tv [untitled] February 7, 2012 5:18pm-5:48pm EST
one we highlight here at r.t. the sad tale of two america with the income inequality gap growing and the middle class dwindling the american dream for many is dying and perhaps it's a new york city where this tale can be best told just miles away from the wealth and luxurious lifestyles manhattan offers is the nation's poorest district artie's on the stasi a turk and it takes us to the bronx and gives us a glimpse into the daily struggles americans face there. welcome to the south bronx. we're feeding garbage a daily fight for dignity it is the poorest district in america but yet just a twenty minute ride from the welcoming house this is the start for those whose life is largely a struggle a staggering quarter of a million people are living below the poverty line right here for many it's a tough life from the get go every second child in the area lives in poverty
mothers like recently unemployed asia are livid this is ridiculous now we want a job i have a child i need a job i think that the government can do a little bit better than what they're doing now rap group rebels dio's live and work in the south. with. the new district like the back of their hand mike tyson with the a max is the names of celebrities but you know hundreds of young people behind bars. this is the infamous spofford prison. rod starr says industrial dumping into heavily secured areas is causing toxic waste sites we're standing in front of a moment of garbage it's a dump site for the garbage for the waste of the whole dries the area this he says has resulted in a sixty percent spike in among locals and literally going to probably not. largely an immigrant community the south bronx is seeing mom and pop shops go out of big. this while the social safety net is disappearing we talk about occupy wall
street and the global rebellions that were occurring in two thousand and eleven and are continuing on two thousand and twelve it's a response to these cutbacks in social services in the interest of corporate power instead enormous sums are being pumped into projects that are far from a priority for those who live here here you have an eight million dollar park. that was built. toxic waste stands empty in the nonresidential area billions of dollars are being misplaced you know and into the hands of the corporations of the rich and it is crazy that is two thousand and twelve and conditions like this in the bronx with countless trucks passing through drugs and prostitution are rampant. judge here obesity walks hand in hand with hunger books signs of poverty i don't
know how many hundreds of flood pantries in the bronx just like this month got you know that food needs to be two hundred people lined up tuesdays and saturdays look the same here for jobless people out on the street in the mainstream media what we see is a lot is is that it's you know it's our individual responsibility and never look at some of the structural reasons behind this poverty while corporations play a major role in america's policy making process people in places like the south bronx are left in the gutter i don't know if it's coming from the senate i don't know if it's the president's i can't say if it's like the chance or the just the district leader just the people i don't know who i can blame directly but i feel like it's a compilation of all of them everyone is just like not doing enough an up to pick us up out of every in economic several decades ago almost half of the south bronx
was largely burnt or abandoned a result of a downward spiral of economic decline middle class flight and skyrocketing crime so many streets have by now had a facelift just doesn't plastic surgery the exterior look may have somewhat improved but within the forgotten baro of new york remains destroyed is the thirty south bronx new york. well america prides itself on being a capitalist nation a system that gives everyone a shot at the american dream but is that really what it is today some would argue with is no longer a government for the people but a government for corporations this after the controversial passage of citizens united which allows corporations to pump unlimited amounts of money to fund campaign so as america become the united states of corporate greed draining us now is chris hedges columnist for truthdig and author of that this latest book death of
the liberal class welcome chris good to have you on the show so we have the primaries going on today in three states but you argue that these days voting doesn't even matter why do you say that. because there is no way to vote against the interests of goldman sucks. especially when you mention citizens united since two thousand and ten the corporations can anonymously spend unlimited amounts of money against any candidate who dares to challenge corporate interests and that has the centrally kept. elected politicians completely in line because if they step over that line they're finished and that's why you saw the announcement today that even barack obama who swore that he wouldn't do it has now asking people to contribute to the democratic super pac so that he can compete it's legalized bribery and it's not that like corporate money wasn't involved heavily in
determining the outcome of elections before two thousand and ten but this display really was the death blow because. the fear that is gripped politicians now within state houses and within washington is that if they run afoul of the chamber of commerce which represents the fossil fuel industry and major banks. any major corporation they're finished and it's become an extremely effective form of of control and i know that you are a very strong critic of citizens united that's the ruling that allows corporations . as much money as they want to political campaigns how would you say that this law has impacted the election so far. well. it's made it really impossible to run for office unless you have super pacs behind
you we saw we've seen this with for instance newt gingrich the only reason he's still alive as a candidate is because he has this massive infusion of money. you know super pac sun. in every single race determine who gets elected and who doesn't and and once they get to washington the payoff is that these corporate lobbyists write the legislation and then let the officials who in essence have become corporate employees pass it and this is been an acceleration of the kind of coup d'etat in slow motion the corporate coup d'etat that has gripped america and i don't see any way out because there's no poll on the other side unions are broken popular movements are broken the rise of the occupy movement was met with draconian forms of control including the physical eradication of encampments any kind of a murmur of opposition within the wider society is ruthlessly.
