could be happening in jesper colony south carolina you know when i was a kid they tell us about how the evil soviet union would parade their tanks around how there were soldiers all over their oppressed country even in one thousand nine hundred four or will meet in a point to describe our military helicopters would eternally be overhead and a dystopian nightmare world now we're living the nightmare the united states is a huge country there's plenty of room on remote army bases to do your training also last time i checked afghanistan even which is don't look like downtown miami just who are you training to kill anyways knock off the terror training but that's just my opinion. welcome to the kaiser report imax kaiser if you need to ask what exactly is in your

ready mail chances are you don't really want to know if you need to ask what is in your mortgage backed security chances are you don't really want to know i mean do you really want to know that there is a boot laced horsemeat in your c.d.o. infinitely re hypothecated m.f. global debt in your burger or is that the other way around it's so hard to keep track with all these conflicting statements from the f s a stacey exactly every single night on the news here there's a problem that the f.s.a. was supposed to be responsible for and of course that's because there's the financial services authority and the food standards agency and it is that the two scandals. the ways it is crimes are very similar in the conduct of the authorities and the regulators and the participants in it could exactly be the same but yeah it's fantastic because they both lead. decline in

living standards and inflation you know because when they chop up the mortgage backed securities and chop up the bond they securitized the bonds and they create interbank sells me to all of these of these adulterated bonds the bank of england steps in to add to filler to add the horsemeat to add the additional adulteration that causes the purchasing power of the pound to decline it causes inflation simultaneously the food is adulterated as well so that that's hiding the fact that food prices are going up it's still the inflation but they also have real inflation too soon to be real inflation in the food prices so we're in an inflationary vortex here in the u.k. the first headline here reads horsemeat why did no one want to disclose full scale scandal again you know compare this to the financial crisis every single word i say could almost be the same as referring to the collapse of the derivatives market that led to the collapse of the global financial market perhaps mindful of creating

an economically damaging food scare food safety officials and ministers have repeatedly stressed that the unlabeled course is safe to eat but as the leading food scientists don't contaminate pointed out to the independent last month how can they be certain they didn't know about the horsemeat for months and they still don't know where it comes from the money in the u.k. the british pound is full of filler every time you spend a british pound you are creating inflation because you're expanding the debt load of the economy which is meant by more money printing so the act of spending the act of consuming is debasing your currency the active eating adulterated food is encouraging more food adulteration and it's degrading your health remember this horsemeat is let's be honest it's it's unregulated and it's it's also filled with other unhealthy additives at the. same time that's causes health problems

which of course end up being borne by the n.h.s. the nothing no national health service which again requires more money printing and more inflation now go back comparing this to the financial crisis remember at the time. rates were rigged partly in complicity with the regulators and the like the bank of england because they wanted people to not be afraid of being in the markets they didn't want people to know how bad it was here they're saying the same thing that the food safety officials were worried that it would economically damage the agribusiness and forget the health of the system forget the health of the participants or the customers of these products the same here is we keep on being told it's safe to go back in the markets it's safe to stay in the markets even though in the financial markets they don't know what is actually in these derivatives i mean only a few weeks ago the financial stability board remember they said we found six trillion dollars more in the shadow banking system that we didn't know even existed

the week before so these food vendors will be too big to sell they'll say we can't regulate food we don't care what's horsemeat donkey me rat me we don't care it's all meat meat is mate you've got it if you stop eating it the whole system will collapse it's your bread meat you stupid british idiots reacher cabos are collateralized debt obligations spending is remarkably corrupt turn around we don't care just keep doing it now when you had the robo signing and mortgage fraud problems remember what it was what was it about it because nobody knew who owned the mortgages nobody own to the paper for this mortgages these were packages and mortgages. creating basically the financial system instability now we turn to this horse meat which now are some are saying is some of it is donkey me it came from average was in romania through a dealer in cyprus working through another dealer in holland to meet plant in the

