video. feeds. on the call to call. our help us they are here in the russian with our t.v. a quick recap our top stories now and the battleground tripoli heavy fighting goes on in the libyan capital rebels colonel gadhafi compound tracked down by nato airstrikes level of claims that they controlled most of the city and have captured cannot be son saif have now been proven incorrect. secret assistance british intelligence has reportedly planned the endgame for kentucky's regime guiding the rebels and their push on tripoli. military personnel are said to be on standby in the mediterranean to boost the effort. and ego e.u.

oil giants flocking back to libya on a red carpet laid out by a self-proclaimed new government reward those who helped to oust gadhafi it's reignited the debate over nato as a real motivation for intervening. i libyans joined in jubilation anticipating khadafi fall but skepticism that it may be too early to celebrate is just as widespread on this point to the post revolution authority in nearby egypt which has yet to turn over the power to the. situation in libya in about half an hour's time with my colleague bill dog first started as a cash crisis rages across the u.s. and europe financial guru gives you the truth i'll continue to bouts of high level financial fraud because a report is now. there's

a cause report as they say herbert apparently the vampire squid is back to devour us and only an alien invasion force can save us space here for yes max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and placed in is impossible by the central banks the only thing that could stop it is here's paul krugman if we discovered that space aliens were planning to attack and we needed a massive build up to counter the space alien threat and really it's place in the budget that's just took secondary place to that. this slump would be over in eighteen months twilight zone economics so paul krugman over there the new york times all the stimulus package the work ready shovel ready to lucian

all failed and he's calling an invasion from outer space to rally the economy to overcome what is essentially still bad behavior in the banks yeah and you know you read the front page of the financial times and there's no more bunkers than an alien invasion as a possible hope in paul krugman hopes of an alien invasion are no more daft than people believing that central bankers might save us that they might save our economy move to curb swiss francs rise backfires as you see there. so trader shrugged off new measures by the swiss authorities to stem demand for their currency sending the swiss franc sharply higher the franc jumped two percent in just a matter of minutes as traders ignored the swiss national banks decision to almost double the amount of liquidity yvel level to the money market well look the central

bank is a force that resides outside of the economy and it's there to provide theoretically speaking price stability and in full employment that's their charter but they got sucked into the bank they got sucked into the parasite that is the banking system so now a sense earth is no longer available as a location to create a central bank policymakers and keynesians brainiacs are saying well let's just trade a central bank outside of earth or depend on an invasion from outer space aliens from abroad of course some would also argue that this is a thinly veiled reference for the need to create more war because people often say well world war two got america out of the depression so having failed to stimulate the economy by say imposing the rule of law and by a woman aiding parasite bankers and imposing true accountability they want to go

and send us servicemen and servicemen from other countries to the front line and get slaughtered so that paul krugman doesn't look like an intellectual pig being well speaking of war an act of war has of course spent a cleric over the past week chavez orders eleven billion dollars of gold home venezuela's finance minister jorge do your debt donny said that the weakening u.s. dollar and near default by the u.s. government and the european sovereign debt crisis threaten venezuela's savings and they will be more secure at home and in allied countries yeah that's right the veriest goal. old hoards by various countries are not held in those various countries we've talked at length on this show about germany sixty percent of their gold is held in america now hugo chavez of venezuela is saying we want our gold two hundred tons of it to be brought home and then held in the bank of england and of

course the bank of england is not the only person holding the gold because tony and also include banks such as j.p. morgan so it's as if you go chavez watches our show realize that the crash j.p. morgan buy so over a campaign could be applied to gold is demanding physical delivery of his gold because you know that j.p. morgan and the other banks don't actually have the physical gold they have to go into the market to buy that gold but they're bankrupt to begin with that means they have to incur more debt which means that they're going he's trying to collapse j.p. morgan just like we're trying to collapse j.p. morgan so hugo chavez welcome to the gold liberation army yeah but the point is whether or not he'll ever get this gold back because he's put in a request but is this going to trigger other people demanding their gold back other nations demanding their sovereign gold that there are thousands of tons held by germany at the new york fed all countries around the world story in the u.s. will the u.s. give that back that's the big question what do you think. well i think no i think

the record is correct i would think i would agree with both you engine records that these countries that he's made a big story out of this he believes that america should commandeer the world's gold which would give them something like fourteen thousand tons in toto and make them on the glide path toward having a post keynesian post currency economy based on having the most gold but you're right this is a huge set up for a global conflict so hugo chavez says this max quote we've held ninety nine tons of gold at the bank of england since one thousand nine hundred eighty i agree with bringing that home it's a healthy decision max the only way to go savage is getting that back as he comes back with an alien invasion force hugo chavez well he's good friends with of course all over stone and sean penn and noam chomsky maybe they can put together an invasion force go into the vaults in the bank of england and liberate venezuela's

