and that was afghan american blogger hours ago wardak and unfortunately that does it for now for more on the stories that we've covered going to r.t. dot com slash usa and check out our you tube page it's youtube dot com slash r t america and as always you can follow me on twitter it's enough thanks for watching and waiting even. the it.

was a welcome relief as a report. of the danish filmmaker is in the news recently that a cannes film festival making some highly controversial remarks regarding nazis germans. but check this out let's look at some of these other stories that are circulating and so me whether or not this seems a bit odd or tells i think you're referring to my first headline here we decree

says prostitutes attended reward party and that that's not the shocking thing ok this is the big three insurance company they have a little division called ergo and they held a reward party to reward the insurers high performing agents and there were one hundred executives that attended and twenty prostitutes but get this women wore color coded bands with red for hostesses yellow for those available for sexual favors and white for women reserved for executives and top agents after each trip to beds set up near the thermal baths a woman would receive a stamp on her for arm someone got a stray munich re a financial terrorist responsible for creating ghettos financially disadvantaged folks who are on the short end of the ghetto for cation of the financial terrorist schemes of general really are forced to wear yellow armbands and be sex

slaves for their german. hosts. and then be stamped on their own arms outward to prove that they were used and let's not forget the the the little serial code stamped on the wrist as part of the package but max the story here is that this goes from the very bottom these are just agents going door to door selling insurance products in the financial services industry but the top of the pyramid of banking. establishment is dominic strauss kahn because this is the culture is a dumb extremist kind of part of the banking culture where there's no much trust gone lloyd blankfein jamie diamond this guy panned over it's citibank the c.e.o. just paid him some forty two million dollars for stealing four hundred twenty million dollars they have a culture of predatory behavior where once you like

a serial killer you know once you steal money from people with mortgage fraud or with banking fees that are illegitimate or with collateralized debt obligations get a taste for the serial financial killing you just go you graduate to these higher crimes and you become a dumb extra lloyd blankfein or very jamie diamond where serial financial murder is part of your day to day life that's the culture you live and well speaking of color coded back let's move on to the next headline because this does have color coded debt warnings in this story financial repression coming to america el erian so this is mohamed el erian one of the heads of pimco the largest bond fund in the world and he was commenting on the global debt problems and signal and noted that there are some countries already signalling red like greece ireland and portugal he said then quote others are flashing orange like the u.s. and already require future sacrifices most likely through a combination of higher inflation austerity and importantly financial repression l.

arion classifies financial repression is seeking to impose negative real rates of returns on savers right oh yeah it's a good story to follow up on financial repression or wealth confiscation again the ghetto model from the thirty's and forty's people have their wealth confiscated by the service and of the democratic process by the national socialist party and they were put the ghettos and they were eventually killed i mean here now we're seeing the same process in europe in greece and ireland and what this gentleman is referring to is the same thing coming to the united states and the key there is negative rates for savers and we've said all along that the conference global. well it is not ideological or star religious it's savers versus speculators people who should get three or four or five percent on savings because they work hard and they save money are are subsidizing other being penalized by the speculators who are at the point of a gun got ben bernanke in the e.c.b. to keep rates near zero to finance their speculation and this is the true conflict this engulfing the war and the true reason why you've got people in cairo in

wisconsin in the newseum now in the dreaded it's savers versus specular it is financial repression in oprah rushing yeah and i might add though of course we're being held hostage all the saviors of the world on the workers of the world by those very guys who were with prostitutes and yellow armbands you know this is the theory as a speculator or oh they developed a set a serial killer once you start to just steal wanted lee without any accountability and they call moral hazard i mean mean do you call a serial killer you know he's this problem is the judges go moral hazard he murdered thirty seven people these suffers from moral hazard that's a euphemism for serial financial murder well if you're looking for an end to this financial repression max the next headline does not supposed well inflation jumps again but i was born tells king to keep rates low so this is

george osborne the chancellor of the exchequer in the u.k. and mervyn king the head of the bank of england inflation jumped to four point five percent and is due to hit five percent by the end of the year but despite this they're saying i don't raise the rates this is exactly i'm talking about inflation is rising the price of food and energy is rising but they won't let interest rates or wages rise because they want to keep rates near zero to finance their speculation and whenever they make a bad bet of course they get bailed out by the taxpayer who the. it has to suffer austerity measures to pay off these deaths it is financial repression it's using the globalized financial networks to impose that what i call the casino good leg model of economics and mervyn king is being again like others in the system he's got a gun to a said osborn the tory from the u.k. is a financial serial murderer we remember the big bang started in the u.k.

