and realized everything is. welcome to the big picture. i've. welcome to the kaiser report imax kaiser you know an eight hundred ninety congress passed the sherman antitrust act at first of course those modest at the supreme court refused to enforce the law always siding with the monopolist unless it was to break up a union but then in one thousand to two teddy the trust boss to roosevelt went after john pierpont morgan j.p. morgan who controlled the bulk of the railroad shipping across the northern united

states through his northern securities of course j.p. morgan was. that he had not been warned that given a heads up for being treated like a common criminal today j.p. morgan is still around it relating rigging and monopolizing but we have a trust enabler in chief no trust busting trust a little or trust enabler stacy that's right j.p. morgan was of course outraged that he was treated like a common criminal of course nowadays it's impossible to treat them like a criminal no matter what they do whether they're reading energy markets whether they're bribing chinese officials whether they're rigging all sorts of markets across the world so we're going to look at this the situation we find ourselves in where the government won't enforce antitrust laws and the people when they fight back against this so we have this giant financial collapse and the likes of j.p.

morgan were handed billions if not trillions and taxpayer funds to bail them out well what did the population do they moved their money remember that was they were fighting back they were trust busting against these big monopolistic too big to fail banks they moved their money well check this out banks pushed. for repeal of credit unions federal tax exemption bankers say the tax break is an unfair advantage for large credit unions now they see an opportunity to get rid of it as lawmakers begin work on a major overhaul of the tax code writes a credit union model game came about during the one nine hundred thirty s. and this is a model where people can engage in day to day banking without being ripped off by the likes of wall street but now as you point out wall street doesn't like that any competition whatsoever there it's a trust it's a noncompetitive trust it's

a monopoly or all adopt only and also they are being required to increase the capital reserves on their balance sheets and that means either selling stock which would hurt the stock price or by reducing their loan book which would reduce earnings so they don't want to do either of those things so that instead are going to raid a credit union and the point is well taken people said oh you know what we're going to move our money we're going to put in the credit union but now that's where all the money is so this is where j.p. morgan will go to take over these institutions i'll claim that these people are being terrorist of course of the on a terrorist act everything very well a little up there just like blow bubbles. blew cool bluebottles. and. this will be of course whole self eft so there is trying to get rid of the tax exemption so let's look back at the history of how this tax exemption came about under nine hundred thirty four law congress exempted credit unions from federal income taxes as long as they were nonprofit businesses organized without

capital stock and operated for the benefit of their members so since the collapse now everybody's been moving their money to credit unions the bank lobbyists have lobbied congress and what they're saying is that is they're no longer small little credit unions organized around one business or one group of people. two hundred of them now have more than a billion dollars in assets they say for example now to put that into context of course j.p. morgan has over two trillion dollars in assets more knows how many trillions are quadrillions and liabilities but they also lost nine billion on the london whale in the course of weeks so here are these they're complaining that two hundred of these credit unions have more than a billion dollars in assets j.p. morgan is proud treated very strictly it's a credit the cold was a very secure size and then they took some other mortgage backed securities and they make it short so some silver and then they want to the fed and they go so no

credit for that so you have to add on a new piece here and this is j.p. morgan's latest the london whale struthers is the that's the bubble that they've really is based on so use a crude you hear this rollout is either going to get all that money and they're going to replace it on their balance sheet and there's going to be going to be because you for wall street if this is your go to the phone of the stocks you're going to sixty billion and money it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the bell shape there is no risk here there's no problems there. that's well so these bank lobbyists have been of course they own the congress now this is by the way one of the reasons why teddy roosevelt went after the trusts he thought they had too much power over politicians and he also thought the wealth and income gap was very dangerous and he was afraid of revolution so this is why he went after these trusts

and bust them up we have a very remarkably similar situation now in america with the wealth and income gap just as bad whether or not i doubt they'll be revolution just because people are so addled on drugs and food stamps but so they've lobbied congress and we see we see the results in the two thousand and ten report on tax reform. arm of course they always couched their phrases and reform that they use the progressive sort of bull moose pulpit sort of thing saying we're being progressive the president's economic recovery advisory board said eliminating the exemption would raise nineteen billion dollars over ten years and remove the credit unions competitive advantage relative to other financial institutions and the tax code so in response we see fred bakker jr president of the national association of federal credit unions and he said regarding this attempt to remove their tax exemption he said the tax exemption is crucial to credit unions which by law can't raise capital through public stock

