welcome to the kaiser report max kaiser recently i was asked max what you cover so feel good financial news every once in a while you ask i deliver houses for positive financial news a man in china has had a six inch long worm removed from his brain now you might ask how is this good financial news is quite obviously is proof that we can remove the six inch or analysis six foot long tape worm investing the vital organs of our global financial system and all the headaches and migraines that are bank failures and quantitative easing would disappear is this correct stacy herbert. indeed max it is actually will go over this first headline here it's from china man a six inch worm removed from his brain a man plagued by headaches discovered

a six inch long warm had burrowed into his brain is that he was weighing me and he was sixty from chengdu china and doctors removed the worm and here's a photo of it actually and you know to put this into context this is a six inch worm and i want you to take a look at this one now this is sixty five foot long. that goes in the gut and then the six foot worm that you were referring to infesting our financial markets remind everybody this is jamie diamond the tape or it's an anaconda tape worm of course we're talking about parasites tapeworms they burrow into the system and in the case of jamie diamond or lloyd blankfein or warren buffett they leech out vital nutrients and they kill the host some parasites are vital in the gut as part of the ecosystem of one's intestines when these parasites grow to these enormous sizes whether it's

a six inch long tapeworm in your brain that just be pulled up through your nose as i believe the doctors in china did or they went in there what they surgical equipment or a sixty foot long anaconda tapeworm like jamie dimon who's lodged up to strange thing of america's financial system leeching out the vital nutrients or in this case cash leaving the economy in places like detroit to die remember jamie and his collateralized debt obligations that his financial position is securitization cause detroit goldman sachs with their parking or diamond is parking of where aus aluminum or out is right next door to detroit there that's a tape warm that's a leech leaching out the vital economic essence for making that town collapse and closing he they call it there that the parasites are. wall street clothes this economy collapses very simple a equals b.

and this man in chengdu china he was suffering from fainting fits kind of like our market flash crashes and the thousand point drop in the dow back in two thousand and eight and then he was also suffering from painful migraines exactly like our financial markets but what is happened here is the so-called doctors of this financial system like the central banks and the treasury department's look at the system and they don't even look for the tapeworms but they just keep on throwing more nutrients at the system that cash the liquidity for the banks and everybody wonders where it's all going because it's just sitting on a balance sheet and us of course because the tapeworm that's what as you pointed out they suck the nutrients out to avoid you know so the human or the system supporting it doesn't get it but it's like getting out of the park or the zoo says don't feed the ducks because then you produce more of the matter coming out of the tail end of the dock that ends up poisoning the ecosystem of the park or the zoo so

everything's in balance in a natural system capitalism should be in balance but you know jamie dimon lloyd blankfein demanding a measure of your kidney stone the size and having the past history of your rethrow ok no chinese doctor in finishing prodding is going to be able to remove a kidney stone out of your ether the size of this and this is jamie in the research on the american economy is a kidney stone the size and there's a passage that through your resume that's what jamie does to us every day first the pain you're feeling in detroit that's the pain you're feeling in municipalities does the pain you're feeling in your jobs becoming worthless all this is it just needs to be erratic. well you know two of those tapeworms combine in this next story because you have the beef tapeworm that i showed you is it gets up to sixty five feet long and then the gene we time diamond tapeworm. j.p. morgan is really infiltrated everything about the whether it's municipal bond

market or the food stamp market or mcdonald's workers many of them are given cheap morgan chase debit cards say they were given tapeworm burgers i mean that's a good way to save having to feed your employees a sixty five foot tape worm that's a few burgers and of course the other to worm in our headlines was the chinese one and they all combined in the headline here fast food workers in new york city stage strikes and rallies workers at mcdonald's burger king and wendy's restaurants across new york walked out on monday in a one day strike to demand better pay and the right to unionize calling for a minimum wage to more than double from seven dollars and twenty five cents to fifteen dollars an hour and the end to what activists called abusive labor practices so this is one hundred seven percent pay rise they're seeking and reminds me of what we saw in china recently when people were demanding one hundred percent pay rises there they got them at foxconn of course they probably won't get them in america right of course you can raise wages in america you can double wages in

