this is the r.c. news channel from moscow thank you for being with us our top stories tonight a government of media conspiracy of the french to monitor the truth about the conflicts they are involved in which threaten to ruin the country's international standing. again with a game r.t. explores why the fighting in the middle east and north africa is actually part of an american strategy to slow the rise of china. on a sick russian prisoners repressed for a mercy killing concession to debate on whether euthanasia should be brought. up

was the level here and ask oh we're watching the news channel just letting you know to know that we'll be off the air for maintenance break a little bit later tonight in about thirty minutes in fact but our programs return tomorrow at ten am moscow time so very much looking forward to seeing you again then and of course you can also keep up today with the latest from us in the meantime as well online and out. next though he's certainly on the air on this report. geyser this is the cause report the silver liver asian army global two or rock song this past week i was in dublin at a place called the grand social to a packed house people came down to listen about the message of the global silver liberation army and if you want me to come to your town send me an e-mail kaiser

report at our two t.v. are you there is no place on the globe that should not hear this message will be there it will be our rocking good time let's get the latest let's go to stacy her reporter you were cordial right we've been talking about the global financial crisis led by the global financial terrorists and they are in the news today max goldman sachs misled congress after duping clients says levin senator levin alleges that goldman tried to artificially depress the mortgage market in two thousand and seven to amass a short positions and goes on to detail structured securities to goldman marketed to investors saying the firm's interests for aligned with their only they weren't why would goldman deny what is so obvious that they were engaged in a huge sure in the year two thousand and seven why would they deny it. because they

gained at the expense of their clients and they used abusive practices to do it that's right the firm allegedly knowingly and let's be honest they surreptitiously sold mr eleven calls them deals to people knowing that they would collapse in value they made bets against the collapsing value and they made a mockery of their clients why anyone go. this business was golden it was a client of goldman sachs i mean there are fraudsters look at this facebook deal and he saw the state of art but goldman violated s.t.c. laws they offered a facebook insider deal to more than five hundred investors the f.c.c. what was their response that they say oh risk prosecute goldman you broke the law now there f.t.c. said maybe we should revise the law to accommodate all the facts so that's the problem goldman sachs can break the law if lloyd blankfein went down to the post office any slit some old ladies threw out he would get off scot free because he

would say to prosecute me a systemic rats risk to prosecute me it's a threat to national security and if i push comes to shove i'm going to change the law and make c.e.o. of wall street bankers legal to slit all ladies throats they are untouchable it's worse than the mafia these guys are absolutely on top of all their cancer and you've got to purge him. so the michigan democrat also said federal prosecutor should review whether to bring perjury charges against goldman sachs c.e.o. officer lloyd blankfein and other current and former employees who testified in congress last year levin said they denied under oath that goldman sachs chuck a financial position against the mortgage market solely for its own profit statements the senator said are untrue so what do you see or sponsor the specific case max you know about this specific situation oh well let me say this about that replay cards a report from the period when he was making that testimony and i said explicitly on

this program that he was going i thought i said then those little thing you know because i live you perjured himself ok but the reality of it being carol so the panel said goldman sachs the light on abusive sales practices was rife with conflicts of interest and in particular in the case of one c.d.o. hutson mezzanine funding two thousand and six desh one goldman sachs told investors its interests were aligned with theirs while the strong held one hundred percent of the short side yeah ok well we've been reporting on this for months the firm has outrageously gone around all the existing securities laws to make billions of dollars remember wall street last year paid themselves one hundred forty billion dollars in bonuses by extracting by rent seeking by worse for me by pilfering you know how many synonyms i need to string together before i get the

point here they both would just go down the street with a code not always on the head steal their money this is their business plan if you took away fraud out of the american business read out of the u.k. business plan but have no company whatsoever it was entirely on freud lloyd blankfein is your schmuck and he's the worst of the worst the guy can't even tie shoes without breaking the law i don't know how i don't need bernie made up look like mother teresa. heard of this guy carl levin himself can't say he has to be prosecuted he's recommending those apartment of justice actually pursue a case against lloyd blankfein for perjuring himself which i think is still a crime in the united states i don't know how he's going to get out of that in terms of systemic risk argument well i mean what is carl levin want to shut up a million dollars two billion dollars whatever it is called it will pay it because it's a quick ocracy there's no justice go alone won't pursue this because he's a wimpy to weak man he won't do anything either should not honor you know was nice not to have accepted the department of justice so they're responsible for pursuing

