tv Keiser Report RT October 8, 2013 5:30pm-6:01pm EDT
apparently there is a all that financial for at least according to the wall street journal today as you know max indeed well you know the payment protection insurance scandal from the past few years where they the banks were selling payment protection insurance so your mortgage would be paid if you lost your job or your house burned down you got sick or whatever they would pay your mortgage for you well how a banking scandals bolstering britain's economy well the compensation for misselling those payments because apparently none of they were like all insurance products they didn't pay out so they had to pay billions of pounds to the consumers who bought this thing and apparently the office for budget responsibility the government official forecasts are said that the compensation was so big it would provide quote some short term support to household consumption growth one economist alan clark a scotiabank says the compensation payments have been more successful as stimulating
the u.k. economy than quantitative easing u.k. lenders have already paid eleven point five billion pounds to millions of customers and have set aside another seven point three billion for future payments well this austerity for everybody in the u.k. unless you've committed financial fraud and then the government just reward you with billions of pounds worth of compensation and restitution and free money and this brings up an interesting point is that fraud pays to be that crime doesn't pay but now crime does pay lehman brothers collapsed and a collapse and bernie madoff collapsed and we saw many financial scandals over the past five years result. and the central banks in america and england printing billions of pounds or billions hundreds of billions of trillions of pounds and dollars to reward the fraudsters so what you're saying here is really part and parcel of this whole model of fraud for pay so that p.p.i.
scandal they were caught mis selling insurance they were caught committing fraud which should be a criminal offense it is a criminal offense and anywhere but the city of london which is its own corporation has its own laws where fraud is legal and the result of all this fraud was a massive money printing which they are now characterizing as economic recovery even though it has deep bass the pound it is debased the economy it has threaten the overall security and national security the country those are taken into consideration the only thing they take into consideration is that a banker made more of this quarter in a bonus therefore the economy is growing so lloyd's barclay's h.s.b.c. all these local banks who sold these p.p.i. fraudulent insurance schemes they themselves have had to take from their own reserves cash and give it to the normal joe baca don't it's out there on the street who bought this these schemes so that small amount of money is stimulating the
economy more so than the seven hundred fifty billion pounds so far of quantitative easing seven hundred fifty billion pounds of quantitative easing eleven billion pounds of compensation from the banks to the people now. that shows you the what has been said from the very beginning if you just put the hands the money into the hands of the people the normal people who actually are desperate and have have a shortage of cash rather than giving seven hundred fifty billion pounds to the bankers who have trillions sitting on their balance sheets that they don't feel like lending out to those schmucks out the street that they're going to just miss sell something else to be clear when they say that they're moving money off their balance sheet to pay the victims of their fraud that money is immediately replaced by the bank of england that they're not paying for their in other words they've expanded their credit line to the bank of england his balance sheet went from eight hundred billion pounds to over now close to four trillion pounds worth of debt and of course the national debt in the u.k. hits new highs every quarter and the deficit is also looking like it's going to go
higher too it's also the wall street journal the newspaper for wall street they're saying look how freaking positive this is we are fraud has created economic stimulus we are great we are doing god's work for real because there are also the article shows image from the conservative party conference hardworking people because remember the conservatives are working hard for those hard working people they say well this all of the banking fraud here and. in suing compensation claims have created jobs they're saying that the claims have come been coming in at such a clip that it's created tens of thousands of new jobs to handle the claims for compensation for this fraudulent misselling of p.p.i. schemes right once again these are jobs that are part of the financialization and securitization of the u.k. economy it's not part of the economy which is productive or manufacturing battles
and with the exports needed to boost the economy and wages in a real sense is just more paper pushing jobs that are financed by more paper pushing which are financed by more money printing as part of this massive ponzi scheme so it's great that they can. points of fraud in the paper printing the results as growth but imagine if charles manson a squeaky fromme were running the bank of england instead of mark carney and danny alexander or of the assistant treasury or george osborne and danny alexander as part of george and george osborne's office then you have this notion that front serial killing is boosting the economy if charles manson ran the economy but here you have george osborne and mark carney who are saying serial money printing which is an act of of criminality is boosting the economy that would be like charles manson saying that serial murders are boosting the economy in america which i'm sure a lot of americans would agree that that is the case that's why they tend to shoot each other so much well you often see the argument made that we need pollution because it well if we if we stop pollution will lose jobs if we stop eating
carcinogenic foods will lose jobs so it's always about maintaining the job so now we're getting stuck in a situation where they're going to be able to point to jobs created tens of thousands of jobs created by our fraud but if that's the case then look at this next time i'm because this should be a real boon to the economy swiss authorities investigate potential manipulation of three trillion pound currency markets swiss regulators are investing in gating a number of financial firms over the potential manipulation of currency markets where three trillion pounds changes hands every day so this is multiple banks around the world five trillion dollars in manipulation and price rigging and price fixing but to put out the context the global daily forex market is two and a half to three times greater than the entire g.d.p. of britain so the entire g.d.p. of britain turns over in the four x. market two and a half to three times every single day or so and i said last week that the global economy is going giant hedge fund this is a good example of it if they're manipulating forex which includes all the