south of france which sold it to a french own factory in luxembourg which made it into frozen meals sold in supermarkets in sixteen countries reminds me of a dutch sandwich you know like when the bonnano in you to pay taxes they use the dutch sandwich they are using and the barclays according to panorama the b.b.c. investigative journalist show here in the u.k. demonstrated how barclays uses all of these different banks around the world to create all these tax avoidance schemes that are bordering on a legal slash wink wink illegal and of course this is the dutch sandwich which they use the metaphor of food and then when you go to eat a burger or libby flows on it you open up the package and inside is a collateralized debt obligation while they just collateralized horsemeat goes on to finance a multi-billion dollar tranche of debt to build some kind of meat processing plant where they can process rats and put those into the rat sandwich that they're feeding on of course all hospitals are eating rats the schools are eating rat the

people down it just goes are eating goes on your rat because i don't care anymore because a. two legged dead horse is there are. these poor people also comparing this again to the financial crisis we were jamie diamond of j.p. morgan has been braiding regulators around the world saying these minimum capital requirements we can't stand it because of these minimum capital requirements we have to basically lie and tell you it's all good well part of this horsemeat or don't give me scandal is the fact that in romania in the last few months they've banned horses and don't keys on the roads so there's been an oversupply of all these don't keys and horses that people now don't want to feed because they can't use them on. rhodes so apparently this is what they're claiming is why this honk honk he gave me to my daughter you know that can be a problem you know there's so many honkies around so over the holiday overpopulation we decided to turn them into burgers that's all in. their. mind you

go home again first day sure probable the start of the law is on you is a big deal. again so the f.s.a. in this case the food standards agency was made aware of the situation and once again they attended a cover up the article says the f.s.a. set up in the wake of the b.s.e. crisis we were there at all we set up in the wake of a crisis of mad cow disease crisis yes they kept secret test results showing the bad drug abuse and meat from horses slaughtered in the u.k. last year until after a whistleblower had leaked them so they were set up. to deal with a mad cow disease which again everybody kept on saying eat eat the beef it's ok there was that minister the environment minister who was fed a hamburger to his child and then. be fed that tainted beef to his kid s. with all these do you. know it's going to be frozen is some ice crackers and some

crackers and a side of your honky b. if. you make it you know beautiful. so this week it waited a whole day before telling the public in a brief press release slapped on its website but not so down to journalist that frozen beef and ready meals contains staggering levels of undeclared horse meat and again this is exactly what the u.s. does the late friday afternoon press releases of oh by the way there's no financial system in oh yeah we're going to give them seven hundred billion dollars to go out shopping so let's move on to the next layer of this horsemeat scandal here in the u.k. and across europe actually and let's see how it also relates to the financial crisis the same sort of misbehavior the same sort of crime and we're calling it a crime in the horsemeat scandal horsemeat scandal blamed on international fraud by mafia gangs there are claims that vets and other officials working with an average was and food production plants are intimidated into signing off meat as beef with

it is in fact cheaper alternatives such as poor or horse now doesn't this sound like what happens to the rating agencies and the auditors who bless the books of these banks and their c.d.o. and the readers who give that those c.d.o. packages and aaa rating you know there's four big was here in the city of london there's lloyds royal bank of scotland they just b.c. and the other one i can remember r.b.s. yeah there are the four financial opera twaddles or slaughter houses and they are basically slaughtering the. me paying themselves huge fees to slaughter the economy to sell the financial products of the securitization of derivatives with with substitution of junk bonds which are collateralized by nothing which are kept afloat by the bank of england now from our carney who is you know should be in a circus sideshow as any carney should be that was an appropriate name for mark