the case against. against lloyd blankfein if carl levin says he believes there's a case it's up to the department of justice whether or not they did pursue him ok you're right i get it it's going to cost twenty million in my prosperity million to get the whole department of justice whatever the price of matter and i'll pay the price. for congress and extort seven hundred fifty billion dollars to bail out of the goldman sachs how much would it cost to pay off at the department of justice really twenty billion maybe printed up out of the park or it's all patricia's free occurred there's no justice there but the rule of law well as we reported last week however as well that the department of justice never even pursued prokofieff bank which laundered four hundred billion dollars of mexican drug money and they didn't pursue a criminal case that's right so to herbert they could move four hundred billion

dollars of that crowd money right over to the department of justice of those and their responses thank you for that coke brady agoa about a policeman just the other thing that is emerged in this new report out by carl levin is e-mails show how great lippman built deutsche bank's five billion sub-prime short duping c.d.o. fools so this is a. levin of deutsche bank and again they were targeted along with goldman sachs as being the worst transgressors of of all known like legitimate conduct by a bank and selling derivatives and they found e-mails where he was selling to investors vons and he said blows yikes quote didn't see that half of these are crap and the rest are ok he calls them a pig c.d.o. then he shorted it covered this short by duping c.d.o. fools so he said that they were the c.e.o.'s that he was selling were crap and that

they needed to find a fool to sell it to but i think you never have to daisy chain a frog they repackage the same garbage over and over again they sell to the same company pension funds managers who are given a huge supply of vodka and cocaine to look the other way while they buy suspicious crappy c.d.o. products at the very end a pension accounts and then a year later the government will say we have a crisis we don't have enough money to pay our pensioners they don't mention the fact that the reason they have no money is because it disappear thanks to blankfein goldman sachs that other smarter you mention and some corrupt money manager and hedge fund manager and pension fund manager who according to gather to defraud the american people to defraud a global economy to steal billions hundreds of billions of dollars and laugh in the face of people while they're doing it well you know there is a big move by the republicans to water down any of their already watered down frank died act in which these derivatives are supposed to be you know given some light of

day by being traded on or on an exchange but. you know there's nothing really to protect us from. same thing happening nothing on the on the rise and i think i mean there are these reports and and vague statements that perhaps lloyd blankfein should be charged for perjury he should be charged for perjury what about. murder mass murder destroying the global financial system murdering not entire middle class oh yeah well yes as the point was made that the entire middle class is being murdered with the help of ben bernanke you know what the federal reserve is little minions over there lloyd blankfein and the rest and of course they do much damage then then any terrorist organization like al qaida or any other groups are peanuts they're pikers compared to the mass murder the sopping the middle class thanks to these bankers on wall street and of course like any theological fanaticism

any religious extremism the people who get murdered by these folks consider themselves martyrs so merican who are dying because miami real estate found terminal velocity toward collapse last vegas real estate now terminal velocity into collapse there are dying in the streets and they say you lloyd blankfein for making me a martyr for your extremist cause the pathetic is that that's why i'm sort america myself buying gold and silver the hell with them they're not worth saving here's one person looking to resolve the situation jim grant america well he's all for debt by returning to the gold standard let's take a listen to what ten grand told king will do jim how will the u.s. finally resolve its debt and deficit problems will my mind will resolve them that's a fairly funny undertaking. story john or to convert abilities because we have forty years of failed we sold this matter of kids that are true and the only way to

do it is to reinstitute critique it particularly which was right there with the road like. oh that's funny you know for sure. right well the dollar will never be restored to any respect of all placed on the global economy it will become extinct and the gold standard will still be talked about as the dollar is replaced by a global currency probably an s.t.r. related bank or type d.i.'s denominated global unit of exchange and are going to try to float another one hundred trillion dollars of the bad debt and this war between paper pushers and the psychos on wall street and the gold bugs like jim grant will continue and the price of gold will continue to go higher i missed just came out and said gold going to sixteen hundred dollars us this year on its way to ten thousand dollars so we're going to five hundred dollars so you're a pastor so what side you want to be on you want to be on the side of worthless

paper or escalating in price precious metals it's up to you say to her that's all the time for we have thanks again for being on the kaiser report thank you don't go away much more coming your way so stay right there. with. religious beliefs in science and technology some of. the future covered. i'll go back to the kaiser reports on how to go to new york and talk with jenna to

have a koli of time callie structured finance janet is an expert on weapons of mass financial destruction otherwise known as derivatives she's also the author of dear mr buffett one. an investor learns one thousand two hundred sixty nine miles from wall street john and welcome back to the cars a report by max how are you. goalie since we spoke less the time has gone out on dear mr warren buffett apparently he's not wearing any shorts tell us about the departure of is heir apparent and the whiff of front running insider trading what it says about the bigger picture and us banking jetted to have a kohli on next this isn't a case of telling the truth slowly i think you're aware that warren buffett issued a press release and them all talking about the departure of david so call who was the head of american energy and david so call. it was also somebody who looked at acquisition candidates for berkshire hathaway now as the

