welcome to the kaiser report imax kaiser you know the u.k. there's a new line of underwear that filters out farts using chemical warfare technology these new underpants neutralize odors up to two hundred times the stinky strength of the average flatfish a mission a less even these underpants are not powerful enough to mask the stench of the foul wind spewing forth from the mouth of the average central banker with their quantitative easing wreaking more havoc on the bowels of the financial system than refined bread to a constipated i.b.s. patient no i think jeremy paxman wrote that no only gold silver in bitcoin can neutralize the stance of central bank policy stacy herbert what is all of this about well max those underwear actually called shreddies and they're

manufactured here in the u.k. now regarding the central bankers and their spewing this flash of submissions well alan greenspan was is in the news and he's new he's famous of course for his silent violence. silent but deadly alan greenspan as he famously said if you think you know what i'm saying that i didn't express myself correctly. well he spoke in fed speak which is that he spoke so much nonsense people just took it as a good news oh there's a whole lot of big cigars and that's the way such a black gentleman should big make it stink make it obviously stinky not the silent but deadly stink about greenspan who speaks in code saying nothing except that isn't bad what the financial services. well alan greenspan is in the news because he's pushing his book greenspan admits he knew there was a bubble in two thousand and eight but refuses to apologize here he is on c. and b. c i think we should take a look at this clip here. we missed the timing badly. kember the fifty

two thousand and all of us knew that there was a bubble but a bubble in and of itself doesn't give you a crisis. i will always remember on top of the one thousand nine hundred eighty seven darwin down twenty two percent one i for the record the world all time i thought we were going to run through the sorts of problems. no. no. well this is an ongoing debate whether the fed should manage the economy and the monetary policy based on what they call just a clean up operation after these bubbles bursts that are guaranteed to happen because their policy is only one policy not to print money there is no policy by the federal reserve to try to manage the effect of monetary policy has on prices we see the complete opposite in china now where they're taking an active role to try

to pull back on the bubble we see a very different approach in the e.c.b. and germany which tries to of cording to the mandate of the central banks there to manage monetary policy in a way that you don't create these incredibly distorting bubbles but because the distorting bubble creation by the federal reserve bank alan greenspan and ben bernanke you know janet yellen it benefits the banking class slowly and they of course old love it because they make billions it also increases the wealth in income disparity it increases the propensity of people ending up in prison in america and it ruins the trade balance all these things are fantastic for alan and as stinky bankers now greenspan admitted to opening the spigot in one thousand nine hundred seven and it has never really been turned off we now call it quantitative easing and this takes us to the next headlines as we've said in kai's report for over two years now you can't taper

a ponzi scheme you can only increase it max was on max keiser dot com and you were referring to mark's father who was also on c.n.n. b c this week and he was asked about whether the fed is going to taper that at the next meeting and he was saying people are asking the wrong question the question is not tapering the question is that what point will they increase the asset purchases to say one hundred fifty billion two hundred billion a trillion dollars a month the fed prints money and normally. if the dollar was not the world reserve currency it would debase the currency and you'd see more obvious signs of inflation but because the united states not only has the world's reserve currency but the biggest military in the world if anyone dares not accept the worthless ever increasingly worthless dollars in exchange for goods from china and oil from saudi arabia for example then the us military threatens venom and they are engaged in

what we can call without any equivocation murder that's the bottom line whether it's the libyans the the arena is the iraqis anyone in south america up and sold the recent revolutions if you don't go along with american policy of take our dollars or we kill you then the risk is you get killed but now china russia india they're saying you know what maybe this is not a great way to go forward and they're breaking free so back to what mark probert were saying about the hot air being blown into the markets by the fed quantitative easing policy and that they will have to increase it in order to keep the ponzi scheme going because as he said it is a ponzi scheme so you can that and never taper from a ponzi scheme or else it collapses well he said we are the bubble we have a colossal asset bubble in the world and a leverage or a debt bubble so leveraged debt bubble as alan greenspan had said in his earlier interview on c.m. b. c.