when margaret thatcher leashed this model upon us and one of the very first assets transferred from the public domain to the private banking class was the public transport system and i want to know one thing about the public transport system in these inflation numbers public transport fares rose by five point three percent on the month of april and by twenty two point three per cent on the year so remember we're told that we have to transfer this to the private sector because they're so much more efficient and lower prices for us on the services that we'll hand to them no that was a scam government is good at running stuff like transportation and co-operative networks that's what they're good at economies of scale they get the best price private sector is good for introducing stuff like apple computers and computer gadgets and stuff like that but you can't want the same people who are competing

selling sort of running the transportation sector already end up with exactly this problem rampant inflation high prices they walk away from it look at happened to fukushima there's a private contractor tepco it blew up and where they are hiding under their beds at least i think this is sort of put a sort of yarn commit ceremonial stuff occur well speaking of killing yourself next that's the next headline the very same guys that blew up our global financial economy with financial weapons of mass destruction that exploded probably while they had some prostitute wearing a yellow armband. that's derivatives emerge from montana pretty risky long devotee risk is that you and i in people watching might live too long goldman sachs to wait to bag and j.p. morgan chase which bundled them sold billions of dollars of mortgage loans now want to help investors bet on people's deaths. i've often said as

i've said on the show if auschwitz was listed on the new york stock exchange today they would have never invaded germany or try to put an end to world war two because too many americans and british people would be profiting off the business model of auschwitz this is the final solution for the derivatives model is to exterminate millions of people using financial christian now what don't you understand about that because well they lost that pos stuff quote who'll go out of your bed again for it and it is well the article in bloomberg points out that the closest thing to this is the synthetic c.d.o. is that blew up the financial economy because you're betting on the outcome of something that is not associates not you taking out life insurance on your own life it's goldman sachs j.p. morgan into each a bank taking out an insurance on your life well again this is all made possible by interest rates being at near zero percent you can you can create these huge ponzi

schemes that are self-referential that are tied to indexes that are created out of the old orifice of some kuantan wall street who is the only guy not getting laid and then you try to market that to hedge funds and pension funds and you make huge fees but at the end of the day you're not talking about anything that would qualify as economics this is the casino goulet financial oppression in action and it's killing you. well it is tied to also the financial repression of attacking savers because these guys have to steal the savings of people who have savings and they are more marketing this product these derivatives towards the pension funds are sitting on more than twenty three trillion of assets it's just another form of austerity and they don't all of the unsustainable risk independent sons and then they say oh the pension funds are losing money and by the way you have no

protection why because they stole it these are the this backdoor thing using derivatives as these financial death derivatives put the final nail in the coffin of our western economies we're moving into a new world order apparently according to this next headline china's central bank lays it down new i.m.f. leadership should reflect new world order so this is a quote from the chinese central bank governor who once somebody to head the i.m.f. who is from china or brazil or a developing nation. so i want to look at one final headline here to see what this and who world order might be and whether it might not look a whole lot like the old old world order excluding watermelons put spotlight on chinese farming practices fields of watermelons exploded when a farmer and other agricultural workers in eastern china mistakenly applied for coal or for nor on a growth rate or everything is just over high ground it's over stimulated and it's

all blowing up so well maybe they might take this growth accelerator and now apply it to their own economy and i think they might just be ready to take on the world the world financial system right where we left off. that's what we need more artificial growth stimulation as well as they so you're right thanks so much for being on the kaiser report thank you rex don't go away much more coming your way so stay there. couldn't take three. three. three. three. three. video for your media project. car teach dot com.

