Max Keiser: David DeGraw: Financial Terrorism, Global Banking Cartel and Inequality

Inequality in the streets

Image by Toban Black via Flickr

PressTVGlobalNews | October 09, 2010

In this edition of Press TV’s ‘On the Edge with Max Keiser’, Max has an interview with the journalist, David DeGraw, who has just published a book named The Road Through 2012: Revolution or World War III. DeGraw believes that the so-called global banking cartel of financial terrorists are bent on destroying global economies so that only they themselves, who he believes are only one tenth of %0.01 of the global population, prosper and everyone else suffers and remains poor.

He says Americans only have two years to prevent a third world war by revolting against this one tenth of %0.01 of the population or financial terrorists as he calls them.

Videos no longer available

Press TV-On the Edge with Max Keiser-Global Banking Cartel-08-10-2010 (Part 1)

Press TV-On the Edge with Max Keiser-Global Banking Cartel-08-10-2010 (Part 2)

Press TV-On the Edge with Max Keiser-Global Banking Cartel-08-10-2010 (Part 3)

from the archives:

Energy crisis: Turning-point of humanity By Rudo de Ruijter

Report: Debtor Prisons on the Rise

The Neoliberal Experiment and Europe’s anti-Austerity Strikes: Governments must Lower Wages or Suffer Financial Blackmail

America’s China Bashing: A Compendium of Junk Economics by Michael Hudson

19 thoughts on “Max Keiser: David DeGraw: Financial Terrorism, Global Banking Cartel and Inequality

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  6. “We the People…”, are either the Fourth Estate, or state-serf ?
    We don’t need a bloody revolution, we need an economic revoltion.
    Tighten those purse strings, save for purchase[s] hit the profit margin[s], of banking corporations, and tax base[s] of Federal, State, and Local Govt.’s.
    This will get the attention of “Authority” faster than being sitting[ducks] in the street[which is where “Authority” wants to unleashe unbridled power upon you, the anti’s-?].
    Do it he American way, just sit on your couch as we have been delegated to[tune in turn off, (T. Leary)].
    Grow what you can, buy only what you need.
    Money can only be fought with Money.

  7. The entire world needs a social revolution NOW! The longer we wait, the harder it’ll be to dislodge this ilk. People need to remember: there is power in numbers…and we are many, many more than they.

    • We need bank reform …


      As said, in today’s system new money is created by commercial banks each time loans are made. For all commercial banks together, there is no limit in the unbridled money-creation. It can, at best, be stimulated or slowed down a bit by the interest rate of the central bank. As explained in “Secrets of money, interest and inflation”, central banks themselves profit from inflation and changing interest rates, which allow them income from monetary operations, that guarantee their independence from governments. [3]

      This system of permanent inflation can be stopped by letting only one bank issue money for loans. In a democracy this should be a state bank, managed by the government. Today’s commercial banks would become middlemen between the state bank and the public, and hand the loans to their customers. These banks would no longer be allowed to create money for loans. They would manage their customers’ accounts on behalf of the state bank.

      The state bank can immediately stop inflation by limiting the amount of new money-for-loans to the amount of loans that have been repaid. When necessary, it can adjust the money stock to the changing needs of society. This limitation will not lead to a lack of money for new loans. Commercial banks will still be allowed to invite their customers to put their money in funds, that can be lent out to the public too. In that case customers can pay money from their deposit account into the funds’ accounts. This way the funds would use existing money to lend out. This does not increase the money stock and, thus, does not create inflation.

      In accordance with the priorities decided by the parliament, the state bank can apply different interest rates for different categories of loans. For instance, long term investments for a sustainable society could be financed at extremely low interest, and, the other way around, unwanted investments can be discouraged by high interest. With interest rates used to steer economic activity according to the real needs of the country, this system offers the best basis to provide the maximum of possible prosperity, not only when the economy grows, but also when activities decrease.”

      There’s more …

  8. Allow me to expand both these morons two minute blurb on the very important subject of Private Military Companies that are driven CAPITALISM and I’ll give you proof with a meticulously detailed book titled ‘Servants of War’ by
    Rolf Uesseler, translated by Jefferson Chase

    Degraw and Keiser are both chumps that are just trying to confuse people with their hustle on gold, extracting more human and mineral wealth out of Africa with more exploitation and fascist repression.

