seven more suspects identified in connection to the moscow airport bombing in january this after russia's most wanted terrorist claims he ordered the attack. weekly leaks founder julian assange jean courtney you paid for a second day fighting extradition to sweden with the hearing set to resume friday his lawyers say political pressure from washington could see is handed over to u.s. authorities. and egyptian president hosni mubarak offers to reform the constitution in an attempt to diffuse public anger but thousands of protesters poured back to square in cairo in an apparent injection of the proposals and continue to demand his resignation. coming up parties financial guru max kaiser takes a look at how one arrest in the middle east could hit food prices closer to home has a report coming up in a few moments. i

am asked times are this is the kaiser report you probably haven't thought much about eating plastic chickens eating plastic eggs or challenge down on some plastic rice we're going to be talking about that shortly but first let's bring in the state you see her tax guys there hey you know what the biggest story of course is this revolution sweeping the world revolutions the one in egypt of course

everybody's looking for the cause is inflation and the inflation of food prices is that the rising inequality reflected in the genie co-efficient index here's some reasons that i'm going to look at first headline tony blair mubarak is quote immensely courageous and a force for good. yes he actually said this on the piers morgan show we're not going to actually listen to his words because i just can't stand listening to him but i'm going to say what i think he was actually saying mubarak is immensely courageous for looting so much money from his people so openly and brazenly and a force for good kickbacks barack obama tony blair they're good if there's a revolution great will send in the vodaphone of the starbucks no revolution great will send in some bombers and some tear gas canisters we make money no matter what happens because we're arbitrageurs up politicians but the other important thing about this this is. class of global kleptocrats of globally connected elite

who plunder their own countries together and this brings me to this next story egypt's mubarak likely to retain the vast wealth mubarak family may have as much as seventy billion dollars stashed away a money jamal who is a professor at princeton said that mubarak's assets are most likely in banks outside of egypt possibly in the united kingdom and switzerland mubarak his wife and two sons were able to also accumulate wealth through a number of business partnerships with foreigners from well the club to craft a plunder together stay together you know this is the global kleptocratic class and they are all working together there colluding as adam smith pointed out in any situation where capitalism is the prevailing economic model you have naturally a to propensity toward collusion and that's why you need very stiff regulations to

try to keep these guys from fixing prices but all the regulations are not now in the mid two thousand a lot of the regulations that were taken away in egypt it was deregulated and this is when the wealth and income gap just skyrocketed and it's also why the central banks are there money printing to feed the pockets of the kleptocrats of causes huge spike in food prices so as you know as you point out it's a combination of the gini coefficient which measures the wealth and income gap around the world plus the relative amount that is spent personal income on food so on and in egypt much of the personal income goes to food plus you have the gini coefficient exploding equals revolution so if you want to handicap which countries are next to pop that's the way you do it well i have a headline here max if inequality is a factor for egypt. if you take a look at that little chart this is the journey coefficient index which zero is perfect equality everybody is. exactly the equal amount one hundred is only one

person owns all of the wealth of the nation so the closer one hundred you are the higher the number the more on equal it is pakistan is thirty point six egypt thirty four israel thirty nine point two tunisia forty and the us forty five yeah the us is very high on that list which would portend insurrection and regime change but the thing that keeps it from happening is that percentage of income toward food is still low because of the us dollars world reserve currency so food and energy are still relatively low this is what is keeping the wave of global insurrection at bay in a country like the us but it will get there and when it does get there it'll be three hundred sixty degrees of global insurrection against banker occupation and then we can hope to see a complete total global regime change of all the corrupt bankers including life masters over there j.p. morgan who we'll be talking about blank in the second half so don't go away but but

but but tell he was slower more you're still us more ok we're talking about the global insurrection against banker occupation part of the things that bankers have done is create volatility in their major agricultural products and inflation here they have i mean it's not since reconstruction how we've seen cotton this high that's right the price of cotton is skyrocketing it's one hundred fifty year high not since the civil war in reconstruction in the carpetbaggers the famous down there in the south of america has cotton been so high and as i've been saying on their shows days ever before long they don't want to play or occupation in america will be cotton picking and they're going to course thing those old spirituals like jump down turn around pick about cotton and others. well another part of the reason is you see this inflation hitting china as well china the chinese take a cotton to hoarding apparently farmers in china are hoarding their cotton up to nine percent of the world's cotton supply and the reason being that they are

