it's coming up right now max keiser and states i have it show how warning signs of social unrest in britain have been that fall to see for some time that's in the kinds of reporting on elsie. really you believe just science and technology from the ground. we go to the future are covered. as are stacy herbert i remember back in the day a famous quote from maggie thatcher. tell us more yes she said there is no such thing as society and the middle classes rejoiced as all that public housing came

onto the market and they were on the property ladder today they are actually very surprised that there is no such thing as society and they're outraged and they act as if there's no contacts to the under arrest in the u.k. so i want to take you to a headline from two thousand and nine in the economist magazine global tinderbox two thousand and ten could be a year that sparks unrest yeah this is we covered this when it came out and the economist magazine blatantly was handicapping social unrest picking trying to figure out what countries are most prone to it and to do a point people are saying where does this come from who could have seen it coming it was it was a whole feature story in the economist told the people tell the people this is separate from their political unrest index this is their social unrest index and if you look at the map you see that britain had a medium risk of under arrest social unrest if the world appears to have escaped

relatively unscathed by social unrest in two thousand and nine they wrote despite suffering the worst recession since the one nine hundred thirty s. it might just prove the law will be. for the storm and they cite not only the increase in poverty but they say poverty alone does not spark on rest they also cite exaggerated income inequalities poor governance and lack of social provision. that sure rageh they chop the economic supports out from underneath the vast majority of the population there is a brief sugar high of real estate appreciation which everyone interprets as their newfound riches even though it's all based on debt and that all is now been washed out to sea and they're all being broke again resulting ultimately in the very predictable social unrest in a city like london as predicted in handicap and talked about by the economist

magazine which call it their social cohesion risk and the results today are being viewed as somehow isolated without context or historical precedent or somehow nobody knew that they were coming and that is completely false exactly and now a lot of people are saying that you can't understand this in any way it's just sheer mindless evil because there have been no austerity measures implemented yet and yet today i was reading the financial times and mervyn king the bank of england said that inflation would reach as high as five percent this year so this is ignorance on a wide scale that. the populations don't understand inflation as an austerity measure that's right the austerity measures have come in the form of excessive bank fees you know when these poor people who are not part of goldman sachs in a circle and they take money out of the bank they get raped by the banks with these phase their financial austerity and oprah russian when you're charged twenty nine

point nine percent or higher for your credit card rates again goldman sachs employees get negative interest rates on their borrowed money it's jim crow laws as applied to interest rates it's basically financial apartheid and these people are living in a financial prison and this was a prison revolt and now many commentators are noting that these rioters are just reflecting the looting that has happened from the banking class now let's look at how the politicians who remember just reflect their population of voters interest and what they demand look at how the difference of how they treat these people are u.k. riots young yobs back on streets despite david cameron's pledge so this is from the telegraph and they're demanding harsher sentencing then that is being handed down to eleven and twelve year olds the photo you see in this article is

a twelve year old who stole a basically a ten dollars bottle of wine and he's been given a referral order which means community service and rehabilitation and this is not enough they want prison for this twelve year old for stealing a ten dollars bottle of wine well of david cameron has to decide whether he's going to allow plundering in the city of london to finance his economic growth george osborne has to make this decision or whether he's going to outlaw plundering in the city of london and therefore outlaw plundering in the rest of society you can have both david cameron you can allow plundering in the city of london and then outlaw it in the ghetto. that you created from the city of london plundering so it was a phrase that you see on line alive s t f u s t f you david cameron because you're completely off base here you are a total product of an elitist school of banking schmucks well max let's look at

a quote from david cameron about these young looters the eleven and twelve year olds he says quote if you're old enough to commit the crime you were old enough to face the punishment so i want to wind back to earlier this year from january two thousand and eleven and this headline cameron warns against banker bashing so u.k. prime minister david cameron yesterday said he understood the public anger towards the nation's banks but warned against banker bashing there is blatantly obvious that your own bankers are financially raping your people. oh their government you know a very big guys are in their pocket because you talk why do you go yeah this brick wall. now let's continue on this theme of how the banking looters are treated differently from the looters who take ten

