away from the system there is no tapering because you can't taper a ponzi scheme so this is going to continue until two thousand welcomes a a bomb collapse or be a war well also you know the fact is that you have these you know the potato wage in this case is the cheap money and then they're just pouring it into risky assets which is just the same potato wedge but sold at five hundred percent more hasn't gone through a process of actual value added or wealth creation there none of this money this a.t.m. whether it's being operated by janet yellen or mario draghi none of it is actually going into creating a sustainable economy it's the same exact potato wedge whether it's from oldie or at a pizza chain you know it's the same thing just a different price well it's a derivative within a derivative within a freeze dried coffee with then a trick to make nugget with a nonsensical balance sheet within a fraud within a central bank with then an overall collusion going on globally so in other words

it's a derivative of a derivative of. take a chicken make not good for example here you have a reconstituted to convey first then are shaped into something that you know is a nugget. and last i checked that chicken didn't have a piece on their body that you could call a nugget there's a leg in a way but not a nugget but there you have a chicken nugget it's really made out of reconstituted chicken or the hamburgers there are that pink slime but that's not enough on the market for a fast food chain like dominoes they have to get derivatives from another place that sells cheap garbage to people and calls it food and that's a derivative of a food product like a wedge or potato wedges probably not really potatoes don't really have a wedge it's just like a ship like a wedge was probably just a reconstituted chick didn't like nugget that they found on the floor somewhere and repackaged it and then they drive that on the jeep and mark it up over the dominoes . you know for another huge markup and problems exactly like central banking they

take garbage in their vaults remember the guy last week who pooped at barclays i'm sure that the renegades he will give out a aaa rating and they would sell it on to some pension fund is a billion dollar put collateralized debt obligation but also the central bankers what they do is confuse people in much the same way as what we saw with this all these in the pizza chain and the fact is that if anybody went into all these and saw these frozen potato wedges go in for three pounds forty nine they would be like what is this like a weed wholefoods no way am i going to pay three pounds forty nine for frozen potato wedges but they go to domino's and they pay that much the same thing with here if people really had to pay the cost of all these risky assets of all these these housing bubbles if they really knew the true cost of it i don't think they would buy it i think we're being sold as we don't understand value anymore we don't understand the cost of things it's just being rebranded repackaged well as congress

dissidents which of course is very handy in the toolkit of the central banker and rich branker these days who likes to sell you things like risk free pension services that are up to be exploding pension you know problems and going nowhere and you're completely bankrupt so again it's all about misspelling member lloyds banking i think that was their specialty in the u.k. was michelle and like barclays with their specialties libeler fraud rages b.c. their specialty is money laundering and then roll back a scholar of course they're into the leg breaking and mafia whacking of their subsidiary of the global restructuring group's every bank has their own special way to commit fraud here in the u.k. if you want to get mr ayling fraud definitely go to lloyds so to continue on this global central banker theme here was a headline from business insider earlier this week and it said the ten most important things happening in the world this morning the fed's janet yellen says she is more interested in maintaining a robust underlying finance system. then i'm popping bubbles he says that means

there is little chance of an increase in interest rates to head off exuberant stock or bond markets suggesting that investors will be allowed to inflate and collapse asset bubbles as long as the underlying financial system is strong enough to withstand any shocks like i just said you can't taper a ponzi scheme with janet yellen as basically throwing in the white towel and saying this ponzi scheme this bubble is beyond any any ability to rein it in so all we can do is watch it blow up to ever more ludicrous levels of ether and then when it does blow up we're going to take any responsibility for just like greenspan never took any responsibility for the two or three major bubbles he created and pop and the misery that they inflict on people is completely avoidable if they only did if they were suppose to do a central bankers like mark carney here in the u.k. he said that the real estate in london is in a bubble. the definition of the job of a social banker as it was described many years ago is to take away the punchbowl

when the party gets too raucous so mark carney by not raising interest rates right now is imposing a destructive real estate bubble on the people here in london there around the u.k. because he's either too timid or he's corrupt to do what he was put there to do and that is to rein in these bubbles so sweet talked about the policy scheme element an aspect of selling potato chip which is of cheap money and flipping it for ever higher asset prices risky asset prices now the other side of that is in the exact opposite is we take these public services like the national rail or now the national health and still use the same price theoretically but they reduce the service they just reduce the quality and that's the same way of creating the same swap of the potato wedge for a higher price and it just casts or care plans switch to private contracts and seven hundred million pound plants cancer care in the n.h.s. could be privatized for the first time and then national health services biggest

