Debt deflation-On the Edge with Max Keiser-07-08-2011

[malkdk]

08:45 is the correct time at which this is discussed in the video.

[malkdk]

05:45 - can someone explain how quantitative easings is about the private sector "handing over its debt to the public sector", as they say in the video? i don't understand it. or am i misunderstanding what they're saying? isn't the private sector handing over *someone else's* debt (the government's) to the public sector?

[oldickeastman]

Interesting! Compare Keen's shadow banking thesis with these statements of Oswald Mosley in this 70 year old speech. See peKEzwwhfaA - paste in You Tube search engine. More interesting still is Mosley's offered solution to this problem. Too bad Keen invalidates himself beleiving in peak oil and global warming. He mentions Irving Fisher. (Google video search Revanche Eastman )

[oldickeastman]

Interesting! Compare Keen's shadow banking thesis with these statements of Oswald Mosley in this 70 year old speech. peKEzwwhfaA Paste in youtube search engine. More interesting still is Mosley's offered solution to this problem.

[bullenchris18]

FALSE CHRIST COMES FIRST

[whatupwiththatdog]

Perhaps he should call lord Christopher Monkton?

[whatupwiththatdog]

Does he actually believe giving money to Al Gore is going to reverse "man made" global warming, climate change, or whatever hokey name the Eco fascists like to call it?

[whatupwiththatdog]

Everything was going swimmingly until he mentioned he believes in global warming

[mcpencil]

@dieudutonnerre

exactly the point, you can't argue that any ethnicity is responsible. You would have to blame it on banking culture, as you said.

It is a coincidence that Jews are overrepresented in the finance field because their culture places a high value on education. My point was that they are overrepresented in every field.

[mcpencil]

@dieudutonnerre

facet*

[mcpencil]

@dieudutonnerre

Compared to their tiny numbers vs. Europeans, the Jews have made an incredible and outstanding contribution to every faced of society, per capita. To ignore this would simply be an admission that you get your worldview from the Stormfront forums.

And, by this logic, the 'banksters' are 90% white/european too. So you can pin all this shit on white people, the Jews are just a convenient scapegoat, and have been for thousands of years.

[betadryl]

"fool me once... shame on... you... fool me - you can't get fooled again!!" - George W Bush

[antitheistpansy]

10.04 Debt paid for (defaulted on) with hyperinflation along with future debt.

11.02 The economy falls back into recession because the free market is incapable of bringing back the manufacturing lost to china that would otherwise be booming if not prevented by wage difference.

[jgehb]

Mr. Obama needs to tell the truth and stop the fear mongering.

The Bipartisan Policy Center reported:

The BPC study projects there will be $172 billion in federal revenues in August and $307 billion in authorized expenditures. That means there's enough money to pay for, say, interest on the debt ($29 billion), Social Security ($49.2 billion), Medicare and Medicaid ($50 billion), active duty troop pay ($2.9 billion), veterans affairs programs ($2.9 billion), with about $39 billion left.

[nickmakwell]

For the record, Prof Keen is not ideologically bound to any school - he has come across economics empirically - describing it as it works in the real world, and has evaluated the different "schools" effectiveness.

As a result, some Austrian things work, some Keynesian - almost zero neo-classical (the current methodology).

Oh and by peak oil, he means peak "cheap" oil - there is a difference.

[tryptala]

@nickmakwell I should have said Post-Keynesian, which is what he has classed himself. Sorry, bad mistake. And yeah, his close alignment with empirical methodology doesn't bind him so rigidly to one philosophy, although he seems to place Minsky on the top of his list of high regard.

[superangrybrit]

Central planning is failing again.

[studioXforum]

Just aknowlige- capitalism is NOT working!

[ptknight]

@studioXforum this has nothing to do with capitalism. If it was capitalism, banks WOULD go bankrupt...

[nickmakwell]

@ptknight Agreed - capitalism, in its proper Schumpeter and Adam Smith sense - has not existed for over 30 years. Socialising your mistakes is not capitalism, it is cronyism.

