markets. i know what's really happening to the global economy with much stronger the no holds barred look at the global financial headlines tune in to the report on r t. with us here live from moscow a recap now of the main headlines russia hosts the envoys of libyan leader colonel gadhafi who say they are ready for a ceasefire if nato stops bombing on the rebel forces sit down for talks. totally financial dominoes for the e.u. spain looks like the next possible victim of the euro crisis portugal's massive bailout package is unanimously agreed upon. moscow's one hundred police catch

a cannibal redhanded by following the trail of human body parts and organs leading to his home. but china is ready to spice up the space race with an ambitious timetable for exploration that includes launching its own space station and setting foot on both the moon and mars all within thirty years. because reporters next year r.t. . max kaiser this is the kaiser report you know let me tell you something about there is no alternative. tina. there is no alternative let's bring in stacy or oh man hey wait a minute were you so long disclose the location where was the some bunker somewhere

what's going on max i had to do is read the strap and see that i was in connecticut you had a strap on. listen well you talk about silver we're going to talk about commodities and inflation in general today the first headline max is starbucks chief howard schultz attacks coffee speculators so howard schultz the president of starbucks the world's largest coffee chain has attacked speculators for pushing up the price of coffee to a thirty four year high he said quote through financial speculation hedge funds index funds and other ways to manipulate the market the commodities market is in a very unfortunate position this is resulted in every coffee company having to pay extraordinary high prices for coffee ourselves if you want to stop the price of coffee from going on there don't let any of your customers use credit cards every time a customer goes into your store and uses a credit card they're creating three out debt and

a zero out of nothing that's why the price of coffee futures are higher if you knew anything about economics you would know that but instead you blaming the speculators because you're dunder yes it's an expansion of money supply and banks create it through people borrowing money from them and you see that at the starbucks all over the place people using their credit cards to buy right one is loaned into existence less than five percent of the money in existence is actually printed by a government the other ninety five percent is loan into existence from banks and every time somebody used their credit card they're increasing the money supply those diluting their purchasing power in fact he says this in his statement as well without any real supply or demand issues we are. witness to the fact that most agricultural food commodities are record highs at once and coffee is that a thirty four year high of course he forgets to mention the supply and demand for currency the supply demand for credit yeah that's what's driving this market again

howard schultz a guy who figured out one day that people in america might want to enjoy a cup of coffee like people in europe is not the guy to ask the micro economic considerations that are driving the price of coffee itself no howard just stay there and do your barrister thing and don't talk about economics because you're obviously completely financially illiterate so inflation is also in the next headline china inflation spreading beyond food adds pressure so china's inflation is spreading beyond food as the headline says signalling premier wen jiabao its strategy of quarter point interest rate increases every two months has yet to contain consumer price is right well this is part of the global currency war isn't why the strong have so much inflation is because of all of the money that's being censored them visa v. walmart that's right but also the u.s. has been engaged in two rounds of quantitative easing trillions of dollars printed

the us and their currency in china now do you remember he is pegged to the dollar so every time the us prints money every time ben bernanke you prints money china has to print money who's the currency manipulator china or the u.s. that's the big question here are you saying well obviously this is the tail that wags the dog or vice versa you can't really say china is the currency manipulator if they're pegging to the dollar which is being manipulated but it's the world reserve currency so they say well can't be possibly manipulated because they live in a snow globe of denial they're in a world one of three hundred sixty degrees of fraud they don't see that there is a currency manipulator tim geitner you're the currency manipulator max the central banks around the world i would disagree that if anyone unique when i'm just agreement on that one because china's empty. is that fifteen point three percent in april alone so they're doing a darn good job printing money and in response to this limit down regulators expend of the range in which gasoline and oil futures control and well again they're there

appeasing the speculators going back to the year two thousand and the commodity futures modernization act when they remove position limits which are there for a good reason to prevent any one bank from dominating the entire market in manipulating prices but they remove that piece of regulation and every time now that the markets get out of control they simply remove all manner of regulation or framework or any any way to buffer rampant manipulation so the response of regulators should be to regulate not to continuously deregulate well but it's also not a free market they have a specific outcome they prefer so they don't mind if the dow continues to go up or the s. and p. goes out and they don't mind if gasoline prices fall so they'll allow extreme moves in those directions that they prefer but they're micromanaging which direction they want right the stock market is in