ever outsourcing of services worth over one point two billion pounds a host of private health care firms have already expressed interest in securing a six hundred eighty nine million pound ten year contract cancer care for any chest g.p. led clinical commissioning group areas and staffordshire so they're going to be handed this major this is a biggest ever and a chest contract for private service to take care of cancer care in particular the end of life care yeah you're right it's a hollowing out of a service in this case the n.h.s. which it works fine has worked fine for decades but because it's one hundred billion dollars nest egg or. a pot of money that private contractors want to get their greedy mitts on they've hollowed it out they've allowed the services to collapse and now they're going to move in and just privatized it wholesale this is the beginning of privatization of the n.h.s. of course david kay. in his lead up to his election he said he would never privatized n.h.s. so they clearly is lying interestingly in the united states that's also the biggest

private industry moving into end of life care because it's very profitable they're charging medicare a lot of money in the united states they could charge the government a lot of money here but it requires almost no like medical knowledge no expensive thing you just give them there's no business talk about small business you know people there and there are a bunch of stay there and call most so you put a few tubes of them and you charge on believable amounts of money and the families are not going to pull the plug on uncle de jarley or whatever so they just charge him through the nose to keep the vegetables alive meanwhile down at the grocery store you can't go to these vegetable it's all genetically modified junk you can't get a good tomato you can't get a good zucchini but you go to a hospital there if your parents or grandparents or vegetables or keep them alive you know just say you know do the right thing offer real best of all during the day time so people can have healthy lives and this way they would need to be plugged into some private health care service run by an american private equity group for twenty years that i did expense so these are however these are people who have

cancer lung cancer brain cancer patriotic cancer they're still alive they're still their brains are functioning they can see and speak and talk but they're in a lot of pain and there's no help there's no more chemo you can do this no more surgery can do there's no more radiation that could be applied that will extend your life in any way so they move them to these facilities where you don't need all the medical equipment you don't need life support systems you don't need oxygen tanks you don't need anything but painkillers some opiates and that's it you just hook them up to a machine pour in the heroin and that's it so this is what these this is why they're so profitable it's basically the chicken factory and that you could just there's very low cost to it and you just hope people up to these machines but they're charging as if it's a real high end sort of medical you know the president has collapsed because of the iraq and afghanistan war america now runs the biggest opium plantation in the. world in afghanistan so i say heroin as a rock bottom prices so their margins i keep on these vegetables breathing for huge

cost is cheaper yet again so andy burnham of the shadow health secretary says that you know that the david cameron and his ministers may be reminded that they've never been given the permission of the public to put the n.h.s. up for sale piece by piece their own picking the n.h.s. and selling it off to their friends and private health that's part of the equation of course they're selling off to their friends their corporations but i want to quickly move on to the last headline which ties back to central banking polish central bank head refuses to resign over tape scandal as it was set dangerous precedent so poland central banker mark balco was recording promising to boost the economy if the fight as minister was fired not only making an immediate mockery of any naive assumptions about central bank independence but showcasing that in the new normal it is central banks and by extension the private banking system which dictates terms and conditions to democratically elected governments didn't want to set a precedent of having been fired for breaking the law. that was such a dangerous precedent because after all the other banks are breaking the law the

important thing is this this facade member i talked about it's you go into all these and you would never pay three pounds forty nine but you go into domino's you'll pay three plans forty nine for the exam exact ingredients here we pretend that arse that are democratically elected governments are the ones who have we give power to through our vote that's why we go and vote and spend the day voting and that they then they control the central banks and they are the ones that have the ultimate power but here we're seeing that in poland it was a central banker was telling the government to fire the finance minister i don't want him setting policy on the one who sets policy whatever states you're welcome with back to overpriced potato wedges doesn't that looks like what they're trying to sell us overpraised away it's all right well start over the second half an interview i conducted earlier with professor jeffrey summers.

