russia today has an extremely confrontational stance when it comes to u.s. . wealthy british. markets. find out what's really happening to the global economy. for a no holds barred look at the global financial headlines tune into kaiser report. the official. i pod touch from the.

video. feeds. on the.

well. you believe some science. from. the future. because there's because the report. they say herbert apparently the vampire squid is back to devour us and only an alien invasion force can save us things here but yes max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and 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 buildup to counter the space alien threat and really the budget cuts took secondary place to that. 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. all failed and he's calling an invasion from outer space to rally the economy to overcome what is essentially still bad behavior in their banks. yeah and max you know you read the front page of the financial times and there's no more bonkers than an alien invasion as the possible hope in the 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 by two percent in just a matter of minutes as traders ignored the swiss national banks decision to almost double the amount of liquidity yvel it will to the money market well look at 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

create a central bank outside of earth or depend on an invasion from outer space aliens from abroad of course so might also argue that this is a thinly veiled reference for the need to create more war because people often say well world war two go to america out of a 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 servicewomen from other countries to the front line and get slaughtered so that paul krugman doesn't look like an intellectual pygmy well speaking of war an act of war has of course spent clarity over the past week chavez orders eleven billion dollars of gold home venezuela's finance minister jorge do your down donnie 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 in venezuela is saying we want our gold two hundred tons of it to be brought home and held in the bank of england and of course the bank of england is not the only person holding that 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 they crash j.p. morgan by 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 to go 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 commanding their sovereign gold that there are thousands of tons held by germany in 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 you're going to have a 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 hugo chavez is getting that back if 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 and 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 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 a vastly 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 to understand 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 u.s. 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 and really holds dot com gold does not carry a downgrade risk as do treasuries so this is the beginning just like i said he would 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 mask the collapse they structure their computers to buy more treasuries using borrowed money which is only making people buying 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 analyst sought to award lower ratings on mortgage bonds but had other s.n.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 abdullah 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 oh no no they didn't fall asleep

grade these things that two trillion dollar error supposedly according to our body peter schiff this was an assumption of certain growth parameters would be met that there's no way in heck any of the growth 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 other people that they made the call against doesn't invalidate the call well i'm talking about the mortgage securities when they rated the mortgage securities that have exploded and across the entire global economy the s. and p. rated all of those goldman sachs c.d.o. as they read them aaa 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 but 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 said some message to those who dare to downgrade i get it ok well so let's look at where this message is going and that tie you be a whistle blower claims that over the past two decades the 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 witcher 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 you are right it adds to the idea that there is a criminal racket because the f.c.c.

and the investment banks in the fund managers of 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 partly 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 whistleblower in this case said it pays a startling picture of a federal police force that is effectively 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 normal machination of lower rates to spur the economy is not working either so fraud is just totally blocked any potential growth in the u.s. economy max not tell you because nani says as one former s.e.c. staffer describes it the agency is now filled with so many wall street hot shots often best to get a bank that has been infected with the goldman mindset from within and the goldman 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 or. they could have. banking parasite there eighty five broad street before they moved uptown and now they're they've they've made their way into all these regulatory agencies there though they're in the night of the living dead or i should say night of the living death all right stacey hammer thanks so much rain on the kaiser record thank you monks

don't go away statin much more coming your way so stay right there. change.

a timer here broadcasting live from washington d.c. coming up today in the big picture. i welcome back to the kaiser report i'm max keiser let's go to tennessee and talk with captain austin fitz who served in the george h. w. bush administration cap and was also a former banker and is now an investment advisor and blogger at solari dot com catherine fitts welcome back to the kaiser report it's great to be back all right captain awesome fitz first. being in the latest rolling stone asks is the

f.c.c. covering up wall street crimes and your thoughts. yes because the economic model is a criminal mind oh so of course they're committing a crime so you have to ok so you say the economic model is a criminal model explore that a little bit in other words the banking system itself is basically a glorified con of these can correct well we have an economy that's opinion on war and organized crime and and you know part of the profit so that organized crime is part of what's keeping the whole economy going distance is the banking system it's every community in america so if you let me give it this way if the united nations says we're competing for four hundred billion dollars a year global money one true then then the financial centers to attract and many are wondering who the leaders ok let me follow up on this money laundering theme because walk over here now owned by wallace fargo which is owned 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 isn't an adequate deterrent first of all you know absolutely no one if you're if your business model is ended on attracting those revenues and processing those are at the knees there's no way a sign like this can be had to turn to something you know is something is part of what i like you are an essential part of the business model of a sign 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. as i was kind of talk about the u.k. a little bit the g.d.p. numbers that are quoted in both of these economies as the relationship to what comes out of the banking sector it 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 a calculation fifty sixty pursue. g.d.p. directly tied to financial leisure to remain 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 fraud but things ludes truth is securitization its economy so we're shifting much much much worse the economy into financial instruments that can be traded in representative and and you know there's no doubt that the fraud is very significant and part of the reason it's very significant is that it a lot of the fraud is done with the instruments that were involved in this government so you really have the government banking model and a lot of that is done under the national security was ok to talk about