dollars bottles of wine here's a little clip. from the third week of july two thousand and eight in the heat of the beginning of the real market meltdown. so. trillions of operated trillions were handed to bankers based on their fraudulent activities which destroyed the global economy they got drunk that's right and they committed massive fraud and they're all being applauded as entrepreneurs meanwhile these so-called looters and the ghettos of london they should be going down to goldman sachs office and j.p. morgan's office and getting in line to take jobs because they've demonstrated the ability to loot and plunder and still that makes them qualified to be investment

bankers they should all be given jobs you know why they won't be given jobs because lloyd blankfein and jamie diamond don't want the competition if they were actually pro-capitalism they would set up a ghetto investment bank and put these kids to work raping them plundering the global economy but that won't happen because h.s.b.c. barclays loans u.k. banks that were bailed out by the federal government bailed out by the people don't want competition so here you have the leader of the free world george w. bush at the time apologizing and providing an excuse for the bankers he's saying they were drunk now here's what happened to a looter in brixton brixton looters jailed for six months so my back a bell twenty three took several i pod touches an i pod nano devices from a currys in brixton when interviewed by police bell said she had been drinking heavily and followed a group of boys into currys she took the items from the floor of the store now she's been sentenced to six months in prison but the population is begging for more

they want her to put the. for longer drunkenness is not an excuse and this twenty three year old girl's case no it's not an excuse for some schmuck on the ground no no and if you go to the city of london on a friday night you'll see investment bankers in suits and ties def a catering i met there they got a ticket for that and now they get reprimanded for the no they get a plot of brawl both as david cameron you know george osborne so back to that social unrest in that. the us is very low on that list but let's look at a few little headlines from the u.s. nearly fifteen percent of the u.s. population relied on food stamps in may according to the united states department of agriculture now in that clip of george bush he went on to make a joke about how expensive property was in texas and it's followed right on him saying all the fraudulent activities of the bankers was excused by their drunkenness so he's making the connection between all the banking activity and

inflation that the middle class tends to love in the property prices in the meantime the bottom of the ladder fifteen percent of the u.s. population is on food stamps and food stamps of course supplied by j.p. morgan who are feeding both sides of this nightmare their tunnel like the food company that sells junk food and diarrhea medicine they've got both ends covered so j.p. morgan they create the inflation with the food stamps and then they create this of fees selling collateralized bonds tied to the inflation adjusted food stamps nightmare and there was nothing but a parasite i agree with what i'm here putin who says that the entire u.s. banking system is a parasite on the world oh i grew so let's look onto another case of hypocrisy that happens on a global scale high frequency firms triple tree in route the stock markets fast this electronic firms boosted trading three fold during the route that are raised two point two trillion dollars from u.s.

equity values stepping up strategy. that profit from volatility so over this past week while all these markets have been in turmoil seventy five percent of american equity volume in august was due to high frequency trading i predicted this i said that of course moody's would downgrade u.s. debt because it would increase volatility they downgraded exactly as i predicted and it volatility increase substantially exactly as i predicted this is the new profit center for wall street churning and burning u.s. sovereign debt sovereign debt around the world this is their new profit center now this is a very interesting quote from the article again think of all these the swift justice that has happened in the u.k. against young people who have stolen items worth ten bucks or so u.s. prosecutors have joined a regulatory investigation into whether some high speed traders are manipulating markets by posting and immediately canceling waves a rapid fire orders justice department investigators are working with the f.c.c. to review practices that quote are potentially manipulative the sniper's luda as

a high speed looting high frequency trading high frequency looting every day goes on the alan greenspan of the world the ben bernanke of the world the barack obama's of the world will say well that's how the economy works reading liquidity the system we're making a market but yet when somebody down at the ghetto steals an i pod somehow that's morally abhorrent it's the exact same thing they're morally equivalent you have to decide cameron what kind of society do you want you want to do want to go down a fact your path and say there is no society we're just going to kill each other for the available few bucks a quid or do we have some kind of republic or some kind of civilization but you can't have both you can't have just one set of rules for your friends and another set of rules for the people who aren't from the same school that you want to know because there's two sets of laws there's two sets of rules there's two sets of moral paths that are being managed at the same time and one happens to be controlled by the folks that are doing the stealing and there's not the ghetto kids but george osborne's bodies that they're the mass those are the vulgar plunder.