I love Steve's quote about "reasonable" and "unreasonable" income = banks should be treated as utilities, with low, stable Return on Equity (around 5-8% like a power station), not as an industrial company earning 10-40% ROE, which is why they blow up so often...

[InvertedFox]

@ptknight Theoretically the invisible hand of the market (supply and demand equilibrium etc.) should keep things running smoothly. However, this premise has only ever been theoretic. Once monopolies emerge within the market they quickly establish mechanisms to ensure their institution is preserved... of course the banks wont let themselves go down. The capitalism you speak of has only ever existed theoretically, we live the reality of markets and there is little room for talk of equilibrium.

[shade1978x]

@ptknight Exactly. Free-market capitalism indicates that the market is free of influence. This clearly is not and has almost never been the case. The big banks and corporations have always gamed the market to benefit them by bribing our elected officials, both Democrat and Republican.

[Kalydosos]

@ptknight Spot on mate!

[ShinEmperor]

@ptknight I actually think it has plenty to do with capitalism... I think free markets sometimes create massive wealth generation for a few. Whether we like it or not, it is the case. On top of that, those who acquire massive wealth would not want to let it go to "market forces" so once someone acquires a large amount of wealth they seek to preserve it. Like all competitive environments, there HAS to be a winner.. a big fish... the situation we are in right now is the result of that process.

[ShinEmperor]

@ptknight So it makes perfect sense how this happened... it's no surprise really. When "profit motive" is the driving force for an economy it makes perfect sense how we got to this point... you reap what you sow... When greed is the motivation... then greed is the result...

[guslingus]

@studioXforum If it was market Capitalism the people would not be bailing out banks paying for Wars that benefit large companies.

[tryptala]

@studioXforum Adam Smith would throw up if he saw what people call Capitalism today. We are in a managed economy, owned and operated by the big banks for their benefit. That is not Capitalism. Far from it.

[hodoprime]

This guy is exactly right. Sounds like an Austrian economist.

[tryptala]

@hodoprime Steve Keen is a Neo-Keynesian, not an Austrian. On many points he strongly disagrees with the Austrians.

[Saywhatyoumust]

So if the bank’s collapse and go into bankruptcy, hence the debt ultimately gets written off, then surely the US should lose being the World Reserved Currency? For banks and country to default on this huge amount, yet still reap the benefits of being the WRC is very unfair consider we have already witnessed several other countries go into bankruptcy such as Iceland, Ireland and probably Greece with Spain and Portugal following right behind and God knows who else will follow them.

[Mopar21277]

Excellent discussion, the trouble is the bankster oligarchy who control the politicians and have run wild. It is gambling debt, shred it and liquidate the zombie banks.

"I know too many scientists" - about global warming; how about historians and how temps fluctuate? Peak Oil is BS, look up the Liberty Rig going to Prudhoe Bay, as we are sitting on massive reserves. The trouble is that this oil is a natural resource of the people, but will make globalist oil companies stupid rich.

[InvertedFox]

@Mopar21277 @Mopar21277 "Peak Oil is BS" - Are you suggesting that a finite planet can contain infinite resources? A basic scientific understanding of the nature of CLOSED SYSTEMS is all that is needed to see that Peak Oil is an issue...

Some random Pastor appears on Prison Planet having talked to "Mr. X" and the science, evidence, data... it all goes out of the window.

Incredible.

Human susceptibility to manipulation scares me...

[keeelane]

so what does it actually mean when these experts talk about a collapse? i mean in concrete terms.

[harveybirdmannequin]

Don't worry guys. Everyday the world doesn't come to an end is another victory against "global warming". Max will be screaming global warming well into old age while everyone is driving combustion engine cars around. Let us all keep putting out carbon dioxide just to spite Max.

Oh look at me. I'm Steve Keen. I know other scientists that makes my opinion right and valid.

MAKE CO2! CRASH GLOBAL WARMING!

That's the new campaign.