transactions for the british pound and all the other four x. transactions and all economies and all the currencies around the world and they have hundreds of trillions of dollars of the leverage to do so and their cost of funds is near zero and every time they make a mistake they get bailed out by the state then the british economy. it is a place thing in this global hedge fund community and therefore all price discovery in the british economy whether it's interest rates or currency transactions or the labor force which you say there's more jobs but these are low wage jobs these are part time jobs these are not living wage jobs this is a poverty creating jobs it's like saying well everyone in prison america twenty percent of people in prison or five percent of people in prison have jobs that may be true the rate of job growth in prisons is has never been higher in american history that's probably true and yet let's look maybe we should focus on the point that they're in prison so yeah the rate of job growth of what age is that don't actually allow you to put food in your mouth your family survive those jobs are
growing within the prison so here you see a situation of basically price fixing and might only be for a fraction of a second that they fix the price so that their contracts and various bets pay off for them we saw this with libeler which is also price fixing is fixing the price of interest rates and and money well we also saw that with platts oil benchmark that that's being investigated the moment for fixing the price of oil to their advantage we saw that with is defects which is how credit default swaps are priced around the world basically global p.p.i. we see the gold fix the london gold fix is also being investigated for price fixing price rigging so here we have over and over these cases of price fixing that are very opaque price fixes and to invent and the advantage goes only to a very select few. on the other hand we're seeing the emergence of the people's price fix the people are demanding their own price fix in switzerland we see this
swiss to voe on two thousand five hundred franc basic income for every adult a grassroots committee is calling for all adults in switzerland to receive an unconditional income of twenty five hundred swiss francs which is twenty eight hundred u.s. dollars per month from the state with the aim of providing a financial safety net for the population right and people say well you can't just give money away because this incentivize people to work and of course that's exactly what we've seen in the banking sector they give trillions of dollars away to bankers who have been disincentive eyes to compete they form collusion narry bodies of price manipulation as you just pointed out all major indexes are fixed they create a whole a gram of price fraud so in switzerland are saying the people are switzerland saying why don't we just tap into that source of money that you're giving trillions and trillions away to these people why not make interest free loans which is essentially what this scheme boils down to from the central bank want to direct some of that to the actual population so they have equal access to zero percent
loans from the same institution the central bank why not why not give people the same access to the funds that you're just giving to us like you in the banks or if you don't like this scheme i'm not giving people in switzerland a minimum monthly amount of cash then shut down the central bank for criminality in the city of london so those are your two choices but you just can't have a central bank giving interest free loans to a criminal class in the city of london and wall street and then everyone else is quote unquote experiencing austerity that's that's political that's jets of financial genocide essentially cameron was born are committing financial genocide that's why people are going after them for work crimes because they're no different than genocidal maniacs of past years they're also calling for price fixed income between the c.e.o.'s on the bottom of the. anybody in a corporation of one to twelve but there's also another demand for the people's
price fix here in the u.k. which is ed miliband labor would freeze energy prices labor would freeze gas and electricity bills for every home and business in the u.k. for twenty months if it wins the twenty five election ed miliband has said so again we live in a matrix of price fixes and i think we could come up with an idea which is the kaiser hierarchy of price fixing just like maslow's hierarchy of basic needs right so at the bottom we'd have to price fixes for energy food labor and then further up then you get to the collateralized debt obligations and c.d.'s or fixin to fix and all those sort of things that are more esoteric and you know not as necessary to fixing for our fixed market economies well ed miliband was wrongly criticized as being anti-capitalist when he says about fixing energy prices that's not being an take up is being pro-capitalist by trying to bring some price discovery into the energy markets based on true supply and demand because right now
we've got centric. who are involved with the banks here in the city of london involve these price fixing his games so he says we need to stop the fraud we need to bring back some pricing balance that's pro-capitalist pro free market so he's doing the absolute thing that the regulators are not doing because they are in the pocket of the energy companies i see that cameron's initiative now to seek more transparency from lobbyist in the city of london does not apply to energy companies a clear violation of his. obligation as a public servant so once again financial genocide for maniacs like i was born in cameron all right states everything from israel to cause report thank you stay tuned for the second half a whole lot more. leg it was terrible a little very hard to take up. once again along there is