gold at the least it could be a great movie well max hugo chavez is not the only one seeking gold gold equals treasuries the evidence a stunningly high correlation of gold to twenty year treasuries from july twenty first through august sixteenth is point eight nine over that period gold is up twelve point three percent and treasuries are up eleven point eight percent i will result the conundrum that people are talking about right now on this show people say that bonds and gold cannot both be hitting new all time i simultaneously because that would mean that inflation and deflation are happening simultaneously let me break it down for you. the bond market is being bought up by computers. the gold market is being bought up by people who are fearful that the bond market is being bought up by computers just then i'm saying one is real people

and the governments are buying gold the other one is fake a bunch of computers are buying treasuries to make it look like the us economy is not as catastrophic as it really is and that can only last so long well the reason why people are going to gold instead of the treasury according to this article in real health dot com gold does not carry a downgrade risk as do treasuries so this is the beginning just like i said he's going to have us pulling his gold out of the bank of england this could set a bank run on the bank of england and all their gold this is also the same thing the downgrade of s. and p. this is the beginning of the rush out of treasuries and into gold it is it is a run of the bank answer masked the collapsed structure the computers to buy more treasuries using borrowed money which is only making people going gold want to buy more gold like i said treasuries carry the downgrade risk or at least they did until last week d.o.j. probing s. and p. the investigation centers on the alleged cases in which the company's alice sought

to award lower ratings than mortgage bonds but had other s. and p. managers overruled them the department of justice in america alleges that they began the program s. and p. before the downgrade of us that they're going to rewrite the story of the boy who pointed out that the king have no clothes in this version the king investigates the boy for having faulty eyesight. well so i mean yes s. and p. did faulty grade these things but are fiction oh it won't last oh oh oh oh oh oh oh oh oh oh oh no no they didn't falsely grade these things but two trillion dollar error supposedly according to our body peter schiff this was an assumption that a certain growth parameters will be met that there's no way in heck i mean a lot of parameters will be met this is a straight up and straightforward honest to goodness report there is no true trillion dollar error s. and p. made the right call the fact that they're now being vilified by the people that they made the call against doesn't invalidate the call well i'm talking about the

mortgage securities when they raided the mortgage securities that have exploded and across the entire global economy the s. and p. rated all of those goldman sachs c.e.o.'s they redid them triple a they redid all of those things aaa that they sold to french banks german banks swiss banks italian banks all those things blowing up economies were rated aaa by s. and p. they were they were also rated aaa by moody's they were rated aaa by fitch those two are not being investigated as far as we know at the moment because it's only s. and p. that has downgraded u.s. government debt now this is the question people are going into gold because treasuries carry a downgrade of risk or at least they did until the department of justice sent the message to those who dared to downgrade. ok well so let's look at where this message is going not tyee be a whistle blower claims that over the past two decades that agency has destroyed records of thousands of investigations by white washing the files on the nation's worst financial criminals the f.c.c.

has kept an entire generation of federal investigators in the dark about past inquiries into insider trading fraud and market manipulation against companies like goldman sachs the which a bank and a i.g. so what do you think about this story here that the f.c.c. is the one that was has deleted files that is breaking the law by the way because according to the law they're supposed to save these files. for twenty five years. since to the idea that there is a criminal racket because the f.c.c. and the investment banks and the fund managers and the rating agencies and other aspects of government are colluding to create this on the whole the racket of price manipulation and price fixing and extraction and siphoning of wealth for their own anger at the jeopardy of destroying society was their doing and only it also partially explains not why obama keeps on saying we have to look forward because in fact there's no way to look back because all the records have been destroyed as

dorsey flynn the the whistleblower in this case said it pays a startling picture of a federal police force that is affectively been conquered by the financial criminals it is charged with investigating you know it's also remarkable is that the crash in interest rates you would think it would spur a refinancing boom for homes but what they're finding is that there's so much of a mess in the mortgage market that people who could normally refinance and spur the economy because all the paperwork was fraud fraudulently signed and induced that they this the normal machinations of lower rates just grow the economy is not working either so fraud is just totally blocked any potential growth in the u.s. economy max not to you because honestly it's as one former s.e.c. staffer describes it the agency is now filled with so many wall street hot shots from often best to get a bank that has been in infected with the goldman mindset from within and the golden mindset max what is the golden mindset greed and suicide banking and.