the. economic downturn in the final months. shanghai and the rest of life doing the will be a briefly. there's a shall we leave the. motions. well you pour the usual. shoes that no one is as you would begin but you deserve answers from. politic you. martin. i know c.n.n. the m.s.m. b.c. fox news have taken some slightly but the fact is i admire their commitment to

cover all sides of the story just in case one of them happens to be accurate. that was funny but it's close and for the truth from the right think. it's because one full attention and the mainstream media works side by side with you is actually on here. and our teenagers we have a different brain. ok because the news of the world just is not this funny i'm not laughing dammit i'm not how. i feel about. you guys stick to the jokes well handled it makes sense that i'm.

leg plays the try to play play play play going to be good news. for the short taking every minute. of the lead the lead the last lap the well. my a lot like the place. was full swing some setting goals place cases most elite clubs played sometimes from nothing of the lead this season and it's a challenge it's not just keep up the story because you'll be just if you see a stage take a look at the. bug speech was. played

. welcome back to the kaiser report imax keyser time to turn to professor jeffrey summers one of the editors of this new book contradictions of austerity the socio economic cost of the neo liberal baltic model all welcome to the kaiser report thanks so much great to be here it sounds like a very long time but the basic theme is that austerity sucks absolutely i mean talk about it yeah well myself and one of my research colleagues charles wilson along with michael hudson and some others have been engaged in the baltic states for the past twenty years all six states being. lithuania there spin off from the old soviet union exactly former soviet republics but they were independent between the two world wars of course they got caught in the crossfire between germany and soviet union during world war two found themselves within the soviet union thereafter so you always you had michael hudson went over there because they were

pursuing this policy of austerity and cause some trouble over there because it pointed out that these austerity policies are remarkably bereft of any economic logic absolutely you know we saw this really from the outset so what we saw in latvia was that there was a group of american neo liberals that were of ethnic latvian origin they came from georgetown university the kind of style themselves as university of chicago boys in miniature and they developed in a kind of bolshevik fashion this qadri of neil liberal followers very early on starting in about one nine hundred ninety two they recruited them anticipating that latvia was going to be independent held a series of meetings course with much us government aid they developed a report called a lot of your two thousand and it was done in the seaside village of which is kind of the career vieira place that had all once you know if he was ever going to be

working for the soviets he wanted a doctor there as a payoff but the. no they had these really nice meetings very nice surroundings and they created a plan for a new liberal future for latvia that was kind of like what you would see for chile in one thousand nine hundred three and going there after so the idea was that you know they were going to let all of the old industry go and some of the highest value added industry was in soviet lot feel now you know granted a lot of it doesn't privatization robbi haitian schemes essential banking rolling over the economy it sounds like when the berlin wall came down i think didn't jeffrey sachs kind of parachute into a new russia and well long of the else and kind of made a complete mess of things absolutely and worse yet where people like andres also and you know who really didn't know they were talking about made a complete mess of places like russia and the interesting thing about latvia is that also one kind of parachuted in kind of like a a lawyer abbe a once chaser after the big crash up after two thousand and eight and wanted to

kind of rehabilitate his reputation after the big mess that he made in russia so he focused his attention on latvia became one of the chief advisers for the government and they implemented a very very strict austerity program one so strict that even the i.m.f. in the united states and sweden all criticized it so in latvia you had one of the few governments in the world that attacked of the i.m.f. from the right saying i.m.f. did not want to go far enough they had to go much further and faster according to the finance minister a fellow named rep who was all the way back to the beginning you know when i was talking about the laboratory economy with these reforms yes i know one interesting aspect was that because the only people left that the numbers comparatively looked better because the population shrunk yeah yeah you know it's a great irony of course i mean they didn't have as much in the way of social cost to support because so many of the people left but at the same time you know these

are your future taxpayers and so it's kind of be a bad investment. terms of you know very short term thinking in the long term it's going to be essentially a country that's a retirement home with nobody to support the elderly so yeah lots of people left wages were just absolutely crashed by this austerity program thirty percent in the public sector which of course then how it impacts on the private sector what would be the alternative exactly just describe briefly the alternative to the austerity well one of the things that could have been done and i'm not necessarily saying that this was the path that should've been taken was they could have devalued their currency now they're on the year on all since january but at that time they had their own currency the lot if they would have devalued it of course they could've written off whatever percentage of swedish debt that they had because that's where most of the money was coming in so you have the kind of carrying trade so the united states and japan are dealing with their previous crises by pumping lots of cheap money into the global system swedes are grabbing big bucketfuls of it really