karr user carney bark bark well he's also a carnivore right for the horse meat that is in maybe some of these collateralized debt obligations they should have done a swap between the mortgage backed securities and the. now finally on this of course again comparing it to the financial crisis because who is the biggest derivatives wielder in the world that's j.p. morgan so it makes sense that of course they're going to be somewhere on this chain food fraud horsemeat scandal the polo player linked to findus there's some photos of here in london leave the boss of the private equity firm linked to findus is a financier straight out of central casting yes because he's ex goldman sachs he's riding around on a horse they don't say whether he sold his horse to one of these lasagnas i would expect maybe it would be like you know a chip away on your ready meal but they said end with following a restructuring last a temper lion capital steak this is his private equity firm and findus was watered

down no pun intended i guess to less than a third with hedge funds hybrids capital j.p. morgan and northwest mutual buying into the company now and i think we're going to remake sweeney todd with jamie diamond sweeney todd laurie slicing and dicing those customers and feeding them into the lasagna burgers at least their wealth of course . is a honkey for sure. i say sara thanks so much for being on the kaiser report thank you. for the second i will be speaking to david graber author of debt the first five thousand years. i never knew adam lanza in person but i was in the same high school as that he was younger than me just little bit younger. i always thought he was different i always into something funny he rarely talks and you know he was

a shy kid. i don't know if anyone was friends with him i also don't know of anyone who is particularly mean to the what i do know is that it was very clear that this person was not like everybody else. can imagine the level of mental illness that would be present to murder show. america's you know so when you go on this there would be an american behind every tree with a gun. i think for kids growing up in this environment is good for them at an early age to least see the gun and respect it because they need to know what kind of damage it can do. this is our first task as a society. keeping our children safe. this is how we will be judged.

welcome back to the kaiser report imax keyser time at cern to answer apologist david graber author of debt the first five thousand years david graber welcome back to the kaiser report thanks so much for having me right david graber all the talk

is of global currency war from money printing to devaluations to gold repatriation but was it the collapse of the debt markets that happened first is the debt based system falling apart. yeah i would say that i think that we're at a point where people are coasting along because it's the only thing they know how to do and basically a lot of them don't care if the whole thing falls apart that's why two thousand and eight happened to begin with but i get the impression that there's maybe five ten percent of the people running things who actually care about the long term viability the system and want to talk to these guys they're freaking out i mean they realize they're about to hit three different walls at the same time claymore what three different well i mean there's the debt overhang there's a logical. collapse there's a whole series of obviously not viable long term patterns going on and that's been the reason for number of years what's the trigger now is that. first of all out of

going back to the book debt the first five thousand years which is a great book which came first money or debt well it all you define it but i mean a debt in the sense of like i owe you on an obligation that's always exist in others in the book i talk about credit not it came first in other words it would say. let's do this iou. here i'll give you a gift but really you know you owe them something and they kind of invented money to extinguish the debts as a way of yeah because normally you don't want to extinguish the debts because even if somebody gives you something give them something back exactly the same it's like saying like i don't know you anymore over the course of the many millennia because of a debt jubilee has been big actually that's get so big and going back to medieval times the. debts were seen to debt forgiveness were seen as a way to prevent the population from getting in bed with their competing rulers that's running. was that of. being enslaved and everybody ended up some flunky you

know so kings would really like that done the barons would take over so what about a modern day that usually where are we in that because it looks as though if they're hitting all these while simultaneously someone's going to pop up and say no it maybe we need to just do it that forgot to salute leo it's really remarkable the degree to which they're starting to talk about it like two years ago it would have been completely insane to them just that forgiveness now as they say those people actually care about the long term viability the system they're starting to talk about it and i think it's inevitable some kind of mass debt forgiveness has to happen real struggle right now i think is how they're going to dress it up whether they're going to be honest about what they're doing or figure out some way to finagle it so they can claim it's not troops they want to keep that idea that leaves poor people really do have to pay their debts and the rich people don't obviously but and you know whether it's going to be used as a way of reproducing the same system the same ridiculous unequal power structures or whether ordinary people are going to finally have some say in what the economy looks like we're going to transform to something more sane and i mean that's that's

