Max Keiser was on Russia Today yesterday and talked about a variety of issues including financial repression and the reported German takeover of failing euro economies.
When asked about financial repression and how it’s used as a weapon against savers, Keiser compared it to Jim Crow laws which were state and local laws enacted between 1876 and 1965 mandating racial segregation in all public facilities. Keiser said, “In America, they have financial Jim Crow laws. If you’re a white Goldman Sachs partner, you can borrow money at zero percent or less than zero percent. Anyone else, you’re borrowing money at 16%, 20%, 35% – payday loans annualizing at 300%. So they’re using interest rates to create a two class society. Fellas who are on the inside who get zero percent interest charged to them and everyone else who is basically an underclass, a permanent underclass in the United States and around the world who are charged exorbitant fees to borrow money. That’s almost a financial apartheid if you will and it is orchestrated on purpose to create this huge social divide for profiteering purposes.”
He also offered his take on a leaked document reportedly from Germany’s foreign ministry which reveals the country may be preparing for a brand new European monetary fund that would take over economies of struggling eurozone countries and run them. “With the eurozone breaking up, you have a reunified Germany, you have people talking about bringing back the Deutsche Mark, they have the Bundesbank ready to go. So you could see, either Germany breaks out and you have the emergence of a superpower, Germany 4.0 as I call it. Or they’re within the eurozone but there calling all the shots and everything is going through Berlin and effectively they’re running the show in Europe.”
Germany is by far the strongest eurozone country right now economically as they are not as exposed to other countries debt like France is. Many in Germany have criticized the recent handling of the crisis by eurozone leaders. The Bundesbank has been one of the biggest critics of recent proposals by the eurozone as they don’t want to carry a disproportionate financial burden from financial bailouts. Rudolf Böhmler, an Bundesbank executive board member, has warned recently that applying leverage to the European Financial Stability Facility would use similar financial instruments that caused the crisis. “I’m not sure it’s smart to want to rekindle the fire using such instruments,” Böhmler said.
Keiser also discussed the recent gold rush by central banks in the past quarter. He says that central banks know that fiat currencies are done and the gold standard is coming back.
You can check out the entire interview below. First part starts at 3:40-11:32. Second part starts at 17:10-21:40.