we'll. bring you the latest in science and technology from around the world. we've got the future of the. party's top stories members of moammar gadhafi family have reportedly been accepted into syria on humanitarian grounds the move is angered the libyan rebels who say they'll seek the return of a colonel's wife and children and bring them to justice. violence in syria claims more victims reports at least six people were killed by security forces during raids and as fears grow political unrest quickly through religious clashes in a traditionally multi-faith society. and euro zone recovery is still off track as the e.u. parliament economic committee admits the pace of growth is weakening to global market charge and concerns over the greek bailout to take care of their. cars a report is next here on araa.

stacy herbert you know the global insurrection against banker occupation we've been telling you about it for months now it's coming to new york stacy and max kaiser the first headline reads anonymous joins hash tag occupy wall street remember we talked about this a few weeks ago this is an ad busters campaign and they're encouraging up to twenty thousand people to occupy wall street flood into lower manhattan occupy the spaces in front of the banks and now anonymous have joined right so they're going to sort of chance like they have in the square now fans or in the square in tunis or in cairo they will try to occupy wall street now we were just in new york we visited wall street there's a huge police presence there it's

a highly commercialized site with a lot of outlets for big brand names now this sounds like it would be counter to those commercial interests how many hours will those tent cities be allowed to exist do you think stacy herbert well that's a good point because yes wall street is surrounded by barricades already to keep people out now these protesters are suggesting that people bring barricades in order to keep you know themselves in so they're being kept out by the barricades that are already there well anonymous is a very powerful organization so maybe they'll have some juice or say well the protests aren't just going to be on wall street they're going to be in paris london italy and spain now still however this is where adbusters says to rear succeeded in large part because the people of egypt made a straightforward ultimatum that mubarak must go so they're saying we need a simple ultimatum like this as well. they go on to say the most exciting candidate that we've heard so far is one that gets at the core of why the american political

establishment is currently unworthy of being called the democracy we demand of barack obama or dean a presidential commission tasked with ending the influence money has over our representatives and washington but stinks as a marketing hook well exactly because interests where they were demanding the dictator go. the dictator in this situation are the banks they need to surround the new york fed which is only a few blocks away and demand the head of the new york federal reserve bank to leave and they're not going to leave until the head of the new york federal reserve bank leaves that should be the whole purpose of the occupation not to sit in front of the stock exchange and have a high falutin for a run on sentence about a laundry list of demands that never works well ok so they're demanding barack obama ordain a presidential commission so let's look at this next headline max obama goes all out for dirty banker deal new york attorney general eric schneiderman has been

removed from his leadership role in negotiating a nationwide foreclosure settlement with the banks so all forty nine states attorney generals are on or in the pocket of obama there saying yes we'll sign on to this agreement whereby the banks collectively will pay twenty billion dollars to and that any foreclosure cases against them and it seems like what schneiderman is rejecting in terms of this deal is that he's against the fact that it will basically give them immunity from all other securitization lawsuits but makes me to witness the president of state's kowtow to a bunch of bankers on wall street like this i am personally embarrassed and ashamed that a barack obama. sell out his people and such

a shameless matter it's it's beyond pathetic yet but again max i know you have a thing about the president but the population itself lets see how many people turn out to occupy wall street to demand obama do something when in fact it's the bankers who are the ones forcing the situation they're the ones that the new york fed is the one is partly responsible for forcing an office that some say the new york fed is the enemy along with the other central banks hooked into the banking lobbyist the nearest august change is just day numb nuts benign place the matches buys and sells it's not really the nexus of power that i like to think itself as being with the big american flag out front that's a tactic for diversion the new york fed is quietly in the shadows pulling the strings on obama. i do come back. to the big the big being and wouldn't be surprised to see as nos before the election started. again i call your attention to

the population of america and i will say that much of the population we encounter them often online and they believe the financial crisis was caused by public sector workers or union members and their pension demands number fifty thousand dollars a year sort of employees so. they don't understand the figures and terms and and they'll think that twenty billion dollars minus well be one hundred fifty trillion they it seems like a huge amount to them so matt taibbi in this piece goes on to say to give you an indication of how absurdly small a number even twenty billion is relative to the sums of money the banks made unloading worthless prime's assets on foreigners pension funds and other unsuspecting suckers around the world consider this in two thousand and eight alone the state pension fund of florida all by itself lost more than three times that amount sixty two billion dollars thanks in significant part to investments in these