what it is what forms the debt forgiveness going to ted wells look at the in a situation like the federal reserve bank in washington d.c. they during this crisis have expanded their balance sheet from eight hundred billion dover three trillion dollars the levers fifty to one so less than two percent this three trillion dollars or so is something that has any market value the rest is just an accounting figures that suggest a market value under certain conditions is there a bennett history a time when the global banking system has been leveraged to such a degree where there is so little there there is so little collateral backing up these institutions generally speaking in the past you'd have temples full of gold some kind of material. thing and then all sorts of people doing a long credit on the basis of that i mean it is true that like the fed does most of the world's gold reserves there but it's really just a symbol. now it's made up and i think most of that fed money is just it's it's an

accounting figure for a way of just giving money to the banks which is what the government policy has been since two thousand and eight you know you lend them you print money you lend it to them at incredibly low rate of interest and then you let them put it back in the fed and lend back to get a slightly higher rate of interest so you know that the numbers are meaningless it's just a way of just flat out giving money to rich people we mentioned one central banks and gold there's about one hundred sixty thousand tons of gold above ground proximately a third is owned by central banks the rest is owned by there then the population version of the population of india owns twenty thousand gas and oil means its own day in jewelry and it's owned and other store houses and the public now is increasingly buying gold but there seems to be a scramble now central banks particularly russia has been the biggest buyer of gold really china is buying gold aggressively repatriation of gold by germany how do you interpret that. oh i think people are scared of trying to hedge their bets in as many way as possible but they know the system's going to collapse so it's only

seems natural to graham on something you think might be of enduring value. or that they believe that the dollar reserve system if you have money system is bogus about the collapse of whether buying gold do you agree well i mean the system is basically an imperial system i've gotten a lot of flak for saying this but i agree with michael hudson is analysis that go after bretton woods they set up this u.s. treasury bond system which essentially functions as a way of funneling tribute money into the u.s. basically to support them or to know terry and largely it's been the countries that are under u.s. military protection or have military bases all over them that are buying this stuff so russia is one of the countries that's calling it like it is and they've said like this is this is there is no real difference for the american military power in american finance. if we want to resist one we have to resist the other you mentioned foreign policy and she's a lesser ship between us money printing and the rise of the petro dollar and of course that has really been the basis for so many wars recently in the last ten or

fifteen years the iraq war and afghanistan and what's happening in africa it's a mad scramble for resources and that oil industry that since nine hundred seventy cents when the u.s. close the goal and there has been a concurrent growth in both credit and oil export liberation the links and on big capital and big oil of grown up together we head into a period now where. the credit seems to be falling apart due to the banking collapse and so the money to go out there and get oil and to explore oil and to finance the war machine that goes out there to get oil is concurrently falling apart as well if the credit doesn't start to flow again then the police state the war state is going to run out of money that's what we're hoping is going to let anybody who likes peace in the world who want to set up a system so the credit bubble collapsing from those who are anti war anti resource grab anti imperialism absolutely do the same thing you're cheerleading the collapse

of credit yeah in the form that it's taken i mean a democratization of credit so that would be peaceful that would be an alternative to the see the part of the endless war of course has been online it appears the elite in the governments greatly fear what's happening in the digital space and of course in the digital space i don't know if you follow this or not but little bit there's an emergence of crypto currency called. which is actually been cited by central banks as something they genuinely fear as being a threat to their monopoly another aspect of young line emerging online world what's going on there why haven't been following that specifically but any zone of freedom is something that makes these people worry. it's all about stifling anything that looks like it might be an alternative and especially anything that might be a democratic form of of creating money that's the danger i mean if you look at the history of america the battles been fought over and over again i mean one thing

i've been looking out in my my new book the most recent project doesn't look at there is the democracy alhaji says again it's not now yet is it you can i was on the night man i'm going to preorder this somewhere the escher was asked to go today to call the democracy and so about my experience in occupy and how it relates to larger true democratic movements in history and and. then there you are not only known for the discretion of the occupy movements i was one of the early people involved and the occupy movement seemed to lack a specific goal but here we have defined a specific goal which is to crash the credit system as a way to capitalize the war machine so why was an occupy able to make that point more clearly well i think that there was a problem in the left in general they haven't really talked about that relation between forms of money creation and military power why is that so difficult for the