welcome back to the guys are in part time now to go to los angeles and speak with nomi prins now me is a former senior executive at both goldman sachs and bear stearns she's the author

of it takes a tell it now me welcome back to the kaiser report thanks max. you know me i want to touch on this. article for rolling stone the people versus goldman sachs of course you work as goldman sachs as a managing director and i also want to bring into this little discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story by matt taibbi that stoned street advisors is takes exception to one of things you bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin a lying before congress and lying to its clients your thoughts on carl levin's accusation the lloyd blankfein was lying to his clients was he lying

to congress both respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals for example with hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars position in that deal and because of that that was one of the sort of carrots the bait to bring clients into the deal and as the documents show and as the order cool mentions it turned out that goldman had a two billion dollars short position against the deal so it's sort of like there was this little teeny carrot and then there was this whole dumping of sludge on the other side and the clients who came in were caught in between and there was

a number of deals for which that was the case and different in different ways so the legal aspect of that is whether or not you know goldman has to indicate everything. also it still going to the clients that it's trying to get into these deals into which they're also sticking really bad securities toxic assets things that are just. stuff they want to get off their books because they don't want to deal with that which is the crux of all of these c.d.o. is that were created around the later part of zero six and zero seven they were they were stuff that goldman is trying to dump away from its books so we could get first flat and then short and it was significantly short which brings us to work were going for i was saying in front of carl levin in the committee they weren't significantly short well they they were so so that on its face is is a is a bold faced lie they were short they were short against the deals they were sure in general against the market but the legal question than anything else can be hard

to prove is whether or not not that he lied because he was short but what a short mean it's that sort of clinton ask what is is well what blankfein comes back with news that he is making or goldman sachs are making a market and within phrase making a market you can hide an awful lot of sins and of course the problem on wall street with the elimination of glass steagall and other regulations is that you have groups like goldman sachs claiming that they're making a market of course it's not their job is it but the fact that they can claim they're making a market gives them a gives them a blank check they can say almost anything and they get away with murder is that correct well exactly when goldman's profits were predicated eighty percent on their trading revenues and not distinguishing those trading revenues from market making revenues in which they were taking positions they could be buying for one client they could be selling for another client and what the decimation of glass steagall did that the notion of lasting going away allowed investment banks to find

a way and push away in washington to be able to leverage to be able to borrow to be able to do whatever it was they wanted. to do to create profits in a very risky way and there's a lot of arguments and says glass you've got thing to do with a company like goldman sachs making profits but the fact is it spurred a company like goldman sachs to go and create leverage and find leverage and lobby for leverage and create all these risky products and so there was a direct result between the repeal of that act and investment banks like goldman sachs doing what it is they do the problem though because of that is that there was never a return to the idea of what's the difference between a market maker and this is lloyd blankfein is argument and. company an investment house that's creating securities on behalf of its clients so from the perspective of goldman from the threat of the legal poorly regulated investment banking system and banking system the company is allowed to do what it calls the market making to

be sure to be long to do whatever it needs to do and how this responsibility to its shareholders to itself be a profitable company which they also hide behind and to create these securities it used to be that issuers and this week was the world class siegel was created in some ways to to delineate issuers who are technically on the side of their clients if they issue debt for a company if they brought clients along into that debt issuance they were supposed to have some notion that that company was going to do well but when you get into something as complex as a c.d.o. we're throwing in all of this we're throwing in the deals that you have on your books that you don't want where you're trying to stuff them away as quickly as you can that notion of what's good and what's bad and what was what's responsible what's ethical is completely murky fight now there's another problem with this make you know market argument that they take aside from the gross. miscarriage of everything that would pertain to being competitive of course this is

completely empty competitive and that's why so many of these competitors are being destroyed because of their being gobbled up by a few main behaves like goldman but there's another problem if they're making them more. it seems to me that when it suits them they can go in front of congress and they can effectively threaten to close the market if they don't get their way they have this kind of power now to put a gun figuratively to congress's head as we saw in two thousand and eight with paulson and other wall street types if you don't give us what we want because we are quote unquote market makers we are the market we can just close the market and they threaten financial armageddon is that too much of a spin on it or correct you know you have to take it for the bottom up and because it's not just the spin it's really the whole mechanism from creating the securities to creating the market part of part amounts article part of what happened to the investigation was that there was a deal for example timberwolf which was one of the c.d.o. deals where. when he bought an investment within it and then wanted to get out and

