everybody this is the kaiser report. so excited thinking you have been talking about private equity in the hollowing out of the wealth of nations around the world through this model whereby all these assets and wealth creation machines developed through hundreds of years sometimes are just hollowed out and all the equity taken and a pile of debt is left with nations and you know over the past few decades we've seen especially since the financial crisis since two thousand and eight we've seen austerity imposed around the world so i want to look at one quote from that whole you know berkshire hathaway kraft heinz story from the last week and it's a quote from j.p. morgan about what happened to them and the heaven was from kraft heinz shares fall

twenty eight percent after write down and dividend cut j.p. morgan analysts can goldman wrote about the company because remember three g. capital warren buffett they basically curry's massive austerity across the board with him this conglomerate this merged conglomerate and j.p. morgan analyst ken goldman says and best for years have asked if three g.'s extreme belt tightening model ultimately would result in brand equity erosion we think the answer arguably came yesterday in the form of a fifteen billion dollar intangible asset write down for the craft and oscar meyer brands i want to think of that as a way to look at the u.k. economy or the american economy especially in the u.k. where you've had mass austerity imposed on the people and there is like a that intangible brand of member cool britannia and all that stuff is just eroded when you actually see the mass homelessness this universal credit system which is

imposing horrific grotesque publicity and marketing for the nation as a as a very vile sort of abusive and human rights situation i think there are going to mountaineer between the craft heinz hollowing. and destruction of their brand in the collapse of the equity and what happened in the with the austerity in the day and the just mantling of things like the national health service and it did kind of attack the brand of of britain of cool britannia there was this idea that britain was a plucky upstart punching above its weight i remember in two thousand and twelve i believe during the olympics were held in london they were really well done and it was a great o'clock pushing that and three some a was really the woman who was behind all that and pulled that off and that led her to become prime minister but by the time bragg's it rolls around all of that years and years and years of hollowing out

when talked about the merits of privatisation indebtedness hollowing out austerity finally caught up in like heinz craft which has been now being written down and has become a commodity in the package food industry the brands of heinz and kraft now not really getting a premium in the marketplace like they would had their brands not been decimated in this way so too is the britain that goes out there in the world stage looking to cut deals but it doesn't have that cachet anymore the brand has been has been hurt badly by the hollowing out the privatisation the financialization the overtake of the entire country by the city of london kind of the end game of the margaret thatcher era so i agree it's a good analogy and the brand of britain is suffering and it's something that once you lose it it's very very difficult to get back you know it's almost impossible to

think about the brands of the past that of run into problems once you lose it it's very difficult to get it back america has suffered the same sort of intangible brand equity sort of destruction of their of our sort of brand image not through austerity in the same way that the u.k. has done that in the u.k. does not have a currency it could just print at will and we can but we've done it through basically. creating in an economy filled with an oligarch e of bureaucrats massive layers of bureaucracy through the health care system an education system in particular which is just saddled these new generations with enormous levels of debt so we have a crisis had it has emerged here that is just as to number thirty five out of fifty as overdoses and poor diet slashed life expectancy the united states has tumbled in

the global health rankings as drugs shave years off of the life expectancy poor diet and inefficient health care also cost the us points in the bloomberg healthiest country index which ranks one hundred sixty nine countries and publishes an esteemed top fifty number one is spain and number two is italy by the way and again like those aren't the two wealthiest nations in europe by far but they have the number one and number two in terms of they don't actually consume that sort of stuff there so you know this is an interesting way to look at what's. actual rosen has cost lives and the situation in america well what donald rumsfeld once called old europe these countries are living higher qualities of life because they have values and they have cultures that go back centuries in the u.s. it's a culture of disposable disposable in the instant fame the insta billionaire

instant coffee instant breakfast fast food and they were for a long time the purveyors of the global cultural. hollywood and so when they took a huge brand hit after losing the vietnam war through hollywood they could really insert that or historical revision with the likes of sylvester stallone and his movies made it out as though america won the vietnam war so that is a meme that carried a whole new generation of reaganites and top gunners to believe that usa usa usa is indefatigable and unbeatable and had never lost any war but that unfortunately has been hollowed out as you have pointed out the equities been hollowed out by lack of infrastructure spend there's no transportation system there's no agriculture there's no farm there's no real food it's junk through and

through and now life expectancy in america is plummeting if you look at the chart it shocking it look at almost every other country it's kind of inching up on one side of the chart and then as an outlier is the united states is way over here it is all crashing down from the drugs from having junk food having junk culture having a junk politics and fake news it's all fake and fake doesn't sustain life and you see it in the numbers it's clear according to their data here by twenty forty spain and italy will live by an average of ten years longer if you're born there rather than have the misfortune of being born in a. arca also in terms of being at war for the second year in a row the us also failed to usurp cuba a developing country that has been rewarded for focusing on preventing disease with disease screening diet tweaks and exercise rather than treating people after diagnosis and of course in america they you know the health care system is nearly twenty percent of g.d.p. being there is massive massive massive inefficiencies and therefore massive profit

