get it here from there to try to prove afghanistan. will show i suppose you go from one very interesting perspective as always we do appreciate you weighing in giving us that unique insight former cia analyst for the government work at princeton and that's going to do it for now but for more on the stories we covered go to our t. dot com slash usa or you tube dot com slash r t america and also follow me on twitter i'm at the i'm christine for. nearly a billion people in the world are going hungry. in the united states even our trash cans are full of the food you just have to go get it all of these perfectly good eggs because one was cracked in even you know all over the other ones just threw them away but she's from a german oh. we really like the top of. the dumpster at one

am this morning three pm this afternoon on the grill the cake is made from and one dozen dumpster. delicious breakfast for the family a some toast for about a week every year in america we throw away ninety six billion pounds of meat.

so you for sure tee up the case. called talk from the. video. feed. on the. max kaiser stacy herbert you know the global insurrection against banker occupation we've been telling you about of for months now it's coming to new york stacey and max keiser 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 counterpane 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 i'm joined right so they're going to set up tents like. square napkins or in the square or in cairo they are trying 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 crime ritualize site with a lot of outlets for big brands. 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 while anonymous is

a very powerful organization so maybe they'll have some juice we'll see. 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 that influence money has over our representatives in washington best thinks as a marketing hook well exactly because interests where they were demanding the dictator go to 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 extract exchange that 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 you are turning general eric schneiderman has been removed from his leadership role and negotiating a nationwide foreclosure settlement with the banks so all forty nine states attorney generals are on her in the pocket of obama they're 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 yeah 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 a barack obama. would. sell out his people and it's such a shameless matter it's beyond pathetic but then again max i know you have a thing about the president but the population itself let's 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 schneiderman off this is our say the new york fed is the enemy along with the other central banks hooked into the

banking lobbyist and europe's largest change is just a benign place the match is 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 that it could be good being i wouldn't be surprised to see is nose before the elections are. 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 were fifty thousand dollars a year sort of employees so they don't understand the figures and terms 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 matthau you'd be 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 subprime 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.'s these mortgage backed securities and the bailout starting in two thousand and seven exceeded seventeen trillion dollars we signed 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 lot of gum stuck to the bottom of your shoe i mean by comparison i'm sure that are pimps in neighborhoods around the world that carry more in their socks 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 max as recently as two thousand and one they were ninety eight percent funded the article goes on to say but benefits changes and economic swamps . that her ass of values have reduced that number so they're down now to seventy

one percent covered so they're claiming and 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 well as we talking about for many many months or years these pension accounts are where bankers go to unload toxic securities that's been the story for many many years remember robber citroen who was running the municipality in orange county california when he bought one hundred million dollars worth of toxic securities and blew up that county and because of pension fund managers and calipers i know from personal experience that people who run cowper's are literally almost on the verge of being brain damaged they're so in capable and competent in what they do they would buy anything these pension fund managers and helpers is one of the worst i mean they're they're they're like a little you know desperate 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. stick calcareous texas teacher's fund 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. and 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 seek 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 in their pension accounts they love the edge funds willy nilly have access to those funds and dump 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 blows up one hundred percent when the c.d.o. close 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 started 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 economic. and these numbers in the audience in vegas have sauced on how looking for martinis are told that they can get forty percent on the risk list almost deal brought to by their friends than there at the wall street banks to buy into it i mean i don't know if this is about these people maybe the teacher shouldn't get any money but i have something to say here max because fry shakar according to this article talk of public pension managers that a c.d.o. is like a financial institution both have strict oversight she says the outside agencies that oversee these struck. here's are the rating agencies comparing them with the federal deposit insurance corporation and the o.c.c.

