wall street of course is a cesspool well that brings us to the main headline deflationary blackhole the sequel who will wall street sent to congress to extort fifteen trillion this time this is the headline from you but you're talking about two headlines here i am math u.s. real estate sector could bring banking crisis two point zero and banking system on verge of new crisis according to a hedge fund manager in the u.k. so this is a hedge fund manager in the u.k. is no star capital and they've taken a massive short positions against a bunch of european banks because first of all they believe that the so-called stress tests on the banks here were totally bogus that there are for example six percent of tear one capital in these banks but actually less than two percent well it got the whole crisis started was a collapse in the real estate market as a result of wall street the finance scheming and to try to clean up all the bad mortgages paper washington and the federal reserve did

a deal where they put on the federal reserve balance sheet trillions of dollars of bad debt turns up a bad debt is even worse than they thought and there's another many more trillion on the banks' balance sheet so we're going to talk about another down leg of the real estate market china by the way their stress test assume a sixty percent mark down in real estate they're doing real stress tests but the u.s. and the u.k. these european banks are not doing real stress test another huge downlink for real estate which means as you point out another huge extortion narry confronted with congress for another ten to fifteen trillion in money to bail out these guys but the i.m.f. and then this hedge fund in the u.k. are saying it's the biggest danger is however the u.s. housing market and we've warned about this for quite awhile too because remember it was the subprime mortgage crisis that happened first and those were the very bottom of the mortgage lending ranks and the next leg is the old a it's called these are.

you know also liar loans but they're from the upper middle class allegedly upper middle class so they were allowed to have bigger mortgages and these you can see in the charts here that credit suisse in february was warning and you see the charts were in that very first rise up and then there's a little bit of a lull in the towards the end of the year in terms of resets on these mortgages but next year you see this giant everest like mountain of resets coming the fault is with the banks not the people borrowing the money if the casino who has given you chips to go bet if they take your money and they bet it on some global casino racket the derivatives market they lose money it's not for the casino then to go back to the customer where they stole the money from to begin with and tell them that's their fault and to beat them opt in to steal more of their money no they made the mistake these wall street banks are these washington politicians who stole the money from the retail borrower to begin with and then blew it on the global

derivatives casino exchange they're now saying well it's up it's the fault of the people who borrowed the money to begin with though it's not their fault that your fault because you are you're an idiot for having stolen the money to begin with and then blowing it gabbling on the global derivatives market you're you're a you're a derivative of pawlik you're a gambler hall of goldman sachs j.p. morgan b.p. being the perry bank the whole lot of you you should all go into rehab because your gamble haul x. and be just locked up for years until you learn to overcome your gambling addiction well max another sign that we may be about to encounter a second heist of the u.s. taxpayer is this headline market data firm spots the tracks of bizarre robot trader now mysterious impossible in the ferias trading algorithms are operating every minute of every day in the nation's stock exchanges and this is according to this chart you see. here this is compiled by nan x.

a data services firm that has put together all the background noise happening in the markets and those are algorithms trading there that's right robot traders algorithmic traders that are programmed to commit larceny in the name of meal liberalism or some other out of date ideology for the fundamentalist bankers on wall street who are willing to blow themselves up there are suicide bankers they use these these are like drones when they send the drones into afghanistan or some other country they just kill people without any regard to what they're doing they're just blindly killing people wall street has these robotic training robots that are executing trains that are designed to steal money they don't care who they steal the money from even from themselves yes but max the article that we're discussing here they speak to several professors that say you panned a very famous business school and none of them critics understand what this constant her like thing is now i have a theory that it's perhaps even the u.s.

government just giving a heartbeat to the markets that are effectively dead there's nothing there unless other than this artificial heart what we know that seventy percent of the trading activity in the new york stock exchange is program trading and all of it is they set up accounts and they have these robots trading with each other and as i wrote wrote about on a blog you see as part of this new model of a whole graphic pricing wall street first picks a price and then they have the robots fill in the trades to get to that price it's a complete opposite of free market capitalism or the buyer of the sellers come together and the result is the price no that's not the way it works anymore now the price is set first by the corrupt bankers on wall street then the bodies of the cells are filled in by computers after the fact to make it look like that price is legitimate when it wasn't legitimate it's a commanding control centrally planned clip takar see run out of wall street the city of london for a few people it's killings aside. it's killing the ecology but also if you look

