up next our financial markets kinds that had the scandal behind the financial news headlines state changed. max kaiser this is the kaiser report let's talk about market schizophrenia that's right and market collateralized schizophrenia obligation bonds are they in the offing states you never talk to me talk to me talk to me yes it's austerity measures one day stimulus measures the next i.m.f. global economy faces a threatening downward spiral this is christine lagarde the new i.m.f. chief and she says europe needs to take its foot off the fiscal brake and shift to growth intensive measures and told the danger has passed insisting that germany has

leeway to stimulate demand right so she's saying no austerity measures are bad for the west it is well this isn't that the i.m.f. just recommended for grace austerity measures that's correct i'm not sure she includes them in the west well but the prescription that i'm f. is offering is schizo from ik they should just offer schizophrenia back bonds and float those on some global exchange that's pays off on house gets a front the i.m.f. can be that's right well it is also the story of this ongoing story between savers versus speculators and as the article points out her comments are certain to cause fear e. in berlin where the i.m.f. is viewed as an agent of keane's ians and french mischief mrs lugard was french finance minister until two months ago well you know germany is sitting on a pot load of money and all these other countries want in on it and of course the germans are savers the french are profit spenders and they

want germany's money as do all the other countries but germany is the same. her don't take germany's money well remember it's all out war max and in fact that's in my next headline all out war bankers versus everybody else so we know christine legarde is now an agent for these bankers of course and that seem tell it as pointing out that for the american economy and for many other developed countries including all of europe the elephant in the room is the amount of money paid to bankers over the last five years in the united states the sum stands at an astounding two point two trillion dollars yeah and i just saw a story that c.e.o.'s of all companies in america and bankers are lobbying washington to pass a new law that would make it so that they would not have to disclose their pay and

bonuses to anybody no regulatory authority not that the f.c.c. just can keep all that information private how they're raping and pillaging not just their bonuses that actually their income and this was in the washington post where they were talking about break away well and they're saying that this is just the wealthy at the top point one percent and ninety nine percent of americans think they're part of that but it's really only point one percent but they're becoming wealthier by taking the wealth from the rest of the population as not sam to lead points out over the next ten years you're going to see at this same rate if you extrapolate this rate of wealth that the bankers are taking it's going to be another five trillion dollars over the next decade that five trillion dollars is not money invested in building roads schools and other long term truck projects but is directly transferred from the american economy to the personal accounts of bank executives and employees i think you should really take the other approach that when the c.e.o.'s and bankers are caught raping and pillaging stealing money as

they're doing they should have to go door to door in the neighborhoods that they live and tell their neighbors that they are serial financial terrorist offenders this is a serial financial terror. under law all but of course the way to fight this financial war is in that image accompanying the story and that's max keiser silver bullets crash j.p. morgan by silver and with it along with these precious metals that takes us to this next headline in this financial war this ongoing financial war china knows that the u.s. government and its allies in western europe strive to suppress the price of gold and the u.s. government knows that china knows according to a two thousand and nine table from the u.s. embassy in beijing to the state department in washington so this was one of these wiki leaks cables that were just recently released and in it the u.s. ambassador is stating that listening to the radio report from the radio which quoted china's national foreign exchange administration they know that the u.s. and europe of always suppress the rising price of gold they intend to weaken gold's

function as an international reserve currency china's increased gold reserves will thus act as a model and lead other countries towards reserving more gold large gold reserves are also beneficial in promoting the internationalization of the room and be right and america tim geitner is always pointing a stronger china saying you're a currency manipulator currencies referring to dollars and on the sea nonsense china saying well you're a gold and silver price manipulator who's going to win the battle gold versus. well it also brings into question because this cable was written in april of two thousand and nine and you and i were at the buddhist bank in march of two thousand and seven and at that time we asked the german central bank whether or not how much gold china had and they reckon china had more than they than germany did and germany has over three thousand tons of gold now officially china only claims to