lending it to the baltic states to inflate the real estate markets was coming in eldorado situation you know you had these swedish bankers acting as kind of call keys to doors and they were loading down all of this beautiful you can steal property that had previously been just unburden with any debt just putting huge amounts of debt on it that's what leads to the crisis now in terms of alternative again to wipe up some of that mortgage debt they could have devalued their currency now that's it's not necessarily a perfect solution but it's one they could have taken but here's the problem all of the top policymakers the ones that i was just mentioning going back to you know this set of meetings and you these are the people who had the central bank that were the head of the finance ministry were prime ministers etc all had huge year old denominated mortgages and in fact the head of the central bank you know we're talking about a country that has less than two million people in economy that's just a little bit more than half of the disaster that is the detroit metropolitan area the head of the central bank was making more than ben bernanke in two thousand and

eight for this small country he's. scott a seven hundred thousand year old mortgage that he was actually foolish enough in my estimation to take in two thousand ugh so stupid here look there's all this stuff just the bankers are shots we know that they are thieving sure but your rats you know it's a ban bernanke here mark carney there is a cut from the same cloth as any of the isis you know they're the same people basically exactly when you say that they're devalue the currency so this is the opposite of us terry because you're all you know you're flooding the economy with money essentially while you're writing off debt in other words you're making this you're inflating the debt out of a way as i say not you not you not defaulting on the debt we're defaulting on a part of it no never since the debts were denominated in euro's if you're going to . then tell the swedish banks that are going to pay off those debts in your local currency then in effect you're writing it off i would have a percentage of the reason i ask is because here in the u.k.

the two thousand and eight financial crisis the government was faced with either doing something as you talked about like devaluing the british pound for example or pursuing a policy of austerity they have chosen austerity versus the us under the liberals i guess you could call them uncle paul krugman and others their policy under all barack obama was to print print print for and to basically go down this path of stimulus through money printing error and here in the u.k. the results are now after six years i think the results are that the austerity policies have been you know not working they haven't worked because the got this enormous gap between the top of the bottom there is seems like it was similar to what happened in lafayette right you could make a comparison with these two economies little bit different again because again we have all these swedish banks that are flooding the market with all this money and with them again you could have as with what we saw in iceland in other words you could have written off a lot about it and so that's what the latvian should have done now for to talk about their day to day that the debt those banks those four big banks they were

both that was not written off. no that debt was a was kept alive exactly the money printing and so now you've got the zombie banks and they are gobbling up essentially any any possibility of economic growth there are in pet insurance to growth so you were you what you guys would recommend would be to get rid of these predatory banks i would think right now there if there are a defacto tax on the economy they're not providing any service so you know they're like the old prussian. manner of lords that used to preside over the entire region extracting rents from the economy without giving anything back or let me just remind folks the book is the contradictions of austerity it's a fairly academic tome but short of that it's tense but short so it is readable very well it's not too long. the baltic region is currently in the grip of an epic housing bubble now similar to london canada australia us china hong kong paris how

is the baltic bubble in relation to these other bubbles it shares some. features with what we see in the united kingdom some other words you have a lot of money that's actually come from the c.i.s. the former soviet union that's what's happening to get a lot feel a lot feel is top and real estate is again being inflated massively by all of this money that's leaving kazakhstan russia ukraine. on its natural so it's all hot money so how underlying economic activity is it's always clumped and when cyprus crashed the money went to a lot of you so this is again creating this new housing bubble lots different than the old one the old woman was you know being financed by swedish money this one's coming from hot money from the east to some other words it has nothing to do with building productive capacity or waiting there's no wages you know there's both inflation and wages in the sector that serves. the offshore corresponded banking sector so you know it doesn't employ enough people and it creates too much

