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this is all to you live here in the russian capital we're here twenty four hours a day top stories now a terror raid repelled a group of militants linked to al qaida have stormed the parliament building in russia's republic of chechnya all killed in a prompt security operation. speaking regionally continentally and uniting globally russian french and german leaders meet in the french resort of talk about terror visas and security. also reporting marty hall. and the chapman hits the pages of a men's magazine and as the latest edition of maxim describes she inspires the country's men and its national football team and stage of the. one on a few moments. and he's coached her but will be looking at the scandals behind the

financial headlines and the kaiser report next. hungry for the full story we've got. the biggest issues get the cuban voice face to face with the news makers. kaiser and this is the kaiser report markets finance and scandal and you know it's a currency war are bump bump bump china versus america here's a bootleg copy of chalion fat in a remake of a better tomorrow john will flick we're going to play a little dialogue here i'll give you the translation and something for today's times at that dialogue round i going to lose in this currency war tim geithner going to get a job jobs. big liar we're going to totally destroy american economy would you say

that's the kind of intensity that america is unprepared to deal with chinese bruce lee type guys with all the money that was given to them from people who shop at wal-mart. get the picture. all right let's bring in political analyst and all around nice gal stacy her own max i'm going to meet your currency war our video with one of my own and this is from two thousand and nine when the issue of sovereign wealth funds was big news in particular the gigantic size of china's massive dollar holdings and this is what he said about that trade deficit that you're suggesting there in that chalion fat video if we run a negative trade balance would try to have two hundred fifty billion this year so i'm going to start we're going to have two hundred fifty billion of us somethings and they're picking up what is now. in the end it's kind of interesting they

produced a two hundred fifty billion net of goods people work hard all with a worker dollars december's shoes and so on there's a lot of the things you see in the store and we send them little pieces of paper there was a there was a worm buffett oh aren't buffett oh right yeah well see he's a bonus because they did send china all kinds of little pieces of paper trillions of them and in the twenty first century currency war that's the ammunition of choice so america blew trillions on wars in afghanistan and iraq buying hardware tanks missiles drone. bombers meanwhile john has been accumulating the actual ammunition news of the currency war which is currency yeah ok those little pieces of paper are currency but at the end of the day the currency war is about devaluing the well that currency that they hold in the headline on this three financier's offer terms to the rest of the world in the currency wars so this is from jesse's

café american and he's saying anglo american financier's to the rest of the world we've got a gun to our heads better surrender so he's discussing a martin wolf editorial in. the financial times in which martin wolf says quote to put it crudely the us wants to inflate the rest of the world while the latter is trying to deflate the us the us must win since it has infinite ammunition there is no limit to the dollars the federal reserve can create what needs to be discussed is the terms of the world surrender no because china russia iran to name three figured out that with all the extra dollars in their bank accounts all they need to do to totally screw up the us economy is keep buying gold and as gold keeps going higher the us is not very well prepared to deal with that

contingency and they can print all the money they want it's only going to what was the chinese phrase they say there are two builders well that's my next ten i got so tell the people to the people us as a currency war is to make or chinese economist says so this is in the people's daily and lee says in a front page commentary the dollar's depreciation may appear to be market driven in reality it is a depreciation colored by very strong deliberate actions and then he goes on to say if the global financial crisis was about nationalizing private debt then in the post crisis period there urgent need of the united states is to internationalize its national debt internationalize this national debt in other words bundled up securitize it and put it into the special drawing right aura of the called a bank or or some world currency and hope that it just goes away rest the world is saying we don't think so what we're going to do is we're going to destroy the u.s.

dollar keep buying gold bullion and you have nothing to fight us back with because you're not going to depreciate your way as most however the gold is soaring and you see that in the headline gold explodes higher as the da. there is creamed again but who is buying those dollars max it's people like john paulson he's now placed all his money on gold george soros has i read somewhere put something like fifty percent of his wealth in gold so they're the ones egging on the u.s. policy makers like timothy geithner to trash the dollar because of course they gain their american citizen loses but they gain no well look it's still a question of you know this is the dynamic you have to keep in mind you know why is there no actual inflation on the ground so to speak because the gaping hole in these economies particularly in the us are talking about a multi hundred trillion dollar derivatives black hole they keep printing money but