which regulates banks again barack obama saying that's a 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.b.i. see 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 see the o's are like an institution a mental institution anybody who buys these things clearly is being told i mean it should be a crime and of course the rating agencies gave the c.d.o. as 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 peddlers of fraud of securities because they

have to prove that they were selling fraud or 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 is become one big cluster well the important thing banks is this wasn't 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 one out all across america you're seeing austerity measures imposed and a lot of the population commanding it that is 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 not next time i'm in vegas i'm gonna stop some teacher on the street punch him in the mouth really hard steel all their money and then i was on rotting away toss them a nickel the same thing and i'll be like thank you. all right stacey everyone 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 of the castle 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 hell capital management he also wrote a recent article titled rising chinese redback could overtake the based greenback could money printing in the u.s. speed the rise of the chinese currency that collins welcome to the kaiser report i max good to be here all right dan tell us about the red back and has it gotten over take the u.s. dollar and if so when there article i wrote really talked about. you know as we've seen continues money printing expected 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 renminbi starting with making it to international trade currency. anybody's been a hong kong recently has seen that the renminbi deposits in hong kong this year will rise at roughly three hundred percent to 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 renminbi the trade numbers that have come all this year chill the international trade which it was in renminbi last year was about less than one percent this year will be roughly seven percent so what we're trying is basically train 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

a wal-mart they use the dollars however china. to make sure that these dollars tell inflate their currency it back home they end up printing their own aren't baker act to sterilize this transaction to some degree can you walk us through because in other words china's 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 in or converted back into rim and be. china than takes 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 renminbi to soak up those dollars and that's what's really led to the high

inflation here in china you know official inflation rates in china are five to six percent but most people here would tell you they're closer to ten percent. so in the rising remain be is going to help the inflation problem in china and i think the central bank here in china finally is coming to the conclusion whoa ok a lot 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 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 rim and be. increased 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 especially with emerging markets trainers focus is really to get the rim 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 they will therefore they won't need to buy so many treasuries ok so on the road so are the redback reconning dominant 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 going currency swaps of big trading partners like you round china

brazil these countries go take on his r. and b. and in exchange china takes on his portions of their currency selling deals come up going forward they can use some currency other than the u.s. dollar and additionally they're allowing they are a better appreciate now this would give consumers in china a greater purchasing power at the expense however of that big export and then so is the in the mind of the people's bank of china are they thinking of 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 a so you know that means we'll ship the containers off and dump them in the ocean

they have now come to that conclusion and absolutely last twenty years china has exported beef lieschen in consumer goods. the next ten twenty years we're going to see massive inflation in consumer goods as a renminbi rises china needs to raise a living standards here they know that in an increase stronger rim in b. is going to do that right so people who shop at walmart again stock with a lot of chinese made goods it's a bit of a poisoned chalice because people in the us and cutting around wage negotiate their own wage growth and their ability to collectively bargain for increased wages insult such time as prices bottom out then they start to go up and now the workers in the u.s. 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 eva see de gong was the first to downgrade the u.s. debt before s. and p. famously downgraded u.s. debt now do you see china moving away or moving toward an additional downgrade

staying ahead of the curve is this part of the strategy to move to get the world on to the red back off the greenback we have the chinese rated reading thing you can see that obviously a lot more honest in 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 yet are the world's largest creditor nation so. these read the to see is just like the subprime mortgage issue they have to get more realistic in it and start reading things correctly oh i don't pick china's using their real you need to seize carbone as a policy tool i think they're just. reading known what the you know and beast on the numbers recently we have a guest often jim records who's coming out with a book currency wars and a very near future

a title says that all of the countries are fighting a war using currency and we know that relations big. china and the u.s. are beginning to get a bit strange that china is up upping their military presence there upping their stealth jet fighter technology exciter up so currency wars would seem perfectly in keeping with the idea of pay back on rating agency would politicize 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 today 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 should be individually

united states and 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. 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 fortitude in our politicians sure at this point so i personally expect a lot more printing of dollars as we see that went on in japan in europe the united states the countries that stay out of the currency war more won't want to focus on precious metals in productive capacity and engineering and it to 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 so 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 the millions of homes are in negative negative 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 there's very little debt attached 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 oh 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 in expression that your one city's zero with regard to credit cards there are becoming a lot more popular if you see you know the major cities most transactions no curfew credit cards and those will be continue to roll out in the tear two and tier three cities in the united states we also have a misconception that train is more heavily dependent on exports then they are in reality the the major market years 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 thank in many product lines here you can get a higher price selling in china than you can get export all right dan collins we've run out of time thanks so much for being on the casa report thanks max all right that's going to do it for this edition of the kaiser report with a max keiser as they stare at our my guest band collins if want to send me an email

please do so at last report r t t v are you until i sign with a mascot or something. marvin here broadcasting live from washington d.c. coming up today on the big picture.