it's all policy this is oh it's in the aviation enthusiasts from around the world is gathering in moscow where an airfield is the stage for the latest causing a jack of all technology it's a ten foot max and say which is also renowned for its spectacular wolfowitz is russia's premier pilots. energy giant shell in the persian gulf and being accused of trying to play down the scale of a major oil spill off the coast of scotland more than two hundred tons of the world's food to have spewed into the sea all the elite athletes be the country's worst of the exact. time india is becoming

a global marketplace for all games but the all forces are accused of turning up blinds only to be an illegal but thriving business people living in the slums and selling their old injuries the only way for them to survive. next the kaiser looked at how the warning signs of last week's social unrest in britain for all to see for quite some time. i'm stacy herbert i remember back in the day a famous quote from maggie thatcher stacey tells more this 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 the economist magazine bleakly was handicapping social unrest trying to figure out what countries are most prone to it and to your point people are saying where this come from who could have seen it coming it was it was a whole feature story in the economist told people to 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 unrest 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 lol before the storm and they cite not only the increase in poverty but they say poverty alone does not spark on the rest they also cite exaggerated income inequalities poor governance and lack of social provision. that sure rageh they. the economic support. 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 it 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 handicapping talked about by the economist magazine which called her 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's 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 were thinking the bank of england said that inflation would reach its highest five percent this year so this is ignorance on a lie 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 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 fees there is financial austerity and the old pressure 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 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 interests 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 is being handed down to eleven and twelve year olds the photo you see in this article is a twelve year old who stole it 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 or a parent cameron has to decide whether he's going to allow a plundering in the city of london to finance his economic growth george osborne s 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 and you can have both cameron you can allow plundering in the city of london and then outlaw it in the ghetto. but you created from the city of london plundering so it was a phrase that you see on top of the 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 in 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 and lay out their government you know very because they're in their pocket they go to log where you go yeah the great 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 call 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 competition you see if they were actually

pro-capitalism they would set up ghetto investment bank and put these kids to work raping employing the global economy but that won't happen because they just received barclays loans u.k. banks that were bailed out by the federal government bailed out by the people they 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 of 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 and if you go to the city of london on a friday night you'll see investment bankers in suits and ties deaf equating and what do they get a ticket for that now they get reprimanded for that no they get a plot of bravos as david cameron says george osborne so back to that social unrest index 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 all 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 they're kind of like a food company that sells junk food and diarrhea medicine they've got goals and covered so j.p. morgan they create the inflation with the food stamps and then they create this of these selling collateralized bonds tied to the inflation adjusted food stamps nightmare and there was nothing but a parasite i'd ring with vladimir putin who says that the entire u.s. banking system is a parasite on the world oh i grew so let's look on to another case of hypocrisy that happens on a global scale high frequency firms triple tree in route the stock markets fastest 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 as 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 proper 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 or rapid fire orders justice department investigators are working with the f.c.c. to review practices that quote are potentially manipulative that's right as little as a high speed little high frequency trading high frequency looting every day goes on

the alan greenspan of the world ben bernanke of the world barack obama's of the world will say well that's how the economy works reading liquidity the system we're making the market but yet when somebody down a ghetto steals an i pod somehow that's morally abhorrent it's the exact same thing they're morally equivalent they have to decide cameron what kind of society they want they want to do want to go down a factory path and say there is no society we're just going to kill each other for the available few blocks of 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 are 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 but they're the master those of the older plunder. and skull among the needs to be brought to book and not the poor

schmucks in the ghetto better 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 fogg's and in the ghetto than they are by 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 light screen televisions just as these looters were doing so most of the people who are criticizing the uprising in the ghetto will be joining the uprising. that's what the phrase revolution will teach the best way that we know from history this year but thanks so much for being on the kaiser report thank you stay tune bunch more coming your way don't go away.

