yes you mentioned davros and there was something that happened at their office that is worth our talking about here the headline really sarkozy goes postal and jamie diamond says bankers made the world into mad halves so this was at an event and davros and what happened is jamie diamond spoke first and he praised the governments for intervening to save the financial system in two thousand and eight but then said and he referred to psychos see that the g twenty group of major conning me with sarkozy chairs this year should take a deep breath before imposing regulation jamie diamond said too much is too much not all banks are the same i just think that this constant refrain bankers bankers bankers this is unproductive and unfair people should just stop doing that yeah together. the margin. induced inducing fraud to go away.

in the mortgage market they don't hit minimum capital reserve requirements they are involved in massive numbers of terrorist and old jamie diamond sucking the financial integrity out of the us economy what i mean i'm not as i know i don't go to any bank you know you've been caught stealing money from americans stealing money from the globe committing acts of financial terrorism in bed with a terrorist we're going to enough is enough enough it's not enough until you're broken gero oh i'm sick of cheney going up is an open jamie dornan somebody shot this guy down well. this is how president sarkozy of france responded to jamie diamond he said quote too much is too much the world was stupefied to see one of the five biggest u.s. banks collapse like a house of cards i don't test the principle of securitization the little one are

sure country guaranteed seven hundred times its g.d.p. early in the market economy or in a madhouse. so cozy is absolutely correct and i want to direct jamie diamond attention to what's happening in tunisia algeria egypt athens dublin the global interaction against banker occupation people are angry and they've got their pitchforks they've got their torches they have historically used good things when people like jamie diamond get into the mix and steal with impunity that's wrong. is that just think this is not just seconds he thinks this and all the people writhing around the world. and now a congressional committee the financial crisis inquiry committee has also found these very same people guilty so the next headline is financial crisis was

avoidable inquiry finds of course we all know course it was avoidable if you give a god a loaded gun to a maniac and you point out he kills people where there if you didn't give him a loaded gun with the bullets in it he wouldn't kill people it's affordable if you give the bankers all the free money advair zero percent interest rate whenever they make a mistake and bail them out it's aggressive people or disaster of course they're going to commit acts of financial terrorism right there at the right there at the treasury right there in the white house they give them their zero percent interest of all the money they want to commit all the acts of terrorism they want whatever they make a mistake they get billed out of court the void of all of course is a boy or more how come none shall i cannot talk about is the groom's going over babbitts right now taking these guys out there for a guitarist actually specifically mentions low interest rates as not being the primary factor in the collapse because there were a lot more basically fried and incompetence and failure to regulate so they say

they agree with sarkozy the commission that investigated the crisis castle wide net of blame faulting to let ministrations said oh reserve. and other regulators for permitting a calamitous caution shoddy mortgage lending excessive packaging and sale of loans to investors and risky bets and securities backed by the loans they said quote the greatest tragedy would be to accept the refrain that no one could have seen this coming and it's not and could have been done if we accept this notion it will happen again remember who two people two very well respected americans warren buffett and alan greenspan both said we couldn't have seen this coming it's a complete lie many people reported on the thing that is coming and the fuel that goes into the machine a fraud the fraud committed by goldman sachs j.p. morgan interest basi royal bank of scotland all the banks of ireland fraud f.r.a.

you dig committing fraud but the fuel that goes into that are keeping interest rates engineered by the red so i think ben bernanke you have to think of him as a solid and we have to think about have any other terrorist ok that's his role and of all the economy and the fact that he's allowed any any oxygen at all. balik and for coal if he's absolutely correct though i would go a lot farther of course and press have experience with these things go away computer and look up the french revolution. well the majority report finds fault with two fed chairman alan greenspan and ben bernanke. in particular it criticizes mr greenspan for advocating deregulation and cites a pivotal failure to stem the flow of toxic mortgages under his leadership is a prime example of negligence so we can now say you know alan greenspan is always

on the news lately he's always appearing in the mainstream media in america telling americans but basically white washing his own record and saying. he's somehow considered still an expert on how to run an economy and his opinion is sought so now we must say that they must fully disclose and reveal that this man has been found guilty of negligence and incompetence needs a warning label like cigarettes you know cigarette those cigarettes can cause cancer they would you know pictures of people rotting lungs whenever greenspan appears on t.v. made his claim or this man is a terrorist whatever he says alive pathological liar so is jamie dimon jamie jamie diamond j.p. morgan all the act with which they made during the crisis they're there is possible for tens of thousands of projects on mortgages that they project may induce a project only repackaged securities and then are fraudulently foreclosing on it's a trifecta of fraud this guy would get arrested go to the bathroom jamie diamond blows no doubt committing a crime he makes don't belong here look like mother teresa actually i hear that