deadly m.b.'s these mortgage backed securities right and the bailouts starting in two thousand and seven seventeen trillion dollars and find out through a freedom of information act that there was a one point two trillion dollar gift given to bankers like jamie diamond and goldman sachs's lloyd blankfein just on the cuff just to keep them sweet so now twenty billion dollars in that context is virtually the equivalent of a wad of gum stuck to the bottom of your shoe i mean by comparison i'm sure there are pimps in their hoods around the world they carry more in their sock. and you know i want to bring this over to more pension fund stories about this how the pension funds are being blamed for the market crash headline reads teacher pension fund joins california auditors risk list so this is the california state teachers' retirement system calipers remember they reported in march that it had seventy one

percent of the assets needed to cover retirement costs for its eight hundred fifty two thousand members and family members the estimated shortfall is fifty six billion dollars but back as recently as two thousand and one they were ninety eight percent funded the article goes on to say but benefit changes and economic slumps. but her asset values have reduced that number so they're down now to seventy one percent covered so they're blaming it on an economic slump not financial fraud not banks or fraud so people read this in the mainstream media and they say oh it's an economic slump that's why these pensions are underfunded now and it has nothing to do with any fraudulent selling of mortgage backed securities to them wells we're talking about for many many months of years these pension accounts are where bankers go to unload toxic securities that's been the story for many many years remember robert citroen who was running the municipality in orange county

california when he bought one hundred billion dollars of toxic securities and blew up that county and because of pension fund managers and calipers i know from personal experience that people run calipers are literally almost on the verge of being brain damaged that they're so incapable and incompetent in what they do they would buy anything these pension fund management helpers is one of the worst i mean they're they're they're like a little you know just a little puppy max they're my next headline so let's move on to show you just how bad cal pers were in particular this is a flashback to june first two thousand and seven banks sell toxic waste c.d.o. is to cal pers texas teachers' funds and remember the importance of this story is barack obama has now and the new york fed have forced eric schneiderman office for closer settlement case because they don't want anybody to look at these securitizations they're saying we need to move on let's just pay twenty billion bucks and move on bear stearns and company the fifth largest u.s.

securities firm is hawking the riskiest portions of collateralized debt obligations to public pension funds so this is the media this is bloomberg news reporting in two thousand and seven calling it toxic waste they went to cal pers they went to the pension fund managers for texas or new mexico and said why are you buying this toxic waste and they were like who were in vegas and this woman gee. tracker from bear stearns is pitching us on it she has a great pitch. between martinis. it is just amazing because teachers who will willingly take jobs that don't pay as much as a hedge fund manager because they see purpose in their life they want to add something to society unlike a hedge fund manager which is just reaping society so not only do they underpay the teachers then and their pension accounts they love the edge funds willy nilly have access to those funds and dumped all their losing bets now remember bear stearns of

course blew up that was the beginning of the financial catastrophe in two thousand and seven march two thousand and seven so bloomberg goes on to say that gene fleischaker was pitching fifty public pension fund managers and she told them that they could get twenty percent return on the bottom level of a cvo the bottom level the equity traunch that glows up one hundred percent when the c.e.o. blows up she said it has a very high cash feel to it i think a lot of people are confused about what this product is and how it works well of course it. turns out everybody was but she's trying to say that was a positive but these people are confused and that's why they should buy it inflation's running two percent at best in or environment of falling stocks and economics. and these numb nuts in the audience in vegas half sauced on pepper martinis are told that they can get a tory. on the wrist list almost deal brought to by their

friends down there at the wall street banks and. i mean i don't know what to say about these people maybe the teacher shouldn't get any money but i have something to say because flight tracker according to this article told the public pension managers that a c.d.o. is like a financial institution both have strict oversight she says the outside agencies that oversee the struck. are the rating agencies comparing them with the federal deposit insurance corporation and the o.c.c. which regulates banks again barack obama saying let's pay twenty billion dollars shut down all investigations of the securitization fraud here we have a two thousand and seven open fraud happening where this woman is telling these pension fund managers that it's risk free it's like the f.d.i.c you can't lose and they're like whooping it up in vegas spending our pension fund money on these collateralized debt obligations that have now blown up and barack obama's trying to say you can't look at them ever oh studios are like an institution

