little you got the first time we only got seven hundred billion the first time we want a trillion or two trillion i think it's a good point the wall street bankers are setting the moral agenda in the american landscape and there's no leadership in white house to counter that with any kind of moral leadership whatsoever they outsource their morality to wall street and 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 head from 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 test on the banks here were totally bogus that there are for example six

percent of here 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 out the 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. in these european banks are not doing real stress test another huge down leg for real estate which means as you point out another huge extortion ery confronted with congress for another ten to fifteen trillion in money to bail out these. 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 a while 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 it lol 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 money from to begin with and tell them that's their fault and to beat them up and 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 not it's the fault of the people who bought all the money to begin with no it's not their fault is your fault because you're you're an idiot for having stolen the money to begin with and then blowing it gabbling on the global the ribs market you're you're a you're a derivative of pawlik you're a gamble hall of goldman sachs j.p. morgan b.p. being the parent bank the whole lot of you you should all go into rehab because your gamble all 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. second highest of the us

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 and this is compiled by mannix 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 trading 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 it is they set up accounts and they have these robots training with each other and as i wrote wrote about on a blog you see as part of this new model of the 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 was a legitimate it's a commanding control centrally planned kleptocracy run out of wall street the city of london for a few people it's killing society it's killing the ecology but also if you look again at this chart like the consonance 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 call the plug on and it creates panic that's exactly what happened on may sixth the computers went through a glitch the buying and selling with each other evaporated and stocks hit a vacuum and dropped 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 ok that's absurd when. before the market opens the

market opens and trading commences based on legitimate buyers and legitimate sellers looking to transact business you can't have trades before the market opens unless you're using phantom traders phantom 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 hauling with unlimited credit and zero percent interest rate 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 by getting like this 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 i 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 mess 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 a 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. 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 financial terrorist ben bernanke all right stacy 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. houses parking. cars appliances in so many years

until they come to visit you. do you think the property bought on credit really belongs to you. on r t. observe nature and discover its beauty. communicate with you want to. test yourself and become free. see what nature can give you. the trying to. move it. from friends to christian.

friends don't talk teen don't come. i'll go back to the kaiser report time now to go to amsterdam to talk with breck yeah vandar 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. 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 becomes i felt that some parts of the crisis

the economic crisis are under reported that we hear not about what's happening to financial institutions and said to finance but i think one of the things we don't hear so much about is what people are doing to kind of reinvent their life now did they don't trust financial institutions anymore and i think i know where your world 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 meth in 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 are the silver durham 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 to just you probably know you're thousands of local currency system that are trying to to experiment with their currency get these not connected to the local financial system and that will work for a local community but i was interested 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. enjoy a car tire and i mean same saidee 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 you feel stead now will these two marks in the hand to

reach people there's been a little being patient in indonesia so another poor people 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 looses already claimed twenty percent of its value so let me be saying if you know why don't you buy gold currency why did you buy silver currency and that we 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 to help people you know think about where to store it our 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 your it should be

used to exchange groups rather you know virtual realities and so also do say they have you sure to mention it's very strong and it's now their 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 look this is work really what money is it should be used to exchange goods is just a means not an end in itself so it has a moral and political connotation as 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 started 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 a wall street the city of london perpetrated by the the shocks and the shocks 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 that hearing to the tenants of the qur'an you see a clear exactly and also interests there it's not allowed to chart interest in correctly exactly and this is interesting also in islamic world because to try to keep up with various banks around the world they've called in the. to try to interpret cronic law to see whether they couldn't create derivatives to go to go

with that so there is a market for a move to try and look at the stuff but one of the reasons why these banks these are slavic 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 parallel 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 not just between testy banks or testing people most people can 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 a sociologist who has seen this and i think i have 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 steel 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 after reasons it's hard to imagine is that to rebuild a different structure means that you have to rebuild it we your neighbors 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 so in a way i think. we face losing passing institutions we should i guess invoking 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 gotten out of step with their neighborhoods 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 st louis 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 depend on the system so to say so people buying homes that have been for clothes for a very narrow price starting urban farms starting communes starting to think again or you know childcare services share responsibility for tear child care trying to get away from using cars using bikes more leaping more locally and eating food that is grown locally and you know way too meager sounds like you know going back but in 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 place a place where they will be better off 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 pernicious predatory rent seekers and they'll do it any way that 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 kleptocrats running the guy. rent 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 us government storm dropping in and destroying it in your face because they don't make hatred makes money for them they make more money on hate then 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 when i signed the same shows government it's much less powerful over people's lives daily lives than it is it's also offering their services stock offering very good probably get a case that it's not offering a very good public transportation system and people are not willing to pay more taxes to have to 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 think the way you want and i interviewed one growing that i think she's kind of

a visionary 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 dark scale they're just doing things that are hurting 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 it's 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 i think you'll react and there is also something they. you know not so much the political power of the people. there you know think america but i think the power of humor there's an of mentality change

you know if people really don't trust banks and don't trust the institutions i think it's some point but if you have to react and something will snow in the shit you know anything but if you don't react people will find other ways to deal with 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 break you have 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 hack and next time this is max kaiser wishing you all don't forget some 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.

in some pieces but he's available in front to tell you the grand hotel at emerald. full of the clubs. so close hotel in the big old circus hotel. corinthian the steepness reticent to say yes roy kempinski might go twenty two look you think of sky on sky now so it's. half past three in the russian capital you. watching r t thanks for joining us he's your headlines the smog that's blanketed moscow over the past week now showing signs of dispersing a change in wind direction and unexpected thunder showers brought some relief from

the forest and peat fires after a month of record breaking temperatures firefighters and the military and volunteers working around the clock to get the blaze under control prime minister vladimir putin even took to the skies in an phoebe as aircraft to help done tons of water on the flames forecasters say the heat wave could continue into mid august. blunt automobiles youngest prisoner detained at just fifteen is facing military trial for crimes he says he was tortured into admitting omar kotter now twenty three's accused of killing u.s. soldier in afghanistan he's the first from the u.s. prison camp in cuba to be tried since barack obama took office. and a european union project aimed at tackling terrorism has anger and civil libertarians in the u.k. they say a plan to monitor airline passengers aboard planes is a step towards a surveillance state brussels is funding research into detecting suspicious behavior to give air crews an early warning. now you're up to date with our stories

this hour up next our interview program spotlight with al gore and all of this time our host talks with nobel peace prize winner muhammad yunus he championed through his bank a scheme to give loans to people who are too poor to qualify for a traditional bank lending that's coming up next stay with us. for the full story we've gone to. the biggest issues good voice ceased to face with the news makers. to. talk about. he came up with the idea of a. peep. that

a very small. but established and create his own. much better. all around the world. was awarded. today. mohammed. founded the green bank she developed the concept of micro credit while teaching economics at. this concept. giving out to very poor people of.