a bubble and it should have margin rates increase to prevent the stock market from reaching in the apex of a nother huge gargantuan bubble in bust but that's being left alone because it's capitalized by the banks themselves that own the regulators whereas precious metals which are the competition to corrupt bankers they are being subjected to onerous margin rate increases in a selective prosecution of various markets what has been called violent currency moves is resulting in a violent precious metal moves but it's also resulting in the spread of radicalised precious metals buyers around the world well max listen you know the beginning of the whole financial crisis began with of violent currency moving that with them. moving the u.s. dollar which started by a treasury using a euro swap remember in two thousand and seven and thus began the move silver and gold are also currencies and so violent moves in this we could see that we are what

we are seeing a knock on effects in all the markets around the world but look they intervened in the in the gasoline and oil futures markets they are they're introducing all sorts of margin rate hikes first take a look at this picture i took in connecticut last week you see that prices are well over four dollars there for the average price of gasoline so the headline following this three crude plunges but someone tell the gas stations and refiners average price of regular rises by two point two cents overnight so following that collapse in the gasoline futures we saw gasoline prices rise exactly because there's a disconnect between the paper market and the physical market because there are seven hundred trillion in paper around the world on a fifty trillion dollar global g.d.p. and when you drill down to markets like gas or you've got oil collapsing in price well get prices at the pump are increasing because that's the actual physical

market is actually going up but the paper mark is being manipulated in all manner of violent manipulated to. go path ology being practiced by these psycho pathologically insane or betrothed yours and kwan's places like wall street and goldman and j.p. morgan were you by the way during the period you know you just kind of disappeared there for a few days you sent in aaron grady and the owners are earlier and you put your guns yes you got a gun to the bunker in one of those fish that kind of come out and talk like. fish fish fish fish i mean where were you exactly i mean you kind of want the grid actually somebody in the comments section said they've never seen such a redneck room. but we're talking about all the margin. rate hikes that we see well shanghai also joined and remember you seem to differentiate you think tim geithner and ben bernanke you're somehow more powerful and uniquely corrupt than

the rest of the world but if you look at china they're doing the same thing money supply a fifteen point two percent in one month alone and then we see this headline shanghai and third silver margin hike in month right and what what's happening is things your average is that the margin rates going to go up two hundred percent which means that you've got people owning the precious metal for one hundred percent cash which is the same as having a gold or silver standard so the c.m.e. in trying to dissuade people from precious metals by raising the margin rate is actually creating a de facto global precious metal standard that's why i say there is no alternative you talk to me about the price of silver and i say to you there is no alternative paper is complete nonsense there is no alternative i think this is the second amendment issue because you talk about all those guns behind me in connecticut but i think this is the second amendment issue you know that second amendment gives you the right to bear arms to defend yourself well i think bearing arms in the currency

financial war is gold and silver those are protection against the financial war silver bullets i have silver bullets i have gold bullets too those are terms of the gold bowlers and that's always good for wearables and stuff and ben bernanke but i mean gold us a little expensive ok but let's move on to this headline because i'm going to prove to you that they're trying to keep you from defending yourself against currency collapse dollar engraver danger than the euro so this is axel merckx in the financial times and he says imagine a country that spends imprints trillions to patch up any problem now imagine another country where there is no central treasury meaning the bailouts are less easy and which has a central bank that is mopped up liquidity over the past year rather than engage in quantitative easing of course is comparing. the u.s. and their dollar the european area and their euro but only let me just explain something about the dollar enjoying a bit of the bounce recently time exactly to the moment when i've been logged in

the spectacle stance of bluey guy pakistan and shot violence films on a live in a huge american state sanctioned terrorist act blood guts spencer gun armed military conflict the military industrial complex i.e. you do are you do it's a huge platter fest that we've seen which is the basis for the rally in the dollar there's no jobs or there's no manufacturing there good thing back in the dollar this frickin states tension terrorist acts that's what the total chosen of the dollar the more any one of the more languages one of the more really wasn't on him or his own back the policy if you want to go you're buying votes there is no alternative what's over in goal there is no alternative bangladesh and the little blip it's not a rally in the dollar max there's a lot of gold listen we don't have that much time left and i want to show you another headline banks driving people to suicide so this is from ireland and this

comes from one of ireland's most senior high court officials and he's spoken out about banks hounding people over debt some of which has already been written off and they're still pounding people to their death he said quote we know which banks were the cheerleaders for the celtic tiger is some banks are reverting to type to come to court assuming that the banker always wins anyway that's not how the law sees it it has to last for years of course bankers always win but this guy this judge in ireland is saying no no no not here not on my watch. this is a trend you see first in india of course the bankers go after the farmers and there's the indian farmer commit suicide every thirty minutes thanks to the genetically my modified currency seed that then monsanto that is the genetically modified seed which acts as an agricultural currency and you see suicides in india one every half hour now in ireland people are committing suicide to escape the

credits are bankers you see this all over the world and to escape the debtors prison bankers prison there has to be what robespierre said many years ago if the social contract is broken the people must revolt well my final word is that gold and silver are a second amendment issue there is no alternative thanks so much stacey thank you max you don't go away and there's more coming your way. for the food we've got. the biggest issues get a human voice ceased to face with the news makers on the t.v. .