there are several bathrooms in brooklyn in public at bathrooms but they say crass j.p. morgan by silver oh well it's a global campaign if you listen to me if you're into me here i doubt you're an algerian you're a study arabia you're an egypt you're an app and joined up once in a mac. right now stop if you really are poor stop listen to me right now by silver and craft a p. morgan that's the only way to go think of that like a vampire and you got to drive that sober stake through their heart there are short billions of contracts with over their balance sheets at risk the more silver take off the balance sheet the greater the probability they'll go bankrupt and then we're down to one terrorist in the world you've got to do it well the financial crisis and right committee also found one thing that you've often topped about as well as they also blame the decision in two thousand to shield the exotic financial instruments known as over the counter derivatives regulation during the last year of president clinton's term and they call it specifically a key turning point in the march toward financial crisis and this is something that

you've mentioned several times before well that's when i flipped on my issue on box office futures contract. if you recall and this is why we shut down cantor exchanges the character and my character pretty general we did a lobbying campaign on this show we shut out of tire and change down so we've had great experience on this show katter fitzgerald we shut them down can our exchange because a two thousand law you know i can vetted it but two thousand law came along and it opened the door for a massive speculation and i didn't think the candidates carol was good responsible use my technology in this marketplace so i shut them down that we're going to shut down european morgan it's not that hard to do we've got a great track record you the people that i'm tony the vulnerability the key vulnerability and this is how you take down a giant you find that vulnerability and you go in there hard in j.p. morgan's case their shorts over that's their vulnerability to him they're really hard and they will go down like a sack up so let's move on to the next headline because all of this affects the

u.s. dollar of course which underpins is that unit of fraud upon which all of this fraud is built richard russell get out of your dollar assets now richard russell is a bicycle swap your dollars for physical gold or c.e.f. or g.l.d. or s. you know well in other words juist china and russia and many other nations are now doing get out of your dollar assets totally agree. this is because of ben bernanke still in charge of the federal reserve bank and the inflation that we see in the next headline interactive map of recent food riots and price hikes this is from zero hedge and they show an interactive map disclosing all the recent documentary price hikes private protests riots see there are up to you all over the world at the edge of the american empire oh yeah this is this is funny if they think because of the business insider today that headline saying the reason people are erupting in north africa is because they're inspired by the liberation of iraq . no you spinmeister ing apologetic morons the people don't want to end up like

iraq half a million dead civilians as america tries to steal another country's energy part of the reason why i believe that these riots are up to is not only the insulation but also the fact that the us empire is crumbling and just like with what happened with rome and the collapse of the roman empire the barbarians were at the gate once they sensed that the empire was vulnerable and no longer able to maintain its empire and outposts of empire and wanted to finally headlines just to show that kind of ridiculousness and how. kind of banana republic america has become. a rubber duck this is the drug enforcement agency which is of course a crucial part of empire is this war on drugs is just like the war on terror is the way to defraud the american population but they're selling this bizarre rubber duck

with big fat red lips to finance i don't know some contractor is probably down in virginia somewhere but i think the people who are on the d.n.a. are a lot of thing after the village people if you remember that. the disco group from a while ago things like they have a leather pettish at the da it looked like. and also you know part of this whole police sort of a collapsing state cash strapped burg in new jersey to fight you know with pickle juice yes apparently bergen new jersey cannot afford salt to salt their roads so they're turning to pickle juice the brine cost just seven cents a gallon compared to sixty three dollars a tonne for salt so bergen county has already used up three million of its four million dollars new project well things you never let me warn you never eat green snow. ok and that's going to do it for this section portion edition i have first

half of the kaiser report don't go away much mark i'm going away they write their. own. well one one deals with war for us to realize that this tremendous amounts of damage that are done not just human damage but damage to the physical environment in which the battlefield takes place tremendous amounts of damage done by aerial bombs by napalm boy chemicals that whether it's on a sonic boom six tractor mammals or it's the burning oil fields in iraq or destroyed coral reefs in the pacific for planning purposes the list just goes on

and on the geneva conventions of nineteen forty nine states that there shall be taken in war to protect. against widespread long term and severe damage the united states although it is accepted almost all of the provisions of protocol one has taken exception to that. will. bring you the latest in science and technology from the realms of russia. the future covered. welcome back to the kaiser report imax guys are time now to go to sandy jaitley of