skull that needs to be brought to book and not the poor schmucks in the ghetto that are the victims of your crimes you've got blood on your hands george osborne you're swimming in it. well that's important for the population it's up to the population as well the population i have to say is much more outraged by these young thugs and in the ghetto than they are by the the older thought in the city they are clearly more outraged and they are demanding their politicians the very same politicians i might add that only months ago were caught stealing tens of thousands of pounds for from the taxpayer in fake expenses to buy computer equipment and white screen televisions just as these looters were doing well most of the people who are criticizing the uprising in the ghetto will be joining the uprising. that's what the french revolution went to the best of the best we know from history

tayseer of our thanks so much for being on the carson report thank you stay tuned much more coming your way don't go away. dr swan's policeman swines minister's wife i just. didn't find me if i could live through the night that i would get my kids out of here because i knew that was going to happen that he was going to kill me many victims don't understand that domestic violence includes verbal abuse psychological abuse physical abuse and sexual. at least four million women are affected by abuse every year those around the two options that i saw at that moment either i'm going to kill him i'm in jail or he's got it killin me.

croce. future flights. are two types to the max air show. welcome back to the qantas the report imax keyser time now to go to kansas city missouri and stock with the man responsible for putting more than one thousand bankers behind bars in the nineteen eighties professor william cable luck bill black welcome back to the kaiser report thank you all right professor black markets around the world are once again in chaos as bank shares around the world tumble with things that have been different had eric holder a personal banking criminals in two thousand and nine. yes but things would have

been far better if his predecessor mu casey had pursued them it's a question of you could have prevented the entire crisis obviously what happened in the a bomb administration as they decided to clear victory and go home and so secretary geithner has been going around saying that he saw hauled the entire financial crisis for less than it cost to deal with the savings and loan debacle and of course this is complete nonsense and the chickens have come home to roost and they're being slaughtered as we watch sam's like the basis for not pursuing the criminals on wall street as to make the case that while it's not about chickens that old joke of what he alan or how the doctor says doctor my brother thinks he's a check and the doctor says take these pills and the brother says wait on a stand we need the eggs and other words the jumping that the criminality is what's

needed to keep the system functioning the us has become a club doctor say it thrives on the criminality of thrives on the fraud is that too much or is that correct the bell black it doesn't thrive it's the most destructive thing but what thrives is the c.e.o.'s and this is what the nobel prize winner in economics george after law and his co-author paul romer wrote about it in one thousand nine hundred three and their title pretty much says it all looting the economic underworld of bankruptcy for profit and what they said and i'm quoting them is that this kind of fraud by the c.e.o.'s using accounting is a sure thing so it's a sure thing that the c.e.o.'s will get rich the way they get rich unfortunately is by deliberately making bad loans which create a lot of phony accounting income so it's also guaranteed that they will ruin the economy and then the question is are they. prosecutor is going to take them on and

we've had two administrations in a row the bush and the about an administration that have allowed these criminals to operate with near total impunity. dimension though aren't lending and anyone who looks at the situation even for five minutes ten cell that this is a case of learning and why is it that obama can't doesn't even look up the word looming in the dictionary as it what's his problem well again it's not unique to obama this is the last two administrations and indeed under the clinton administration as well specially near the end where they pass commodities futures modernization act to stop all regulation of credit default swaps that he's of been three administrations that have adopted policies that in our jargon in criminology are highly criminogenic that means they will produce epic amounts of fraud and then

you had attorney general mckay see under bush famously refuse to even investigate the major frauds saying that it were going to leave you quibbling of and i'm going to voting white collar street crime and then it's revealed in the new york times that secretary geithner intervened to try to prevent even investigations much less prosecutions of the largest banks and so we have this bizarre incredible concept. from its treasury secretary geithner and that is the path to financial stability is to leave the frauds who caused this crisis in control of our largest banks and then to bail them out and then to seek political contributions from them all right let's talk about the rating agencies for a second because during they when they collateralized debt obligations were created

this securitization and the derivatives explosion during the two thousand the rating agencies gave aaa ratings to what could be ostensibly referred to as crap and now suddenly the rating agencies are turning similarly on the very banks that they were in bed with just of couple of months ago was as a shift in the in the in other words in organized crime many times you know have enter scene in warfare between the gambino and then some other form crime family is a criminal criminality the rating agencies are they gone to war with the funds in the u.s. government is there an intern gang war going on oh there's a great publicity skin i'm going on what is everybody in the world talking about standard and poor's right this is the greatest creation of free publicity in modern history so the stuff that they gave the aaa ratings to