america easily and the fact is that if the banking sector can lean on the fed to borrow three four five trillion dollars to feed their ponzi schemes then organized labor in america if there was organized labor should be able to borrow forty five trillion dollars of percent interest rates to create an economy based on jobs and capital and capital formation and growth instead of borrowing money and speculation you could look apple computers got over one hundred billion dollars parked off shore they're trying to cut a deal where they bring it back to america for accelerated tax benefits i mean if apple computer could bring all the manufacturing back to america they could pay fifty dollars an hour and they would still be profitable remember just apple gouging apple's a tapeworm the guy runs up without him the tape or he's just counting in the american heartland you know if you buy one of those apple products you muzzle to shoot your mom in the. but this goes back to the point i was making where here we have the central banks and the governments injecting more and more so-called

nutrients into the system but all they're doing is making the tapeworms bigger and bigger more and more powerful and starving the rest of the what should be a healthy economy so here i think we're just talking about there is monsanto i mean there's a company that's business model is to make tapeworms ever bigger well ok but obnoxiously also talking about this headline here that we're talking about which is this mcdonald's workers going on strike for one hundred seven percent pay rise he says i can't even afford something off the menu with what i earn it makes me wonder what i'm doing here this is actually pinckney and she works at mcdonald's in times square so she can't afford nutritious not that necessarily mcdonald's burgers are interesting though she can afford to keep the tapeworms alive and by eating to burgers at a burger fast food joint. you just got to market tapeworms as a mc tapeworm nugget and maybe have that as a menu selection i'm sure nobody in america would mind if it was the dollar menu

price they would probably buy and make tapeworms so as we see the markets and the economy are being flooded with this nutrients that are feeding the tapeworm expanding them the inflation is rising starving the rest of the economy starving the savers starving the workers who have to work for wages at minimum wages we remember are not tied to inflation so here we cut to the u.k. which is also having a similar problem inadequate minimum wage isn't working says its chief architect sir george bain professor sir george bain says the value of minimum wages fall and because it hasn't kept pace with inflation so there you have it's type to wages not to inflation so they're losing more and more they want to move away here by the way six pounds nineteen which is the equivalent of nine dollars and forty cents so they already had an american. workers but even here it's falling behind further well put this into banking times what we see here is

a breakdown of the transfer mechanism in other words on the central banks releases trillions of dollars into the economy is supposed to flow through the banks and into the economy the real economy and you would see wage price inflation you'd have seen it years ago but the unfortunately the banks put on a centrally prophylactic around the real economy so that nothing can get out there's no ability for the central bank to inseminate the conna me with a quantitative easing release because of the prophylactic this been put in place by banks think banking terrace as i call them and therefore you have no wage increase whatsoever there's no growth not nine months not ever there's no economic babies that are being consummated as a result of quantitative easing because of this wall this been in place by the banks to take that money that's being printed by the central bank and that they give it back to the central bank and they just put it back on the central bank of they make money on the money they've borrowed so it's a complete bastardisation upside down the zation of all that we consider holy in

the room of economics and mathematics it's a repudiation of common sense and it's a tape worm to me is example followed by boris johnson. well you know so as we keep on saying here they're feeding the tapeworm the tapeworm is getting bigger and starving more and more the real economy so this is one of the things we've always pointed out is that workers should just say forget all this minimum wage or whatever just like tire in comes to money supply because the money supply is what's feeding the tapeworm so if the tapering gets very good then you should get even bigger absolutely than the unionized labor should have access to the fed just as easily as wall street or the city of london why don't they why can't they organize a two trillion dollar loan a dear zero percent interest to pay themselves double or triple or quadruple the only thing that would happen is that the economy as we know it would be less reliant on speculation and. more reliant on manufacturing you'd see more businesses started up you'd see more manufacturing in the u.k.

bigger export markets and now you mentioned zero percent interest rates reserve policy and that is feeding the tapeworm over here on the other side the real economy is being starved the savers and the workers and we have zero in their headline nick clegg business department will investigate zero hours contracts deputy prime minister resists concerns about contracts used by buckingham palace sports direct intake galleries so ninety percent of sports direct workers here in the u.k. and three hundred fifty summer employees at buckingham palace are in zero hours contracts this is they aren't guaranteed any labor but they actually can't take other work so buckingham palace opened its doors to the public earlier this week but all the temporary staff hired to run the state rooms attraction which included diamond jubilee exhibition are forced to sign contracts with give them no guarantee of any work however although the contract leaves staff with no promise of work they are not allowed to work for any other employee without written permission from the

palace so the bank of england says there's not really any inflation in the economy so we're going to keep printing money because we see more deflationary pressures simultaneously you've got sports direct it's a huge retailer making hundreds of billions of pounds they are signing people up into contracts into servitude where they pay them duly squat so in other words there's no inflation to wages because somebody in the economy sports direct acting as an old couple istic. pediment toward the mechanism of cash flowing into the economy is recreating a plantation mentality recreating a colonial period i mean it's like saying that well the indians and the consonants didn't cause inflation because after all we didn't pay them so there was no inflation. if you don't pay people those are going to be inflation. anyway stay here with thanks for being on the kaiser report thank you max stay tuned for the second whole lot more.

