tv [untitled] July 7, 2011 9:01pm-9:31pm EDT
a retreat. the president stopped for good britain's biggest selling newspaper mired in a phone hacking scandal media mogul rupert murdoch has pulled the plug with police investigating the tabloid for snooping on the murder victims and the families of the dead soldiers and people killed in terrorism attacks. in georgia for high profile photographers have been arrested on suspicion of espionage just days after nine people were sentenced to lengthy jail terms for spying the opposition time president saakashvili his regime for targeting mass media saying he's a. politician. decision to downgrade political death to junk status and threaten possible. shock waves through a financial markets and. could follow greece down the path of
a possible default. and in a moment. far greece can go in desperate efforts to rustle up cash stay tuned for the kinds of report right here on our. i am max kaiser this is the kaiser report i believe i was the first one in the world to point out that there's a lot going on in europe that you need to focus on happening beneath the surface hello germany four point zero. let's get some more details from state yes
max we're seeing the introduction of neo feudalism into europe as we've said all along sell sell sell everything must go in greek fire sale europe's most indebted countries and britain have put prized assets up for grabs to bolster their credit worthiness so what exactly is on offer max tell us a everything well we know in greece we've already listed that last episode ireland has the national airline ports power stations energy suppliers transport systems sporting assets and even the irish national stud well thank you very much from not for snow. whatever that is i assume it has something to do with horses it's all about horse eamonn it k. and then spain is selling thirty percent of its state lottery now this is the
biggest lottery in the world it's called el gordo it's been around for one hundred fifty one years but spain is not as badly indebted as other european countries but bond yields have soared so because of this they have to sell el gordo the company recorded three billion euro net profit in two thousand and nine on sales of nine point eight billion euros meaning the sell off will reduce treasury income by about one billion euros a year ok so spain is now being attacked by the financial terrorist the people who sell short bonds to destabilize the country's finances in preparation of extracting wealth and there's of course naked short cells which are counterfeiting they sell things that don't exist it's a counterfeit operation so here you have the same people they've been emboldened and empowered because of their successful raid on ireland their successful raid on
greece and. they're using more of their power and influence and counts that they got from acts of financial terrorism in those two countries now they're going after spain and harry made a good point the spanish lottery system is generating huge profits there's no need to sell it but the movies in the s. and p. in the fitch or the rating agencies combined with the wall street banks and the hedge funds like john paulson and the wall street banks and the corrupt government officials in europe have colluded together obviously to impose draconian measures as a result of a racketeering charge a racketeering campaign to destabilize and confiscate this is you know terrorism but you know as i've said to people all along the fact that they don't rise up or revolt the joke's on you but this is the thing that we're seeing across europe people are giving up these nations are giving out income producing assets they're basically they they're tollbooths right these are
tollbooths they give income to the government but first of all by giving that was over they reduced their revenue further destabilizing their own economies but it's neo feudalism some outsider some lord somewhere else is basically collecting that revenue and it's going outside of the country so in the case of greece they're going to sell the state lottery for something like four hundred fifty million and it generates i believe nine hundred million income now think of it in these terms if greece a state lottery were to simply list themselves on that deck that amount of income nine hundred million in income would be worth nine to fifteen billion as a stock equity offering on mazda take a company like groupon for example they're losing four hundred fifty million dollars a year they're going to go public on mastic for twenty billion exactly so why doesn't greece just put up their national lottery on the nasdaq yet they're making
nine hundred million simply lou. listed on the trainable exchange it'll be worth thirty to forty billion well part of the reason of course is all these nations have i.m.f. loans not spain but greece and portugal do and they are required to only go to the i.m.f. for any further loan and they're not allowed to raise money on their own unless the i.m.f. and the e.c.b. say do it this way required per some deals that were written and signed off by governments like in greece. is a treasonous he's a treasonous what we call him and the other thing about spain of course is why their bonds are being attacked by their sovereign debt is being attacked as people tell you well this is capitalism because basically the bondholders are assuming that even though the government has low debt just like ireland did before the crisis they're assuming that the government will be forced to take on the private debts of the banks i.e.