left to figure out because i haven't thought this is also left years about this and they idea of incorporating economics into their manifestos or platform they seem completely. put off by that idea why is it why are the left why is the occupy movement why those people fighting the imperial. presence of america and others so tone deaf when it comes to economics i think that there are a lot of people increasingly realising that this is important just hasn't traditionally been traditionally there's been a sort of marxist emphasis on production anybody talks too much about finances or what i've stood for structure you know. there's been a tendency to pooh pooh that kind of stuff and lose and lose and bad that we were engaged in on. if i would get the smartest people you know out there on the street and you had people like peter schiff who is just a common garden variety stockbroker able to just pick apart their arguments at will without any pushback whatsoever i do when i would be. there for so obvious to make

him well i mean i don't know who he is debating but like we have some very good people there i don't i don't know they put him up against. a michael hansen room why not michael hudson wacko michael holmes i don't know why not i mean why isn't my godson more visible in this whole movement he's got the intellectual chops or he's written the books about it he doesn't seem like these embraced by home i think people people really like michael hudson they were a little they don't push him up there being their chief economist for example he could we don't have a chief economist at the democratic movement and it's like many different people in many different points of view now like when strike debt for example now there we have an analysis that's where you go those are the people specifically dealing with that you see the thing is look this is a movement a year old like what social movement has transformed the world in one year it's a long haul thing changing people's perceptions changing the way the left looks at things changing the way that ordinary people look at things changing will lead to i mean it's going to take a huge process of building and we're trying to do

a lot of things at once we're both trying to create a culture of democracy we're trying to make connections with people that have been making at all between you know sort of class power the one percent and government. coercion. police state and that you know it's a it's a potent symbol that you know actual stores are being replaced all over america by these sort of glass cubicles that don't sell anything but are full of guys with guns and the perfect symbol for what america has become let's move on we have less than a minute left and swartz activist in the digital space his parents say the state killed them their thoughts well i mean it's telling isn't. that some of the brightest most creative. and most principled people emerge. are simply being singled out to be destroyed and we've become a culture of sort of sheer brutal violence and sadism i call it like macho decadence you know we know we're going down release we're tough guys about it you know and this seems to be the attitude anything that points towards an actual

viable future it's like stopped and that's why. i consider him a friend he was a great garden's news he's brilliant news principled and drove the people in charge crazy because he made a point through people who are producing or just totally totally frozen out of the situations become a system of rent extraction even idea like you know you go to jail i mean one link in the chain but you know if i write something i don't get paid for it which is fine but like yeah yeah yeah these records scholarly work the scholars don't get paid for that stuff but they do have to pay to see what other scholars are saying i mean these these executives like inserted themselves in the conversations between you know intellectuals scholars and now are charging them to talk to each other i mean what could be more obscene well the phrase their rent seeking gatekeepers or trolls exactly that that's what it is it's a red system and so in that way what aaron was doing is exactly the same as we're doing in occupy we're just pointing out that what we've got now is a system of people who make do anything that's worthwhile to anyone but they just

sort of sit there privatized things put armed guards around didn't figure out ways to like charge you for doing what other people have done and others nominalism yeah yeah it's very close i mean all right well with that said it's on we have the book is called the democracy project coming out david graber thanks so much for our time is there to be a kaiser report my pleasure all right now so it's on behalf of this edition of the kaiser reform with me max kaiser and stacy herbert i'd like to thank our guests david graber author of debt the first five thousand years and the newest democracy project if you'd like to contact us you can e-mail us at kaiser reported r t t v dot ru or tweet us at kaiser report back either saying by you. hold it hold it. hold it hold it hold.

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