MAKE CO2! CRASH GLOBAL WARMING!

MAKE CO2! CRASH GLOBAL WARMING!

[iansummerell]

Thank you MAx for hitting nail of head with this one, what see this on the BBC.

[cZiebenhaus]

wtf is with people and peak oil and global warming? its a complete fucking scam...

[TheJourneyAgent]

@cZiebenhaus proof? do you have any? only time will tell so shut up and enjoy your life!

[cZiebenhaus]

@TheJourneyAgent haha fair enough buddy, cant say i dont enjoy life. check out lindsey williams' book energy non crisis, it raises some interesting points including pointing out HUGE reserves which the oil companies have conspired together to not develop,,,artificial scarcity

[1x93cm]

@cZiebenhaus please folks...just BUY MAH DVD!!!!!!!

[TheJourneyAgent]

@cZiebenhaus artificial scarcity is different to peak oil no?

[InvertedFox]

@cZiebenhaus What exactly is a scam? I think you over simplify this somewhat... certainly state carbon tax is a self interested attempt to profit off the problem, but there is a large body of evidence to suggest that we are effecting the climate and the environment in a very negative way. It is not conclusive, but to write it off as a scam without conclusive evidence is very dangerous. It is a verifiable fact that the planet can only sustain our current rate of Oil consumption for 20 years...

[Silveracity]

@InvertedFox

"It is a verifiable fact that the planet can only sustain our current rate of Oil consumption for 20 years"

Where do YOU get your "facts"?

[InvertedFox]

@Silveracity And for good measure here is a link to an economist that appears to believe that our finite, closed system of a planet somehow contains infinite resources. Economics has no physical referent to the natural world, and therefore to apply the logic of economics to subjects such as this is to distort the reality of the situation. You cannot understand natural planetary phenomena with the abstraction of economics.

economics(DOT)about(DOT)com/cs­/macroeconomics/a/run_out_of_o­il(DOT)htm

[InvertedFox]

@Silveracity As a market fundamentalist (like many economists) he is trying to argue that oil will never run out because of the market mechanisms of supply and demand. He cannot comprehend the fact that economics is an abstraction that bares no relation to natural phenomena or planetary well being...

There is a huge body of evidence on this issue... pretty much the only counter arguments are put forward by oil companies and economists - which is pretty telling in itself.

[GHPCAndersB]

The collapse of China will bring Australia down too, as has often been predicted on Zetaboards Australian Property Forum.

The property bubble in Australia is wholly dependent on the success of China, but China is unfortunately right in the middle an enormous real estate bubble bigger than any on the planet (apart from Australia!) By all sensible measures (price/income or price/rent) the Australian property bubble is completely unsustainable without the rivers of gold flowing in from China.

[harveybirdmannequin]

@GHPCAndersB

The situation you describe in Australia by no coincidence is the same as in Canada and New Zealand. Every country that says "we're ok because we have natural resources that China buys" is an idiot. The average Chinese person still has a low standard of living. China only consumes in the sense that they take raw materials, manufacture something, and export it.

Housing prices have lost all rationality as mentioned especially Vancouver a favourite destination of post-UK HK people.

[harveybirdmannequin]

@hbm

Not to worry. There are starting to pop all the respective housing bubbles in the respective countries. No sane person can look at any of the bubbles in the respective countries and not think "insanity". It's the same story all around too. Everyone is resource export dependent and they are keeping prices up by allowing in a huge influx of debtors in the form of immigrants. The immigrants who have nothing have to borrow, they drive down existing wages, existing workers have to borrow. INSANE

[juujuuuujj]

My hat goes off to Steve Keen and Max Keiser. This episode is absolutely awesome.

The government/central bank's purchase of private debt and toxic securities will be remembered as the biggest heist in history.

[TheFreefa11]

@mikailmari china is no more communist now than American is free your average Chinese worker now has more rights than your average American worker

[hendo19742]

DAMN NWO AVARICE BANKSTERS WILL HAVE THEIR DAY IN HELL!

