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life on the go. she's mine. says feed. on the t.v. dot com. today violence is once again flared up the film these are the images the world seen from the streets of canada. for a show. 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 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 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 i'm joined right so they're going to sort of chance like they are in the square nothing or in the square tunis or in cairo they were 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 commercialised site with a lot of outlets for big gram aims now this sounds like it would be counter to those commercial interests how many hours will this tent city 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 tear 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 that influence money has over our

representatives in washington best stinks as a marketing hook well exactly because interests where they were demanding the dictator go 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 it stock exchange and have a 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 and 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 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 next for you to witness the president of states kowtow to a bunch of bankers on wall street like this i am personally embarrassed and ashamed that of barack obama. would. sell out his people and such a shameless manner it's it's beyond pathetic that you can 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 that is partly responsible for forcing schneiderman off this is something the new york fed is the enemy along with the other central banks hooked into the banking lobbyist the next august change is just a benign place that 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 am. going to become addicted to being at a would be surprised to see is nose before the election start up. 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 are 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 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 in 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 bailout starting in two thousand and seven seated seventeen trillion dollars we

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 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 amassed 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 or 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 the municipality orange county california when he bought one hundred billion dollars of the 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 damage that they're so incapable and incompetent 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 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. stick cowper's 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 calipers they went to the pension fund managers from 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. shakra from carstens is pitching us on it she has a great pitch. and between martinis. it is just amazing because teachers who will really 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 let 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 a 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 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 but inflation is running at two percent at best and her environment of falling stocks and economics are us and these numb nuts in the audience in vegas half sauced on pepper martinis are told if they can get forty percent on the wrist list almost deal brought to by their friends there at the wall street banks and they buy into it i mean i don't know if to say about these people maybe the teacher shouldn't get any money well i have something to say here max because fleiss hacker

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 both studios 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 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 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 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 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 the fact this is the truth we've reported on this for years now i mean not next time i'm in vegas i'm in a stop some teacher on the straight punching me in the mouth really are still all their money and then i was on rockaway tossing a nickel to say a thing and i'll be like thank you thank you alright say to everyone thanks so much for being on the kaiser board thank you max don't go away much more coming away stay right there. bringing you the latest in science and technology from the realm of. the few jerk

covered.

welcome back to the kaiser report i macs keyser time out 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 debased greenback good money printing in the u.s. speed the rise of the chinese currency bank balance welcome to the kaiser report by max good to be here all right dan tell us about the red back and is it going to overtake the u.s. dollar and its lan there article i wrote really talked about. you know as we've seen continues 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 renminbi starting with making it to international trade currency. anybody's been to hong kong recently has seen that the renminbi deposits in hong kong this year will rise 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 rim and be the trade numbers that have come out this year sure led to international trade which was in rim and b. last year was about less than one percent this year will be roughly seven percent so what would 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 sells stuff to america it ends up in wal-mart. they use the

dollars however china. to make sure that these dollars inflate their currency back home they end up printing their own or a big crack to sterilise this transaction the some degree can you walk us through because the another word china's printing a lot of r. and b. as part of that relationship with the u.s. they're the biggest export or us of the biggest consumer yeah absolutely what happens basically is a chinese factory you're a company will export something to your example walmart the company here in china will receive u.s. dollars those dollars then go back to the bank in china in or converted 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 renminbi to soak up those dollars and that's what's really led to the high

inflation here in china you know official inflation region china are five to six percent but most people here would tell you they're they're closer to ten percent own 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 is coming to a conclusion as well i mean a lot of the biggest crowd 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 a problem with the u.s. dollar as a sort of currency but now china is also printing up lots of arm bay 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 b. . 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 countries can hit especially with emerging markets trainers focus is really to get the room in be internationalized first in the emerging markets we see some central banks like malaysia are now holding rim and b. so as a really becomes convertible a china will no longer need these dollars and it will therefore they won't need to buy so many treasuries ok on the routes they want to read back a calming down it world reserve currency first they have to align a lot of the dollar based currency transactions around the world they thought about a couple they're doing currency swaps of big trading partners like iran and china brazil these concerts go take out here it's r. and b.

and in exchange china takes down his portion 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 greater appreciate now this would give consumers in china a greater purchasing power at the expense however of that big export engine 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 i'm urging 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 that 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 the 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 raise a living standards here they know that in an increase stronger remember he's 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 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 that the chinese rating agency gong was the first to downgrade the u.s. debt before s. and p. famously downgrade of 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 sort of read back off the greenback yeah the chinese rated reading didn't see 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 read the to see is just like this a prime mortgage issue they have to be more realistic in it and start reading things correctly oh i don't pick china's using the agency's dollar going as a policy tool i think they're just. reading known what the you know and based on the numbers because if we are we have a guest often jim records who's coming out with a book currency wars and the very near future the title says that all of the

countries are fighting a war using currency and we know that relations with. 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 so currency wars would seem perfectly in keeping with the idea that they that bond rating agency would politicize that decision somewhat because the world war three we're 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 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 indicate shipping goods the united states and have them print them oh that's what's finally catching people's notice

here is it why are we are we working twelve hours a day in the factories and should be shipping products originates needs 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 obviously they do have a choice but it would require more of fortitude in our politicians 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 and united states the country should stay out of the currency war more won't mostly for exam questions medals and productive capacity in engineering and it 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 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 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 doubt 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 it'll 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 in expression in the chair once it is zero with regard to credit cards there they are becoming a lot more popular if you see you know the major cities most transactions know occurred through credit cards and those will be continue to roll over the tear to into your three cities in the united states we also a misconception that train is more heavily dependent on exports than 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 thanks in many product lines here you can get a higher price certainly in china than you can get extorting all right acknowledge as we've run out of time thanks so much for being on the contrary corey thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser stacy here at our thank my guests and collins is going to send me an e-mail please do so i pass

a reported r t t v are you until i sign this of my conversation. rachel martin here broadcasting live from washington d.c. coming up today on the big picture. mission. critical three. three. three. you.