and. certainly within the formal mechanisms of power there is no redress. been saying for some time that the only. mechanisms we have now for resistance are civil disobedience but we've seen how the state has responded to peaceful nonviolent civil disobedience and that's essentially by trying to erase it from the landscape and you say as we discussed earlier that voting these days it doesn't count and we saw this crackdown on the occupy wall street movement what then can citizens do these days to to bring about change. i think civil disobedience i think. we have to get out in in the streets because that is the only recourse that we have left and the rise of the occupy movement the ability of the movement to resonate across the american landscape and
i think we should be clear that the occupy movement represents the mainstream if you look at the polling everything occupy was calling for was embraced by sixty plus percent of the american public whether that was the reining in of banks something to. staunch the foreclosure and mortgage crisis that's pushed over ten million americans out of their homes this disastrous health care bill which is going to force us to buy their defective product we have. fifty million americans without health care a million americans a year go into bankruptcy because they can't pay their medical bills i mean everything is breaking down the citizen has no protection left and that was something that was articulated quite eloquently by the occupy movement which is why the power structure and i think maybe first and foremost the democratic power structure has been working so hard to get rid of it and so occupy wall street they
are discussing as we just saw and the story we just play it how devastated the bronx is the nation's poorest district right next door to manhattan and this issue of income inequality is a growing problem in the u.s. why are we hearing the g.o.p. candidates addressing it. well because it's political theater you know it's and then of these and absurdities about you know right to life self deporting undocumented workers and it's completely disconnected from the concerns of ordinary americans and that's why the occupy movement had to be shut down because the occupy movement was a vehicle by which those concerns were being articulated and president obama he hasn't really come out and publicly supported the occupy wall street movement you have you do say that obama is held hostage to the system can you explain.
sure i mean obama you know understands how power works in this country he knows that he must serve those centers of power if he is to remain in office and he has done a very effective job of doing that he's broken almost every campaign promise that he made in two thousand and four. in including the latest you know decision to take money from a super pac he said he wouldn't do that you know it is been a continuation in terms of both. structure and policy from the bush administration whether that is preemptive war whether that is. refusing to hold wall street accountable for the crimes that they committed or even the restoration of civil liberties we talked about the national defense authorization act but let's remember that the obama administration hasn't even found it within themselves to restore habeas corpus so. sort of fringe issues of personal piety and morality
there are differences but not on any major issues so much to talk about unfortunately we are out of time will have to continue this conversation another time thank you so much for coming on the show that was chris had just hot columnist and truth for truth day and author of the book the liberal class well be right back here at seven. but i define it as a crime for australia you know. there's a lone no we're going to see the film on screen yeah if you want to have sex go and have sex.