he also said that the problem is not bubbles necessarily it's bubbles with leverage and here mark probert saying we have a debt bubble with leverage and that's an important point to add to this idea that the dollars back by guns and murder is that they can't stop this this quantitative easing there or there will be no taper now here in the u.k. mark carney has suggested that with these so-called growth in the u.k. that the bank of england might start to raise interest rates which is the exact same idea as taper. but that's never going to happen because the bank of england in the u.k. economy is the most leveraged in the world their bank of england balance sheets gone up eight hundred percent during the time of the federal reserve balance sheet increased by forty percent in terms of toxic debt that toxic debt on the bank of england's balance sheet is not going to be able to be worked its way back into the economy they're going to increase quantitative easing in the u.k. so more companies been caught out in an outright lie which i think not that anyone

will report on or notice but he's lying through his teeth now you talked about irritable bowel syndrome in the opening bit and i want to say that this is also a sign that you see the same sort of flatulence coming out of central bank and because here's an interesting tweet to us from trolling for good he said his mind quantitative easing underpins wall street such that any signs of a weak economy push the market higher the markets get bloated as soon as there's any bad signs any the refined bread the process foods are put into the system people are like yes this is great because now the fed's going to feed us more hot air of quantitative easing you know we've talked about collateralized for obligations bonds on the show before that that ben bernanke you know mark carney are trying to monetize their flatulence that's the that's the economic growth in the u.k. they talk about g.d.p. annualizing at three percent growth but debts annualizing at nine percent growth and higher if you put the bits that are off the balance sheet like on the bank of

england back into the mix and debts compound at twenty percent a year so three percent a year in g.d.p. growth even though it doesn't even discount for the actual inflation number the fact is you can count me in negative territory they're living on carny farts they're living on court a far two year that's their entire economic so-called growth. well this takes me to the headline here u.k. q.e. has failed says quantitative easing inventor the inventor is richard warner he's a german who was living. in tokyo at the time of the now ninety's he invented essentially quantitative easing but he had his theory he's saying they're doing the exact opposite of what he said he was saying that because ninety five percent of all money comes from bank lending not from the government he urged the japanese government to enter into private long term agreements to borrow from commercial banks and set of issuing government debt well the japanese market is now hitting an inflection point quite dangerous because they've blown through their entire post world war two savings account and now they're importing capital from abroad and

there are one hundred percent dependent on energy from abroad and fukushima is a big frickin disaster so this economy looks like lehman brothers on steroids once it tips over into the pacific as a probably well in the next few minutes then that will set up a chain reaction to you know we're going to see really some gastric flatulent juices spew from mt fuji in a most spectacular way that we'll probably see a chain reaction of bank failures including deutsche bank that will be quite spectacular and some gold up to twenty thousand dollars of elves my theory was however that i don't see how his policy would have worked any better than what the crazy stuff coming out of the fed and the central bank here is because you know that we have a problem with money velocity as well it's not circulating down to the rest of the economy and he does address that here as well with the quantitative easing happening in the u.k. which is remarkable he says that british banking is dominated by a small number of big banks with just five banks controlling ninety percent of

deposits in germany however he says seventy percent of deposits are controlled by two thousand banks so here five banks ninety percent of deposits germany where we have a real capitalist economy seventy percent of deposits controlled by two thousand banks they lend more to small and medium enterprises who provide seventy percent of the jobs in germany and here so their banking comp. titian in germany and the economy grows in a sustainable way with high employment and their pension funds and health system well for costs are over funded vs the u.k. where there's no competition it's just predatory banks ripping people off left right and center and george osborne with his little pasted spinning in opposite directions and cheering them on go go go one final headline here because you had mentioned in the opening that gold was sort of a deterrent to the flatulence coming from the central banks gold swings in your

three year high as investors wait fed stimulus gold fluctuated near the highest level in more than three weeks as investors wait speculation that the federal reserve may delay a reduction in stimulus until next year again signs of slowing demand in china the other interesting thing is of course gold has fallen in the last year but since the crisis began in two thousand and eight they know that since two thousand and eight demand for gold in india more than doubled while consumption in china rose almost three hundred fifty percent said frederick newman of the world gold council the two countries are the largest buyers of gold right well we proposed on the show by so over and crash j.p. morgan and as a result they now with thirteen billion dollars fine which could double or triple before it's all over so that that campaign of crash a p morgan by silver has resulted in the j.p. morgan's balance sheet being impaired in the tens of billions of dollars so you out there of help to take down the biggest financial terrorists in the world kudos to

you thank you stacey ever for being on the cause report thank you max state campus is going to have a whole lot more. do whatever they want in syria these days and even the obama administration can do nothing to rein the saudis and i think to say that answer is that the united states doesn't have. the power that it once had it doesn't have the leverage that it once had tries to work through allies three international organizations and occasionally on its own and deal with the court of public opinion. the best america can but there there isn't a lot in the toolbox right now they're not many tools live. there's