the taxpayer will be forced to eat these bad debts of the spanish banks and therefore crumble their own economy it's not capital of things that has nothing to do with capitalism capitalism in first competition if you're not allowed to compete because to state this orchestrating takeovers from foreign banks of your assets that's called an occupation that's like saying oh the people and dogs the problem is capitalism no the problems are being occupied well here's the evidence of course and this has been big news everybody has talked about it greek sell off threat to solve or ninety greece staved off the immediate threat of default at the weekend but now faces severe restrictions on that sovereignty and must push through a wave of privatizations a kin to the vast selloff of east german firms and the one nine hundred ninety s. after the fall of communism this is from a young claude young girl chairman of the euro group of finance ministers this is my thesis this is what i've been saying this is the underlying reality of the. all
the european crises is germany is rising from the rubble of world war two and we're talking about the reappearance of the imperial germany or the fourth reich you have or reunify germany who is now talking about greece as south germany. also actually what it's becoming just don't compare in south germany or greece with east germany they're simply saying well just like in east germany we took all the assets and we merge into one super power imperial con con conch conquistador european threat as we have been in the past and the thing about the euro was supposed to eliminate the german imperial threat but they figured out a way around it is a matter of fact they orchestrated the whole thing as a way to reunify germany another time when greece was being stopped germany so this guy let's call him junker because he's a junk bond salesman basically he said he's pushing junk on everybody he's taking the junk off. private bankers asset holdings and transferring it to the national
governments in the e.c.b. in the e.u. but he's likening what's going to happen to greece to the two had agency sell off of fourteen thousand east german assets between one thousand nine hundred one thousand nine hundred four but of course that was done in order to merge east germany into west germany and there was you know two and a half million jobs were lost but there was also a transfer of technology from the likes of b.m.w. to the east which had. the peak of their income producing car manufacturing assets so there was a transfer there was something the east germans got back they got nice infrastructure built by the west german firms so where is greece being merged into and what are they getting back they're being merged into germany and they get back the privilege of not being killed by german army people with guns that's what they get in return what was the french banking system and cozy and they all concocted
this for cock to plan which i guess was being read. yes and counting as default but here's a country that have this revolution where heads were chopped off because of toll booths introduced everywhere in society so the french banking group one of their plans was that the rollover of debt of the french sovereign bond holdings of greek debt would force them to reinvest seventy percent of that into greek bonds yielding at least five and a half percent but the greeks were forced to reinvest the money they got in this loan back into european aaa debt what paying like two percent so it's a wealth transfer it was a constant annual wealth transfer that's exactly right just adding more debt that's always been the solution sense the end of bretton woods in one nine hundred seventy one just add more debt and more debt as always going to go back to america because somehow they think that being part of the empire leaves them immune i mean western
germany. west western west west germany that little less space which in canada mexico west west germany i think the people have an instinct that the i.m.f. is going to come there and steal their assets so they're getting rid of the assets before the i.m.f. and the bankers can take it authorities offer five hundred dollars for tips and of dozens of hydrants so this is from riverside county in california which is having massive heat waves fire alerts everywhere water agency officials say that somebody stole more than sixty fire hydrants metal covers and other pieces of utility equipment throughout riverside county yeah this is really where you see amazing force multiplier to use a dick cheney term where you've got the ecological restraints are causing global warming to kick in which would require the use and
need of a fire hydrant to put. the fires are being created by manmade global warming which is being as gas exacerbated by the theft of the fire hydrants brought on by excessive credit creation by the central banks who are trying to bail out all these banks around the world and those two are coming together and forcing the price of what the fire hydrants are made out of metal higher incentivizing people to steal them at the same time that global warming is increasing the rate of fires which of course will increase the rate of money creation it will create the price of fire hydrants and you get into a vicious cycle and pretty soon there won't be any fire i just left it on but max speaking of vicious cycles and money creation here's our final headline case for a balanced budget amendment charts of the day transfer payments medicare medicaid food stamps etc vs total government receipts so this is from michelle a lot but we're going to concentrate just on the transfer payments versus total government receipts chart one here is the personal current transfer receipts these
are things like medicaid medicare and food stamps and you see that's almost two point four trillion dollars in the u.s. chart to federal government receipts so this is their income they collect that's just over two point four trillion and then chart three is the personal transfers as a percentage of government receipts and you can see max that as a percentage it was under fifty percent in the sixty's and seventy's the glory days of america and then as a percentage went over that and now it's close to one hundred percent of all income to the government is paid out in food stamps and medicare and medicaid when i see the country has become basically a petting zoo. the people come to visit to pet the baboons in america and the money that they deposit at the zoo is used to feed the bedroom so that's the business model of of america that's all they've got lumped as one big bamboo. but you wonder like. who is financing the rest of this who is the either american. are living
totally off the good kind raise the greeks are financing the rest of the data transfer mechanism of imposing austerity measures and greece portugal and spain so the banks can keep the bad things you in america open and of course there's china and there's japan who are financing to the tune of two trillion a year all these debts of america so is it going to feed the american population in the petting zoo or the military operations around the world it looks like a worse situation than in greece all right thanks so much for being on the kaiser report thank you max i'll go much more coming away so stay right there.