kaiser this is the kaiser report the currency wars are heating up around the world stacy max there are so many super committees and super bodies that i thought we here should form one on the kaiser report which is why we have the same exact shirt on oh great michelle little there will also tags. you will all the super committees and super bodies are in the news super committee that runs america urges and to the zero bound demands issuance of negative bonds so the
treasury borrowing advisory committee has demanded that quote it was broadly agreed that flooring interest rates as zero or capping issuance proceeds at par was prohibiting proper market function the committee unanimously recommended that the treasury department allow for a negative yield auction results as soon as logistically practical that's right leave britain predicting this for really almost the entire duration of the show that the zero percent interest rates would give way to negative interest rates so that means that the bank takes two percent of your money every year just for keeping your money at the. bank or the treasury bond issuance they issued the bond day one last you are in a losing position from the second you take possession and this is a way again to confiscate wealth to protect bankers and it's no coincidence that
this comes this news comes after the m.f. global scandal because they were testing the waters with m.f. global if jamie diamond and j.p. moore again and john corazon could confiscate people's customer money out of their accounts just steal their money and nobody did anything about it then of course they said ok we're going to issue negative negative return bonds and negative interest rates and the confiscation now is in full force zero hedge reckons that this is j.p. morgan and goldman sachs who are pushing for this and say and what j.p. morgan and goldman sachs want j.p. morgan and goldman sachs to get and once we get the green light on negative yields at auction next up will be the push for the fed to impose negative rates on all standing securities which means that coming soon savers will be literally paying to hold cash and that will be the final straw it's just confiscation of your money it's fascist regimes in the past have not hesitated to just confiscate people's
wealth the resulting impoverishment ends up in creating state sanction or in this case a bank sanctioned ghettos and then this is the beginning of a financial program which a financial hole cost and this is the program in place no those who have gold and silver of course are going to be the only survivors as we've been saying on the show for a number of years as well so the fed doesn't believe in the dollar clearly because they wouldn't be confiscating the capital like this here over in europe buddhist bank sinks deeper into debt saving europe so germany's buddhist bank has entirely exhausted its stock of private assets and run up a quarter of a. trillion euros in liabilities propping up the euro zone system testing the political limits of e m u solidarity in germany the operations of incurring all this debt are part of the european central bank's target to network of automatic
payments between the national central banks of the euro land club the bank has already provided four hundred ninety six billion euros to countries in trouble chiefly greece ireland italy and spain no one in the bank has plenty of room sent their interest rates are two or three percent they can lower them down to zero percent e.c.b. can say gone many more trillions of dollars worth of bad debt and remember folks it's all legal now the article mentions a professor westerman who says that the e.c.b. is also printing money and that their latest lending has not been quote unquote sterilized and amounts to money creation while it has a vertical banking crash the move is double edged and could intensify the crisis since the bank cannot ensure the extra liquidity stays in the club med block professor west german sees a moment when all that money all of that extra liquidity currently sitting in the
club med region italy and spain and france that it could all come rushing back into germany and they call it the tidal wave of liquidity quote if everybody tries to get out of crisis states at the same time this will overwhelm target to in principle a speculative attack could occur within a day we are heading towards the multiple equilibria zone in which beliefs of a breakdown of the euro zone are self-fulfilling. if the don't forget deutsche bank . is the goal. of the e.c.b. can absorb many many trillions of those junk without breaking a sweat and remember folks it's all legal what germany. doing it's all loser goal so the next headline also from ambrose everand pritchard from the telegraph says the perils of mario draggy s one point five trillion euro blitz a disturbingly laura number of credit experts warn that the e.c.b.
lifeline is not the game changer that the markets seem to think cannot in itself save the euro land and may prove counterproductive perhaps soon suddenly all these credit experts are thinking hey all of this lending to the banks these trillions and trillions and trillions of dollars and euros and fake currencies around the world all of it actually may blow up because alberto gallo from r.b.s. says drag us for entered in eighty nine billion euro loans to banks at one percent for three years the l t r o is having all kinds of toxic effects which is disturb and giving that the financial times splashed a headline that the banks may draw down another trillion euros at the second l.t. are in late february well what they're not taking into consideration is that all of this debt is off the balance sheet and all the income is used immediately to pay off bank and near and germany so germany has effectively to seize control of grace
they've seized control of portugal they will soon be totally in control of spain and they're totally in control of the earl's own it's all legal remember they put all that bad debt off the balance sheet as keep interest rates at zero percent interest rates were to rise through three four five percent of course the game was over but that's never going to happen because there's no stopping the creation of credit default swaps and other derivatives that are used to keep interest rates artificially low so you don't have that risk so as long as they can create trillions hundreds of trillions of dollars of the derivative though you don't have interest rate risk you have political risk in the countries that are not germany germany doesn't have a political risk because they are europe alberto gallo from r.b.s. goes on to say that he. x. five trillion euros more indeed leveraging by european banks before it's all over so anybody who thinks there's inflation is wrong however this is massive deflation which is often the predecessor to hyperinflation massive