again at this chart like the consonants the heart beat like quality of this and i think perhaps you could look at maybe the may sixth flash crash you know thousand point drop in the dow as perhaps a forerunner to see how terrorize the population would be and what they would be willing to accept under those circumstances so are you just being lulled into this false sense of a genuine constant heartbeat that they could then pull the plug on and create panic that's exactly what happened on may sixth the computers went through a glitch the buying and sun with each other evaporated and stocks hit a vacuum and drop six one thousand points in fifteen minutes so we've got a frankenstein monster stalking the global economy that's programmed to commit larceny and disrupt the economies around the world for him the robotic itself is without a conscience explains that there was actually another kind of test run on july

sixteenth in a quiet hour before the markets even opened suddenly he saw a huge spike in bandwidth on his own system monitoring this algorithm there when they looked at the data they found that eighty four thousand quotes for each of three hundred stocks have been made in under twenty seconds he says quote this all happened pre-market when volume is low but if this kind of burst had come in at a time when we were getting hit hardest i guarantee it would have caused delays in the central quotation system well examine that statement they were doing trades quote before the market opens that's absurd i mean before the market opens the market opens and training commences based on legitimate buyers and legitimate sellers looking to transact business you can have trades before the market opens and most are using phantom traders franson money phantom money from the fed phantom money from the treasury and you're rigging the market like a. casino and you answer only to yourself and you run the system out of washington

to wall street oh and by the way you're a psychotic gamble halling with unlimited credit and zero percent interest rates and you pay nothing for commissions and so it's amazing that goldman sachs doesn't make more money i mean given that circumstance is a recess monkey could make a billion dollars just but getting like this you know basically what are they doing it's just a pleasure in themselves you know using the market as a as a mechanism to do so it's absolutely pornography it's financial pornography as we've discussed on this show these guys are basically the equivalent morally of the most average elements of society lloyd blankfein should be going door to door and telling people to ever heard that he's a moral pornographer and a financial pornographer and let people know in his neighborhood that somebody in their neighborhood lives in their neighborhood who's a financial pornographer well if you did mention washington and i have this final headline extend to pretend the obama administration's failed foreclosure program so

yes it turns out that the obama administration is using the exact same methodology of the wall street banks basically accounting fraud it's just extended to ten none of the bad debts have gone way where the monster is being kept alive by an algorithm that creates a false heartbeat risa characterized the same ungodly mass of paper that they say has value of one hundred cents on the dollar but really is worth about zero cents on the dollar just keep rolling it forward pretending it's there you know it's like that huge toxic plastic waste dump in the middle the pacific ocean or how about the dead zone down the gulf of mexico thanks to b.p. it's a financial dead zone that they keep rolling over and bernanke to keep rates near zero because he's part of the psychotic gang of financial terrorist ben bernanke inc all right stacy here thanks so much for being on the kaiser report thank you max don't go away when we come back we'll be speaking with someone who actually has

got some ideas for you to protect yourself against financial terrorism so stay there. i'm discovery to. communicate with you want to. test yourself and become free. see what nature can give you on the. housing market. car appliances it's only here until they come to visit you. do you think the property bought on credit really belongs to you.

welcome back to the kaiser report time now to go to amsterdam to talk with brett keogh vander ak a documentary filmmaker whose most recent film is time for change on the pro international in the netherlands a film travels from barcelona to lafayette to carson to look at people responding to the banking crisis by taking matters into their own hands i just saw the film again recently it's really a remarkable piece of filmmaking welcome to the show bring it up all right tell us about time for change why did you make it and what did you discover along the way well it kind of started working on the project because i felt that some parts of the crisis the economic crisis are under reported we hear not about what's happening to financial institutions or to finance but i think one of the things we don't hear so much about these were people are jury to kind of reinvent their life

now and if they don't trust financial institutions. anymore and i think i know where to where do you see people taking initiatives and coming up with kind of alternative structures not to depend on financial institutions and on currencies anymore that's right there is certainly a need to perpetrate a certain myth and terms of how the system can operate and can only operate a certain way and what the film discovers is that there are many ways to operate crossing many different cultures civilisations and historically now let's talk about what's going on in jakarta the golden arm of the silver during very interesting because this is exactly what libertarians and ron paul like ron paul in the united states are talking about the only real true example of it isn't islamic jakarta tell us about it right well i think it's not the only example because worldwide that you probably know your thousands of local currency system you are trying to to experiment with their currency you get these not connected to be able

financial systems and that will work for a local community but i was interested in in the girl dinar and the silver deerhound because they are connected to islam in islam it's not marginal phenomenon that's real no you know it's it's a one billion population really right and. in jakarta and i mean same savey any journalist public affairs and you know what he said thinker and he's been working on this project for introducing the deer home and to being our sort of gold and silver currency in a kind of general matter based. thinking and the idea is for him it's both political and religious and he feels that now gold is too much in the hand to reach people and there's been a lot of inflation in indonesia so another poor people have are seeing paper money working hard to earn a little bit of their paper money back then as they say don't have it's kind of not