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welcome back to the kaiser report time now to turn to author filmmaker independent investigative journalist greg palast greg welcome back to the kaiser report glad to be here now first of all great congratulations on your new book billionaires of ballot been a. fabulous read and people are very excited about it and i love your work i want to ask you first greg did fabrice touristy of goldman sachs cause a financial crash tell us about your latest blog post of that title. well yeah i mean i wrote a story for vice called the frog that crushed the planet because the united states government arrested was actually in reston it's a civil action and action against a french twenty four year old he was twenty four at the time. in they decide he's the guy that brought down the entire planet in two thousand and seven with

financial manipulations as a as a clerk at goldman sachs now we all know it's the clerk sent were responsible what he did was brave did he was the assigned by goldman sachs to be an assistant to a guy named john calls and that's not hank paulson the secretary of treasury from goldman sachs is john paulson goldman sachs coconspirator paulson and goldman came up with the idea of selling mortgage securities to europe mainly to european pension funds so that they would insurance on mortgage securities called collateralized debt obligations these are derivatives and the idea was that if the mortgage market improves did america and the economy picked up and they'd make a lot of money selling insurance on these mortgages what goldman and paulson didn't say is that in fact while they are selling these securities they were betting that

the securities would turn into junk that the market would collapse and mortgages in america would that the mortgage market would implode and they would make billions that's what happened right after they sold several billion dollars in mortgage securities goldman and paulson. they were they lost ninety nine percent of their value in weeks were complete total garbage and they didn't say that in fact they were the guys that were making the money selling these things so it was a complete fraud and so the securities exchange commission said this is a devastating for aught that cost the world billions and billions of dollars and lead to ultimately trillions of dollars in damage a key event in the disaster and so given what also goldman did so they immediately took action against the clerk who was assigned as paulson's assistant as memory

serves paulson and goldman were involved actually in a multifaceted fraud at the time not only were they trading out inside information as you point out they packaged faulty securities and then made bets against the faulty securities but then goldman and john paulson colluded they knew that goldman sachs wouldn't be dumping a lot of these securities into their own customer accounts so they were front running their own customers and this and it was a quite a five way complete collapse and of course john paulson has been implicated in the collapse of greece as well because if you recall he was part of the group along with goldman again lloyd blankfein and the leader of grace at the time papa drownded got together and they profited usually from the collateral collapse of the greek economy but i want to move on to obama versus paul singer because you've been writing about this is really fascinating splaying the background of the argentinean bonds story and what's happening today. there's another billionaire vulture speculator and i become

a kind of call of alter he's called that by everyone in the marketplace but the great vulture speculator america's guy named paul singer he's also probably the top donor organizer of donors for the republican party he created something called restore our future which is the billionaires club that is the big money now behind the republican party including bill koch the third koch brother now singer was involved in vulture attacks on argentina he was a one of people that brought greece to its knees because he refused to participate in a in the bailout plan of the i.m.f. . singer was also involved in the destruction of the republic of congo i was hunting him down in the congo i was up to going up the congo river to find out what he was up to for b.b.c. television and his latest caper is banging the

government of argentina if you remember years ago argentina financially collapsed around in the year two thousand. that a an agreement was worked out in which argentina would pay actually people say argentina defaulted never paid now argentina cut a deal that it would pay when its economy recovered and several banks j.p. morgan city bank and others have made a killing because in effect they got stock in the economy of argentina i r g to base the banks a percentage of their growth in their g.d.p. so they've literally got banks of stock in argentina three percent of those bonds just three percent fell into the hands of paul the vulture singer cinder now nearly two decades later is in court saying no i don't want that deal that was that everyone accepted twenty years ago i'm not going to accept that i want