in the system so of course that does it would harm you u.s. g.d.p. in fact if you had a healthier population if you didn't eat so much of warren buffett's velveeta cheese if you didn't eat so much of warren buffett's macaroni and cheese if you did not eat so much of drink so much of warren buffett's coca-cola the g.d.p. of this country would decline and perhaps decline in a way like italy their economy health continues to rise because they're not eating this junk and they continue to have a universal health care system just like spain has a universal health care system they also have community they still have ties with their families and their neighbors and their you know local community we don't have that anymore here and life is too busy now in terms of the health care industry the american economies are suicide cult and or buffet is jim jones and this is the

massacre and he sells the kool-aid i think he literally does. practically rightly sells a kool-aid or something similar to it with his junk food empire and other countries have a different value system and they've lasted hundreds of years longer the u.s. is a relatively new comer on the world scene it's only you know less than two hundred fifty years old so you know whether it'll make it another twenty or thirty years as hard as the population is dying off at the right that it's currently dying off in the cycle or family gets paid for every people they kill with oxycontin it's hard to bet that the u.s. is going. twenty years we're going to guess about the second first i do want to say in terms of the health they said the u.s. has soaring rates of heart disease driven by the western diet rich in saturated fat sugar and processed me i think it's a misnomer to call it a western diet i think it's a merican diet because certainly in spain and italy and france they don't eat all this velveeta cheese and and coca-cola they don't have that sort of product in fact

many including myself have stories of going into restaurants in france and try ordering a coca-cola you might actually see a coca-cola machine that they might get paid to have there but they'll refuse to sell it to you because that's vile and disgusting to have with your meal. but you mention the sackler family and they produce all the opioids that many people are dying from and the biggest blow has been from prescription painkillers which created a nation of addicts and a market for the synthetic drug fentanyl which is up to one hundred times stronger than heroin and which has been laced into everything from street jugs to percocet and the last eight years more than two hundred thousand americans have died of drug overdoses driving down the life expectancy from seventy eight point eight years to seventy eight point six you saw the collapse of the soviet union and you saw the collapse of the institutions and society around the people you saw a similar decline in life expectancy you saw an increase in mortality and that was mostly caused to drinking and so that's the last time in the last hundred years

outside of war that you've seen something like this is happening in america and you wonder like it feels like the population committing suicide whether directly or through opioid addiction it feels like you know they feel abandoned and they feel helpless in some way in this and some are a way they feel like all that is around them has collapsed because how were all forced the sacrificially to come into your home. my seven years doing drugs my nephews was still in drugs my system just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse we started going after the users in the prison

population sewer we started treating sick people people who are addicted to these drugs like criminals while i was on the hill. then the war on drugs was a mistake there are countless numbers of people who are in prison for. sins for minor minor offenders in the drug trade it's a lot watching your children grow up and miss you in waves and say by day as you're walking out of a business it's just it doesn't get easier. you know world of big part of the lot and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the bad and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the

time is now for washing clothes for watching the hawks. resists is a sticker from the water bottle phone in the stomach of the fish the brand is spawns of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell consumers they're the bad ones they're the litter bugs are throwing us away industry should be blamed for all this waste the company has long promised to reuse the plastic. look at suzy. this world in maine that seems cool sets for some new classes away and i need to stay clean usually means at a special clip just funding me tells it a conversation with richard field is the author of transparency games how bankers rate the world of finance now i want to set this up a little bit here we've been talking mostly about deutsche bank i've maintained now

for a few years a doctor bank will be the next lehman brothers it'll be the pin that's pulled i'll set off a global contagion bank collapse the second leg of the two thousand and eight crisis richard has actually done a lot of work year digging into the balance sheet taking into the the statements made by the bank and you know we're going to look at this derivatives burke book richard welcome back thank you very much matthew. i mean i i agree with you i'm going to back i would like to say that going to banks already. and now i will waiting or is the day when you can solvency will be recognized and everybody will run from or right you have you have a plastic bag there with you what is the point of that i want to explain i like the . visuals. i created the koreans i'm secure if you look at the security you can easily value you know everything about us in this case the number of someone to tell you

a story about going to break the first group of people who are coming what story are. banks regulators. mistrust cast. your be clean good distressed question. was. is there a true. there is no way of knowing because it's going to take is that of the security. arm the stress test results by white hairs on the hook for bailing out going to a bank if it goes out. of it going to a bank was actually like this type of a security you'll be able to see the individual positions you can see in there to rebid a book who they have exposures to has become the party and you can see what the trades are that make up the derivatives now some would say my god has

a lot of data absolutely assess all that big that i'm going to have the schools bought and the answer is yes goldman sachs of the world can assess it j.p. morgans of the world the way our system of mansell system is designed we you and i max don't have to assess the bank ourselves we could go to a trust the expert went to j.p. morgan or goldman and let them do the us asked them and then we can invest based on what their assessment yes it will do this all the time we use mutual funds and have an example we're going to teach it should be able to assess a deutsche bank if it provided transparency but right now going to a bank does not provide transparency. the title of my book transparency games our bankers rigor world of finance from a conversation with the banks you know exactly what he said that is actually we