bank until you kill yourself. that's the goldman mindset their suicide bankers the goldman sachs could be the aliens from outer space they could have spawned a banking parasite they're eighty five broad street before they moved uptown and now they're they've they've made their way into all these right. sorry agencies there though there are the night of the living dead or i should say night of the living deaths all right stacy hammer thanks so much for being on the kaiser report thank you don't go away state and much more coming away so stay right there. twenty years ago largest country. to. live how did. you get a job. where did you take to.

the world. you believe in science tends to. from the right for. the future are covered. i welcome back to the kaiser report i'm max kaiser let's go to tennessee and top with catherine austin fits he served in the george h.w. bush administration capital is also a former banker and is now an investment advisor and blogger at solari com catherine fitts welcome back to the kaiser report it's great to be back all right cap there not some feds first matt taibbi in the latest rolling stone asks is the f.c.c. covering up wall street crimes your thoughts. yes because they're actually no make model is a criminal model so of course they're covering up crimes they have to ok so you say

the economic model is a criminal model explored out a little bit in other words the banking system itself is basically a glorified part of these game correct well we have an economy that's again unworn organized crime and and you know part of the profit so that organized crime is part of which keeping the whole economy going it's not just the banking system it's every community in america so if you let me give it this way if he can only nation says we're competing for four hundred billion dollars a year of global money laundering then then this financial centers to attract and many are wondering are the leaders ok let me follow up on this money laundering scheme because walk over here now on walls fargo which is in large part by warren buffett has just been fined two percent of one year's profits for laundering three hundred seventy eight billion dollars in drug money for the mexican drug cartels what about the settlement is an adequate deterrent first of

all you know absolutely no and if you're if your business model is ended on attracting those revenues and processing those revenues there's no way to find like this can be a deterrent of something you know something is part of what i do you are an essential part of the business model of a fine like this will stop it ok let's talk about the proportion of these banks. first of all the banks in the u.s. and in the u.k. because i would kind of talk about the u.k. a little bit and the g.d.p. numbers that are quoted in both of these economies as the relationship to what comes out of the banking sector has grown fantastically over the past twenty five years and over the past ten years in particular from five or six percent twenty five years ago to twenty five thirty forty depending on how you make the calculation fifty sixty percent of g.d.p. directly tied to financial leisure domain in the banking system so it's

a fair to say that the g.d.p. numbers that come out of the u.s. and the u.k. are tied directly to banking fraud well i think i think here tonight you know they include banking front but it seems to securitization its economy so we're shifting much much much more of the economy insisting intially instruments they can be traded in representative and and you know there's new doubt that the fraud is very significant. part of the reason it's very significant is. it a lot of the fraud is turned with the instruments of were involved in this government so you really have the government banking on what in a lot of it is done under the national security law ok it talk about securitization more and more of the economy moves into securitization more of corporations who are reporting profits are reporting profits as a result of transferring themselves into companies that get into the security securitization business but let's take an example for goldman sachs for example in

the mortgage business we now know that the mortgages when they were originally offered there was fraudulent to spent then we know that they took the mortgages that they sold a recap of them or securitized them and fraudulently marketed them to funds around the world and then we know that they went into the foreclosure process and goldman and bank of america these other corporations and banks engaged in fraudulent foreclosures so so there's. if you take away all the fraud associated with securitization if you care to session itself is now proven to be an inherently fraudulent business i mean the word ok first of all so what it what your thoughts are thought on that but i think it's much worse than you're describing actually. because you describe the reason were teachers were induced to let me use an example of one house let's say we had a fraudulently induced mortgage on a house but let's say we also created in you know two mortgages that were completely fraudulent so so i think the collateral fraud you know if you take the

description you you described and you add collateral fraud. you know i think it was once worst and then when you were the derivatives on top of something that's full of collateral fraud you know you're getting sort of exponential for us i think the fundamental for crisis was far worse than you just described right so you have on top of the three phases a fraud that i just described the fraudulent inducement fraudulent securitization and of course the fraudulent placement of those securities and to funds around the world you also have the securities and the the remit of that were created on top of the fraudulent securities on top of that so that adds to the ponzi scheme i mean we keep coming back to this word technically legal it's technically legal but in a in a country like america or the u.k. where the banking lobby has effectively taken over and change the laws repealed last eagle brought in the securities modernization act and made fraud legal i mean