beauty. limited. since. welcome back to the kaiser report imax keyser i'm pleased to welcome far into the studio world renowned mathematician and monetary scientist professor and south the cat's out of the new austrian school of economics and for cancer research dot com who is in town to present his new austrian manifesto professor fick at the welcome back to the kaiser report thank you very much and i just want to add that you. were famous madoff me because my good such a tremendous feedback off to the last interview i now i hear you've become
a veritable kick magnate. tie this is what the show can do get professor for cancer last year you wrote that the fed thinks that it is for mentoring inflation when in fact it has become the main engine of deflation speak about this well whether it's done consciously or unconsciously i wouldn't be able to say but the fact is that it is the inflation and we are going deeper into the fully and possibly a cut to screw off we do flu should in the mean time my. mother would it's hyper the fleas should ok the reason this is important is because when ben bernanke he gives us testimony or mark carney here in the u.k. they say that they're worried about deflation and they put forward their policies of quantitative easing but in fact what you're saying is that they're causing deflation they are and there's i would say it's not possible to say we're good they
do disconsolate we consciously. i think be doing it on purpose next day i think they are just to stupid well a cynic might argue that their policies of quantitative easing definitely help bankers who are using that money that they get for free really had zero percent interest rate. to speculate make bets and are rewarded handsomely while the rest of the economy is told well we have quote unquote deflation so we need austerity so it's same just politically speaking they are responding to the needs of only one group of people those are the bankers now let me ask you this about your thoughts because of course euro pursue really the true austrian model not what some call the american austrian model what i call a fake austrian model people like tom woods little rock well gary north peter schiff they're they call themselves austrian and yet they completely miss this trend that these policies are causing deflation not inflation how the american
school get it so wrong i don't put. the true aussie. nuance in the sun's in the mood awesome design i'm going back to congo mangler who started it all so that's. let's not quibble over term elemental level i like to quibble i'm a quibbler while i like to say that your morning in teen with the. kind of more agents of austrian economics where is this school in america has gone has been a bastardization really. yes ok so where did they get it wrong oh go there are a number of things first the food. they are come to since. they do not want to engage in the discussion because. the discussion is is secretly. so about.
new positions for about because i'm all for debate i don't mind to be on the losing side in the debate but just to prove to not ego i don't believe in the ok when the numbers support what you. in saying we've seen deflation in this economy during a period money printing and quantitative easing by the central banks that these folks that we just mentioned in the us said would cause high very high inflation and they were completely wrong what we've seen in my opinion they the markets would bear that out. thank you i mean the prices bear out exactly what we're saying you still have enormous deflationary pressures tamping down on the economy's getting worse and it's getting worse so ultimately you see the deflation continuing to get
worse and by deflation we're saying that bond payments will be missed what we saw in cyprus is a. deflation is a blueprint food to the rest of the world it may take time but that's the direction so when people say what moment the price of my food or energy may be up three or four or five percent that that may be true but what we're seeing in countries like cyprus where the entire country is being deflationary only imploded and money being confiscated that's the really the bigger trend to pay attention to you know it's ok if you see it getting worse definitely do. it's amazing the almost find myself in my newer two. because most people believe in the quantity theory of money and the cording to the scenario which you get from the quantum theory is the more money higher prices more inflation and so on but you see
at the same time money is being distributed i'm not denying that there is inflation in the sense that the fed is pumping all. norms into the mo money mo two months in the bank. however at the same time the value of these through of money is being destroyed. the wealth is being destroyed capital is being beasts through it and that's the reason there's more and more on them more and ok so what we see in cyprus which is really a destruction or deflation in that economy my understanding now is that greece will now experience balance that wealth confiscation of people just taking money out of bank accounts will happen now in greece so it's spreading this huge deflationary wave it's completeness highly contagious so we see this contagion spreading throughout europe so let's look at an economy like the u.k. or the united states could it happen there i think so it's happening right now it's
just the because of the size of the country is so enormous and the first starts in pockets the deflation but then the spreads and therefore people who are not in that particular pocket they don't move to school it's going go on they don't feel it so it's business as usual but it's not it's the borough new game a very dangerous ok let me move on a recent business week headline right reads the fed's get to business the article claims that the fed's low interest rates had allowed businesses to save seven hundred billion on interest costs in two years and that sounds like a good thing what's wrong with that they are missing the destruction of capital which is the invisible part these transfer payments are the visible part everybody says well more money is good for you it's like. spring green it's fertilizing the
lawn the crop is coming but actually that's not the case because you want is not seguin is the destruction of capital but i think this is an interesting point because when we're saying of the destruction of capital all we're saying that really it's the implosion. of the machinations of the global banking system in terms of credit creation and going back to austrian economics and bet you if you include credit creation into your calculation of money then you can understand how if credit starts to collapse at a rate faster than money has been on the then is the flu but if a noose and that's what's happening partly on the other there are other big interest signs which is the longest august firms in the us on through in the united kingdom the general motors. it's.