was actually referred to in the trade at the time before it blew up as toxic waste in india have been for to that in that phrase for over a decade. the f.b.i. warned in two thousand and four that there was an epidemic of mortgage fraud using their words and predicted that it would cause a financial crisis if it were not stemmed and nobody thinks it was stemmed the mortgage bankers association which is the traders association of the perp's had an anti-fraud unit called mari which reported to the entire industry in two thousand and six the following three things first that stated income loans also called all today were and i'm quoting an open invitation to fraudsters

sakit that the incidence of fraud in these loans was ninety percent and third that therefore these loans deserve the phrase the banking community used behind closed doors which was liar's loans now add two more facts to this first we know both from and investigations that it was overwhelmingly the lenders that put the lies in liar's loans and second by two thousand and six roughly thirty percent of all new mortgage originations in the united states were liars' loans is really important to understand something that very few economists understand they treat as dichotomous in other words there are two categories that don't overlap liar's loans and some price that is not true sub prime loans by two thousand and six roughly half of all sub prime loans were

liar's loans and that's where we get that overall figure of about thirty percent of total mortgage originations in two thousand and six were liar's loans remember ninety percent fraudulent that means. moved over a million fraudulent loans a year and after the f.b.i. warning and after the marri warning the industry dramatically increased the percentage of liar's loans that it made that means that when standard and poor's moody's and fitch were giving triple a rating on the collateralized debt obligations to the c.d.o. those were primarily backed by fraudulent mortgages something day event s. and p. fitch and moody's were all warned about and so they all deliberately adopted

a pop the financial version of don't ask don't tell and there's an infamous s. and p. memo from two thousand or two thousand and one in which the poor professional rater asked for the loan files so we can actually review the credit quality of the sample of loans so what happens he gets back a flame gram from his boss in all capitals triple exclamation point saying that it is totally outrageous to ask to see the loan files that people that merrill lynch's of the world the lehman brothers putting these c.d.o. is together don't even have the loan files never looked at the loan quality finally going to compare the looting going on in the u.k. with the looting by the bankers yes when your most elite most powerful members of society. upped strategy of what the famous french

economist very conservative called plundering then as he said they will develop a morality that doesn't simply permit plundering but valorize as it. and when that happens the moral structures of the society will inevitably deteriorate in the upper classes that bit leaves too polite living in the underclasses it leads to street looting south ok well let's follow up on another word so we've got looting going on in both sacked strata of society now the public has demanded something like sixteen thousand police to go into the streets to stop this street looting where were they and demanding similar actions to stop the bank looting it hasn't happened and the a bomb administration has followed the bush policy is doing everything possible to prevent the public from

targeting what it should be targeted uli looters obama's famous statement to the big bankers in person was i am the only thing standing between you and the pitchforks. now of course it is not supposed to stand between the elite criminals and the justice system and none of us want pitchforks or at least not many of us want pitchforks we want good old fashioned prosecutions followed by jail time just as what happened in the savings and loan crisis where the justice department worked with the regulators and achieved more than one thousand felony convictions and more than ninety percent conviction rate and those are only the that you can in cases designated as major by the justice department almost all

of those people were prosecuted typically they were prosecuted successfully so this was a great success against elite white collar criminals in history and we can emulate it any time and you are absolutely right your question if the people will wake up and demand this demand as i have that holder resign that he be replaced by a real prosecutor and this be made a priority then it will happen. limit their black thanks much rain on the kaiser in part. and if humans all right that's going to do it for this edition of the kaiser report was me max kaiser and stacy herbert i was i guess bill black you'd want to send an e-mail please do so at kaiser reporting r t t v dot ru until next time this is nice guys are saying.

in india oh she's available in the movie joyce the hotel rooms a movie that's the gateway to the grand imperial truly told what. you can a listener to. see don't need to go and. read the sun the colonel was a photo retreat.

welcome back this is own secret check of the headlines that come out of the trial of deposits of president hosni mubarak has been adjourned until september and he's interior minister alex the charges of corruption on the maddest peaceful protest is that many of the support to ask him did not support his transition to democracy it's no way to see. legalized downgrade standard and poor's is coming under scrutiny as suspicions are raised over the side of trading before the jamming regime change was officially announced and as the markets rebound after parties down the great slump making a question i'd just hold a meeting agencies give out those all important credit scores. could go much to commemorate to notice where there were no.