holding out for higher prices even though they're at one hundred fifty year high they're aiming to help overcome higher costs of labor and fertilizer the cost of fertilizer for example is up twenty percent in the last year or so they're not covering their costs even with cotton at one hundred fifty year highs right well fertilizer of course as a chemical petroleum based product and price of oil is skyrocketing as well it's important in mind that the reason these prices are skyrocketing sunk because of increased demand on the side of the user is not because suddenly there's a demand for food in oil the reason the prices are going eyes the supply of cheap money that was thrown into the system after the credit crash of the two thousand and seven two thousand and eight period in the banks on wall street told the federal reserve we need money to pay our our yacht payments and we can't get it because the system is frozen can you please give us two trillion dollars and ben bernanke he said ok here's two trillion dollars so the bankers on wall street could

pay their yacht payments but it had the perverse effect of feeding speculation and agricultural commodities and cotton to the point where it starving people in these countries so once again to give the formulation wall street bankers fed starving people fed gives the money to the bankers who make their yacht payments but it has the perverse effect of starving people around the world so wall street bankers are starving people like jamie diamond is committing murder he's killing people. so the starving people are not fed because of the fed right to say it is causing people not to be fed. well we've always talked about how inflation. it helps the rich because of course they own the assets into which a lot of the money goes but also they get money for zero percent from the fed and then are able to speculate on all sorts of products quickly think of it as a river in other river flows down so that the fed creates a flow of cash and the people toward live near the fed like on wall street that

they get the fresh water the clean water need to live downstream you get the dirty water and that's the what happens in the global financial market and it increases the price of agricultural products food and we see that related to these headlines these coming out these just these charts actually to show you what the difference between the revolutions happening in the middle east and why no revolution has yet happened in asia so if you take a look at this wheat chart you'll see it's rocketing and then take a look at the rice chart you'll see that that's not gone up nearly as much so because rice has not gone up the main staple of the peasant in asia you're not seeing as much perhaps yet strife right but the whole commodity complex is moving higher due to this incredible influx of money that's been directed by the bankers for the bankers at the exclusion of the rest of the global population no willing to commit mass genocide of the global population by increasing food prices to the

extent of causing starvation just to keep that multi hundred billion dollar bonus peel pool active on wall street that's the only reason this is happening those people are culpable in a mass homicide mass genocide. well just to show you another reason why perhaps the prices and to increase as much here's the headline for you max china makes fake rice from plastic vietnam reacts so parents according to korean language weekly hong kong newspaper china is mass producing fake rice this rice is a mix of potatoes sweet potatoes and plastic it is formed by mixing the potatoes and sweet potatoes into the shape of rice greens then adding industrial synthetic resins apparently experts are advising that synthetic resins can be very harmful consumed and

a chinese restaurant association official said that using three bowls of this fake rice would be like eating one plastic bag this is like even if you don't plus the old know it all roll goals don't force go through those little overlook they're supposed to lucius this completely fine price of course in china now they have the added situation i guess you could call the mcdonald's has half of their restaurants are going for will be these drives new restaurants presumably will be going through a drive through restaurant on my way in the middle of a ghost city in china ordering a big bag made out of plastic rice and trying to drink i max i may also point out that fake stimulus fake money printing fake g.d.p. growth fake goods and services being produced is to causing us forcing us to consume fake food because we can't afford real food because we have no real growth we have no real economy we have no real industry we only have fake stuff makes sense so we're only eating fake food so you have fake currencies and it's causing

fake food and goods are real food now is too expensive nobody can afford real food is that making fake food. and so final have on here max iceland proves ireland did wrong things sacrificing tax payers. ok this is from bloomberg apparently unlike other nations including the u.s. and ireland which injected billions of dollars of capital into their financial institutions to keep them afloat iceland placed its biggest lenders and receivership it chose not to protect creditors of the country's banks whose assets have ballooned to two hundred nine billion dollars eleven times the gross domestic product and the icelandic economy this year is projected to grow three percent bloomberg says iceland's decision to let the banks fail is looking smart and may prove to be a model for other absolutely that's what we've been saying on the show michael hudson dr michael hudson economist has been advising countries to close their banks and default on the loans but i might add max actually for one hundred fifty years

since cotton was at a last all time high we have known that if you let the failures fail and you don't rescue them this is the heart of what capitalism is supposed to be not rescue and bail out the crony capitalists the neo liberal crony capitalists not one that would be capitalism but we don't talk about capitals only in iceland you find companies exactly but it's not a new model it's an old old model and bloomberg is talking about it as if it is a new model that we're out we're shocked how is this happening wow maybe we should all study this but their effect of books about this do you could study that we could have looked at that right so the idea of a free market capitalism and competition has been has so horribly diluted and ignored during this crisis that the idea of actually having a company or a bank fail is considered new by bloomberg as a new idea yes call capitalism something brimming with crazy kid. you compete and