inflation and it doesn't lift wages enough in short it doesn't really. we reflect a process of wealth creation ok ireland which is adopted the baltic s.r.t. model has seen emigration of the young population in austerity greece and spain youth unemployment is at fifty percent what's the future for the mass the young mass unemployed across western here over the western world not very good if they continue with this program of again supporting the banks that the cost of the people in other words they need to reinvest in again wealth creation production productive capacity this business of as you were saying just reflating bubbles the printing money doesn't help the economy at all but i remember early so as the crisis the very ideology the cause the collapse has grown stronger due to politicians acting against the will the people right i mean their. policies don't work but they are doubling down they're doubling down exactly and the reason again is because one there are powerful interests that are acting to ensure that they do and again just to use that case study of law but of course we can perhaps apply

this to other areas as well i mean you have people who are personally affected by these decisions who are in policymaking positions again with huge mortgages that. would be difficult to service if they were. devalued let's say you know their currency so it's terribly corrupt you know indeed in a country like latvia which was independent between the two world wars to actually have a law on the books that people in top positions of government could not serve if they had large debts. seeing at anticipating just this kind of conflict of interest and now it's just standard i mean. everyone from the central bankers to the finance ministers to prime ministers. presidents have this problem there you know hugely and good and if they make any significant policy changes they themselves will be personally affected i'm not saying that's the only reason they're making these decisions but it is

a conflict of interest should be pointed out mean they are just any old friend us are great. it turned out that he was totally in bed with all the john paulson selling credit default swaps on the table all the money ending up in his mother's account of switzerland he. has told me many times that this is exactly the case in greece really because you tell me that he and i told him that point blank and he said no that's not the camel overstating the case so he tells you a different story you know him and just stickles have both said that while the with goldman sachs situation that that was certainly the case the others i don't know about the goldman sachs. they're not going to have to get him back i just had him on the wisconsin the two months ago. well again we got to go out of time but the book is the contradictions of austerity edited by jeffrey summers and charles wolfensohn what's huge contributions from the immortal michael hudson thanks for being on the kaiser report thanks for having me here right here and that's going to do it for this edition of the kaiser report with me max kaiser stacy harvard like to thank our guest jeffrey summers let's get in touch with us tweet us

a cause report until next time by go. to. the phenomenon of friendly fire probably extends back to the invention of gunpowder . to people. there are. people. reading. this summer shoots my brother in the leg not intentional because of it because it was night

time or in the morning even the best. even the best shoulders. are going to make mistakes this is this whole idea of brotherhood it author and camaraderie in this sense it was in this context it has absolutely no place. to tell us about seven years old it's one of the largest ten cities on the east coast of america and as it got about one hundred people here just because of economics the cost of housing in this area especially is very high i believe as an american we have a right. to chamba outer of those u.s. public land until something is created that's my house you see back there live in it send them to well good at least then tend to now than the rest of us if we hadn't done that we wouldn't have been home i want to go spend we don't just held

the you know people a density we don't anybody that needs help so tell your friend to just give us a moral figure mortgage a mistake on never going to get a sense of the internet in one thousand got a place to live once on monday i'll be out here with my dog. as a new physician i swear to abide by the hippocratic oath. to the best of my ability and judgment. i will prescribe for the good of my patients. i will not give deadly doses to anybody. or advise of those to do so. i will never do harm to any class. doctors of the docs on october. do we speak

your language or not but the. news programs and documentaries in spanish matters to you breaking news a little too much of angles keep these stories. so you hear. the truth altie spanish. visit. the threat of terrorism the nature of terrorism is becoming increasingly internationalized the local governments which may be the case in afghanistan i'm very limited and belittling to curtail that increasingly globalized spread so one how do you really strike a balance here in the foreigners can help by not fighting drugs he was living in the plot stuff if we all start for i did drugs you are going to want to somebody that would be peaceful if you tried to help them. i've got to go but it's up and

look at this but success. here have presses on with its crackdown on anti-government forces with fresh attacks on times in cities in eastern ukraine despite civilians being caught up in the violence to do with this group is to do good. even if. locals in the small village of. bury killed by an air strike in earlier this week which playing twelve lives including a five year old four. hundred troops from europe and the us join islamist fighters in syria and iraq spreading their control in the region at a furious pace.