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for your media projects free media and don carty dot com. welcome back to the kaiser report time now to go to new york and speak with dr michael hudson dr hudson welcome back to the kaiser reports thank you very much all right dr michael lots and let's get into grace your thoughts on grace what's happening well it says it finances become the no motive warfare there the financial times reported parliament passed the agreement to surrender to europe it was done to the smell of tear gas in the sign of siren and other wall street journal editorial interesting articles saying well now it's time for them to us sell the parthenon sell off the greek islands this is funny in the past you need an army to
achieve what today is being done now financial aid so finance and bankers are the new army and. instead of an army coming in to seize the land which involves people dying you simply have the i.m.f. representatives and you buy out the socialist party and tell them look just surrender give us your land give us your property this is phase two of the financial ization progress program and i can't believe this is going to actually succeed if a country is going to impose itself on poverty reduce its wages by thirty percent and forfeit the entire public sector to foreign creditors people should have a quote otherwise it's not legal there is no referendum. greece over whether people are going to actually democratic late acquiesce in a surrender and this means that when there is an election if there ever is reached and legally say look this was imposed upon us we didn't vote it's not democratic
it's not binding and they can take back whatever is being given because certainly there will be a not a fault certainly the way to make sure there's a default is to follow the e.u. plan in the i.m.f. plan and impoverish the economy because impoverished economy makes it less able to pay not more able this is the one thing that the world is learned from the i.m.f. austerity program since the one nine hundred sixty s. and one nine hundred seventy s. and the 1980's ok so when you hear people debating this they bring up by slant they also bring up argentina they say can't make the comparison with iceland or argentina in iceland's case they say well you know as the crow now wasn't part of the euro greece is bound by the euro so how do you come back and talk about those concerns or those folks who say you can't really compare the the him well in greece joined the euro what it thought it was doing was joining
a united europe and the idea of the united europe the european. union was europe was never going to go to war internally with each other again somehow the idea of european unity became hijacked to surrender to a financial oligarchy and turned over all of property to bankers the wealthiest one percent of the pyramid and roll back the last thousand years to feudalism greece didn't realize it was signing on to you know feudalism and that's what the european central bank is all about is not a central bank it doesn't do it a central bank does it doesn't finance government budget deficit which is what the bank of england new york federal reserve or u.s. federal reserve and other banks do it simply stands by and forces government deficit to result in more and more debt to commercial banks so that instead of government deficit is expanding the economy with new investment and employment and
for market demand a government deficit shrinks the economy by leading to foreclosure and forfeiture of the public domain forfeiture of houses and mass impoverishment that is not what greece thought it was signing on to so what it should do is saying. this is not the europe we thought we were getting we're withdrawing we just stain portugal and ireland withdraw just as ireland voted against the list and constitution and they should say this is nonsense this is war and we're pulling out and we're putting our economy up for grabs for those countries probably in the break up block that well except listen to their currency area because we're not going to stand for this ok so imagine germany they're germany is portraying themselves as the victim that the greece are feckless characters that don't pay their bills they're underwriting
their retirements and i want to feel sorry for. money and yet of course germany has benefited wildly because during all of this it has kept the euro relatively cheap and euro and the germany is a huge export powerhouse so the talk a little bit about this is there are many that victim or is germany really the predatory both because the question you're really asking is what is germany is germany the banks or is germany industry in the population german banks recklessly lent out money as if the french banks to greece and are holding greek bunts at a friend who knows the value we don't know how the german banks are valuing the great bonds under balance sheet right now and a german or french or other european bank can buy a greek government bond say fifty percent. pledge this to the european central
bank and get a full euro as a. full value on the dollar and get free money by speculating we don't know whether the german banks or the french banks are carrying this greek debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany unless you're redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so that's why angela merkel herself is losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that what do the words left and right main when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of
