top stories this hour on r.t. france and germany proposed a single collective eurozone government led by the e.u. president to steer the block out of its debt troubles would have the power to see if decisions are being implemented. in the skies over moscow welcome the world of aviation as schools of the latest jets performed breathtaking stunts of this year's max air show. the market in a gruesome organ trade in india is on the rise with authorities accused of colluding with those illegally preying on poverty stricken people sacrificing their health for life. so that brings up to date for the moment next it's the closure report looking at how the warning signs from last week's social unrest in britain were there for all to see earth and for quite some time.

i'm stacy herbert i remember back in the day a famous quote from maggie thatcher stacey 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 markets 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 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 code as told 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 lol before 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. 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 so now 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 as high as five percent this year so this is ignorance on a wide scale that. but 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 feeds their financial austerity and the pression 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 you know 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 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 out lot in the ghetto. but you created from the city of london plundering so it was a phrase that you see on line a lot as c f u s d 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 right oh their government you know very because you're in their pocket because you talk while you go oh yeah the great wall. now let's continue on this theme of how the banking looters are treated differently from the looters to 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 steal that makes them qualified to be investment bankers they should all be given jobs you know why they won't be given jobs because a leg life flighted 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 and plundering the global economy but that won't happen because h.s.b.c. barclays and those 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. bars 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 deprecating i met they get a ticket for that now so they get reprimanded for that no they get applauded bravos as they have in common he 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 called 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 both ends covered so the j.p. morgan the great inflation with the food stamps and then they create this of

selling collateralized bonds tied to the inflation adjusted food stamps nightmare and there was nothing but a parasite i dream is what i'm here putin who says that the entire u.s. banking system is a parasite on the world global oh i grew so let's look onto another case of hypocrisy that happens on a global scale high frequency firms triple tree in routes 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 a turn on 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 us that because it would increase volatility they downgraded exactly as i predicted and it relativity 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 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 order justice department investigators are working with the f.c.c. to review practices that quote are potentially manipulative that's right it's a high speed looting high frequency trading high frequency looting every day goes on the alan greenspan of the world 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 or 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 they have to decide cameron what kind of society they want to 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 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 but he's there the mass those of the older clone. scum and nice 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 older thugs in the city they are clearly more outrageous 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 but 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 with as we know from history that they see her thanks so much for being on the cars a report thank you stay tuned much more coming your way so don't go away. you believe in science. from. the future covered.

future. artsy types to do their show. welcome back to the kaiser report i'm max keyser 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 capel luck the bill black welcome back to the kaiser report thank you all right professor black markets

around the world along again in chaos as bank shares around the world tumble with things 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. their basis for not pursuing the criminals on a last rate is to make the case that well it's not about chickens that all joke of what he alan or he has a doctor is that they're my brother thinks he's

a check and the doctor says take these pills and the brother says wait understand we need the eggs in other words jumping that the criminality is what's needed to keep the system functioning the u.s. has become a cop partner see it thrives on that from an l.d.s. thrives on the fraud is that too much or is that correct that bill black it doesn't thrive here don't the most destructive thing but what thrives is the c.e.o.'s and this is what the nobel prize winner in economics georgia 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 wait

a year which 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. prosecutors going to take them on and we've had two administrations in a row the bush knew about ministration that have allowed these criminals to operate with near total impunity probably argumenta they were looting and anyone looks at the situation even for five minutes ten cell that this is a case of looting and why is it that obama can't doesn't even look up the word looting in the dictionary is it what's his problem 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 but he's

a been three administrations that have adopted policies that in our chair are going to criminology are highly criminogenic bins they will produce epic amounts of fraud and then you have attorney general mckay see under bush they mostly refuse to even investigate the major frauds saying that if it were still going to leave you 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 that is the to financial stability is to leave the throne its who caused this crisis in control of our largest banks and then

to bail them out and then seek political contributions from them are listed with the rating agencies for a second because during the 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 just 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 as and some other folk crime family is the criminal criminality of the rating agencies are they gone to war with the funds in the us government is there an interim 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 this is the greatest creation of free publicity

in nodder and financial 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 it would be good for a third to that in their phrase for over a decade. the f.b.i. warrant in two thousand poor of but 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 a mortgage bankers association which is the trade association of the perp's had an anti-fraud unit called marrone which reported to the entire industry in two thousand and six the following three things first stated income loans

also called all to a were and i'm quoting an open invitation for us there's a second could be incidence of fraud in these loans was ninety percent and third therefore these loans deserve the phrase that the banking community use behind closed doors which was liar's loans now add two more facts to this first we know both from logic 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 liar's loans it's really important to understand something that very few economists are standing they treat as

dichotomous no two or thirty two categories that don't overlap liar's loans and sub prime that is not true sub prime loans by two thousand and six roughly half of all so prime loans or 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. over a million fraudulent loans a year and after they were running and after them ari warning the industry dramatically increased the percentage of liar's loans that it made that means 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.p. fitch and moody's were all warned about and so they all deliberately adopted of 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 loans so what happens he gets back a flame gram from his boss in all capitals triple estimation point saying that it is totally outrageous to ask to see the loan files that people the merrill lynch's of the world a 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 and most powerful members of society. upped strategy of what boss the famous french economist very conservative called plundering then as he said they will develop a morality that doesn't simply amid plundering but valorized since it. and when there happens the moral structures of the society will inevitably deteriorate in the upper classes leads to polite looting in the underclasses it leads to street looking so ok well let's follow up on another word so we've got the looting going on of course 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 the manning similar actions

to stop the pair glueing it hasn't happened and the a bomb in ministration has followed the bush plan it was doing everything possible to prevent the public from targeting what it should be targeted yearly polluters obama's famous statement to the big bankers in person was only only thing standing between you and pitchforks. no of course he's 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 a thousand felony convictions and more than ninety percent

conviction rate and those are only the. cases designated as major by the justice department almost all of those people who were prosecuted typically are prosecuted successfully so this was a great success against the least 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 is that holder resign that he be replaced by a real prosecutor and just be made a priority and it will happen all right we'll have live there above lax let's bring on the kaiser report and if you miss all right that's going to do it for this on the kaiser report me max kaiser and stacy herbert i'm i guess bill black they want to say my name our place is our cause a record of our t.v. that are you and the next on the back that are saying.

and. in india all she's afraid of being the moviegoer of a joint people's homes the home of us secure.