it couldn't get out goldman wouldn't make the market to basically take back the they had just sold and instead try to extract from this company more money more margin because they were going to be more losses in the deal they had just sold so on the one hand they can stop a market almost immediately after creating it and on the other hand you take that up to a larger conclusion and they can basically be in and out of markets at will on a larger scale and it goes back to the fact that we don't have a banking system and we don't have the appropriate regulations to dissect the companies that are merely there to take sides and yes they can hedge some sides but hedging is not taking a thirteen billion dollar position which is what goldman ultimately took it was fifty four percent of their overall risk at one time which is indicated in some of those documents that were in the report that's not a little position that's on market making position that's a betting position there's nothing legally and regulatory to keep them from betting

there is nothing beyond ethics to keep them from betting against certain clients when they want to bet with other clients depending on where they feel they're going to make the most money so yes it all goes into the definition of. what's a market maker versus what's. classic investment bank that is that is creating a situation whereby customers can access funds and investors can come in and supply those funds and those are two very different things in our loosely regulated banking environments they fall into one place like a goldman the bigger more powerful companies as you mentioned take more and more of this role and that destabilize the entire financial system and yet after everything we saw after all the bailouts after all of the pain that is still going on there is no change being discussed in that regulatory structure to keep this stuff from occurring or becoming an even bigger problem in the future which therefore it will i know we prince and former managing director of goldman sachs you are familiar

with the culture of wall street your professional career starting out was tied to the highest echelons of wall street but what do you make of this statement. coming out of the stone street advisor group they say basically they're attacking this piece and one of the things mentioned here is that well maybe goldman lied to congress good quote everyone lies to congress so he's legitimizing institutional kind of disregard for the law and this goes in print and there's no outcry about this and it's and given the what we saw with the adamic stress strauss kahn and the i.m.s. behavior recently and this is part and parcel of a culture of wall street of lawlessness of transgression of any any rules or regulations and it seems as though you've got a culture that's gone just from law breaking to being

predatory almost collegial like kalid you like capitalists they're going up salute bob. down there what how do you live in the culture what is it that's going on with these people whoever is able to sort of you know discard. their central morality and in in a lot of ethics and in just you know basic human kindness tends to rise in these firms and to run them in and if you take that outside of the wall street arena into you know what the i.m.f. is doing with with peripheral weaker countries in europe versus the poor countries of the i.m.f. you know represents even though it's supposedly you know a body that represents one hundred eighty seven nations it doesn't it basically represents the stronger nations the wall street firms represent their stronger selves the people that rise in these companies are the people that want the power in the influence to maintain what they have engine grow what they have and unfortunately this kind of power begets more power more influence that's

concentrated within a few banks that operate globally the more influence that's concentrated it you know some of the members of the i.m.f. some of the member countries that hurts some of the others the more power that's concentrated at the fed that that bails out of banking system and then and then moans about the fact that the united states has to raise its debt cap which is only representative of debt that was created to float the banking system and take that away from public programs which is which is the i.m.f. loan as well you know that creates a situation where the weaker countries the weaker people the individual mortgage holders you know howard as you look at it we have a level throughout the globe continue to get hurt at the. hands of people who really just want power and influence which continues to. manifest itself into more power and more influence right now only present about one minute left just i'm reading something you wrote just this week talking about the i.m.f. and the austerity measures and what's going on in europe and the basic deal of the

offer there it's swapping debt for austerity we've got about really less than a minute left just walk us through that modus operandi well it's again. what the i.m.f. does it looks a double digit in unemployment and from endlessly we indebted nations it became instead of because their banks either own money to the core banks or because they opened their doors as they were said to have to do by the e.u. by the i.m.f. to international capital international capital left leaving them with with with just a junkie economy and impoverished and unemployment people and the solution of the i.m.f. is putting upon this is to say our will do more of that you know continue to progress continue to reduce your social programs continue to create austerity measures so that we can loan you money so that you can float whatever international capital in whatever mistakes of the banking system within your country private banks or extra no banks have made and we will continue in that manner to make your economy worse while we try to float these investors as long as we can all right they'll be

friends thanks so much once again for being on the kaiser report thank you all right and that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert and i thank my guest nomi prins author of it takes a pillage if you want to send me an e-mail please do so as a reporter at r t t v dot ru and so next time this is nice guys are saying. a charmer over here broadcasting live from washington d.c. coming up today on the big picture.

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