a media leave us so we leave them to be. by the sea motions to truly follow your party there's a goal. for shoes that no one is asking with the guests that you deserve answers from it's all on politics only on our t.v. . welcome back to the kaiser report i-max guys are time now to go to trondheim norway to speak with trond andresen he's a lecturer in control systems using math to all feel for dynamical systems modeling applied to macro economic trond was invited onto the program at the behest of kaiser report regular dr steve king trond waage come to the kaiser report thank you all right dr greece spain and portugal are en deflationary spiral give us your

recipe for an e.u. nation gradually exit from the euro zone through a parallel digital currency and how this could help. these countries they left the necessary money to circulate in their countries so that kind of transect works for each other and exchange goods and services and they are being blocked by the euro so people are not spending so what we need is to institute a parallel currency and this is set not historically and you idea you're had that sort of experiment in whole strain the great depression in the thirty's but they didn't read the paper and you know small town cold so you can and it's worth very well before it's all stopped by the austrian central bank in one thing certain streets but no you can't do this for

a whole nation that you're seeing and it's drawn x. or the whole mile network so that people can trust that we're going to show that we s.m.s. and know bills and coins and if a government in this depressed congress wants to do needs they can simply start shooting and that is extremely small only by paying their employees east their pensioners and for good sense services. the share overly strong national crisis money and the rest of the europe's ok so this idea of parallel currencies as you as you've mentioned before has been tried before it's worked before spent post it's been proposed for greece before for example this would give greece if they had a paolo currency a way to devalue that currency as a as a boost to the local economy the problem right now is that the euro can't be devalued so they're imprisoned in many ways by this euro which is being set by germany but get having a parallel currency would give them

a way to devalue their local parallel currency against the euro and thus stimulate the economy in ways that other countries are doing what their central banks correct yeah that's right i mean essentially greece in a situation where they don't have their own currency just like saying a dollar us country and so it's america or an american near bankrupt states so they have no issue of their own europe's and then they should issue their own crisis currency and national currency and the elegant way today to do it do it completely extralegal it no been some coins and these us i look over extra advantages right so what we're seeing around the world is the adoption of electronic currencies digital currencies virtual currencies they are powering all kinds of start ups around the world and economies around the world in kenya for example mobile payments and digital currencies and bitcoin are becoming his bitcoin being electronic currency

or crypto currency is now gaining traction all over the world but with even without going into the area of developing a crypto currency or having greece adopt bitcoin as a currency you're saying that just using the current technological framework of mobile phones and the ability to create a virtual current say like you see how many gaming sites out there in the world that are multibillion dollar a lot of gaming sites like grand theft. auto part five if you add up all the all the economic activity of those games it's probably greater than the entire g.d.p. of greece at this point they're saying why not use the available to all to kickstart the greek economy you think electronic currencies correct i think the key round here is to start and for some something to kick start in a country like greece or portugal or whatever else you see in the tools for the government and the country's central bank and if there is political weight you can

next week simply start paying and expenses for the government on their wages some kind chanst in a share of these new strong returns and everyone has a mobile phone today so it will start circulating into the economy and that firms and businesses will then have the choice of saying well i'm not accepting this new currency oh i did model europe's and then then we get less business suit so firms being forced to accept it and then firms are starting to pay their employees use you know share in this new electoral return states so it's really sort of percolate into the economy and then it can be taxed back again so that the government says that well we pay out in this chair oh then your crisis turns it and we take xpect again in the same share so you have a closer look tourist system and the control of the government ok so turn you mentioned that the currency would be issued by the government there's obviously

a benefit there that the government could then tax as they would normally do and you have as you describe it a closed circuit which is running in parallel with the rest of the economy and the euro but my question is why not have the greek citizens take matters into their own hands and issue their own electronic currency outside of the government were saying this for example with bitcoin. the cryptocurrency what about the greek people instead of being in the streets and hailing the noxious gases being thrown at them by the government why can't the greek people simply do this for themselves yes this is a very good idea and of course you can say that but the government are completely in strolled to detroit got on the easy years just then so even if something is possible they won't do it and then you can imagine some sort of alliance of popular organizations and the grassroots groups in greece for example saying well we