offerings the way that banks can the have to convert to banks which is what the banks want then they'd have for lack of a better term a monopoly right up you know since teddy roosevelt's day of course they have something called the federal reserve bank the federal reserve bank there's ben bernanke. the federal reserve bank so then j.p. morgan the federal reserve bank ramey institution places and think they merged and oh oh my god there went the credit union oh my god there once somebody is home oh my god there was somebody whose job there was the american economy oh my god you mean the cold product you made. a lot of you know you just prove it all day long that's true isn't fact i'm no good. so now they want to remove they want to create basically a trust you have to participate in the trust especially if you are alternative service whether it's gold and silver

a credit union or bitcoin if it dares to compete with us we will destroy it and do all we can to destroy it using the government we own so now look at what advantage the taxpayer the consumer is going to lose in two thousand and twelve an economic study commissioned by the trade group found that removing the tax exemption would cost consumers about ten billion dollars a year through higher fees and interest rates on loans as well as lower interest rates on savings so of course a cost always ends up being a benefit to somebody else they want this system of neo feudal tollbooth economy we are constantly having to pay fees nickel and dime ing whether it's nickel and dime you in the stock market by front running you or nickel and dime you through these exorbitant interest rates on the money they get for free right money savings as you work. trying to put it somewhere where jamie diamond can't steal it member he stole the money an m.f. global it's kind of like edward snowden hiding out at the airport like the n.s.a.

or the f.b.i. the cia is there and they're trying to circle it trying to extract him because he's got something they want information is valuable for they to trade on inside information remember that's what all of this n.s.a. prisons about front running on inside information you're not any more secure in fact or never been less secure if you consider economic freedom and economic independence a form of security your economic independence and economic freedom is about to be consistent rated by the people presuming you on their prism scandal so i see and they look at you and they say you've got something i want i want to do it. i want to show you i want to show you this is the way jamie dimon wakes up. good morning. america and that is why i says coffee dear and then he takes it and i think. we go down to wall street that's his job he's a parasite is a murder he makes you know serial killers dressed up like clowns look good well the final headline here will be about the n.s.a.

and them front running all information ideas innovation this is the total destruction of any competition because you can literally weeded out at the very origin as soon as it sprouts an idea sprouts in an e-mail you can front run it and create the competition before they could possibly gather together the capital to start a company it's a digital competitive abortion they look in your e-mails they see a good idea they aborted thanks jamie well thanks to the n.s.a. the sky may be falling on us cloud providers revelations of widespread spying by the u.s. government could bring big financial fallout to the cloud computing industry according to a washington based think tank so they reckon this think tank is information technology and innovation foundation and they reckon that it could cost twenty one point five billion to thirty five billion dollars but of course like i said the cost is always somebody else's profit this is destroying twenty one to thirty five billion dollars. worth a competition to the likes of j.p. morgan and google and the n.s.a. in america to say gave the digital aids what does exist is that i mean deficiency

syndrome and you're not protected against spying from the n.s.a. so the cloud now has aids the cloud is about to die a horrible miserable death and this will cause untold billions of not a trillion dollars of economic damage to america britain and around the world is a plague it's an infestation it's digital age thanks and i say your predictions zero so again there there are other actually think tanks that looked at this information and said actually it's going to be worse than thirty five billion dollars it could be up to one hundred fifty billion dollars but here you have a situation very similar to the credit unions is consumers went to places like lava bit or silent circle because they wanted some privacy they didn't want their ideas from on a stolen by the conglomerates in the trust in the mouth list in america so here's this final quote here companies aren't abandoning us cloud service providers on mass yet because there are few other competitive options so there are

a few competitive options out there and this is why people haven't left it on mass yet but with this n.s.a. spying they could prevent any competitive. options out there from ever emerging. there's a bomb a. little under the weather gets stuff they did a late from destroyer country thanks buddy. i stay here with actually watch being on the kaiser report thank you max states you have a second i have a whole lot more. money. what defines a country's success. faceless figures of economic growth. or a factual standard of living.

the interview. cutler.

this is the media leave us so we leave that maybe. by the same motion suit your. play your party is in. their shoes that no one is asking with the guests that you deserve answers from. politicking only on our team. speak your language. programs and documentaries in arabic it's all here on. reporting from the world talks about six of the ip interviews intriguing story so you. can try. to find out more visit our big. dog called.