they're not able to actually benefit from the inflation of the money supply all they're doing is inflating the ability of china and the rest of the world to successfully battle the u.s. in this global currency war and china says you know you were there to build or what does that mean you're digging your own grave because the u.s. is locked into digging its own grave it was a big criticism of geithner you're all the time geithner you're in it you're in a hole stop digging but they for some reason there are suicide bankers as we point out on the show all the time they seem incapable of stopping themselves from going down the path of market fundamentalism which suggests there's an ideology of destroying yourself and your country in the belief that somehow you are a god currency on earth well speaking of predatory bankers this is the big story it's been called fraud closure it's been called foreclosure gate florida's thirty second foreclosure dash hits wall of fraud claims so this is bloomberg and these

guys these fraudsters were able to get thirty second foreclosures against people and it turns out that while the documents were meant but you know not only are the foreclosure documents fraudulent lee. created in sign. and it passed through the system but the actual loan documents themselves to begin with were also fraudulent li passed through the system the the the onus is on the banker to make sure the buyer can afford the loan assaulted the way around so the the person who ends up with a fraudulent mortgage is victimized by being sold a fraudulent mortgage then he's fraudulently being foreclosed on and then he probably has money in the pension account that own a bundle and recent characterization of these foreclosed bonds in a collateralized foreclosed bonds obligation collateralized obligation spew and losing money dispensing account as well so he's victimized three times by the same bank including wells fargo charlie mongers all the matter with warren buffet who

are a chef and floor sweeper to the stars of criminal behavior on on wall street and around the world speaking of chefs them for sleepers banks caught hiring hairstylists factory workers and burger king kids to find foreclosure documents but that's one thing just how charlie munger got the business he's just a guy who's hiding out in the law and warren said hey you buddy there you know sleeping on the park bench come on over here and keep me company while i cherry pick through these these ten k.'s and ted jews and engage a little market manipulation and insider trading and call myself of the guru in the wizard of almost all when in fact as we now know is just predatory lending a lot of other magic tricks and alchemy as any other charlatan on wall street hiring the fila some burger king workers in that the story it mentions that none of these people hire to handle homeowner papers. had any formal training in doing this

right ok now this is me to the next headline senior bankers lobbied global regulators to help keep britain competitive so apparently a small group of london's most senior bankers including from barclays and lloyds the top top guys most of them living on the government paychecks now have held a series of secret meetings on banking pay but they only got so far with the regulators in the u.k. so now they're going global they go into the global regulators the lobbying is an admission that u.k. banks have moved as far forward as they can on the subjects as individuals and now need to act collectively if changes to happen these same bankers by the way as well as the wall street bankers the ability opposed a raise in the minimum wage meanwhile the bankers are going to the world governments and saying we need a minimum wage we need a minimum amount of money per year to ransacking the system or we'll take the ball

or go movement it will anybody at all yet they're saying that it helps britain become competitive if they make more money but if some go back they don't know it's makes more money that makes britain uncompetitive for some reason even though banking has been proven to provide no wealth creation no there's what we do ok you take all the bankers from h.s.b.c. lloyds of london royal bank of scotland barclays bank right you put them into one of these american privately owned prisons you put them in that prison and you give him ten dollars for the whole group oh and you say the only way to get out of prison is if you figure out how to do a leveraged buyout of this prison while you're in prison and only then and there can you gain your freedom if you can figure out how to leverage yourself into a leverage buyout out of the prison that you just put into for such a belief committing acts of fraud securities fraud securities violations six.

violations fraud securities act of thirty three and thirty four fraud there's nothing legitimate about anything they do and they eat their breakfast in the morning to committing fraud i have another idea max that is turning to those burger king employees those hairstylists yet that. previously had no formal training now they have experience i say we hire these guys a scabs cross the global credit crunch picket line this place these bankers and put these burger king and hairstylist into the job but all you need to do have perfect training they have the training of forging documents therefore they can get a job they just b.c. thing going to jump barclays if you want to forge documents go to work at citigroup you can forge documents goldman sachs's job for you you can forge documents j.p. morgan loves you because the hard truth to conduct a criminal acts now this is the thing that i don't think people understand that these bankers are involved in a crime syndicate it's organized crime like the mafia like al capone and at the end

of the day the chinese are saying holy mackerel who are not buying into this not one iota and you know how we're going to take you down we're going to drive gold up to a certain price that will cause a dollar panic and you see this already the gold vigilantes are inducing a dollar selling panic and you know the fact is that maybe it's time for america to step aside they have their century too many wars of productivity too many jackasses like charlie monger let's move on and let somebody else carry the ball for a while all right well stacy ever thanks so much again for being on the kaiser report thank you max don't go away much more right after this.