[restoresoundmoney]

Can you stand the gobbledygook that passes for the "science" of economics? And then we add in "global warming"? I can't stand it. To talk about this shit as if it were really real. It's all an effing charade that boils down to greed & lust for power.

Global warming. In this midst of this total charade, we're gonna talk about CO2 heating up the earth? Are you freakin' kiddig me?

[mphello]

It is a total lie and hoax that "communism failed". Earth never had true communism run and organized by a computer in its history. If it had, the computer and math models would have found the right balance between government jobs / taxation and libertarianism.

Anti-communism is just pure unscientific political ideology promoted by the brainwashing banksters.

[qedwins]

@mphello true communism is anarchic in nature given that it's classless and totally egalitarian. no government means no computer for central planning, etc. you have a wrong conception of what communism is.

[natritious1]

@qedwins yes, but we are not robots. some people are sociopaths, and under anarco-communism they would take full advantage and destroy your system overnight. I'm an anarchist, but I realize that humans will NEVER be angels.

[InvertedFox]

@natritious1 Pathological people are very rare... I do not see how they could destroy any social system, let alone one with no hierarchical structures to take advantage of. This is a projection... it is not based on evidence, understanding or research...

To say "humans will NEVER be angels" is meaningless. Human consciousness will continue to respond and develop in relation to environmental stimuli and value systems will continue to reflect that. An ill society produces ill people...

[harveybirdmannequin]

@mphello

Communism is an economic model that basically says all property belongs to the state. Where past "communism" failed was the administration/the political side. You can have democratic communism just like China has "capitalism" on a short leash by the state. With democratic communism the people vote tell the state how to use the people's resources. It's kind of like the system currently in place except the tax rate is 100% and you don't have private ownership. Could work in theory.

[harveybirdmannequin]

@hbm

Capitalism, corporatism, and fascism are all the same. They are at different stages of greed, collusion, and influence over govt but the fundamental principles are the same: unbreakable private property rights, ownership, pursuit of profit (i.e. greed is good) capital, both physical and intellectual (i.e control everything). Can survive only with infinite resources. Capitalism is the individual entrepreneurial stage, corporatism is organizing into oligarchy, fascism is control of the gov't.

[mphello]

@harveybirdmannequin Why don't you go read the source of whoever created and defined communism?

I supposed that would be Karl Marx in his "Das Capital" and Friedrich Engels. However, forms of communisms undoubtedly existed throughout many "primitive" societies in many parts of the world where humans had to organize and plan activities optimallly and fairly and leave those activities which were nobody else's business to the individual - although I doubt they NAMED their socieities "communist".

[natritious1]

@mphello earth can never have true communism because people aren't robots. Thats why every time it has been tried, you need a totalitarian regime in place

[mphello]

@natritious1 And that is why (humans are not robots) capitalism is failing. Look around you.

Communism has absolutely nothing to do with people being robots or not. It's just a different set of laws from capitalism or a theocracy.

[Ranger4564]

@natritious1 Communism is the most sensible and ultimate destination for all economic systems, it's just that most of you don't know what you're actually trying to achieve. You think the issue is that people take / don't work, so you need poverty in order to force everyone to work. The profiteers (financiers) are of course grateful. Our real aim is to produce enough goods for everyone. How to do this is what you should be concentrating on. Economy serves society, but today society serves econ.

[jeffreyspiers]

@Ranger4564 I sympathize, but I'm not sure communism is the answer either. I think the Nordic countries have found a pretty good balance.

[Ranger4564]

@jeffreyspiers There are many ways to achieve communism. At it's heart, all it says is that the community is a primary aspect of the human condition. I am not advocating Soviet or Chinese communism, but I think capitalism is a dead system and was always a scam, a pilfering from poor to rich. I think given dire situations, people almost invariably choose cooperation. If you could search for some of my writings, you should. I argue that the entire point of an economy is to serve society.