if you make fraud legal is it enough to say well it's technically illegal i mean at what point do we say and up as enough we need to take stronger measures. well i think i think at the heart of the matter max is not based out of control i think at the heart of the matter is physical violence because a lot of what has happened particularly and you know that i understand in the united states is is you have people who are afraid to say no because the results are saying no is physical violence directed at them or their families i mean we've had lots of people murdered in assassinated etc etc so the question is you know yes we have to say no but the question is how do we say no because and that's why you know sort of it comes down to shifting our money but the reality is is is that we have a force are operating in the world that is completely operating outside of the law and and now when yet has come up with a way to stop it we're talking about my only violent mobster operations. i thought

i thought of apple he was a personal example but i was a i was. you know i was a former assistant secretary of housing and i had my own business in washington and i i was helping the department of housing and urban development essentially run things clean and you had to get rid of the clean team to to run the housing bubble and i was targeted i was poisoned a dead animals left on my doorstep my house was broken into people tried to run me off the road. you know it was very very violent and it went on for years so you know so people who are trying to run the government clean up were or run while street cleaner targeted and literally you know i have to fear for their lives i mean people have been dying so. you know it's a very very dangerous this situation and the and the challenge is if you have people who can kill and physically harass with impunity how do you you know how do

you run a governance process. for people who are unfamiliar what your role with the bush administration or what exactly i was assistant secretary of housing so i was the lead break in later for the housing area and it you know it's very interesting that as i left washington in one thousand nine hundred eighty and i could say people look you know their engine area housing bubble this is going to destroy the country it's been a bankrupt the country and literally i'll never forget it in about two thousand and two thousand two thousand and one the soprano t.v. show had a whole series of one hundred frauds and my own college roommate called me up and said well now fitz you must be telling the truth it's on the sopranos and i said why is it that the soprano teacher is this show's more credible than the former assistant secretary of housing but literally max i lectured in skokie in london in in wellington new zealand all over the world in sweden trying to warn people about the housing bubble and the investment community in all those places simply just to

go. or did it mean when stanny went down in two thousand and eight i have been on the radio show in in outside of san francisco explaining about the housing bubble. you know for years and one of the biggest investors in san francisco lost over a billion dollars on feigning a going down in peru up the thing on their website and put it up and said you know we had no idea there was a proper welcome i was on the radio free europe solicits and certain truth housing saying you know describing a problem integrated you know ok imagine fannie mae freddie mac. they were caught committing fraud they were bailed out by the government there are liabilities are now the fact paralyzed gaudi's we've talked about the air we talked about wells fargo talk about bank of america all the banks committing mass of fraud to kerry's fraud accounting fraud and. what role in the

global accounting and securities fraud that you see in the banks how central is the city of london factor into this at max clearly the city of london is very important and i would say the united states that european investment interests have been controlling since the revolutionary war from everything i can tell but you know the other thing i would say is we're talking about a model which is is is not just from hard it's it is the model it's the clan it's the governance model that's the way things are so there's the fischel reality that has a lot as you and i were brought up to believe it and then we have a system which will lease it's above the law i mean i literally had the secretary of once say to me look you know i don't have to pay attention online and have to be able or i report to a higher moral authority so we have the planet run under

a model is our operating in. defensive rules or laws that we believe the law to be now if you look at how much money has been pulled out of the economy globally whether it's by united states line or whatever we're talking about trains or trains or dollars and you know what i refer to a lot of it. but the fundamental question is where is a lot of this money going because we're talking about truly trillions and trillions of dollars that have been pulled out and managed according to a so you know i call it a financial kuti tar and the question is use running the financial killing time and weirs all the money that i'm because it's very very significant and it's a system that doesn't consider itself to have to obey the laws that you and i are talking about now ok let me ask you a question about the europe of a european debt crisis french president sarkozy and german chancellor merkel have proposed a quote collective government headed by

a you president and your thoughts so central that what we're watching is this is the academic failure essential essential ization the more essential lies that we could be kind of the scared really cared so were they just said is socialization has just wrecked europe so what we're going to do is we're going to do more essential is a sure course that's the worst thing you can do so you know he does say this because i don't think europe has a debt crisis i think europe's governance is being really engineered in debt is being used to do it so we go into a place we encourage them to take on more debt than they could ever afford and then we do a series of things and pull the and then we say we have a debt crisis and then we search to them terms by which they will start being run as the saturn government and instead report up to the top of the financial system so that's why i call it a financial could be tired because. you know it's not

a debt crisis it's a plan all right catherine often fed thanks so much for. i report back. i'm not going to do it for this edition of the kaiser report with me max as i'm stating over our time i guess catherine austin fits if you ask them a name out at kaiser report at r.t. t.v. that are you and i like time to sit back that are saying so i'm.