worth much anymore after a year or two it loses already ten twenty percent of its value so let me see. you know why don't you buy gold currency and why did you buy silver currency and bet we you it will keep its value right so this is this debate in america right now between inflation and deflation the wall street journal recently saying basically that the deflation camp has won the day but in other countries like in jakarta inflation that is to say the debasement of the paper money is running rampant and exactly what you'd expect would happen is happening the purchasing power is collapsing and you find out some smart entrepreneurs' have taken the role what should be the central bank and taking it out of themselves they've introduced their own gold and silver coins this is what they use as a medium of exchange they are maintaining their purchasing power as the the man in the film says that the the gold dinar could buy him i believe it was two goats

going back several years even even fifty or one hundred years and today that same gold are can still buy two goats so in other words that the currency maintains its purchasing power and it's right there alive in jakarta and as you point out this is the remarkable thing because shariah law islamic law has always looked down on usury money lending i think i would just think it is not just smart entrepreneurs trying to make an investment decision or help people you know think about where to store your surplus money it's really also a kind of moral and political few points to to islam and to the qur'an says that money should not be purchased all its money is exchanged fairly or it should be used to exchange groups rather you know ritual realities and so also do save you have you sure to mention it's very strong and it's now that money

cannot be used to make more money you know money is just a means of exchange so in bringing in the gold and. silver standard again he's saying this is what really what money is it should be used to exchange goods it's just a means not an end in itself so it has a moral and political connotation it's well yes it's remarkable because right there in the united states constitution it says no money shall be of any medium other than gold and silver it's hard coded because america revolted against britain to get away from the bank of england to get away from fractional reserve funny money that's part of the reason as brant franklin said the primary reason that they start of the united states of america now they're enslaved by a federal reserve system that's not even owned by america it's owned by foreign interests and now of course in america the entire islamic culture and religion has been completely vilified but as you point out in the qur'an they say things that are exactly in the u.s. constitution they recognize gold and money is the only viable medium of exchange

that wall prevent the kind of ponzi scheme market manipulation insider trading we see in wall street in the city of london perpetrated by the the shucks and the shucks you know associates down there at the various banks that we always talk about so it's remarkable to me that ron paul if he were really to be honest is adhering to the tenets of the qur'an seems more clear exactly and also interests there it's not allowed to charge interest in. exactly and this is interesting also in this law nick world because to try to keep up with various banks around the world they've called in the mood to try to interpret chronicle ought to see whether they couldn't create the riveted to go to go with that so there is a market for move laws to try and look at this stuff but one of the reasons why these banks these are slamming banks say out through the crisis of the past two or three years is because for this very reason they weren't stacked up with all these

hundreds of billions and trillions in derivatives now let's move on regarding these . pallo banking systems the analyst you speak to in the film he concludes the following we're going to play a little ten second clip let's play that clip right now the terms we have knowledge between testing bunch or testing people most people still hate bonds but they trust them more. than the clip just says something interesting that people even though they hate bankers they trust bankers more than they do their neighbor now i've got my thoughts on this but speak a little bit about this place well i think it's my new car sales associate i guess who is saying this and i think that he sees from all kind of empirical research that people are using trust in institutions not just in financial institutions but also in political institutions they go to quote glass and they felt very predictably they felt put it in and out of power and by the year it changed

loyalties and alliances because they don't trust institutions but then the question is always what is still turn it to you know can we do without and can we do without banks can we do without well it exploded titian's is hard to imagine out there hit and run up the reasons it's hard to imagine is that to rebuild a different structure means that you have to rebuild it we your neighbors are in when we see your community and in your community and that's not something that we've been doing much lately most of us especially not in based western part of the world in europe and in america i think so in a way i think we face losing to us in the institutions we should i guess in both in the process of rebuilding trust in each other in our neighbors but this is something that's going to take a long time because i think you know many people have forgotten how to start with

their neighbors most of us live in cities now marra they have to work of creation then it's not so easy to imagine community. building from the ground up and i have been doing a new documentary no saints this where you actually do see a lot of people trying you know you see people starting to build new communities that are based on the idea that they don't want to be pinned on the system so to say so people are buying homes that have been for clothes for a very narrow price starting urban farms starting commuted starting if you care you know child care services share responsibility for tear child care trying to get away from using cars using bikes more leaping more you know crazy and eating food that is grown locally and you know way too meager sounds like you know going back but in another way it's maybe back to the future because i think to go forwards on the practive we're going to see that very clearly in the centuries it's a dead end street you know it will end so i think those who are able to prepare