repairing a broken. construction and humanitarian aid. so she officially gets the spoils of war it's the people who pay the price. is no longer just down to drug trafficking. afghanistan the dollars. i welcome back to the kaiser report i'm max keiser time now to go to new york speak with a reggie middleton of boom bust blog dot com read your milton welcome back to the kaiser report it's good to be back regimental to last on your on the kaiser report you tell us how zero zero percent interest rate are starving the banks but it was designed to say that the time you were the only analyst in the world to imagine that it would starve the banks and even proven correct so tell us more about this

what's the current status of the current status is the. same as before the banks are not making in the real economic profit off of their interest bearing assets and they're taking a losses on the liabilities. of the assets that have become liabilities. i think also in the last i'm going to show i discussed something that was relatively contrary and unique as well and that's banks that were actually willing to walk away from foreclosures well bloomberg ran a story this morning as dead head cities of these floods cities that was suing banks for keeping care and maintenance on foreclosed properties so now you have banks actually have collateral that have learned they get a value to it it's actually costing them money so the collateral is actually proving to be the antithesis of what the interest paid it instead of backing

a loan it's creating a deeper hole for the said loan so not only will they probably never get the money back they have to pump more money and. it's also difficult to see how they get out of that if the cities will become aggressive and i can see cities in that suppose he's becoming aggressive because hard times are all over everybody needs money and if the city see the money they're probably going to go after it regiment and let's focus on this a little bit more so you've got a situation now where the banks recently. it seemed as though they were getting lodging tend to pass the new laws to absolve them from their mortgage fraud of mortgage selling problems or to cut a deal and get it behind them and do some accounting tricks on their balance sheets but what you're saying now is that the stakes are stepping in and they're actually issuing these banks and so how how much teeth are these lawsuits have you think ready i don't know i'm not a lawyer and this is i know we're in. uncharted waters but if the banks saw a legal sinkhole. the banking industry is

a new tobacco industry now only organise it how he's in city suing the banks you have the banks n.b.a. and executing investors in trust suing the banks for you know forgery practices misrepresentation you have the mortgagees suing the banks the people who have been project for close upon. that is like a bottomless pit think about the amount of mortgages take have been taken out during the boom time to think about two percent of those people soon effects you know i mean it's a liability so if you think of tobacco companies when a vehicle goes you probably haven't seen anything here and tobacco companies didn't run at thirty times leverage by the way right at the back of companies and run it three times leverage well let's go back to two thousand and eight for a second we know that hank paulson went to congress to negotiate and some bailout money and this was augmented by further bailout money do we know what the total

price tag was for the bailout money and my second question is based on what you're saying here can we anticipate another round of bank bailout money and will it be approximately the same size or less or more but i differ don't know what the total price tag for the bailout is i can give you a number that's not. you know not every medical number and the price of a gal out. is the economic future of the country if you don't let the insolvent fail. crash we've hit the bottom go to be on our way back up we have economic productivity. at a first level. we decided not to do that and decide to keep all of our same place and now you're dragging law so out i have absolutely no idea what they're with medical number is but the actual true economic cost is future growth now as for any other bailouts also read another article this morning or yesterday stating that the

banks are considering settling their fraudulent foreclosure issues with attorneys generals etc for five billion dollars if they get away with that that is in essence a bailout because we are talking at least twenty twenty five billion dollars of potential liability at minimum from a realistic economic perspective so if you could if you could take twenty thirty billion dollars of europe's problems and you can buy them sell them out for five you know you've been bailed out to the tune of fifteen billion dollars let me get your comments on something that's in the news is talk about goldman sachs for a moment two stories have come out and s. and p. just downgraded goldman sachs and we've also got a downgrade from the wall street guy well day who came in and said that based on matt exposé in rolling stone magazine that this stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down

six billion dollars already today and making reference to this matter be article did you read the mats i.e. b.r.t. call your analysis or financial model analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate a journalist an investigative journalist he's not a last great guy some people might question his analysis but reggie made. and what do you say about his analysis is it accurate to be honest i think it could be delayed this. article by teddy but i can tell you i've been tempted to alert those who felt the cold and said skies. have excrement and does not smell the goldman sachs has been overvalued for quite some time i'm starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk going the sex tapes and running its business and the rest of the assets are not covered by the profits of doing business from an economic