    Why reinvent the wheel here? The working class and poor don’t need another messianic Degraw cult nor do they need to wait for him to ‘awaken’ people or make a movement because capitalism itself will do the awakening. The working class and poor already have movements including historical materialism that can be found at the Party for Socialism and Liberation website or the World Socialist website. In fact, there are many movements both these morons would not dare mention because that would foil their opportunist plans.

    So Keiser goads Degraw to emigrate… Degraw’s revolution is simply getting rid of finance capital and not the whole failed capitalist system. Go figure.

    • LOL!

      We’ve seen the vaunted Socialists in action in Greece and Spain, both countries being run by “Socialist” Parties. They caved immediately to the banksters … no questions asked … reverting to national currencies never even being mentioned, indenturing their countries to banksters and their citizens to austerity.

      The fact is it matters not what form of government you have, democracy, socialist, communist, fascist, monarchy as long as the banksters control the creation of currency and credit … You have no clue as to what is really going here … What we face is not capitalism but the banksterism and militarism of Imperialism.

  9. Most of the time I don’t even waste my time with Max Keiser anymore. Too much libertarian nonsense and red baiting for my taste. What is this, more disinformation coming from the Keiser report.

    I see David Degraw dancing around the subject of neoliberalism and capitalism while he’s trying to hold up the finance capital sector as some sort of pinata and making Nostradamus like predictions using abstract ideas instead of scientific analysis like any decent Marxist would do.

    They both need a good dose of Richard Wolff’s ‘Capitalism Hits The Fan’ and Jack London’s ‘The Iron Heel’ because their completely missing the mark with addressing class antagonism’s, contradiction, and class struggle. They arogantly dismiss the 3 billion people living in the world on less than $2 per day and up to 50,000 people that die everyday from hunger. All the inequality in the world is produced by the capitalist class that owns and controls key sectors of the economies and points of production and distribution and are heavily involved in human and natural wealth extraction from the so-called poorest countries using Comprador’s and black African fall guys.

    His numbers about the Merrill-Lynch World Wealth report are also way off! In 2009, 8.6 million people WORLDWIDE had a combined liquid wealth of $32.8 trillion of that population 0.9% or 78,000 had close to half that wealth which is approx. $14 trillion. Instead he suggests 0.01% had $39 trillion and 1% Americans have $14 trillion. These are not the numbers in the 2009 report. See for yourself and break the bootleg magicians spell…

    Click to access 113831.pdf

    • And you miss the whole mechanism by which the elites are waging the class war … and that is banksterism …

      • Really?

        Mind you, I corrected the false statements on the ML World Wealth report. Why was such an exercise required? What are these two clowns agenda?

        Besides, do you think everyone of those 8.6 million people holding $32.8 trillion are all bankers? Where do you think these people extracted all that wealth from in the first place? Richard Wolff addresses the whole mechanism with a depth and breadth that is quite instructive. Perhaps you need to check out ‘Capitalism & Other Kids’ Stuff first:

        I understand many Americans have been conditioned through corporate media and education with a very naive and primitive understanding of capitalism, socialism and communism; while the later two have been effectively stigmatized and demonized. Focusing on finance capital ie. central banks, or the FED is a canary in the coal mine that has fallen victim to the far-right of the political spectrum. So canaries beware!

        Let’s look at a Marxist conversation that shatters and exposes this central opportunist theme embraced by the likes of Alex Jones, Ron Paul, Max Keiser and Michael Hudson whom solely focuses on finance capital and ultimately preserves the status quo and capitalism that produces all the social and economic inequality….


        “Rent is the equalization of profit rates, of profitability, by another name.

        The misunderstanding comes in drawing the “political” conclusion from this equalization process, from this rationing of the socially realized surplus, that somehow there is a “split” a substantive conflict between “finance” “speculative” capital and industrial capital, with the various adjectives of bad vs good, unproductive vs productive– a misconception you reproduce in your little exposition.

        Rent, interest, etc. are mechanisms of capital as a whole, of the totality of accumulation and reproduction. Arguing as Hudson does that there is an “evil” “unproductive” “rentier” class “strangling” the wholesome, productive, industrial capitalists is not the “socialism of fools,” but rather the capitalism of fools as it assumes that capitalism engages in production of something other than, and for reasons other than value.”



        …”there are important reasons not to lump (or why Marx did not lump) rent and interest together. Capitalists and landowners are two different classes. The Trinity Formula not only expresses vulgar economy’s conception of the factor of production, it is also expressive of the three great classes: capitalists, landowners and workers.