own a thousand tonnes but by this report you would it would suggest that in fact the bank was correct in saying at the time in two thousand and seven. china had more than three and a half thousand tons of gold now i'm going to repeat it because it's really the states you have an exclusive when we were at the bundesbank they told us officials at the bank in berlin that they believe china had more gold than germany does which means that they would have more than three thousand tons not the stated amount of one of the thousand tons and that was three or four years ago it was an employee it wasn't an official but it was somebody who said that they they obviously have no idea but they suspect that they have more that china owns more than germany and of course they are the biggest gold miner in the world at this time and they're keeping all that to themselves so as this international financial and currency war escalates here's another headline wall street prepares for war. yes

that's an image of lloyd blankfein wearing camouflage and aiming a pistol this is referring to the financial housing finance agency the f.h.a. who has filed lawsuit against seventeen banks including goldman sachs j.p. morgan society general credit suisse barclays and a few other banks but. that's my question here is this just a propaganda war because it's only a civil suit it's not a criminal suit nobody will do any time for this they'll be a fine paid we already saw at the top of the show that in agent the armed wing of the international bankers the i.m.f. is basically threatening that the whole system is about to collapse if you force these banks to pay the two hundred billion dollars and fraudulent asset backed securities that they sold to fannie mae and freddie mac. go you know the goldman sachs response will be to threaten to crash the u.s. economy again using high frequency trading or the trading market manipulation that's their best what they do they have the exchange in a basically captive as part of their hostage taking of america and they threaten to

collapse and if this investigation goes any further now what the f. h. a should do is that they should gather a bunch of hedge funds together some friendly had stronger trade a few headphones of your own is easy enough to do and they should make it short so goldman sachs' stock down to zero listen let's go to the next story because i'll tell you i'll prove to you that this is just a fraud max an f h f a is not having any intention of doing anything to harm goldman sachs because they are the same they are j.p. morgan sub prime mortgage bonds getting aaa rating s. and p. denies to u.s. treasuries so standard and poor's is giving a higher rating to securities backed by sub prime home loans the same type of investments that led to the worst financial crisis since the great depression then it assigns the u.s. government now these aaa subprime mortgage backed securities one of the

participants of this is a i g. which is owned by the same government that is now suing these other guys who are that it's the same is the same circle of a psychopathic schizophrenia schizophrenia schizophrenia back bonsa. as i was. right it's getting pretty backbones and you can buy and exchange but as you're doing it make sure that you look at yourself in the mirror collateralized by your own image slice and dice your image by the schizophrenia cloud response and take a public anti-psychotic drugs like doing it and you yourself can become as rich as lloyd blankfein who's sitting on trillions of dollars of currency which actually is worth nothing the article here quotes gregory w. smith the general counsel for the forty one billion dollars public employees retirement association of colorado and he says everybody has been led to believe over the years that aaa means aaa means to play across the board anybody that didn't learn in the two thousand and eight crisis that doesn't apply should find another line of work but there you go again this more hazard because it's up to

whoever the job bag of donuts chump is running some pension fund for you you have to hope that they learn their lesson because the crooks are not behind bars they are setting policy they have christine lagarde threatening countries around the world for them you know well the rating agencies use the ratings to destabilize the market to create volatility so that their friends can make money trading things like the volatility index the vix and if you have advance knowledge about what the rating agencies are going to do and they give out that advance dollars to their friends and on the exchanges you can buy and sell the vix the v.i.x. the volatility index and make money that way well ok so if you think this is all accidental again like that this is going to stop let's look back at another cable viewing cable zero seven paris four one zero nine paulson discusses financial markets iran with our cozy so this goes back to two thousand and seven hank paulson