you know what they work keeps the game is the financial arm of the fur the book look at the production and that's what i mean copy to productive company that is in shambles right so a firm like general motors which used to make cars then they had general motors acceptance corporation which was their lending arm that's the main business that is now and it is a should be the same thing in general electric same thing with i.b.m. same thing with most corporate america they've been hollowed out by financialization and now you have deflation and the result is implosion and shuffling paper rather than producing goods we need this is this this is not being discussed the financial media ignores the making of suffering paper and hollowing out economy and ignoring
manufacturing let's talk about george osborne the chancellor of the exchequer here in the united kingdom he's got a new scheme called help to buy which is meant to encourage homeowners and home buyers to buy homes at inflated prices using state money. and what many call a ponzi scheme so once again voters are happy with this in the short term because they have that price bump on the speculation but isn't that essentially a prime example of the substituting a policy to encourage manufacturing jobs and growth with one of just paper shuffling that's right and we see here is the real estate bubble number two we have a listed bubble number one this is exceedingly painful special in the united says what i think will sue sue but it will sue. been fooling the united kingdom and no other than the moon leaking from the. experience that bumping
money into the economy will go into these speculative venture and no even ordinary people are shoved into speculative. called druim the this is bubbling and produces. the use of the shuffling paper or brewing club here blowing bubbles and blowing hot air and it seems again a cynic would say that this appears to be a policy to buy votes as a help to buy votes not to help to buy anything that's going to have sustainable value but you know professor forget while you're in town here in london you're here with a new austrian manifesto. so we've got about a minute or so left can you speak on that a little bit i thought it was time to spell out in what we the for from the mainstream. and by. them post
mieses because they put term. economic or else in the comics stopped with means this music snide in nine hundred seventy three a lot of things happen in the meantime they just applied the old cliche to the new things and that that's not going to lead to very far so there's a we have evelyn d.v.d. i take it also your lectures there london i think will be available indeed a d.v.d. what's not to get a copy sent to gary north leigh watt well at tom morton peter schiff so they can kind of brush up on their austrian economics professor effect at around a time but i want to thank you so much for being wants again on the kaiser report thank you very much max it was a pleasure always a pleasure. ok and that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert i'd like to thank our guest professor who has been
in london to present his new austrian manifesto you can buy it on d.v.d. set on the website to get a research dot com if you'd like to contact us you can tweet us the kaiser report in the next imax patterson bio. it looks like. we're going to go digital the price is the only industry specifically mentioned in the constitution and. that's because a free and open process is critical to our democracy albus. in fact the single biggest threat facing our nation today is the corporate takeover of our government and across several we've been hijacked trying handful of transnational corporations that will profit by destroying what our founding fathers once told my job market and on this show we reveal the big picture of what's
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welcome to breaking the set i'm out in martin old guys it's been eight days since the government shut down and close its doors because of this and then eight hundred thousand federal employees have been lingering without a national parks monuments in the store graveyards all closed what he means cancels drum circles ordered and kindergartners plainly both again but there is one group of federal employees deemed is so vital to this country that they have been ordered back to work now you probably think i'm talking about one safety inspectors considering how ninety one percent of imported seafood isn't being checked and the fact that three miners have already died since.