deflation which is used to keep interest rates at zero percent willian flow should come along though because there is no tolerance for that in germany they don't like inflation the member why more republic there are anti inflation so they will continue to run the entire game with they own all the pieces home aboard in the europe zone and when the dollar crashes then germany's going to own the dollar as well germany is the true superpower here not china china is apple's keep manufacturing hub power per se germany is a natural powerful country but this five trillion euros deal leveraging in a deflationary environment cash is king if you have money you're happy many germans have huge amounts of gold many chinese have
a lot of gold relative to their income so they'll be happy in spain in greece in the u.k. in ireland the citizen formally known as the citizen now known as the consumer they have a lot of debt. what chinese people are unruly that's not going to going to serve them well in the currency wars their government is going to have their hands full but remember going forward that real burden of debt in a deflationary environment the burden goes up so all of these debtor nations isn't going to get worse now you and i have been to athens and we've seen that those people you know you can talk all you want about germany and how they are but they've got to contend with those greeks and we saw those greeks and. i have to say we were interest where as well and the people in athens were far angrier than during the egyptians during their uprising as it was reported on the zero hedge
this past week greece is now entering a really answering this futile period the economy is so crushed you literally have a nation of disenfranchised and then forming thousands who have complete inability to mount any offensive whatsoever and then i have a final headline here about greece i.m.f. official admits austerity is harming greece pole thompson head of i.m.f. mission in greece concedes that social tolerance and political support have their limitations in an extraordinary departure from the script to the i.m.f. as follow to date the danish the official who is also in charge of the i.m.f. program in place in portugal acknowledged there was a limit to wall what society would endure he said quote while greece certainly will have to continue to reduce its fiscal deficit so we want to ensure considering that
social tolerance and political support have their limitations that we strike the right balance between fiscal consolidation and reforms as such the i.m.f. had cautioned against an excessive pace official fiscal reduction so this goes with your theme that the u.s. and and germany are at the heart of this global neo feudal system when it was when these austerity programs were imposed fora way down in latin america or asia the germans and the americans felt and the french felt safe issuing austerity measures because they weren't anywhere near the peasants who would riot here athens a little bit too close i think to berlin well known their opportunity was last year to have a coup to stop and get rid of happened and they could have been put in a populist government and they could to save themselves but they failed to do that so. no it's finished for them ireland some italy is toast no hope for them whatsoever portugal under the bus spain no italy they have twenty five hundred tons
of gold if they can hold onto it they're in good shape but i suspect that the current government will sell that italy's gold oil is a deal with the i.m.f. because they're totally corrupt and this leaves only germany if at the end of the day well max this super committee of blue shirts i think we've decided. are on the final say here christine legarde she was up at davos i think she had it right you know here we saw that greece is no longer going to have these austerity measures or the i.m.f. is afraid of it christine legarde also said in doubt those that portugal spain all the rest of europe all these peasants they're a little bit too close to paris london and berlin and maybe they're a little bit too afraid of austerity measures here don't let's talk more about that stays there are thank so much being on the cars report thank you max don't go away much more coming away stay right there.
world. technology innovation all the developments around russia we've got the future covered. but going back to the kaiser report on max kaiser and from some just go to chile gonzalo lira welcome to the kaiser report it's always it's a pleasure thank you all right so you're a bit of an expert in the area and one of the hallmarks of the i.m.f. and latin america we were talking about there in the first half of the show was austerity. which they used to call structural adjustment policies just before syria are the i.m.f. wants europe against implementing further us terry so what's going on here well
it's basically you know they want to squeeze the little countries such as greece portugal and ireland especially but the big ones they're sort of fraid of they're basically afraid of italy and spain basically telling the i.m.f. and the e.u. to stuff it and exit in the euro zone all together and so that's why they're treading very carefully now they're doing this about face that austerity is great for latin american countries and for the little european countries but oh these big european countries like france like italy like spain oh no no no a story is bad for them what we need is some sort of monetary loosening of some sort and that's where we have l.t.r. rose i mean we're going to have morrow is long term refinancing operations it's essentially the banks the central bank the e.c.b. is lending free money to the banks and they in turn are taking this money and using it to prop up the bond markets it's basically stealth monetization and this is what the united states did where ben bernanke he lent out as bloomberg reported seven point seven trillion dollars between loans orenstein guarantees to the too big to
fail banks now they took that money and invested it in u.s. treasury bonds now it seems that the l.t.r. o. operations are going on with the c b that are projected to on during the year two thousand and twelve which are expected to be about a trillion euros are going to be in that direction basically stealth wanted as they should and so what we're going to see is a continued deterioration of the euro against the dollar and specially against gold and a propping up any muddling along of the european situation and there is got going to be any austerity insofar as spain italy or france are concerned so this talk of us territory it's just purely cosmetic and just for the headlines it's not real how can these organizations be so professionally and competent i mean if people if you go to a doctor anything i've got a chest pain and he gives you a call and ask a pain you know henri amputate your foot and you would be rightfully upset to him then you wouldn't consider him to be a serious doctor.