        It is no coincidence that Marx brings in his analysis of class after the Trinity Formula. I posted this extract from one of his letters yesterday that is worth repeating:

        Originally Posted by Marx to Engels, 30 April 1868

        At last we have arrived at the forms of manifestation which serve as the starting point in the vulgar conception: rent, coming from the land; profit (interest), from capital; wages, from labour. But from our standpoint things now look different. The apparent movement is explained. Furthermore, A. Smith’s nonsense, which has become the main pillar of all political economy hitherto, the contention that the price of the commodity consists of those three revenues, i.e. only of variable capital (wages) and surplus value (rent, profit (interest)), is overthrown. The entire movement in this apparent form. Finally, since those 3 items (wages, rent, profit (interest)) constitute the sources of income of the 3 classes of landowners, capitalists and wage labourers, we have the class struggle, as the conclusion in which the movement and disintegration of the whole shit resolves itself.”


        In your conception, we would have industrial capitalists – financial capitalists/landowners – workers. In other words, industrial and financial capitalists would form a separate class from each other, which is exactly the reactionary attitude S.Artesian rightly criticises (and accuses Michael Hudson of).

        Not only that, but financial and industrial are actually related in a deep way. Think of GM or GE, massive industrialists and financiers.* Also the rate of profit and the rate of interest are related in a very important way: the rate of interest can never, for very long at least, exceed the rate of profit. Otherwise, industrial capitalists would simply become financial capitalists and undermine the source of production of new value.

        And of course, it is completely wrong, as I have written, to say that financial capital contributes nothing. The credit system leads to the concentration and greater efficiency of capital and thus benefits accumulation.

        *ETA: In recent years, it was common for industrial capitalists not to re-invest profits back into production, but to invest on the stock markets in the (collectively self-defeating) hopes of a greater return in an environment of a generally declining rate of profit.” In your conception, we would have industrial capitalists – financial capitalists/landowners – workers. In other words, industrial and financial capitalists would form a separate class from each other, which is exactly the reactionary attitude S.Artesian rightly criticises (and accuses Michael Hudson of).”



        “Couldn’t have said it better myself.

        One addition– regarding the dedication of profits and cash flow to stock buybacks as collectively self-defeating. There’s another aspect to this.

        These stock buybacks are the way our well known and unloved bourgeoisie reward themselves. Our bourgeoisie, financial/industrial, are an asset-stripping, asset liquidating bourgeoisie. The buybacks, option awards, private equity LBO’s measure the conflict, the contradiction between private property, and social production where production has so undermined the profitability of private property, of capital, that the bourgeoisie find in personal, individual property the index to class power. Fear and greed, comrades, those are the alpha and the omega of bourgeoisie.

        This too stands as evidence in opposition to Hudson’s, and others, specious distinction between “unproductive” and “productive” capitalists, and his absurd conflation of finance capital with a “rentier” class. I guess some think Hudson’s tipping his hat to Lenin in this, but Lenin had it wrong too.” S.Artesian



        “Indeed. With the rise of private equity (TPG, Carlyle, KKR …) we can see the two arms of the capitalist class – financial and industrial – in clear cahoots with each other. The Barbarians are at the gates …”



        “The Barbarians are the gate-keepers…”


        • Karl Marx ~ “Focusing on finance capital ie. central banks, or the FED is a canary in the coal mine that has fallen victim to the far-right of the political spectrum.”

          Wrong … banksterism is the linchpin that enables the accumulation of wealth in so few hands … That is in fact how neoliberalism works, at home and abroad … Bankersterism allows this concentration of wealth through debt. The debt of both individuals and countries that ends up costing debtors more in interest than the original note over time.

          In this way the wealthy collect real assets by using “money” that was not real wealth in the first place. Einstein when asked what the most powerful force in the universe said “Compound Interest” ! And this is the secret behind banksterism as practiced with fractional reserve banking …

          Creating a truly public central bank is the basis for a more egalitarian society … Of course we also need steeply progressive taxation for earned income, capital gains and estate taxes … as in Eisenhower years taxation rates …

          As we saw in Greece and Spain socialism without a truly public banking system is a mirage waiting to be dispelled as it indeed was as these Socialist governments rescued banks with tax payer funds while relegating their people to years of austerity to pay for the banksters rescue.

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