here with our t.v. our top stories members of moammar gadhafi his family lead to all material but she accepts them despite protests from the libyan opposition the rebels say they'll seek the return of the colonel's wife and children and bring them to justice. violence in syria claims more make times reports at least seven people were killed by security forces during raids against protesters as fears grow political unrest could lead to religious classes and it's additionally a multi-state society. euro zone recovery is still off track as the e.u. parliament's economic committee admits the pace of growth is weak due to global

market turbulence and concerns over the greek bailout continue. next max kaiser and stacy herbert look at how a revolt against bankers in the u.s. is brewing in the heart of america kaiser report is next. on 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 stacey and max geyser the first headline reads anonymous joins us. 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 space 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 thins 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 commercialised 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 all anonymous is

a very powerful organization so maybe they'll have some jews will say well the protests aren't just going to be a lawsuit 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 a democracy we demand that barrack obama or dean a presidential commission tasked with ending the influence money has over our representatives in washington that stinks as a marketing hook well exactly because interests where they were demanding the dictator go and the dictator in this situation are the banks toure's 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 that high falutin. certains 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 united states kowtow to a bunch of bankers on wall street like this personally embarrassed and ashamed that of barack obama. would. sell out his people and such a shameless manner it's it's beyond pathetic yeah 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 what is partly responsible for forcing off this sort of saying the new york fed is the enemy along with the other central banks to the banking

lobbyist the next august change is just a benign place to 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 what the bankers tell me when to big the big being at a wouldn't be surprised to see is nose before the election start. again i cry 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 pensions a man's over 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 will 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 some 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. 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.a.'s these mortgage backed securities right and the bailouts starting in two thousand and seven seventeen trillion dollars through a freedom of information act that there was a one point two trillion dollar gift given to bankers like jamie diamond in goldman sachs's lloyd blankfein just on the cost just to keep them sweet so no 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 neighborhoods 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 cal pers 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 but 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 and years these pension accounts are where bankers go to unload toxic securities that's been the story for many many years member robert citroen who is running i misspelled in orange county california when he bought four hundred billion dollars of toxic securities and blew up that county because of pension fund managers and calgary's i know from personal experience that people who run calcareous 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 manager calipers is one of the worst i mean they're there 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. to cowper's texas teachers' funds and remember the importance of this story is barack obama has now and the new york fed have forced eric schneiderman off this foreclosure 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 calculus 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. you know it's just amazing because

teachers who will willingly take jobs that don't pay as much as a hedge fund manager because they seek purpose in their life they want to add something to society unlike a hedge fund manager which is just raping society so not only do they under pay the teachers then in their pension accounts they love bed 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 c.d.o. the bottom level the equity traunch that blows up one hundred percent when the c.d.o. blows out 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 but inflation is running at two percent best in or environment of falling stocks and economic. and these numb nuts in the audience in vegas have sauced on how looking up pepper martinis are told if they can get a tory. on the wrist list almost deal grow up to buy their friends down there at the wall street banks and into it i mean i don't know it this way about these people maybe the teacher shouldn't get any money but i have something to say here max because fleischaker according to this article told the public pension managers that a c.p.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 in 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 both 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're 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 pedlers or fraud or securities because they

have to prove that they were selling fraudulent securities or not if you haven't got that call yet come on the show it's total fraud the fact that they even have a license to operate in america shows that america has become one big cluster well the important thing back since this was in two thousand and seven it's openly reported and bloomberg news barack obama eric schneiderman all the attorney generals who are 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 that 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

a fact this is the truth we've reported on this for years now next time i'm in vegas i'm going to stop some teacher on the street punch him in the mouth really are still all their money and then out on rockaway toss a mickle the same thing and i'll be like thank you thank you all right so you're well thanks so much for being on the kaiser report thank you max don't go away much more coming away stay right there.

welcome back to the kaiser report i max kaiser time out to go to shanghai and talk with daniel collins he's the founder and chief investment officer of tiger health capital management he also wrote a recent article titled rising chinese redback could overtake the based greenback good money printing in the u.s. speed the rise of the chinese currency bank columns welcome to the kaiser report i max good to be here all right so. it's about the read back and has it gone over take the u.s. dollar and if so when they're article i wrote really talked about. you know as

we've seen continuous money printing specially 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 phase strategy to internationalize the rim and be starting with making it a international trade currency as anybody's going to hong kong recently has seen that the renminbi deposits in hong kong this year will rise roughly three hundred percent to go over one billion u.s. dollar china's also the same currency swap agreements with over fifteen countries this is really the first step of trying to internationalize the renminbi the trade numbers that have come up this year chill the international trade which it was in revenue last year was about less than one percent this year will be roughly seven percent so what china's basically trying to do is turn most of their contracts into