welcome back to the kaiser report imax keyser time out of turn to cough catherine austin fits of so laurie dot com catherine austin fitts welcome back to the kaiser report imax is back now catherine often fits you know almost every other headline on bloomberg dot com these days is about yet another massive bank fraud there's lie boring the is the fix rigging energy market rigging selling fraudulent mortgage backed securities everything is infected with this plague what should our response be well our response should be to stop banking with the criminals so i have for many years recommended that people pull their money out of the big banks and only take the time to find a responsible bank that you can trust or credit union and banking institution is that we need to enforce isolating with a market whether r.

and deposits here's a thought exercise because i'm glad you mentioned credit unions since the financial crisis many move their money to credit unions now the commercial banks are lobbying to have credit unions tax advantages removed so your thoughts on what this bodes for fighting back through your money or through any kind of competition. well the scene in industry after industry is. the large players in the industry and it's happening banking going to washington and trying to get washington to rig market share for them rather than compete you know with good service and honest elance with customers that rather go to congress and see if they can't care you know get that rigged and that's been a non virtuous cycle that's been going on for decades and the reason that the american economy is so subsidized by government is it's lost its productivity because we continually make policy decisions based on what's good for political

contributions and what's responsive to people who have the power to kill with impunity as opposed to what's good for the economy as a whole and what makes sense in the long run right well i guess you know the point here is that the the american economy is the host and the banking industry is the parasite in the parasite is becoming quite huge now from tax returns to food stamps to minnesota bonds to pension funds j.p. mark morgan another untouchable banks control most of the public space around us either directly or indirectly or through debt for example they control the food stamp program in america so there's there's a huge parasite there in that but the this space available left for us the people who are the host for the parasite is getting smaller and smaller and smaller catherine. well i'm glad you brought up the food stamp or met says that's a perfect example of where the government is paying huge j.p.

morgan chase to do their job abroad to people here who are unemployed who are being paid money on food stamps or welfare disability are being paid to not work and so detached peers are paying through the same function twice so you have a perfect example of where government is generating corporate profits that are not economic for the entire society you know call it fascism call it soviet union but whatever it is it's not economic and the question is we've created a financial mechanism in the central bank and the treasury which can continue to finance this by basically just basing security holders and currency holders round the world and the question is is there a way to change it and shift it without the whole thing having to just literally collapse because i think you're right the parasite is just draining the host ok so in the case of j.p. morgan they underwrite securities and underwrite they move of huge pieces of the industrial heartland of america to move overseas principally to china and to keep

the people from revolting they also underwrite a little bit of a food stamp program but basically that's just to shut them up right. well what you have as you move to a broad ever more automated dome over the ninety's and two thousand so once the world trade organization got institution you're going to read it get you basically globalized labor and which you've been able to do and this is a matter of policy so it's far bigger than j.p. morgan chase or just the banks but which you've been able to do is offset my experience lation with labor d.j. ration is what are called a slow burn and that is a matter of policy now as people fell out of the work force you to serious steps as a matter of policy to to offset that you know the situation one is you to medically increase the prison populations so that so jeff some of the manual labor and then what you did was you literally between social security disability welfare

unemployment food stamps and variety of other government programs you literally created a whole section the part that was no longer working age but was dependent on the federal government and so couldn't you know had no independent political power to play about what was going on so it's you know it's part of the drain and it's part of the reason we can go through a period there where the economics are remarkably similar in some areas to the great depression and yet you don't see people starving because they're basically subsiding want a minimum amount of government money of course what it does is that explode to deficit so you've got if you look at this isn't as a whole it's highly energy nomic it's highly productive and of course the big question is when you've been asking for many years where is this going to go right will it's all going to return to something i just said for a second that they money has flowed into the system to finance mergers acquisitions debt creation concentration of wealth speculation but doesn't cause topline

inflation so much because simultaneously the jobs are being exported and wages continuously fall as. but america find themselves suddenly competing with workers in china sell my question is was somebody like a part krugman of the new york times says that he wants more money printing and oh you see it doesn't cause any inflation we can print more and more money he's completely wrong right because he never considers the fact that the labor force has been exported and the offset to inflation is the fact that people are getting screwed on the labor front correct. credit is wrong because krugman doesn't understand an economy depends old camilli on trusts and the ability to communicate information quickly and if every trace is politically by a variety of the sources that you and i've been talking about as opposed to two markets you've got a theory known for sure

a cycle between allocation of capital and the allocation of human times and the economic productivity so people start ingesting workings that make no sense a j and behaving in ways that make no sense you know when you find yourself in their well in situation where we are now where we have tremendous misallocation of capital happening globally but of course it's syrian regime to the people who are gorging on the system and the question is a political matter is how do we get out of that well let me ask the question a different way and they would it would apply also to the united kingdom where we have a new central bank governor mark carney and talking about forward guidance on interest rates more money printing more cheap money back in the seventy's catherine austin fitts there was a lot of money came into the system but at that time you had inflation a lot of inflation which included wage inflation because workers at that time there