billion basis dot com sandeep welcome to the kaiser report thanks very much max all right said they've generally first let's talk about the gold standard there have been several high profile calls for a return to the gold standard could it solve the world's financial crisis it can solve the world financial crisis but it can only solve the financial crisis if it's clearing mechanism is introduced at the same time i hold on a second that sounds technical what is a clearing mechanism well the clearing mechanism x. is basically the real bills in all kids that's associated with the gold star the gold coin standard and the two run together at the same time basically a real bill is what a bank notes was it wasn't a receipt for gold in the warehouse it represented gold on the moon and gold on the move has a different value to gold just sitting in an bank vault so you can have

a gold standard without its clearing mechanism and the clearing mechanism was the precursor to the collapse of the gold standard the clearing mechanism was counseled . so this is an important thing to remember you have to have the clearing mechanism as well as the gold standard talking about the gold standard of course is considered by most to be a right wing issue what progressive would look for a gold standard. i think you can look at it from both a right wing on the left wing perspective and i think the sort of hard left wingers as well would appreciate and return to honest money so i think sort of in in europe you probably. find that it's a more liberal element that supports the goals than the right and the left you know both look at goals in terms of freedom you know and they're both looking at it correctly whichever star whichever side of the line that you stand on. so you know

gold is a political you know it's a universally accepted media and for some reason. let's make the most of it regardless of our political persuasion all right well i guess people would argue that the war is the you know on the left to the progressives who are against the wars and they're against a lot of what's going on in the corporate sphere. where the point is that gold is a checks and balance on all the soviet money creation and the corruption that comes in government so it's to me it seems remarkable that you don't have more on the left or more the progressives are going for a gold standard another technical point which is in the market right now people talk about gold and the price of gold and they mention backwardation ok backwardation what is it back today sion is basically when the spot price trades at a premium to the next futures month the next five to futures money on the on the on

the exchanges. so basically anyone that has has this stuff whatever it is this embark with ocean they can they can sell it for a premium in the spot market and replace it with a futures contract at a discount. now this shouldn't really happen in the monetary metals gold and silver. century because there is there is so so much of it around. so these metals should never go into back with because effectively it implies that there is a shortage of the metal or there's a shortage for trading purposes ok so in other words if you look at the way that. rises are occurring in the theaters markets and the futures markets are broken down into three six nine months forward contracts in options and futures well the futures contracts most of the exchange traded ones in the forward longs done on the

o.b. and those are the bespoke one three six twelve months contracts ok and the idea is that you are willing to pay more for time time has value and so the price typically is higher so when you see the price for the short term higher it means that there's a tremendous urgency just by the metals now they're willing to pay up yes right now this urgency seems to conflict with a lot of what's happening in the press that comes out of wall street they're suggesting that there's plenty of silver and gold that the campaign around the world to buy a lot of silver is not having an effect and draining those gold stocks and silver stocks and if you look at the market itself it suggests that we're talking about possibly shortages in terms of availability for bullion gold and silver particularly silver do you see the shortages were they show up well pedantically

much there right of course there is no shortage of gold or silver because it's still there you know it's not like it disappears into a black hole and you know it's converted into energy so that there is no shortage of physical gold and silver but the point is that you know there is a there is a lending market max behind the physical bullion markets and that lending market is tightly knit suited to the way that the futures market operates as well there's no shortage except at that price in other words yes price discovery mechanism yet then yeah and the price would go higher so there you have silver which made a new high going into last year blocking thirty one dollars an ounce and now it's down. draft and there's a lot of supply coming into the market but there's the futures markets aren't backwardation which inclines that there is actually tremendous demand for that price obsolete is there what's your take on this idea that the futures market is

being flooded with a lot of paper so ever and i lot of that is being sold they get into the market that doesn't even have any well i'm sure that there is an element of truth and you know i i wouldn't be so naive as to deny that but you have to remember that the bankers are a very cautious people you know they tend to hedge their books you know so what happens in a futures market typically is someone might buy physical. gold or silver and sell forward all the future to earn a little premium to carry the bullion and basically. if you can't if you can't get a premium to carry bullion which you can't with silver at the moment it basically means that you have to lend it out in order to cover your overheads as a warehouseman someone who just stores gold and silver now if you have to lend it