what is germany what is france what is europe. and it really has put the class war back in business in a very different way than most for sane in times past it's a class for banks against all the rest of society trying to grab all of the property and the political spectrum hasn't been able to deal with it except the socialist party and social democratic parties and socialist international. president top and radio is the head and greeks are on the far right of the political spectrum now and the old are right wing parties the conservatives are moving to the left of the socialists everything is turned upside down by financial izing economies in this way so financial engineering has become the new means of production setting up the engine class wars have re-emerged but the classes that are getting disenfranchised are not even aware of the fact that they're being
occupied by these weapons of mass financial destruction these financially engineered products it's a stealth coup there are the people in greece seem completely. they don't know that they're being attacked in this way twelve you relate financial engineering to the means of production it doesn't create new means of production it strips excess and this is what's been happening in america since the one nine hundred seventy s. with each other takeover it's the financial takeover is almost all of these takeovers ended up impoverishing the companies you know a financial takeover followed by a wipe out of the corporate pension fund of the employee stock ownership plans you have a wipe out of what these companies have owed for pension. and you have really a luti by the financial sector this is not a production function this is a looting function and now that's what the financial sector has turned into today
looting not financing the means of production right and that you could say that these banks are however. they're saying risk that's what the end product of their production is and they put it into the public domain but i want to ask you just to walk through kind of the global financial market here for a second let's say that the european banks they're buying greek debt they they stand to lose a lot of money if greece or when greece defaults however there's another wildcard here and that apparently the american banks have taken out insurance for the greek for the a european banks and their bond holdings in the form of credit default swaps who actually stands to lose the most here they are been banks who own the bonds or the american banks who insured the bonds there are a lot of financial analysts that are asking they have and what they have noticed is that justice of the e.u. and the european central bank was to take a more lenient position to ireland you have u.s. treasury secretary geithner saying wait a minute take a hard line for a for ireland you have to crush it because we've the u.s.
banks financial casinos have insured irish debt same thing with greece is the u.s. treasury that comes in and says wait a minute our financial system has turned into a i'd shape we've insured the greek debt and we can't afford to take a loss so your europeans have to take a loss you have to impoverish your later so that our financial wall our wall street casino capitalist firms like goldman sachs can make a telling and can't they can't pay their people one hundred million dollars a year in salary if you don't impoverish your labor we're making money off you and that's the financial system that's what we call stability so you may think it's a risk but it's not our risk if we're telling you what to do isn't what you were referring to risk isn't a risk if you let the u.s. treasury act is the battering ram for the wall street firms that insure the risk and say you think there's
a risk we're going to make sure that all the risk is on that debtor and if the debtor can't pay the creditors don't loose. the insurance companies don't loathe us because we're going to take it out of greece out of the park and give us your island give us your o.-port and your water supply your sewer system for us to put tollbooths on the depth of a kind of risk that the us is talking about. greece's risking is a wet back into something worse than it suffered under the out of an empire in the seventeenth and eighteenth and nineteenth centuries is the i.m.f. solvent. you say solvent is it was almost out of business two years ago when it had only turkey is the final client what is saved the i.m.f. has been the wall street crisis that's put it back into business essential is that a man of economy just the i m s a has been called in like a firm would call in a group of mafia assassins to kill the labor union organizers in
a company town and that really is the i m s wrote it's the assassin of economy so is a solemn well it's backed by the military. expect. the us government and the i.m.f. the very fact that they've appointed such an end and notorious anti-labor advocate is christine legarde british should just lead all the countries to say look you're erie formable we've got to start over again this is we're not going to stand for it right dr michael hudson got to leave it there thanks again for being on the geyser report thank you as a very pleasure to be here. and that's going to do it the business of the kaiser par with me max kaiser and stacy herbert i thank my guests dr michael hudson if you want to send me an e-mail please do so at kaiser report in r t t v dot ru until next time this is max guys are saying.