a mental institution anybody who buys these things clearly is being sold i mean it should be a crime and of course the rating agencies gave the studios aaa ratings because as we now know they are completely conflicted they take money from the banks they're supposed to be rating so there's a natural conflict of interest there it's fraud moody's s. and p. and fitch commit fraud they commit fraud f r a d that no one's going to call up and say hey max don't call us fraudulent peddlers of fraud or securities because they have to prove that they were selling fraudulent securities and i have yet to got that call yet to come on the show it's total fraud the fact that they've got a license to operate in america shows that america has become one big cluster well the important thing banks is this wasn't two thousand and seven it's openly reported in bloomberg news barack obama eric schneiderman all the attorney generals who are demanding that eric schneiderman make a deal with these banks to give them immunity from all of this fraud they're saying

that they want to move on a twenty billion dollars which is not even half of what they collected in bonuses christmas bonuses last year and now all across america you're seeing austerity measures imposed and a lot of the population demanding it but it's these pension funds that they're underfunded now it's the reason why they're underfunded is. because they've made too many promises when in fact they've been too much has been stolen from them and this is the fact this is the truth we've reported on this for years now i mean next time i'm in vegas i'm going to stop some teacher on the straight punch him in the mouth really are steal all their money and then i was on walking away tossing a nickel the same thing and i'll be like thank you. all right stacy ever well thanks so much for being on the kaiser report thank you max well go away much more coming away stay right there.

we'll. bring you delete some science. from the realm of. the future coverage. welcome back to the kaiser report i max keiser time now to go to shanghai and talk of daniel collins he's the founder and chief investment officer of tiger hella capital management he also wrote a recent article titled rising chinese redback could overtake the based greenback

could money printing in the u.s. be the rise of the chinese currency then columns welcome to the kaiser report i max you're going to be here all right dan tell us about the red back and has it gotten overtake the u.s. dollar and if so when there article i wrote really talked about. you know as we've seen continues money printing exposure to the last few years the world really looking for a new store of value. everybody knows china is also trying to limit its increasing dollar reserves and they really have a three speed strategy to internationalize the rim and be starting with making it to international trade currency. anybody's going to hong kong recently has seen that the renminbi if you posit in hong kong this year will rise roughly three hundred percent to go over one billion u.s.

dollar china's also same currency swap agreements with over fifteen countries this is really the first step of trying to internationalize the remnant be the trade numbers that have come out this year chill the international trade which was in renminbi last year was about less than one percent this year will be roughly seven percent but what china's basically trained it used most of their contracts into renminbi as opposed to dollars ok let's talk about what happens when china sells stuff to america it ends up in wal-mart. they use the dollar sign. john. to make sure that these dollars tell inflate their currency it back on they end up printing there aren't be cracked to sterilise this transaction to some degree can you walk us through because in other words china is printing a lot of r. and b. as part of that relationship with the u.s.

they're the biggest exporter us of the biggest consumer yeah absolutely what happens basically is a chinese factory you're a company will export something to near example walmart the company here in china will receive u.s. dollars those dollars then go back to a bank in china enter convert it back into rim and be a trader then takes the u.s. dollars and in the past few years past decade really has been buying u.s. treasuries with it. and that's really as you're exactly right china has to print rim indeed to soak up those dollars and that's what's really led to the high inflation here in china you know official inflation rate in china are five to six percent but most people here would tell you they're closer to ten percent. so when it is rising remember he is going to help the inflation problem in china and i think the central bank here in china finally has come to a conclusion as well ok you know one of the biggest problems with the u.s. dollar of course is that the u.s.