themselves will turn their systems or need to a place of misery they will be better oh i remember a story recently of a garden an urban garden and compton a ghetto in los angeles that was ripped up and paved over and the government came in and destroyed it and the government knows that if they stir up hate that they can control the population and they can charge rent their rent seekers because the government is now merged the banks and the banks are punishes predatory rent seekers and they'll do it any way they possibly can so it's not that people are not naturally going to gravitate toward solve sustaining communities that's in their d.n.a. the problem is they've got you've got clipped a kratz running the government in america and other countries around the world who are hell bent on destroying any community sustainable programs so the matter how many gardens you start no matter how many soup kitchens and health care and community classes that you begin you still have to deal with

the gestapo that is the u.s. government's. storm jumping in and destroying it in your face because they don't make hatred makes money for them they make more money on hate than than anything else so how do you how do you deal with that i don't necessarily feel that's the case because i think the in america when i signed on saying to those government it's much less powerful over people's lives daily lives than it is it's also offering his services stock offering very good probably get a cation it's not offering a very good public transportation system and people are not willing to pay more taxes to have that but the other side of that that there is more freedom and there definitely is a possibility i think to cut yourself more you loose from the system and to organize things the way you want and i interviewed one well i did i think she was kind of a visionary and she said you know it's always better to apologize and to ask permission so that's what a lot of people are doing and i said i said it's under reported it's not so much in

the media but another of people are doing this on a very next kill they're just doing things that are verging on the illegal that are not necessarily legal or even written about in laws and they're just inventing new lifestyles and it's not so easy to to stormtrooper in and get rid of that you know i mean how do you know first of all if it's not it's not registered is just starting on a very small scale and you know doing it so i don't know we have to see it's hard to to really predict how this will go and how think you'll react and there is also something back. you know not so much the political power of the people. there you know the miracle but i think the power of consumers and of mentality change you know if people really don't trust banks and don't trust institutions i think it's some point but if you have to react and something will slowly ship you know any fear but if you don't react people will find other ways to deal with their well i

mean there was a utopian vision once two hundred thirty years ago called america now it's controlled by the kleptocrats it's all gone and so i just see this cycle repeating again and again until you do what iceland i think i saw as an intern story but we can't we don't have time to talk about that today breaky of under attack thanks so much for being on the kaiser report today already and that's going to do it for this edition of the kaiser report i want to thank stacy herbert and i want to thank my guest brekky avenger heck and so next time this is max kaiser wishing you all don't forget so i mean e-mail if you want to send me one the address is kaiser report at r t t v are you until next time nice guys are saying no. no.

party continues to track the wildfires raging across parts of russia destroying homes villages and lives. and moscow's again in the

smog a toxic cloud cover the russian capital after a short break the day before forcing many to skate from the city out of fear for their health. persons all the most watched people in the with more c.c.t.v. cameras per capita than any other nation and it's here at the university of resig but the new in-flight surveillance system is being developed. the new e.u. project is aimed at toppling terrorism but many worry it will erode privacy. russian losses from the fires still raging across the country could hit fifteen billion dollars i'll have more on the economic impact of the situation in the business but it's that in about twenty minutes.

it is midday moscow you're watching. if after a few hours of relief on monday millions of russians have again woken up to a sick layer of smog this forests and peat fires continue to rage across the country experts have already called the current record breaking heat wave the worst thousand years. is in the moscow region for us we can talk to him for the way hello to you and he says so we know the whole villages have been destroyed in the suburbs of the capital so what can you see around you. well the smocks issue. and i have to say is much better than it is in the russian capital but the aftermath of the fires that engulfed this village are just devastating you can see someone's entire home has been destroyed the pictures of course can describe it much better than i ever could just complete and utter devastation bulldozers are on their way in fact to sweep this all up and just fifteen meters away house in the process of being built completely of wood untouched so it really is a matter of just meters and also

a matter of pure luck you have to wonder if these people are asking why me certainly this family their house destroyed also they have vehicles that were destroyed two cars destroyed a pickup truck they have farmland so obviously we know this family was selling some kind of products and now they have lost not only their home their possessions and their livelihood but everything. it is devastating side their. breathing conditions in moscow this morning. well there was a window on monday where muscovites thought ok we can see the blue sky for the first time the air is cleaner maybe this is it but again disappointment on tuesday morning when again a blanket of toxic smoke covered the capital in fact the scenes on the streets of moscow are quite bizarre it's something like out of an unreal film in fact your group is going to is monitoring the situation for us. this is not a.