a mint in full on these bonds plus penalties plus multiple fees and in effect he wants something in the order of two thousand percent profit on his bonds from argentina if he wins argentina go goes from a a great driver of the of the world economy the great success economic success story becomes simply bankrupt so this would bankrupt argentina and by the way it would take a big bite out of u.s. banks because singer wants them to give up the money that argentina paid them. yeah paul singer kind of gives a bad name to vulture capitalism and i thought at the term ritually was used on oscar night i worked off a myself backwards would fly in to bust the deals are busted oil wells as you know vultures and try to revive them but in the case of paul singer he's actually precipitating the collapse it goes beyond just vulture capitalism is a play is

a plague upon argentinean economy and he did it he was so far as to try to take possession of a sovereign asset of argentina correct one of their sovereign ships he is a pirate technically. all singers sees an argentine naval vessel what it was it's an old pirate ship it's an old bridge and teen that the argentine navy does four kind of shows an exhibition zz and kind of diplomatic shows they sailed this old. this old brigantine this old pirate ship to africa and paul sr sees the ship which had the naval officers on it normally this is an act of war i thought the argentines were quite calm about this and they ended up having to pay like you know of some they literally had to pay ransom to singur to get their navy boat back i'm not sure that was a good precedent that the that you know you don't pay off pirates or hostage takers

but they are not in government decided that that was a better idea than in creating conflicts nevertheless or in major conflict still because singer wants to kick over the argentine economy you remember just like also and in the deal we talked about before vulture operators like cinder aren't just you know picking up cheap debts and trying to make a few bucks or getting paid off on those debts they're trying to get many multiples of their of these debts they're you know they're breaking in some cases international law by doing this but right now there is a chance that the obama administration may step been against all super and that's what's very interesting now a blood battle between the obama administration and singer. now if i would like to say that obama is doing the right thing and but there's two things going on

here obviously one poll saying here is the guy who's gathering the big money against obama he's the guy putting the he's the big money pushing chris christie to run for president he was the big money behind mitt romney so obviously obama has reasons to you know to flap. singer who is funding his political opponents by but you know what obama tends not to be a political hit man he's much more subtle than that so why is obama now making noises that he's going to come up against singer before the united states supreme court and the answer goes back to obama's favorite banker jamie diamond of j.p. morgan morgan. obama's very close the united bank of switzerland u.b.s. which put together the original argentina bailout u.b.s. is it so the swiss bankers are really upset about singer j.p.

morgan is really upset about singer citibank is really upset about singer why because singer's not only demanding that argentina fall to its knees and give up in give up everything it owns including its naval ships. they also want the money back from j.p. morgan and from united bank a switzerland and from citibank because argentina's ate them billions and people don't know this people think argentine just walked away from instead it did not it's been paying these banks big money and singer says give it to me that's mine i own the original bonds yeah just a debt that's a game so it's a war between the capitalists baking elements right now obama's on the side of the end will always be on the side of j.p. morgan yes taking on argentina hair we have about a minute left. and just to go to the history of this a little bit because during the eighty's a big banks on wall street like citibank at that time made huge loans argentina

thinking that no country could go bust well the country did go bust and at that time the u.s. government and citibank coerced the argentinean government essentially to take on corporate debt and to make it the debt of the nation and then to begin austerity measures and this is really the history of the argentinian collapse but the reason it's important and correct me if i'm wrong but this is exactly what we're seeing all over america now in a large and a large part what's happening in detroit is the very same thing what's happening across the america with the collapse of the u.s. economy the very same thing debts that were. created through large banks are being pushed into the public sector for the public to suffer through austerity so if the argentinean model is in the u.s. and that's why it's important we are thoughts yeah well and in both by books well just picnic and really isabel france is exactly the point i've been making the things that were that were basically tested in the third world on argentina or an equity and then brought home the difference is that the arjun times have learned or

less they've been caught up with those debts were forced on the arjen times by military dictatorship so what happened is that citibank made loans all kinds of argentine companies and the military during the dictatorship then the i.m.f. and the banks in the u.s. government force argentina to take on its public debt the debts of these bogus companies of these of these connected operation going to cut it off their route of time but that be on against in the new book from great palaces billionaires and bella began its i recommend you take a look at it thanks for being on the kaiser report. always great thanks max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest greg palast if you can find his work at greg palast dot com check it out it's well worth it if you'd like to get in touch with us tweet us i've kind of a report until next time x. guys are saying but i go.

right on the scene. first rick. and i think you're. on our reporters' twitter. instagram. to be in the.

economic up and downs in the final. day of the deal and the rest because i think the take it will be a prickly.