out you know in order to make a living basically first of all if someone audited your accounts they would see no bullion in your warehouse because you lent it out and they'll see that you're short of futures contract and they'll think that you're being a little illegitimate but you're not because one is over the counter and one is on a on a regulated exchange you know but the books balance when the chief financial officer goes home home for the day particular points or not you say number one is that what we find is that the amount of leasing and shorting and futures trading it isn't access the actual physical stock is over a goal so to say you know you're making a little income on yourself or is a bit of a specious argument because what we're saying is ten times twenty times being. in the paper market versus the physical market well this is the thing though max i mean so the consequence of that is if if you see for example that there is any let's say there's there's five hundred ounces of futures outstanding i'm using

broad numbers here and i only ten ounces of silver at the exchange you have to say to yourself well let's let's call let's let's see what we can do let's let's see if we will call for delivery can that silver come that gold that is kept on least that's been lent out can it be called back quickly in time you know can i go to the lending market and borrow gold can i borrow silver in order to satisfy. people who are redeeming futures and if they go to the lending market and they bid up interest rates well above paper rates that's what causes backwardation and it basically. plies that there's a shortage of people who were willing to hand over the silver to either lend it out or be sell it ok now i so i understand it's an anomaly in the market backward as i think they can and you end up with this but what you're saying is that this anomaly

is occurring more frequently absolute and that would imply a certain tightness in the server market plus you made a statement that bankers are cautious but you know i would argue with that because they're not cautious with other people's money taxpayer money or somebody else's money they're cautious with only their own money and they want to get the trouble they get bailed out by the government for the most part that they own so that you know that's a bit of mr mr interesting i don't qualify that's the bankers i've. got about two minutes and i want to talk about something that i think it doesn't get enough attention i heard you speak yesterday and you are got a good handle on an austrian school of economics sandeep james lee what is the austrian school the austrian school is is the school of call manga now ludwig von mises we've all heard of he was a second generation student of call manga but calming was the founder of the austrian school and he founded it on only one axiom and that axiom is the value

does not exist outside of mankind's consciousness so so basically all other forms of economics classical neoclassical economics ascribe value to something else other than the human mind so this concept gave birth to marginal utility you know which i'm sure many people are familiar with it's the border use of something that the term and its value and the the economics of border use is the is the austrian school ok now. consciousness is where the axiom upon which the economics of man and the austrian school rotate now. this implies a high degree of subject devotee in the austrian school because they take into the psychological mass psychology it's almost freud in the freud meets you know you know that's the point is because these other schools of economics they tend to approach economics empirically but what we've discovered is that it's completely

irrational especially with the behavioral doesn't the behavioral economics model it's come out in the last couple of years and won a couple of nobel prizes does not completely legitimize and emphasize the school of offering that you're talking about it does but makes you know you have to i'm a mathematician and it's taken me quite a while to realize that most of the equations all of the equations in the classical economics are rubbish the vacuous you know the differential equations describe nothing you know. economics is not about mathematics it's about the human being math is just a language you know if you have no philosophy then it's useless and they have no philosophy right and in two thousand and eight crash these banks said that well our quantitative analysis was wrong and the risk that we thought we were had hedge it didn't work out and what we're saying what the austrian school would say is that that was a baked into the cake from the beginning because in some possible to come up with a mathematical formula to to quantify and predict the machinations of the

collective unconscious effect of absolutely max and it's obvious to me but it's obviously not obvious to them. i don't know why right ok well that's all that's not what we have actually and i want to have you back on again soon to get into this a little more because i think that with ron paul now slated to be the inquisitor or grilling ben bernanke he on his irresponsible flagrantly by destroying the us and global economy we're going to need your incisive going forward anyway thanks for being on the so show sandeep additionally that's not all right now going to for this edition of the kaiser report me max kaiser and stacey. my guess. is the web site is if it was his website it's called billion basis dot com if you don't understand something go to that website check it out if you want to send me an email at kaiser report there are to be a doubt are you until next time to buy all. the

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you're watching all see the head of. the violent unrest turn surprising major best supporters of embattled president hosni mubarak take to the streets of cairo for the first time to. thirty years of egypt's neighbors and looking anxiously as time all contains while a new face and maybe folds. u.s. president barack obama signed these. dawud nuclear arms concerts treaty meaning big deal between russia and america to reduce nuclear weapons will live in just a day it replaces the ninety ninety one agreement which i did and will reduce above country's nuclear. had more scruples of retaliation

underwater bad orland unfounded expulsion of a diplomat claims russian intelligence made fake irish passports puts crime ring lost in the u.s. last year. the united states killed between three and five million people in the vietnam war up next we'll look at the history of that time through the eyes of soldiers who fought on both sides part while special report is up next. how many people died in the vietnam war. it is just over fifty eight hours each with his or her brain don't live you know memorial in washington d.c. but how many of you to me.