facts are coming out it appears that he was new meeting with citi group bankers on december thirteenth and the next day he bought shares in a country called oversaw in a company called lubrizol now the day before the citi group bankers understood that they were talking to david so call in his capacity as an officer of berkshire hathaway in a capacity of an officer who evaluates potential acquisition candidates for berkshire hathaway that seemed to be their clear understanding and in that meeting david sokol asked for a meeting with the president of lubrizol his so he sought that meeting and on december seventeenth we now find out through bloomberg news that on december seventh seventeen the city group bankers feedback to david so call that the president of lubrizol you know was going to bring berkshire hathaway's interest forward to the board of directors at lubrizol so it's pretty clear that he had

information that the public didn't have that this was a potential acquisition candidate for berkshire hathaway and in the past the stock prices of acquisition candidates of berkshire hathaway have popped up so after all of this go around david sokol is buying shares loopers all saying that he had an interest in it for his personal account before he met with the city group bankers none of this sounds possible but what is really harmful to berkshire hathaway is the attitude taken by charlie munger and warren buffett who have always said that we hold ourselves to the highest standard of corporate governance and we wouldn't tolerate this kind of behavior and the press release looks an awful lot like covering up an excusing insider trading in their press release warren buffett said that it is now david so call nor i believe that. he did anything unlawful but here's the problem with that i actually believe he did something unlawful now

that's my opinion but it's also the pinion of a lot of other professionals now i don't speak for them i'm speaking solely for myself so the problem is that the press now has gotten on to this for a couple of reasons one of the reasons is that we tend that memo uncharacteristically warren buffett said if anyone has questions about this i'm going to refer them to this press release to this not well in the past he's always talked about transparency and how he's willing to entertain any question at the shareholders meeting so entertain any question apparently not on this topic so why the lack of transparency here right well i mean warren buffett has been saying all along and we've talked about this before is overrated if you if you strip out a lot of the back channel dealing with the insider trading the market if you lation the cozy relationship with goldman sachs and the banks on wall street that from his performance your back to you know much better than the s. and p. so i once again but i think what warren buffett though unlike other shysters

connected the wall street he's got this first saw of the quality graham you know grandfather who is above the fray and who is everybody's you know really the moral rectitude is to be emulated but we find out at the end of the day like everybody else now what about buffett's recent testimony to congress in which you claim that nobody could have seen the collapse of the housing market coming so moody's and other rating agencies were excused for giving mortgage backed securities aaa ratings this seems like outright duplicity. part without a shadow of a doubt. you know i'm glad you brought that up max because you're aware that i wrote this book called dear mr buffett about the financial crisis whereas contrasting the principles of benjamin grant that warren buffett just follows and charlie munger espoused to what happened during the financial crisis and i think the preliminary draft of my name is chris. came out in july two thousand and eight i sent it to warren buffett he looked at it he liked it and in there of course i'm

a big critic of the rating agencies and all along i've been criticizing the rating agencies were in some a distribution list in february of two thousand and seven i wrote a letter to the f.c.c. and by the way he. gives me feedback on it and i wrote to the f.c.c. saying that the rating agency should have her an arrest her own designation revoked that the aaa ratings were phony i gave an example of a phony product that was rated triple a that within a year the principals of the investors lost ninety percent of their principle and i was warning about it when the product first came out was rated aaa and that was in my letter to the f.c.c. which is still on their website so it's not as if he didn't have the facts in hand yet but when i read we're going to let me jump in here i mean the f.c.c. has letters every day they go letters two or three times from people who point out that bernie madoff was a huge cautious game and should be shut down they didn't act on it and then see those those alerts and these letters there are

a captured regulator that are understaffed yes and i think you're being then we are going to be i think you're being a little unfair to the f.c.c. of course they have acted they acted to help cover up like way way let me let me cut in right there joan feather boa because just this past week we have a situation with goldman sachs goldman sachs broke the law they sold facebook insider stock to more than five hundred investors without giving full disclosure of financial details that's a good c.c. law the response of yes you see what to say well maybe we should rewrite the law only voice what somebody throat is mark and i go to joe joe and say george my defense is that you need to rewrite that law what about why why doesn't warren buffett goldman sachs j.p. morgan what about complying with the law you know max a camera got so upset it moved while you were talking i agree with you and the s.c.c. is allow them to get away with form over substance arguments and you know they're just simply not doing their. job well they are doing their job their job as they see it they just haven't announced everybody what their job is and it's to enable