reinstitute over only extra money. crisis monetary system for reese and of course then you want. the mechanism over. money because i mean one of the reasons that people have confidence in governmental nice that you can be used to pay taxes but if people are in need and they see that when someone tries this sort of new grassroots type or literally currency and it wrecks more people who start using it you really have a positive spiral of growth in confidence even if this money has been started outside the government ok so professor i want to reiterate the fact that the people in greece based on available technology today can end their crisis today by simply introducing for themselves an electronic car and say shared amongst

themselves running in parallel with the euro so going forward from this day we can say that if the greeks do not adopt this solution it's because they're masochists they don't want to solution they enjoy being slaves to the euro but let's let's move on here. the crisis that. burst onto the world scene in two thousand and eight has anything changed on the structural thought of the economy and can we expect therefore if there hasn't been any reform that another huge. crisis another huge event professor well this is this is not my sort of aereo expect teats but to me it seems that your someone is more bold zones i've ever heard and i don't believe you much in the sort of. let's say things are turning to the better etc etc and more debt is piling up piss it makes

me sound widespread and things are completely stressed and it also seems that the troika continuing with the program or the sauce they're capitalists and so i'm very pessimistic i think that using these new think knowledge and. creating some hope and hope there may. be very good and i also think that instituting a national perlin crisis currency in a country we give the country a much better negotiating position towards the troika because today there are complete fifteen victims ogata maybe they have to add more euros all the time and they don't have any sort of positions oh poor themselves well let's talk about a couple of other european countries because greece is not the only country that's being victimized by the troika you also have the country of ireland we saw something happening in cyprus and italy is also on the chopping block as well in

terms of the shock that the i.m.f. and the troika circling if greece is too foolish not to take this direction forward for whatever reason could a country like ireland or cyprus or portugal or possibly italy could they step up and and and be the leaders in this. to fight back against what i call the financial terrorism of the troika your thoughts is this i mean any country in who is a member of the euro so i'm just how the polls have been to suit their own targets in and someone in these countries can do this and if it is successful it can spread the program was early asked for simply technical reasons you had to make paper bills or even coins to make parallel turns just today you're going to be it for the whole nation in one swoop extremely quickly so i think this is this is just something that's around the corner it's just like the digital camera

suggesting or. maybe the depth of the feel calmer well i guess turn on the i guess the obvious question hair is why not simply recommend that greece start adopting it going it's already in place it's an on how crypto currency it's being now used by merchants all over the world i think bit pay is the leading merchant processor they've got over ten thousand merchants using bit coin why not just recommend to use bitcoin right now let's just go to bitcoin and forget the euro forget be out money we want real money we want crypto currency we want bitcoin why doesn't greece do that. well i would not say that i'm an expert on bitcoin so i'll be careful here but i think that you must be able to issue the necessary amount of currency and inject it into the economy and be able to inject more or

less based on hold since developed and bitcoin is sort of comparable to go or gold or silver or something it's a scarce resource. unstable angle look tired as i see it so i think that what's needed is. some sort of mr meeson control and inject money in the. country in question and that you can't do it only solely by injecting and taxing back or was ever. so if so so to be clear there are two possible electronic paths there is the path that you're describing which is to basically replicate the current monetary system but electronically and create a parallel currency by the government they can tax that money and they can therefore devalue that money and they can become more competitive in the global economy and they have a way to leverage and to negotiate with the i.m.f.

that's one path the other path would be just take bitcoin off the shelf start using bitcoin what you're describing as a short comings there is that you don't have the ability to increase the supply of bitcoin on a on the spur of the moment because the supplies very carefully regulated through the bitcoin protocol and some people refer to that as a deflationary problem others would see that as more of a need to keep the economy being productive to be competitive but either way either way is a good solution might my case for bitcoin is that it would be available today and that the greeks can stop their pain and mediately if they want to the choice for pain going forward now is entirely on them anyway we're out of time so i want to thank you so much for being on the kaiser report. thank you all ready 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 guests trond andresen if you like to get in for a side fight name is

a trauma anyway if you'd like to get in touch tweet us at kaiser report it's an x. that are saying bio. fuels you don't know if you don't. respond to a ruse. most everyone in my life that i cared about their government and then. became a skin well. i was a national champion in track and field and also i was able to go in qualify for the olympic games. you know nine hundred eighty eight i started to experiment with other drugs i had lost all the financial means that i. was really on the street.

black market can. go great. st. helena welcome to worlds apart but the saudi relationship has long been not only want to.