securitization more and more of the economy moves into securitization more 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 the mortgage business we now know that the mortgages when they were originally offered there was fraudulent due spent then we know that they took the mortgages that they sold they repackage them or securitized that and fraudulently marketed them to funds around the world and then we know they went into the foreclosure process and goldman and bank of america these other corporations and banks engaged in fraudulent foreclosures so there's that so if you take away all the fraud associated with securitization it occurred especially itself as they are 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 max. because you describe the original mortgages were fraudulently

induced 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 cream. and you know two mortgages that were completely fraudulent so still i think the collateral fraud you know if you take the description you described and you add collateral fraud. you know i think it was much worse and then when you hear the truth that is on top of something that's a lot of collateral fraud you know you're getting through an exponential first i think the fundamental for crisis was far worse than you just described right so you have on top of the three phases of fraud that i just described the fraudulent inducement fraudulent scared ization and of course the fraudulent placement of those. securities and to funds around the world you also have the securities that have the the remedy if 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 illegal is it enough to say well it's technically legal i mean at what point do we say enough is enough we need to take stronger measures. well i think i think at the heart of the matter minutes there's not citibank's 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 result of saying no is physical violence directed at them or their families i mean we've had lots of people murdered and assassinated and cetera et cetera so the question is you know yes we have to say no but the question is how do we say no and that's why you know as has it comes down to shifting our money at the reality is is is we have

a florist's are operating in the world that is completely operating outside of the war are and and no one has yet has come up with a way to stop it we're talking about my only violent master operations. but i never thought of apple a few is 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 eight dead animals left in 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 try and run the government clean or or run that wall street cleaner targeted and literally you know have to fear for their lives i mean people have been dying so. you know it's

a very very dangerous this situation and that 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 just for people who are are familiar what your role with the bush fan are going to trash and it was what exactly i was assistant secretary of housing so i was the lead regulator for the housing area and you know it's very interesting that side with washington in one thousand nine hundred eighty eight and i kept saying to people look you know they're into an 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 mr cranleigh t.v. show had a whole series of hopes for on 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 there's a printer t.v. sure isn't this shows more credible than the former assistant secretary of housing

but literally max i lectured and spoke in london and in wellington new zealand all over the world in sweden trying to work people about the housing bubble and the investment community and all those places simply just to. even when fannie mae went down in two thousand and eight i have been on the radio show in outside of san francisco explaining about the housing bubble. you know three years and one of the biggest investors in san francisco lost over a billion dollars on training make a going down and brought up the thing on their website and put it up and said you know we had no idea there was a crowd well i was on the radio free europe since nurses and so you through housing saying you know describing the problem and created you know ok imagine fannie mae freddie mac. they were caught committing fraud they were bailed out by the government and there are liabilities are now the taxpayers liabilities we've talked about we talked

about wells fargo talked about bank of america all the banks committing mass of private securities 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 see the united states the european investment interests has 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 for r.t. it's it is the model instead plan it's think there are inspire all of these three things are so there's the fission reality that has laws as you and i were brought up to believe it and then we have

a system which believes it's above the law i mean i literally have the secretary of hud once say to me look you know i don't have to pay attention all i don't have to be able or i report to a higher moral authority so we have the planet run under a model is our parading in. different set of rules or laws that we believe the law to being now if you look at how much money's been pulled out of the economy globally whether it's by united states one or whatever we're talking about trains or trains or dollars and you know what i refer to a lot of it and you know. the fundamental question is where is all this money going because we're talking about truly trillions and trillions of dollars that have been pulled out and managed according to a you know i call it a financial clinics are the question is who's running the financial could retire and weirs all the money go in 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 hey let me ask you a question about europe and european debt crisis french president sarkozy and german chancellor merkel have proposed a quote collective government headed by e.u. president your thoughts so essentially what we're watching is this is the academic failure essential decentralization the more essential lies that we get the economy scared we're going to get so we're just it is socialization has just we're actually europe or 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 this and he to say this because i don't think europe has a debt crisis i think europe's governance is being reengineered instead is being used to deal with so we go into a place we encourage them to take on more debt than they can ever afford then we can receive resistance and pull the income then we say we have a debt crisis and then we surgically to them terms by which they will start being

run as a servant government and instead report up to the top of the financial system so that's why i call it a financial could retire because. you know it's not a debt crisis it's a plan all right catherine often fair thanks so much from. on the kaiser report. right now is going to do it for this edition of the kaiser report with me max kaiser and stays here but i would like my guest catherine austin fits if you want to send me now please do so at kaiser report at r t t v are you until next time this is backscatter thing by. cold touch.