[DavidAKZ]

welcome to carbon trading

[harveybirdmannequin]

The bankers are Jews/Khazar converts but they will call you an anti-Semite if you say Wall St. is run by Jews. The Magna Carta has written in the text specific clauses regarding Jews and banking. They were allowed to be bankers because true hardcore Christians do not tolerate usury.

Usury is so evil. Why do people in general tolerate it? Making money off money rather than actually generating wealth. Capitalism is usury in disguise because you make money just for having capital.

[PlatinumGordon]

@harveybirdmannequin Well put my friend.

[mphello]

@harveybirdmannequin And that's because these bankers' crimes has absolutely nothing to do with being jewish, or christian, or islamic, or male or female. So, that's why it IS anti-semitic to say "Wall Street is run by Jews", because it isn't.

[zz911wasInsideJobzz]

@harveybirdmannequin I know your works, tribulations and your poverty (but you are rich), and the blasphemy by those who say they are Jews and are not, but are a synagogue of Satan. -- Revelation 2:9

Here's a little song I like to dedicate to the NWO Criminal Banksters. This one goes out to that dinosaur David Rockefeller: watch?v=qL4b0Dof488

[jeffreyspiers]

@harveybirdmannequin Though historical Christian aversion towards usury did lead to the outsourcing of banking to Jews in Europe (Niall Ferguson touches on this in The Ascent of Money), your comment about Wall Street being run by Jews is misdirected and ultimately counter-productive. Bankers commit usury (at least according to the original definition) because they are bankers, whether or not they are Jewish. No need to bring up religion and alienate a chunk of your audience.

[mcpencil]

@harveybirdmannequin

you're a moron. jews are at the forefront of every intellectual endeavour, including arts and sciences. You're just jealous they're more intelligent.

[M3minusGrowth]

Welcome to the Fascist States of Corporate Bankers (USA)

[bullsnutsoz]

great work Steve

[navtel]

excellent interview.. thx.

[cpgone]

16.41 "global warming" yeah its been warming and cooling for thousands of years.

Im sure he believes in the religion of evolution.Most college profs. do.

I respect the man, dont get me wrong.

[mphello]

Steve Keen is one smart economist!  He deserves his own show!

One of the few who actually knows something about the physical reality of the world.

He knows we're past peak oil, and he knows we cannot burn up all the coal and gas or else we'll worse global warming. He's not one of these sheeple zombies like Alex Jones and other anti-environmentalists whose brains are held captive by their selfish lifestyles and by the coal .industry.

[DavidAKZ]

@mphello he was originally a mathematician

[mphello]

Anthropogenic global warming (AGW) deniers = Jew haters = Holocaust deniers = rightwing christians and muslims

[paulrprichard]

Peak oil ?

If we are running out of oil so quickly then why are reserves being continually increased and production skyrocketing?

[daviddalbylive]

A casual glance at history proves the Banksters are to blame for all wars and economic crisis because they use there excess money to corrupt everyone around them, simple and effective. Until you realise the bankers have no money only debt which is created on your signature on a promissory note which is as good as cash except the bankers deceive you into thinking its a loan on which you should pay interest when it's the Banksters who should pay you interest for your credit in the first place.

[smasila]

great vid

[SuperiorBullion]

I agree with Mr. Keen's views on the banking system, but he is 100% incorrect about both Global Warming and Peak Oil. First of all, the Earth has been getting colder for the past decade, not warmer; secondly, most oil is produced by bacteria deep within the Earth's crust, so it is essentially unlimited in supply.

[bulldog8459]

@SuperiorBullion b.s.

[christopherw303]

@bulldog8459 Global Warming is a total scam! Climate has nothing to do with CO2, and the only global warming is coming from all the hot air out of Brussels and Washington DC. Do some research on 'Abiotic Oil' if you want to learn more about where oil really comes from.

[MrGnarus]

@christopherw303 IF oil is abiotic why don't we(the world) just created instead of spending Trillions drilling for it?

[christopherw303]

@MrGnarus Engineers are working on this- using algae to create biodiesel, for instance. The exceptionally warm, high-pressure environments which exist within our Earth are expensive to recreate, however.