like opaque products we make more money with them in them when i visit of course we're besley going to have to provide transparency when that happens we're going to make less money and have to work harder to make as much money as we were cream usually make. it's an interesting tour of the world we're going to know when to go risks speaking more broadly what we have is an example of racketeering so when you talk about the fact that deutsche bank is not disclosing and as just a fancy way of committing fraud but to make my point here about racketeering if you bank exists in a world where the regulators are in on the racket the money managers to buy these bonds and buy the stock or sell the stock. like a warren buffett for example as an on the racket they mutual funds are in on this racket. they press the wall street journal and other financial process and on the

racket this is a racketeering scam this is to be charged under rico by anti rico and take it out as organized crime because this is organized crime richard your thoughts and i'm not a parson go so far as to say that organized crime want to get past the bankers ok i start with the bankers yes those guys do not want any somewhat commission showed that in the one nine hundred thirty s. the conclusion of the core commission was that darkness is wall street's greatest ally. now let's go to the regulators great leaders who are exposed to two thousand and eight for not being fit for the purpose of keeping the banking system. by the way by design and it were supposed to be keeping the system from an authority that was supposed to be the responsibility of your best got to see what

was going on with transparency who was the investors again who was going to do something but they couldn't because the hopi city the radio waiters haneke stepped up and tried to replace investors. as i say with the stress test you cannot imagine the hubris of. announcing that the banks can withstand financial armageddon because they told us this but tell everybody the media by the way stocks didn't want to go into what's going on in these banks again it's a black box to them banks. it also. is about. the regulars jumping on a couple months ago at a stunning final. reaction times where he admitted that he was standing.

should i report this or should i not report it not did not because he would go if he reported. a greater financial crisis i know i get it i get it that the the financial press are weak and they are compromised and they're venal and they should all be fired i understand that. and in frasier over in the u.k. has done a good job he wrote the book shredded about royal bank of scotland and all of these transgressions we're talking about with deutsche bank multiply that times ten for all bank of scotland they actually isolated u.k. companies and set them up to be shot down and ripped apart and sold for parts on a flea market their own customers and they wonder why the economy is so bad when they were the biggest four banks in the u.k. is actively seeking the destruction of their other of their customers but less so we got of a couple minutes left i want to talk about deutsche bank in order to bail out this

opaque derivatives wilting bankrupt insolvent behave if that's being kept afloat by the german government and with the racketeering influence of all participants they want to do a shotgun wedding with commerzbank to try to bail him out that way what what are we going to see there richard nothing good for commerce bank doesn't have a very good business model itself at best they're hoping to be able strip a bit of expenses from commerzbank in terms of management team. and be able to use that expense to help recapitalized. around women with. the strap the slow recapitalization is when a data bank makes money makes a dollar earnings have that power earnings goes to the bankers as sponsors so the bilby slow process by which you could possibly wreak havoc lives

one of these institutions by way by design all the losses are going to be could be recognized today without disrupting the financial system going to a bank we can show a massive black hole where it used to have equity but that would also be ok because people who are dealing with going to a bank i don't want to deposit insurance to get repaid eight or the expected german government when i want to deposit insurance to get repaid or the expected german government to extend. the known us insurance to the wholesale world so literally all the losses could be real lost unfortunately there are a big game that claim for the last decade with the regulators is they're trying to i go boces right to be clear the. banks liabilities are greater than the g.d.p.

of germany. so they are they are much greater than the g.d.p. of germany they live villainies of deutsche bank if they were made all by germany germany would cease to exist as a country so what they have to do they have to they have to hope that there is a consortium of central banks around the world like was the case of long term capital management long term capital management got the central bank of central banks around the world to bail out american banks so that yacht owning scathed in greenwich connecticut would miss a payment on their boat you know that's unfortunately we live in this type of world where if you have influence on wall street you are above the law as eric holder had said and you get to participate in racketeering schemes with impunity as we pointed out on the show and many show shows before but you know we seem to hold these bankers up us having the divine right of gods and we can't upset them because they might not favor us with their trinkets every now and then anyway richard fascinating stuff we got to go thanks for being on the kaiser report thanks for

having me. that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest richard field is the author of transparency games how bankers rigged the world of finance if you want to catch us on twitter it's kaiser read court until next time we go. the route to determine slums go in and you may never get our options of the differences. teenage gang rules here the clue not going to be moved. they're not of the mind of

a drug dealer you were. but. the navy will. come out. minus a murderer zero. zero zero but now it's looking for the word on the news that as soon as you stand by and mel in the lead. you to warn you about the monkey in the little musical i see. i've been saying the numbers mean something they've mastered us with over one trillion dollars in debt more than ten white collar crime happens each day. eighty five percent of global wealth he longs to be ultra rich eight point six percent of

the world market goes thirty percent some with four hundred to five hundred three first record per second and that one rose to twenty thousand dollars. china's building two point one billion dollars a i industrial park but don't let the numbers over the world. the only number you need to remember is one one business show you know bored to miss this one and only boom but. amid speculation that probe into trouble in russia. a bit about a square peg us democrats are launching a new investigation into the matter intent it appears on achieving just one thing.