more news today. if you think these are the images the world has been seeing from. the day. for. the. only welcome back to the kaiser report ok time now to go to los angeles and talk with ellen brown author of the web of debt ellen brown welcome back to the kaiser report thanks max dose about your new article just out in yes magazine braced for

another lehman brothers weekend foreclosure gate flaws appear to be incurable. what happened here was sixty two million mortgages are held in the name of mers the mortgage electronic registration system which is just an electronic database it doesn't own anything it doesn't have any employees it doesn't have a location it's just electronic and the reason they set it up that way was so that these mortgage backed securities that all the mortgages are turned into. would be investment grade for the investors in order to get a aaa rating. vehicle to kind to it that these mortgages would all pass through had to be what's called a bankruptcy remote that means that it couldn't own anything so in other words. if if that entity mergers were to go bankrupt it would take all their other properties would wind up being part of the bankrupt state and so to avoid that it's

it is merely a kind to it so it's merely. that the mortgage is passed through it to to the actual investors that's the deal that's where it's set up but the problem is courts have now held that mergers it breaks the chain of title because mers has been for closing in its own name and the courts have held the course it's the defendants that have pushed this argument but the courts have agreed that murderess can't own anything by its own admission it doesn't on anything and therefore it can't hold title so i can't convey. so i can't assign title to the real owners here would be that the investors whoever put up the money those are the real owners so now that banks are scrambling around i mean lawsuits have been out there for three years now ever since about i think it was november two thousand and seven. so they've been

gradually that argument has been gradually. getting stronger and said the banks are trying to get around it and they've come up with this robo signing cloyd where people are signing late every just a few people i mean and these are not lower level people these are high level people who know what they're doing a few people are still signing late ten thousand affidavits a month in order to supposedly transfer the properties into these trust so that the trust can then for clothes but the problem with that is the trusts are remix which are real estate mortgage investment conduits and they are were set up in order to avoid taxes but to comply with the tax law. they have certain requirements and one of them is that when you set up the remick all your properties have to be in it right then you can add properties later and also the remix to as a trust cannot own anything it's just

a conduit and it's for the same reason in order to avoid bankruptcy and it's must be baker serum ok. so so even if they manage to assign it to the traps that mean what they could arguably do is say it's the trust holding it for the beneficiary of the beneficiaries but even so even then who are the beneficiaries they're the investors and and they don't know who the investors are who would actually wind up with this crap are here with the benefit of this property property so so that's why they used the trust actually the whole thing goes back to the repo market which is . the. shadow banking system for the large institutional investors these are investors that have more than two hundred fifty thousand dollars. so they want a place a safe place to park their money overnight between investments of be like pension funds mutual funds sovereign wealth funds others great big investors so they're huge amounts of money but they don't they don't actually feel safe putting it in

a bank because they wouldn't be covered by the f.d.a. i see insurance because the limit so low so the shadow banking system is the repo market which is mortgage backed securities or various forms of security so it's basically a pine shop where that the special purpose vehicle. again is a kind of it set up by the bank that's supposed to be bankruptcy remote it's remote from the bank so that if the bank goes bankrupt the special purpose vehicle won't or it won't affect those properties. so everything's final through this special purpose vehicle and it's like one de gea as it's like one day on shot deals where the big investors put their money into it into this special purpose vehicle but they can get it back the next day so it's called a purchase and sale or repurchase agreement but if it's a say oh it's then you've got i saved a conflict here is it

a sale or is it to securitization if it's a sale and if you're actually buying real estate then according to state law you're supposed to prove your chain of title if you're going to foreclose on this property and that's what they haven't been they've left out they've missed the step they're in the chain of title and there's just no way to get that chain of title back that means they can't foreclose on these properties the price so all the investors have been is not actually a secured interest they have an interest in equity. they can go to court and say we've lost x. amount of money on these properties but again they're going to have trouble showing that that particular money was attached to that particular property and many of these investors have been paid in other ways for instance through the insurance which credit default swaps which is characterized as a corporate insurance in fact many of them have been paid multiple times over i saw no need to know garfield who's big for closer expert said that these properties say