cover ups to basically distract people with non issues to you know people on minor issues issue minor fines and then declare victory you know we're being totally punk here by the regulators the f.c.c. should have been just stand it mary shapiro who was the head of finra if you look at his track record investors would lose arbitration in the ones that they won they would recover less than their their losses move on to our colby a better known by wells fargo which of course is warren buffett's bank in california they just pay a one hundred sixty million dollar fine for a longer nearly four hundred million mexican drug money why no prosecution. well you know i think there's been no prosecution because again of our captured regulators when you look at the horrific press that this is gotten or basically well kofi it was laundering money for a mexican drug cartel that is killing mexican citizens so basically the united

states has helped aid and abet this through. vehicles like money laundering through a covert and mccovey i think by the way i wasn't alone in that but these are very serious issues and that's not the only serious issue that wilko of you had to recall that because you about golden west those you know loans from golden west many of them were just circling the drain at the time that wilko view of what goldman last they were securitizing those loans they had a problem with the c.d.o. is that. put together well covina was also acting as an. toxic c.d.o. some other investment banks they were scratching each other's backs it was marketing the commercial paper to which was a toxic structured product put out by barclays and they were marketing that up and down the california coast and they're being sued right and left over that this thing didn't have just one. governance problem just one kind of management problem it was riddled with management problems and you know our treasury and the fed

allowed a merger of the bank clock. first of all with goldman last and then what tovia with wells weakening stronger banks and of course you know a lot of behind the scenes double dealing was done to accommodate a merger between wells and we'll call it including an unconstitutional change of the tax rules to allow the khoja to be able to write off losses rather to a write off losses right on the first. base. first hundred trillion first four hundred billion in mexican drug money laundering then you've got hundreds of billions in lost laundering effectively accounting fraud again it would go via a good part of wells fargo again over you know under warren buffett's watch this is really just bernie made off with a nice shirt with a nicer suit maybe you know i should correct that well now that you've heard it

made i think yes it's true they said you have to be careful what you hope people accountable for because i look to the wells management mccovey management for that but with with warren buffett his lack of it is what i would call a reverse moral suasion is what's really been the problem because he has a lot of influence a very high profile a lot of capital and goodwill built up over years through brilliant p.r. and in managing that very effectively up till now in some cases he had some warts on that as jonathan while of bloomberg was happy to point out for us and as john gapper said in a recent financial times article basically to the international community he looks like the he and charlie munger look like the beverly hillbillies of finance you know talking spewing out these big platitudes but now when you look behind the platitudes you find out that there's something darker going on and i can't. trace that back to about august two thousand and eight is when i really saw this fall off

the cliff warren buffett was on a town hall panel after david walker's piece called io usa talking about the big debt the u.s. government was getting into and this was a month before the bailouts and warren buffett broke rinks with everybody on the panel including david walker pete peterson a number of other people on the panel and he was the only one that broke ranks and he basically tried to minimize and undermine the entire message of the movie and of the panel and basically he said the united states you know we're good for it we can produce our way out of all of this big debt but i think he knew that the fannie and freddie bailouts were coming and that the aig bailout was coming and i think that's why he did it because it was going to be this huge windfall instead of prosecutions of the blue financial kiss' in the direction of wall street and i think he knew about it and i think that's why he did that and ever since then his dialogue has been to minimize the damage to investment bankers instead of saying oh i can't you know look at these micro issues like who should be prosecuted i'd like reform of

the tax code yell the tax code can't touch him now because he's already sequestered his own assets and taken advantage of previous tax rulings so there's a huge wave of hypocrisy and the appearance of i'm doing the right thing meanwhile unfortunately too much of his. public dialogue has been against the right thing and now that this insider trading memo has come out a lot of people in the press first of all they were confused they were actually ready to believe that there isn't an insider trading issue here because warren buffett said so that's how powerful this p.r. is until a lot of rational people just said oh please you're not buying that obviously there's a huge insider trading issue here should be investigated and if david so-called doesn't go to jail and if warren buffett doesn't seem to be covering up it's not because it didn't happen it's because we have a captured regulatory system i. saw the response of buffett in two thousand and eight and it was quite shocking and he himself said famously that the tide goes out

he seized on wearing a bathing suit and the tide went out a big way in two thousand and eight and it caught up with warren buffett one buffett couldn't they couldn't can't keep up with the losses and he was exposed to these deals goldman sachs was a complete sham that embarrassed to the government and embarrassed every an american really that he would get this privilege insider deal to help out a bank that committed fraud and should have been these guys lloyd blankfein should be in jail already there's warren buffett holding him up as a moral example and is quite shocked was a shocking all right well thanks so much for being a once again on the kaiser report that's going to do it by x. and 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 guests janet tanach only if you want to send me an e-mail please do so at kaiser recorded r t t v are you until next time this is nice guys are saying bye.