reviewed elitists in science and technology from. the future are covered. welcome back to the kaiser report i'm max kaiser time now to go to kansas city missouri and talk with the man responsible for putting more than one thousand bankers behind bars in the nineteen eighties professor william cable look. black welcome back to the kaiser report i think you are 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 and it's a question of you could have prevented the entire crisis obviously what happened in the obama administration is they decided to clear victory and go home and so secretary geithner has been going around saying that he saw 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 now it seems like they're basis for not pursuing a criminal of our last trade is to make the case that well it's not about chickens that old joke of what he alan as a doctor says doctor my brother thinks is

a check and the doctor says take these pills and the brother says wait on the stand we need the eggs in other words the job being that the criminality is what's needed to keep a system functioning the u.s. has become a cop partner see it thrives on a trial mentality thrives on the fraud is that too much or is that correct that bill black it doesn't thrive here the most destructive thing but what thrives is the c.e.o.'s and this is what the nobel prize winner in economics george there are a lot of in his co-author paul romer wrote about p ninety three and their title pretty much says it all the looting the economic underworld of bankruptcy for profit and what they said in a quote in the years that this kind of fraud by the c.e.o.'s using accounting is a sure thing so it's a sure thing under to c.e.o.'s will get rich the way that you're rich and poor

actually is by the liberally making bad loans which create a lot of phony it can only be income so it's also guaranteed that they will ruin the economy and then the question is are they. the prosecutor is going to take them on and we've had two administrations in a row now bush knew about ministration that have allowed these criminals to operate with near total impunity i felt like imagine though aren't letting and anyone who looks at the situation even for five minutes then sell that this is a case of learning and why is it that obama can't if there's a need to look up the word looting in the dictionary is it what's his problem buggin 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 a good in three administrations that have adopted policies that in our terror going

in criminology are highly criminogenic that means they will produce epic amounts of fraud and then you have attorney general mckay see under bush famously refuse to even investigate the major frauds sane and who are still completely and i'm going to vote in 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 today is that just my gangel stability is to leave the frauds who caused this crisis we control of our largest banks and then to bail them out and then to seek

political contributions from our last part of the rating agency for a second because they're eyeing the a period when the collateralized debt obligations were created the securitization and the derivatives explosion throwing the two thousands 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 test of couple of months ago was as a shift in the in the in other words in organized crime many times enter scene in warfare between the gambino and then the some other from crime family is a criminal criminality the rating agencies are they gone to war with the funds in the us government is there in for getting 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 financial history so the stuff that they gave the aaa ratings to was actually referred to in the training at the time before it blew up as toxic waste it would be good for her to bear in that phrase for over a decade the f.b.i. ward in two thousand or that there was an epidemic of mortgage fraud using their words and predicted that it would cause a financial crisis if it were not still known and nobody thinks it would stand a mortgage bankers or. so ca ssion which is the traders association of the perp's has an anti-fraud unit called maradi which reported to the entire industry in two thousand and six the following three things first stated income loans

also called they were and i'm quoting an open invitation for us there was second that the incidence of fraud in these loans was ninety percent and third therefore these loans deserved a phrase that the banking community used behind closed doors which was liar's loans now add two more facts to the us first we know both from watching and investigations that it was overwhelmingly the lenders that put the lies in myers 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 are standing a treat is that caught in

a snow the words are two categories that don't overlap liars' loans and sub prime that is not true sub prime loans by two thousand and six roughly half of also 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 we're liars let's remember ninety percent fraudulent that means we're over a million fraudulent loans a year and after the f.b.i. warning and after them are a warning the industry dramatically increased the percentage of lawyers well almost. it it made that means that when standard and poor's moody's and fitch were giving triple a rating on the collateralized debt obligations of the c.d.o. those were primarily backed by fraudulent mortgages something

they said s.m.b. fitch and moody's were all warned about and so they all deliberately adopted the financial burden of don't ask don't tell and there's a 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 plane 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 of merrill lynch's of the world lehman brothers putting these c.e.o.'s together don't even have the loan piles and never looked at the loan finally going to compare the looting going on in the u.k.

with the looting by the bankers yes when your most elite the most powerful members of society. opt strategy of what boss the op a famous french economist very conservative called plundering then as he said they will develop a morality that doesn't simply permit plundering but valorize is it and when that happens the moral structures of the society will inevitably deteriorate in the upper classes that leads to polite living. in the underclasses it leads to street looking south ok well let's follow up on it's not a word so we've got the looting going on and also sat 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 the manning similar actions to stop

the pay occluding it hasn't happened and the a bomb administration has followed the bush policy of doing everything possible to prevent the public from targeting what should be targeted uli polluters 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 he's not supposed to dance 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 of all 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 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 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 and it will happen. limit their bell black ice let's bring on the kaiser report. and if you miss all right that's going to do it for this edition of the kaiser of course me max keiser and stacy herbert i was i guess bill black it want to send an email please disorganize reported r t t v dot ru until next time there's a back stabber saying.

in india call she's available in the movie going month joy see who turns the home of us thinking for her to.