it's a three hundred thousand dollars property. it's worth a lot more to the investors if it defaults and if it doesn't because there might be thirty credit default swaps or synthetic collateralized debt obligations on this property so if it if the rent can't keep paying then it's not can it's the honesty paying then it's worth three and it has no place to go but if they default then it's worth the nine million dollars because the nature of the credit default swaps so they actually had a motive to suck you in really bad pieces of real estate because they wanted it to default they had a certain certain threshold level if x. like eight percent or whatever if some percentage went into default then they get paid on a credit default swap well they'd rather have that than have the property so the whole thing is a huge scam a huge racket a fraud on the investors and

a fraud arm the homeowners the homeowners they've just been years they're in their properties they're just been years there's. you know pieces in and this big casino these foreclosures are to a legitimate transaction what a chicken macnutt get is to a chicken yeah. and there are the reason i say this is because the mortgage is answer this whirlwind this mirza system and it becomes a something of a blender and a processor and they process and they continue to sell and resell and repose and lead layer and layer of toxicity and resa characterization and what comes out the other side is solved on to the wholesale market as a legitimate security but it has no relation to a legitimate security well as a chicken might not get has to a chicken a chicken make not get is made out of nothing but you know toxic components and

virtually no chicken whatsoever so these securities that are now circulating in the system are actually have no relationship to being a legitimate security in any way shape or form they're literally trading. confetti and calling that a legitimate business and paying themselves huge bonuses and their only answer is to go back and they get congress to retroactively pass laws to cover their behinds the exact same thing we saw in the telecom industry they were caught breaking the law and they got congress to retroactively change the law now the banks got caught breaking laws again and their answers to get congress to retroactively change the law oh well that's a really good model to show the kids that america doesn't matter if you break the law you can always change the law post-hoc and therefore you're innocent let's move on to a hot topic here what is a green backer and how does that relate to the economy during the eight hundred

ninety s. you know i've written a book called web of debt and the reason i wrote it was that i discovered that the way. is it a bus was actually written as a monetary allegory in the eight hundred ninety s. and it was the green backers who were marching in eight hundred ninety four they were marching on washington because they wanted to go back to the greenback system abraham lincoln abraham lincoln when he was forced to borrow heavily to fund the civil war instead agreed to issue just issue. treasury notes that were not interest bearing treasury notes in other words and these are called greenbacks they were just their money printed by the government so this is you can call that fear money or you could call it what it really is which is a receipt for goods and services received by the government. so so the government pays the soldiers with these little receipts not aging that the soldiers have served and that they've served their country and they are owed this money money and

then they can go and trade those receipts in the community for it for equal value and that is what money has money comes in three basic flavors you've got not interest bearing paper money which is the greenback you've got interest bearing paper money that comes from the fed which is outside of congress and charges america huge interest for circulating that paper money and then you've got gold back money so the people typically who are arguing against having non-interest bearing greenback type money are typically people who are into the gold money backed solution to replace everyone agrees the fed is a dirty dog and that bernanke is basically you know lower than snake poop but so that leaves non-interest bearing greenback money or gold backed money so why is the non-interest bearing greenback money in your opinion it's a puryear as i understand it to call back money we had gold back money through the

one nine hundred centuries and we that was what was wrong in the eight. ipo did not have the gold the gold was held by bankers and so the bankers were issued their paper money supposedly backed by gold but they didn't have nearly as much gold as they were issuing paper and see how these periodic runs on the banks the bankers were empowered to collapse the money supply whenever they wanted to they would just call their loans then and then because all money was created by bankers backed by this supposedly backed by gold they were in total control of the system and they periodically oppressions which would throw people into bankruptcy and they would lose their farms well actually ellen brown let me come in here the foreclosure fraud scandal ended up taking up a lot of our interview here this afternoon so we're going to have to cut it off here but i'd like i want to have you back on and continue up on this discussion of

the gold backed versus non-interest versus interest bearing paper money because it is becoming more of a factor as the u.s. dollar which is the federal reserve interest bearing money is losing favor in the globe and now that there's a kind of a rush to see how the global economy is going to be re architected and reconfigured what is going to be the the new form of money clearly the u.s. dollar won't be around in another ten years so hopefully we can come back and discuss this a little bit more if that if that's ok with you yes ellen brown thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guest ellen brown author of web of debt if you want to send me an email please do so kind as a report. for you until next time this is max keiser saying bio.