if you don't you know you've got to be shuffled off to let somebody else try wow what a concept i wonder if that'll catch on well in iceland i think about gets out before plastic rice does ok stacey thanks so much for being on the kaiser and for thank you mike all right now when we come back a new book about that tyrants blith masters i'll be here with the author don't go away plenty of fireworks coming your way. well when one deals with water it has 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 amount of damage done by obama's by napalm. coming from the city whether it's a sonic boom say tractor marine mammals or it's the burning oil fields here in iraq or it's destroyed its search for purposes the list just goes on

and on the geneva conventions of nineteen forty nine states that they are shall be taken in the war to protect them by 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. and discover it. communicate with the wild and. test yourself and become free. see what nature can give you.

ok we are back this is the kaiser report you know every crisis in the world usually can be traced back to a woman who's now the financial crisis is no exception here she is. blith masters this is the the woman who is at the heart of the entire global financial meltdown she is the power behind lloyd blankfein she's the power behind j.p. morgan i've got chair jenna novick german who is complex so much for being on the show i want to jump right in here and talk about the exxon valdez catastrophe yes and talk a little bit about that as covered in the book of course it's covered the exxon valdez was the facts which helped to create two credit default swap because

a jeep in morgan didn't wanted to lend to eggs and five billion dollars without any guarantees they were scared that they might go bankrupt ok so this was after the exxon valdez or catastrophe rights and they couldn't get any money they couldn't borrow any money so black masters especially she's the inventor of the credit default swap is the origin of this and this is the the instrument effectively that has mushroomed to become the key the terrorist financial terrorist weapon of choice and the domestic stronger in fact in this is that she went to a bank which was invented by the french president also me to hone to be. a bongo pin and she convinced the president at the time to swap the default of x. on. this summit and of that was you know like. as we used to say in french before the revolution and this is how everything started because it was easy money.

said ok if eggs involved is going to examine so it is going to be bankrupt would be a difference who paid five billion dollars back to the j.p. morgan so sense that going forward from that moment exxon valdez what was the. what's the next major milestone in this part of the history of the major was the. introduction and public introduction of the company at the terra till he concept which was called again was a french name bistro like a french coffee you know and that was introduced to the public in ninety ninety eight in new york along with the mother of it was a huge party in new york too and she distributed her what they called her black book. it was g.p. morgan interaction introduction to credit derivatives on which she wrote and her name was was in there so this is her book the black book is for me

the has the extreme the same force as the that's capital out of kalmucks or the little red book of mao because the effect of this just tiny book is absolutely amazing it's just destroying the whole world exactly that that's capital you know lend give wars all over europe a lot of my book is like a repudiation of capitalism it's the opposite of capitalism it's saying we don't want to compete anymore we just want to create spells from a little black cauldron of derivatives to make us rich and everyone else poor and now the little black book what is exactly black masters what is your actual position within j.p. morgan what's your title what what it has to fit in your heart in else's. head of committees so she gave up on the kurds a full swaps in two thousand and seven on the on the fifteen or seventeen of. the

member and she gets her title of head of commodities and science then this is extremely interesting because at least what you can see in this book is that what is interesting is not that the fact that she invented the credit default swap what isn't interesting is that science two thousand and seven she's buying. commodities she's buying through foods she's buying sugar in two thousand seven eight she was already in brazil buying everywhere you know. sugar or pork bellies i've got souls and unnerving and this is why you know the prices are going up and to doing your thing to results because she. with her traders along with morgan stanley and a little tiny of goldman sachs you know they're just putting all the prices up and up and up and wisdom of the quantity of easing of the burma character this is going to explode so this is a she says she's the mastermind if i can see of the new revolution the world wide

revolution where i saw the wicked witch life masters and our little black book of spells concocted to financial derivatives to monopolize commodities all over the world drive the price to unheard of levels as a way to basically this is a nail imperial model doesn't because if you control the food you control the world this is a j.p. morgan to tell you things in english don't forget that she has anguish you just choose anguish oh my god so the empire is there right so and in your book you detail here on page two thirty three actually eve got this is kind of insider information as this is not this is this is you know this is the confidential plan of the g.p. morgan committed to see. this is exactly what they're going to do and on which places and what they're going to buy you know department by department so it's it's extremely interesting and the interim very fascinating thing is that i give the manuscript to the printer in the beginning of

