks so much for being on the kaiser report thanks for having me all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests misfires stein author of this instant classic planet ponzi get it read it

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