perspective you know they're covered from an accounting perspective and they make a bunch of accounting earnings in the price goes up but they take significant risk over the last two thousand evan over the last few four years of their business come the bite them they've basically. i'm going to watch my tone here for the first time in quite some time but goldman sachs' business model is basically to take advantage of his clients that's where the extra spread comes from and that's really could have. training with not one lawson insider trading statistically having a quarter without one day of trading losses as was the case of gone with j.p. morgan and bank of america i think between the three of them they had one down day in trading losses statistically is that really possible is this is possible is jumping off and priced people living in london some brain california with just a broken. it's a possibility but the chances of ever happening you know very slim you know in

general you know i have children and i tell my kids very simply when it sounds too good to be true chances are it's too good to be true i would want to do business with somebody who had done trading the last. three quarters you know it's i when it's not with the jets just not worth the risk or let's talk about the stock market for a sec it is it appears almost as if washington and particular ben bernanke and working through the c.m.e. and other regulators they're trying to corral people into equities they keep raising the margin requirements on commodities but they don't raise margin requirements on trading on equity futures and this is based on all the economic indicators you just discussed being a horrible shape stock markets trading near all time highs is that is our disconnect there but of course there's a disconnect i believe that there could be market has been significant overbet you know those who follow my blog know that the crash of two thousand and eight and first quarter of two thousand and nine has never finished the government is

attempting to blow the bubble which they succeeded in nominal terms in the u.s. equity markets the problem is bubbles are not economic progress you know you go a bubble it pops when it pops and usually values usually go below the trend line and that's. not the way to do it and that's the way that policies has been conducted in this country i disagree with it but we'll see from from correct if i'm correct then you're going to see a pretty prices drop significantly and if i'm wrong then they're going to keep going up despite if that earnings of revenues in margins are going the opposite direction and this pipe in fact the employer costs are going up despite the fact in climate is going down that doesn't sound like investing that sounds more like you know chase bernanke and women and he does that's not in the investment and that's not a. market with compressed discovery all right said free plan market and century pam markets tend to fare all right last question pertaining to the dollar folks say

that the dollar is stronger than the arrow they look at the periphery countries in europe and suggest that the euro is an errant li structurally weak as a result of these corrupt peripheral nations in the us however they have quite a bit of trouble based on what we've been saying right here what is your take on the dollar versus the euro both have significant flaws have significant issues i think there to be able triumvirate of. economic superpowers the e.u. the us and you have china and. each each of each one of them have a fairly unique problems but taipei related and the correlation between the problems of basically the problem and how they handled it the e.u. is in a highly indebted stare face in every state so is the us the e.u. has the too many chiefs in and of india's problem where they have

a. separation of strong economic countries and a very weak economic countries that are pulling other countries out and they're going to fall to me structure you've heard it from me it's guaranteed to happen it may be called something different but it's going to happen that's going to do significant damage to euro and cause rates spike the u.s. has too much debt and basically running a ponzi scheme which treasuries there's no way in the world that treasuries should be increasing in price and that race will not go up and then you have china wish. anecdotally appears to have avoided all this because it basically ran a bubble they opened their banks to get it to everybody lend a clue anything that could be considered transaction in g.d.p. and it looks like they're doing well they're going to crash and trade it's going to be inefficient every crash one way or the other but i think the three powers are basically waiting for the other to make a lot of those of us. kapur flies in a direction that's the best that i can surmise you know it might not be the case

but i see the case of us on is the unsustainable i see the case of the e.u. as guaranteed destruction serial destruction several countries and china is rampant inflation there's absolutely no way tonight so if china and the u.k. you go before us the us benefits if the u.s. and china go benefits etc or if it's a very good way to run the country's finances but from what i'm seeing from the outside looking in as an outsider. can't see them doing anything else besides that because each step to each. of the three entities are taking don't seem to be fundamentally sustainable and just a final political gist of travel but not fundamentally just all right it sounds like what some call a currency war and the world war three being fought on the currency pets is exactly what's going on reggie middleton thanks again for being on the kaiser report ok oh you're very welcome for to come back again and that's going to do it for this

edition of the cries a report with me max kaiser and stacy everett i want to thank my guests reggie melton of boom bust blog dot com if you want to send me an e-mail please do this at kaiser report at r t t v dot are you and so next time next guys are saying bye. and.