was no globalization as we know it today china was that part of the w t o so. now flash forward to the clinton administration in the bush administration. you know clinton of course brought china into the w t o now they flood a system with money again but at this at the same time they outsource all the jobs to china so the question is if the jobs were stayed in domestic cat in the domestic region where the money has been printed wouldn't we already see what we saw in the seventies eight nine ten eleven percent inflation and when the bond market already be showing signs of fatigue and as we saw in the late seventy's so your thoughts on this mess not necessarily salute reframe the issue what happened in the mid ninety's was the decision was made in the developed world both salute north america and europe to shift enormous amounts of capital out of the

developed world and literally think of you know you have one system which is now the legacy system and then you have a new system huge capital is shifted out from one to the other and so why bill it is for retirement and and health care are left in the legacy systems ok so we've now literally shifted forty training camp of capital over into this new economy sure we've left the liabilities in the old economy with the nation states and now the question is you know it's kind of like what do you say to the church thanksgiving. you know who's been fed and plunged into taking it live in a friendly worlds you know how do you ever get those contracts and what's been discovered by the politicians is the way to abrogate those time tricks is slowly with their basement as opposed to just a mark to market or straight out abrogation so you sort of wind people down slowly and some people lose their pensions like in detroit and some people who's

a little dinner just a pension they get is worth less and so was having in both europe and the united states is is there to be as well to premier or their preference. sure it works the birds that we know it's we did produce we know what a song that we just don't know how to get elected when we do ok so you know i understand your point i take your point basically that the the global movement of capital essentially trumps the global movement of labor to some degree and establishing the forces that shape the current market for a currencies bonds etc but i you know you were working in government of course catherine and part of one of the previous administrations and so what's your take on what's happening with the n.s.a. surveillance talk about the parasite eating the host it seems like we've got out right collusion between high tech companies the government and the spying organizations really setting up a situation where the anyone is not part of the parasite now there are steadily

patch of land that you need to take into consideration all the spying that's going on is ever shrinking your thoughts. well you now have i was just on that i just did an interview with star laurie lawrence wilkerson it was calling the staff and he made the point that we now have seventeen intelligence agencies and nothing for them to do and they're building a monstrous military industrial terrorist complex and trying to justify out of control spending and we have a global stock market that's dependent on that spending so so you basically have an insane situation where where the system is as one out of control there is no don't supervision all you've got is a whole variety of private interests competing for more contracts and justifying it by thinking they can spy on the american people so you know you have so many spies for every person in america you know sign on americans and science locally and using these technologies to do economic workers to boost your program in america

speaking in general programs so you know the situation is completely out of control and it's reached a level of ridiculousness and i get back to what i said before which is the pop proud of their policy whether it's in banking or the intelligence agencies or all these different areas is you know all these decisions are being made and all these infrastructures being built and financed without any concept to where we're trying to go strategically and how do you are optimized the productivity of the system whether it's you know cultural productivity or were economic productivity so you basically have you know if he actually you have a psychopathic system as he said before you know i call it caper my so you're today on the table i thought there was perfect but you know we have a team from economy and the reality is max is this is not just something happening in the halls of government or in the financial centers this is something that's happening in every household so in america if you have many of the households

dedicated to behaving in these ways that corruption at this point is society wide yes let a thousand edward snowden's bloom all right catherine at a time thanks so much for being on. guys report thank you max it's always a pleasure that's going to do it for this edition of the kaiser report was made max kaiser and the lovely and charming stacy herbert i'd like to thank our guest catherine austin fitz of salon dot com if you'd like to get in touch simply tweet us kaiser report and so next time ask eyes are saying by all. but he sees things that scientists people don't notice. but he is things that most people never to call him disabled but he's the world's

first deaf and blind doctor of science. professor i think rather support of. the great life. fields. lud. live. live live. live

. we speak your language. news programs and documentaries in spanish matters to you. a little turn to angle stories. so you hear. the spanish.

visit. when you say no to the government. they have the ability to take everything. about why he shot his company. bradley manning's lawyer will appeal for a presidential pardon for the whistleblower has been sentenced to thirty five years for a massive u.s. war crimes. and the u.n. calls for an investigation in syria saying there's no confirmation of chemical weapons use as rebel fighters claim hundreds have been on the outskirts of damascus .