[MrGnarus]

@christopherw303 biodiesel is not gasoline. diesel is not gasoline. they are chemically different. I hate to point out your biological component to your abiological oil i.e. algae.

[jihadjared]

@MrGnarus Because anyone would be able to do it with ease (since you can make gas and diesel from many plants and materials). The oil industries won't allow a market that competes with their profits. Oil is the currency of the world. You can't just get rid of the oil industry. The roots of control are too embedded in the world economies.

Some day this will change, but who knows when. It needs to happen soon though. The little man is too beat down to afford the investing of refining this tech.

[DavidAKZ]

@MrGnarus like tar sands, probalby would take a lot more energy to make than it delivers. Oil is incredibly dense energy wise

[wesleytarbuck]

@christopherw303 i agree global warming is a scam, but the extra money governments are spending on it, and forcing business to do the same will have HUGE impact on the economy. Lots of business simply wont even be viable any more. Costs will go through the roof.

[MrGnarus]

@SuperiorBullion source for your colder hypothesis?

[christopherw303]

@MrGnarus YouTube isn't letting me place links for some reason, but if you google "World Getting Cooler" you'll get over 5 Million hits.

[MrGnarus]

@christopherw303 if i google justin berber I'll get 5 billion hits

[christopherw303]

@MrGnarus I realize I'm not proving anything with google. I'm just saying that if you want to know the truth, you'll have to do your own research, partly because YT won't allow me to post links here. Alternatively, you could buy all of the warming lies hook, line and sinker, and line up with all the other sheeple to buy your carbon credits from the multinational corporations. It doesn't really concern me- just don't expect me to join you, or believe that somehow this would be 'saving the world'.

[yendytok]

@SuperiorBullion - this is where it gets tricky for me, im with you on the global warming, but not sure about the unlimited supply of Oil . . I heard on one of Maxs show somewhere that the Saudis are building 16 nuclear power reactors . . Is the Oil running out ? . .

Also, how are the banks allowed to carry on with Ponzi Scheme after Ponzi Scheme ..

Microeconomics · Macroeconomics WTF..

[DavidAKZ]

@yendytok ponzi scheme = modern societies. For example medicare and social security systems are Ponzi schemes. They rely on young healthy working people (bottom feeders) to support the people that have retired or get sick. The trouble in western societies now is that the age demographic pyramid is inverting with the advent of better health care and retiring baby boomers. Hell the US can still initiate 4 wars and spend $400 getting a gallon of gas to the front line -Madoff was a Poster Boy

[DavidAKZ]

@SuperiorBullion do you have a reference re the 'Abiotic Oil' story ?

[christopherw303]

@DavidAKZ YouTube doesn't let us post links or addresses here... so you'll have to do your own research. Russian Scientists figured out that what I'm saying is true over 60 years ago, it's just much more profitable for the oil companies to continue you believing in 'Peak Oil'.

[order9066]

Senator Durbin is correct when he says Congress works for Wall Street. He himself voted yes to kill the Glass-Steagall Act on 4 November, 1999. When subjects of the crown write books on economics, I tune out. I roll with the Austrians.

[kennjohnsen]

@TheManPictMohawkGaul

Just a comment, Money declines in value, but rightly commodity does not rise, in paper money it does, but not in value. One ounce of gold, buy ( roughly ) the same as 10 years ago, or 100 years ago, so it does not exactly rise.

[dwranson]

@kennjohnsen A commodity would rise in value if it were to become scarce and demand increases. Not that it will though.

[kennjohnsen]

@dwranson

Yes sure, If the world went to gold as money, the gold must rise in value, otherwise there would not be enough to represent all the worlds value. But as an example corn the propaganda says have risen in value, but all the cost of producing the corn have gone up to, so it's the Feds paper money there are concentrating in commodity.

[DavidAKZ]

@dwranson the trouble is that the paper market for commodity 'x' is much larger than the physical market.