a general and to last words were we're going to see revolution in tunisia in france a new jury oh an angle and a refrig because of the. rise of the group to reprocess and look what happened and it just the beginning it is trying to beginning so for twenty five years let's say going back to the fact the reagan revolution deregulation liberalization and they could. nation of chile developed a currency that was used to create all these banking fees up until the point of the crash of two thousand and seven two thousand and eight but now we're in a position with peak credit and peak oil where it's a scramble now of the richest to control what's left of the resources so the rich so j.p. morgan goldman sachs and wall street they're basically they want to get out of the paper game they want to get out of the vienna currency again they want to control the stuff that they want to control the food they want to control the industrial metals they want to control the precious mines in this decision that was made at least by by by blights my service in the end of two thousand to two thousand and

seven. two thousand and six because they know that the whole model of credit derivatives is going to explode you don't look at the g.p. morgan she saved the bank she said to be morgan bank because her and her team then had the expertise to see that all this model of credit default swaps all the algorithmic smuggle were fake were false so they didn't went into the toxic into sioux primes that's wired to read that book written about jamie dimon called you know the last man standing of course i mean they knew who this look at the whole think is going to explode so did they were not nuts the g.p. morgan chase didn't went into the surprise toxic stuff so down there claimed the right look like they have no down to number one they lot of past that stuff passed through them yes they make a market they make a commission but it all ends up in pension funds and passive funds are places where the savers and the workers of the world have no recourse and they have no ability to fight back but now of course the savers are the workers of the world in cairo and chillis and in dublin and in athens are realizing that blights masters the

wicked witch of wall street has created and concocted the most potent a ray of financial cherice to rid of products ever conceived is trying to kill them so they are fighting back through their proxies like move barack obama in egypt the proxy of life masters and the evil on wall street they're fighting back how successful will they. the infighting of the army of the of the old ration against a black master wick in which the problem is that they don't have a clue for sure hoshi is but what do interesting point you know when the finish the book and all like the idea is the french revolution was french because now we have this this whole situation of revolution war and wind it's not only in france like two hundred years after this is going to be would want and you have luis we do sixteen we says to medium and two hundred like monsters the internet interesting

point is that two times and compare her to mario tonight because she's extremely dedicated she wants to be to queen of commodities so as to to care about to these people who are you know they do not exist for her who writes not for her who the world as marie antoinette exactly and i stood up you were right in saying this is like saying look i'm a brioche i let them eat cake you saying let them eat plastic rice exactly like let me read a. virtual article fairly exactly farmville exactly you know there's a goldman sachs is trying to get a virtual food business by acquiring facebook of course they have farmville so she's marie antoinette and it is a revolution and it is caused by our food prices and going back to french astri of course to france and italy the six things they tried to float in the acid got the currency here which was backed by you know commodities and real estate which i relapsed and they're not sort of terms of price of food what does was good what does this exactly history is repeating his well the global the global many now

don't forget before louis sixteen dollars a fact into french history was don't look you know the ngos guy can move this is the regular regulation of the ilo on all of that you will spot going up john the balcony he invented by the way to defeat money. so and the whole thing collapsed and. there was a new revolution in paris you know there was like ten or fifteen people dead you know who can compile and and this led to people where written of course you know they lost everything and know we're going to see exactly the same thing but you know just moved here to say it won't why don't all the system worldwide situate you know with the television and radio and our frank internet so it's all on the hormone level of the globe is the game truly over for those who are not on the inside of the wicked castle of blight and her j.p. morgan associates in other words well the global insurrection it was successful and

the french revolution they had the reign of terror they got rid of a lot of bankers robbo probably ok but while they succeed this time or is this the end game now we're all going to be slaves j.p. morgan plantation not it's the end of the game for also for j.p. morgan for all it's really simple reason there is still four four million houses you know to be taken over by the banks so this is like eight hundred sixty billions of dollars they are not going to see so the whole game is dead right now so that it didn't work and they said really they're insolvent we know that to be true they have now their balance sheet they got a trillion alive built he said no no assets at all except for this woman's wardrobe which is probably worth a few hundred thousand she used to actually she's the best i mean the seriously i read the book about jamie dimon the last man standing yeah and compare what she says she has done compared to jamie dimon i mean she's you know she's definitely

more interesting and. the banker and what she's doing because she's a very ensure actual suicide to simply because it's very interesting stuff jamie diamond the parts all right so that i think that we got we got to go we got to go we got a job just when i got to go she said one thing i fall in love with credit derivatives she said she said she wanted to make the. credit to really have i think a virtual swap. all right so like there are a lot of back and june when the english version of. it all should be next apapa here so thanks for being on the kaiser report thank you max and that's going to do it for this edition on the kaiser for me max keiser and stacy and i would like my guest pierre to under it that's right if you want to send me an e-mail please do so at kaiser reported r t t v dot ru until next time this is nice guys are saying but i you know.