instead of dealing with their banker corruption problem they're simply printing more dollars in the hopes that by bailing out the creditors during the last five year mortgage fraud. that somehow the growth engine will start up at some point and what we're seeing is of course the exact opposite they're just exacerbating the problem so that's the problem with the u.s. dollar as a reserve currency but now china is also printing up lots of arm day this kind of undermines undercuts the redback as a reserve currency going forward isn't that the case or how are they addressing that yes absolutely and i think that's why. we've seen some recent acceleration in the renminbi. increase this year i think we will continue to see it increase much faster we won't see any one time appreciation but we will see much faster appreciate an appreciation of the rim and be once the currency in these contracts

it especially with emerging markets china's focus is really to get to remain be internationalized first in the emerging markets we see some central banks like malaysia are now holding room and b. so as a really becomes convertible a china will no longer need these dollars anyway therefore they won't need to buy so many treasuries ok so on the routes or the read back me coming down it world reserve currency first they have to unwind a lot of the dollar based currency transactions around the world say talked about a couple they're doing currency swaps of big trading partners like you round china brazil correct these criteria go take on here it's r. and b. and in exchange china takes on his portions of their currency so and deals come up going forward they can use some currency other than the u.s. dollar and additionally they're allowing they are a bit appreciate now this would give consumers in china a greater purchasing power at the expense of that big export and then so is

the in the mind of the people's bank of china are they thinking making this calculation as to well if we let the r. and b. rise we're going to cut our exports however we are giving greater purchasing power to our own emerging middle class is are they ready to make that move if i believe there is no they have no other choice the only other option is to continue to work twelve hours a day in a factory send products to united states in printed dollars with the so believe me as well shipping containers off in the ocean they have now come to conclusion and absolutely last twenty years china has exploited the felician in consumer goods. the next ten twenty years we're going to see massive inflation in consumer as a renminbi rises. need to reason living standards here they know they're in an increase stronger remember he is going to do that right so people who shop at walmart again stock of a lot of chinese made goods it's a bit of a poisoned chalice because people in the u.s.

and cutting their own wage negotiate their own wage growth the and their ability to collectively bargain for increased wages in seoul such time as price.

we're all engaged with now. so. is there this type of talk inside china here in shanghai to people see this as an emerging currency war to the is this type of language at all you're right there in shanghai is this what's going on i don't see it many people talking of the currency wars is actually the political it's becoming more of a political issue here to keep the renminbi lol into keep shipping did you notice steeds than have them print them let's let's finally catching people's notice here is it why are we why are we working twelve hours a day in the factories and should be shipping products over united states and just have them print money though obviously the u.s. as you know western world is in a position financially where they have no choice but to keep printing i would say they do have a choice but it would require more of fortitude in our politicians sure at this

point so i personally expect a lot more printing of dollars and we see that going on in japan in europe the united states other countries that stay out of the currency war more won't mostly for example metals and productive capacity in engineering in education are going to end up on top i just saw a report on t.v. recently talking about in china approximately one hundred million consumers have credit cards of a population that last i checked one point two one point three billion credit cards are almost nonexistent in china compared to a country like the u.s. and britain or western europe is this something that the chinese population is going to readily take to because you need the middle class to start using credit cards quite aggressively if you're going to build that consumer led model based on a rising r. and b. and also talk a little bit if you can about the fact that correct me if i'm wrong but in the u.s.

you have most of the millions of homes are in negative. egad of equity people don't own any equity in their homes or is in china virtually all the homes that are own are one hundred percent on this very little data types of those homes again a source of buying power if leveraged so how does leverage factor into this other chinese ready to shop until they drop the chinese consumer i believe it's kind of a misconception that china is not a consumer you know china this year will purchase twenty one twenty two million vehicles compare that united states would be roughly eleven or twelve million vehicles china is the world's largest luxury goods market so there is a massive consumerism going on here an expression that your one cities oh with regard to credit cards there they are becoming a lot more popular if you see you know the major cities most transactions know occur through credit cards and those will be continue to roll out in the tier two and tier three cities in the united states we also

a misconception that train is more heavily dependent on exports then they are in reality the the major market here is domestic and more and more exports are focusing more on the local domestic market and will start to we walk away from the export market thanks in many product lines here you can get a higher price only in china than you can get export in all right dan collins we've run out of time thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser as they see here at our site my guest and collins if want to send me an e-mail please do so i pass a report of our team argue until next time this is a nice conversation by all.