[SuperiorBullion]

@kennjohnsen In terms of Gold, you are correct- Gold is one of the most price stable of all commodities, historically speaking. Other commodities, even Silver, do often fluctuate in relation to Gold.

[natritious1]

@SuperiorBullion so is all that silver we're hoarding right now going to be a terrible idea in a deflationary situation?

[christopherw303]

@natritious1 No, actually silver is the best commodity to have in the current deflationary situation. Deflation does not necessarily equal lower prices; it simply refers to a reduction in the money supply. Silver = Money. As fiat currencies collapse, people everywhere will demand real money- Silver. I'd invite you to read my article on why I believe Silver to be the most undervalued commodity in history- google "SUPERIOR BULLION- The Silver Lining in an Economic Storm" (I am unable to post link)

[Dziaji]

@christopherw303 There is no deflationary situation, this is textbook stag-flation which is a form of INflation.

[natritious1]

@christopherw303 Hey thanks a lot sir!

[DavidAKZ]

@natritious1 yeap ! in a deflationary depression cash is king.

[DavidAKZ]

@SuperiorBullion then if we have debt deflation, cash will be king.

[christopherw303]

@DavidAKZ Generally, what you are saying is true, all other factors being equal. However, we are not just looking at mass debt deflation- we are also looking at a currency crisis. Cash will be Trash. Money will be King. Silver = Money in at least 14 major languages!

[jbrider555]

Money=debt. Money printed + interest creates the national debt. Obama has the authority to print debt free money (interest free) and begin to pay down the debt. What's so hard to understand. Of course he won't do it, but that's the way out.

[DavidAKZ]

@jbrider555 yes thats what Bill Still is essentially advocating. Steve Keen came up with the following formula

GDP = income +/- delta(debt) ^2

[harveybirdmannequin]

Banking was supposed to be an incredibly boring, mundane, and relatively average to low paying job. Most of it could be done by computers with the occasional loan officer doing an interview with the entrepreneur to evaluate loan worthiness. Banks were supposed to pool together capital of depositors and extend it as credit. Bad loan depositors lose, good loan they collect a dividend as interest.

Needless to say it's entire different today. Bank profits are the loans they have on the books.

[harveybirdmannequin]

@harveybirdmannequin

The more indebted you are to the banks the more profits the banks make. A healthy economy has a small banking sector not the other way around.

Keen alluding to the reason for having debt money rather than a commodity standard. Commodity standard = limited supply. If you have the majority, why extend any capital as credit which may challenge your socio-economic standing?

A national bank and flexible money supply used for social projects is an extremely powerful tool for good.

[harveybirdmannequin]

@harveybirdmannequin

A central bank can also be an extremely powerful tool for bad like for private interests. It all depends on how it's used.

If you don't want a central bank and want a commodity standard, then you have to accept taxes and socialism. You need to recycle the money from the top to prevent terminal accumulation. Use tax money to employ the poor to build social projects.

Otherwise use a national bank to extend credit for social projects.

National Socialism!

I NEED A JOB!

[idontbelieveinDeath]

Awesome guest 5*S

[SuperAM711]

Nice upload, the spotlight on markets & their operation / manipulation is needed to force the system to seperate banking & goverment. Rewards are creamed off at the top & the electorate sweep up the fiscal mess when it turns sour. Thanks for the hard work..

[Kinkspace]

At last someone has explained the problems & possibilities of damage limitation in layman's terms.

Only on Max Keizer ;)

[natritious1]

deflation? so all of that silver you urged us to buy is going to be worthless agian?

[AceHoale]

Very good guests here On the Edge!

And the host REGAL, a Keiser, just Stacy's missing...

Thank you PressTV!

Peas.

[wasy35]

I learned quite a bit, fascinating. Also Max is always a hit.

[eyewitness043]

Barack Obama and Eric Holder are perfect Mob Lawyers.

[ivevanlee]

25 min is way too short!

[carefulcarpenter]

Politicians are often lawyers. Bankers would be impotent without lawyers.