to break up a union but then in one thousand to two teddy the trust buster 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 and it be laving raking in monopolizing but we have a trust enabler in chief no trust busting trust enabler 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 move their money well check this out banks pushing for repeal of credit unions federal tax exemption bankers say the tax break is an unfair advantage for a large credit unions now they see an opportunity to get rid of it as lawmakers begin to work on a major overhaul of the tax code right the credit union model came came about during the one nine hundred thirty s. and this is a model where people can engage and dated a bank. with that 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 of gobbling 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 include reduced earnings so they don't want to do either of those things so this standing in a 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 a 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 terrace of course of the terrorist act everything that a little oil up there just like blow bubbles blew up all who blew bluebottles those . and. this will be course wholesale theft so there is trying to get rid of the tax exemption so let's look back at the hit. came

about under a one 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's drowsy disgracefully that's a credit the cold was very racially characterized and then they took some other mortgage securities in the bank of short sold some silver and then they went to the fed and they get so no credit for that so you have to add on a new piece here and this is j.p. morgan who is the london whale struthers is the that's the bubble that they've created based on so years occur you hear the old loot 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 exclude you from wall street because you have a good start oh sure the phone up the stocks you were going are 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 there's 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 trust. 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 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 backer 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 they'll have to convert to banks which is what the banks want then they'd have for lack of a better term a monopoly 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 i think in case 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 moved goal prologue you made. a lot of you may just prove it all day long that's true it isn't for 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. 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 is kind of like edward snowden i am 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 are 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 vista rated by the people presenting 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 kill you i want to show you this is the way jamie dimon wakes up. good morning. and there's wife says coffee dear and then he takes out 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 that 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 a soon as it sprouts an idea sprouts in an email 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 if they look in your email if 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 an immune 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 aids 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 stolen by the conglomerates in the trust in the monopolist 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 obama. but a little under the weather gets stuff they did allays from destroying a country thanks buddy. there were thanks much for being on the kaiser report thank you math state you have a second half. to

build a. mission to teach me. this is why you should care only. what defines a country's success. faceless figures of economic growth. standard of living.

on this show we secure. iraq. still has room for improvement. is an improved roads in one fell swoop. choose your language. please make it without any financial sense to kill some of the. right to choose good science to. choose the opinions that you think are great to. choose the stories but if you. choose the access to often.

welcome back to the kaiser report i'm max kaiser time out of turn to cough catherine austin fits of so laurie dot com catherine austin fitts welcome back to the kaiser report imax it's great to be 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 libel or raking the is the fix rigging energy market regaining 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 will 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 bank it institution this

is we need to enforce isolating with the market whether our banks are posits here's a thought exercise because i'm glad you mentioned credit unions since the financial crisis many moved 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 you seen in industry after industry is. the large players in the industry and it's had many banking going to washington in trying to get washington to rig market share for them rather than compete you know with good service and honest elance with customers they'd rather go to congress and see if they can't care you know get that rig and that's been a non for to a 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 term 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 other 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 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 an 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 and shift it without the whole say 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 abroad ever more automated over the ninety's and two thousand so once the world trade organization got instituting your quite round of get you basically globalized labor and what you've been able to do in 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 play sure with labor detail you ations what i call the slow burn and now as a matter of policy now as people sell out of the work force you to get serious steps as a matter policy to to offset that you know the situation one is huge you're medically increase the prison populations so that suggests 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 coots you know had no independent political character 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 explodes a deficit so you start if you look at this isn't as a whole it's highly energy nomic it's highly unproductive 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

that 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 when somebody like a paul 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 the inflation is the fact that people are getting screwed on the labor front correct. krugman is wrong because carmen doesn't understand that an economy depends old humility on trusts and the ability to communicate information quickly and if every trace is set 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 nine search 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 day 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 cordial in 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 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 and 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 the 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 salut reframe the issue what happened in the mid ninety's was the decision was made in the developed world both 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 billet ease for retirement and and health care are left in the legacy systems ok so we've now literally shifted forty trillion can of capital over into this new economy sure we've left a lot of belittles 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 turkey on thanksgiving. you know who's been fed and plumpton 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 shouldn't whine people down slowly and some people lose their pensions like in detroit and some people who's

a little dinner just the tension they get is worth less and so what is happening in both europe and the united states is is there to be you know what the premier or the preference. sure it works it works it me notes we did produce we know how to sort of that we just don't know how to get elected when we do ok so you know i understand a 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 outright 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 its workers and it was calling as chief of 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 we 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 if you know spy on americans and spying 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 probably the 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 infrastructure should being built in financed without any concept to where we're trying to go strategically and how you are demise the productivity of the system whether it's you know cultural productivity or we're economic productivity so you basically have you know if you actually have a psychopathic system and as he said before you know i call it caper my so you're cute and on the table i thought it was perfect but you know we have to taper mcconnel me 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 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 fits of salon dot com if you'd like to get in touch simply tweet us kaiser report and so next time nice guys are saying bye oh.

they're actually what happened i don't know killed. years later is when i got arrested for. for a crime i did not do. we have numerous cases where police officers lie about

polygraph results. get innocent people to confess the police officers don't beat people anymore i mean it just doesn't happen really. because there's been this it's like men know because the psychological techniques are more effective in obtaining confessions than physical abuse and they were off taking they could do what they want to thank you say what they wanted and there was no evidence of what they did or what they said. but he sees things that sighted people don't notice. he's deaf. but he hears things that most people never do they call him disabled but he's the world's first deaf and blind doctor of science. professor i think the other symbol

of. the great life lived against the odds. more news today violence is once again flared up. these are the images cobol has been seeing from the streets of canada after. giant corporations are on the day. this immediately below shall we leave that maybe. by the motions she truly play your part of the musical. shoes that no one is asking with to get that you deserve answers from. politics.

when you say no to the government. they have the ability to take everything. the owner of an encrypted side is used by n.s.a. leaker edward snowden tell us all to hear about his confrontation with u.s. officials and why he was forced to shut down. forgave the whistleblower bradley manning will request a presidential pardon after being sentenced to thirty five years for leaking american secrets don says he reveals he'd like to spend the rest of his life as a woman called chelsea. and live out of prison reports say trips deposed leader hosni mubarak has left jail for house arrest despite facing a retrial on charges he ordered the killing of protest.