renminbi as opposed to dollars ok let's talk about what happens when china south some stuff to america it ends up in wal-mart. they use the dollars however china to make sure that these dollars tell inflate their currency back home they end up printing their l r a baker act to sterilise this transaction to some degree can you walk us through because the in other words time is printing a lot of r. and b. as part of that lesson ship with the u.s. they're the biggest export or us of the biggest consumer yeah absolutely what happens basically is a chinese factory here a company will export something to your example walmart the company here in china will receive u.s. dollars though. dollars then go back to a bank in china in a converted back in a room and be. china then takes us dollars and in the past few years past decade

really has been buying us treasuries with it. and that's really as you're exactly right china has to print renminbi 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 they're closer to ten percent. so in a rising remember he is going to help the inflation problem in china and i think the central bank here in china finally is coming to that conclusion as well ok you know one of the biggest problem 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

a problem so that's a problem with the u.s. dollar as a sort of 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 fessing that yeah absolutely and i think that's why we've seen some recent so aeration 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 room and be once the currency in these contracts especially with emerging markets train of thoughts is really to get the room in 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 and it will therefore there. don't need to buy so many treasuries ok so on the road toward the redback becoming dominant world reserve currency and first they have to unwind

a lot of the dollar based currency transactions around the world so they talked about a couple they're doing currency swaps a big trading partners like you round china brazil. these countries go take on here r. and b. and in exchange china takes on huge 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 however of that big export ends in 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 fair jury person products to united states in printed dollars with the sole. ship the containers off in the ocean you have now come to a conclusion and absolutely last twenty years china has exported be felician in consumer goods the next ten twenty years we're going to see massive inflation in consumer goods as a remedy rises china needs to resume living standards here they know they're in an increase the stronger rim and b. is going to do that right so people who shop at walmart again stock with a lot of tiny's made goods it's a bit of a poisoned chalice because the people in the us and cutting their own wage negotiate their own wage growth and their ability to collectively bargain for increased wages in such time as prices bottom out then they start to go up and down the workers in the us can't. even get the cheap goods anymore and they have no wages so that'll be a big big fun for them to make that discovery someday in the very near future now

the chinese reigning agency de gong was the first to downgrade the u.s. debt before s. and p. famously downgraded us that now do you see china moving away or moving forward in additional downgrade staying ahead of the curve is this part of the strategy to move to get the world on to the redback and off the greenback you have the chinese rated reading the concede obviously a lot more honest than even s. and p. and moody's you know i give s. and p. credit for stating the obvious that the world's largest debtor has a aaa credit rating it makes absolutely no sense. on the other hand china's credit is rated far far below that of the united states is or the world's largest creditor nation so these reading the disease just like the subprime mortgage you surely have to be more realistic in it and start reading things correctly oh i don't think china is using their real needs these doggone as a policy tool i think they're just. reading known what the you know one piece

on the numbers basically are we have a guest often jim records who's coming out with a book currency wars in a very near future the title says that all of the countries are fighting a war using currency and we know that relations between china and the u.s. are beginning to get a bit strained that china is up upping their military presence they're upping their stealth jet fighter technology etc so currency wars would seem perfectly in keeping with the idea of pay back on rating agency would a little size that decision somewhat because the world war three were all engaged with now is a currency war 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 you're right there in shanghai is this

what's going on i don't see 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 goods the united states in have them print them that's what's finally catching people's notice hears it why are we where we were 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. is be a western world is in a position financially where they have no choice but to keep printing obviously they do have a choice but it would require more fortitude in our politicians seem to show at this point so i personally expect a lot more printing of dollars and we see that going on in japan in europe in united states the countries that stay out of the currency war or more mostly focus on precious metals and productive capacity in engine ear and 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

crowded cards of a population that last i checked one point one point three billion so a credit cards are almost nonexistent in china compared to a country like the us or 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 that millions of homes are in negative negative equity people don't own any equity in their homes whereas in china virtually all the homes that are own are one hundred percent on there's 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 isn't a mass of 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 interior three cities in the united states and we also have misconception that train is more heavily dependent on exports than 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 then you can get export all right hank allen's 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 stacy herrick our thank my guest and collins if want to send me an e-mail please do so or pass a report in our to. argue until next time with a mascot or something by elf. home. from. them.