was here in paris meeting with nicholas our cozy raise concerns about subprime related market turbulence paulson however underscored the importance of not overreacting he said it would take months not weeks for credit to be right repriced but this was not a major crisis. yes he went on to say anyway it's not a problem the only problem i see in europe for the banks is the german lender spankin but they presented little systemic risk and would be bailed out by the german taxpayer so hank paulson is speaking on behalf of the german government in terms of his plan to allow for the german banks to be bailed out by the german citizens be speaking for the global elite this is always their intention back to savers versus speculators he's he's negotiating to speculators rule and that he knew from then a year and a half before he pretended oh i hated to have to do tarp well he was speaking to starr cosey a year before tarp saying oh don't worry it's not going to be

a problem because the german taxpayer will bail out the german landis bank and let me ask you this one of germany decided to demand the gold held at the new york fed sixty percent of their goal is held in new york what if they did like the french and said we want all our gold sent back to germany it's forever gone no european nation no asian nation including china they have a lot of gold in the u.s. they're not getting it back and then finally max one quick headline here before you turn to the second half israelis turn out for largest economic protest to remember max talk about the break away wealth this is the same situation that is happening in israel because even though israel emerged from the global financial crisis relatively unscathed the economy is joining rapid growth and unemployment is at its lowest in decades at around five and a half percent so it all looks good on the surface right regardless statistics show the ranks of the working poor have grown dramatically as wealth has increasingly become concentrated among a small group of tycoons well you've got to go now to change the nomenclature from

the arab spring to the arab israeli spring well yes that actually a lot of the people the protesters are claiming alliance with the tahrir square of course and also this final image here max this is crash j.p. morgan by silver in hebrew. shalom all right stay sara thanks so much for being on the gaza report thank you don't go away much more coming away so stay right there six. the east. the looming. just say.

six. six. six six six . worldwide manhunt for him lasted for fifteen years. no one wore it was promised three. little smirks for the west. in the old.

general the serbian. welcome back to the kaiser report imax guys are time now to go to germany and speak with economist share he ever share a welcome to the kaiser report i am actually going to speak to you all right here israel has been hit with protests over the summer with four hundred thousand protests last weekend why is five percent of the population of israel protesting what are their demands well we have to ask ourselves why didn't have it why didn't it happen before because they actually israel is undergoing a deep social crisis for the past few decades and with very rapidly growing inequality. a cared for poverty and uncared for unemployment and which have been

expanding and affecting every aspect of life in israel and yet most people didn't really protest it until very recently and this way to protest is something very new in israel it's quite unprecedented there's never been such a large demonstration in israel's history and and people have a lot of reasons to protest ok now is it possible that the arab spring the arab uprisings in egypt earnest and around the arab world gave cover to this protest protest of israel and if so doesn't this speak toward a greater middle east. society getting rid of all these divisions have been plaguing that region for decades. the first reaction in israeli society that they are spreading was was panic actually because the idea that a arab countries could be democratic and people can set their own destiny was something that that. intimidated a lot of israelis who were counting on us and support in crushing the other thing

is the arab peoples and making sure that they operate within the framework of u.s. interests which also works very well for the israeli and middle east refugees but i think with the global excitement about the arab spring especially the revolution in egypt a lot of the israelis said well we also want to get some of that international excitement we also want the people in the world to be excited about what we're doing and i think one of the reasons for this is that there is now with an international boycott campaign against israel against the apartheid that israeli society applies and against that athenian in israel and israelis feel very isolated they're feeling that they're an pariahs and in today's world and because of this boy accompanying and so by emulating the arab spring they're hoping maybe to get some international support ok now you mentioned of course a lesser what the u.s. and the enormous support the u.s. gives israel area for decades and the commentators and the american

press who are covering this at all the uprising in israel they're finding it difficult to talk about the demands of the protesters because it demands a protest or suffer things like greater distribution of wealth and greater equality and income distribution and these of course are ideas that america equates with socialism and communism and. so. the there's a hidden norma's disconnect here because america asia israel billions of dollars every single year and yet the people of israel don't seem to want to emulate what that. butting in america at all i would say the majority of the protesters are talking about raising taxes they want higher taxes so that there will be sufficient income and to. implement social programs and policies that they're asking for which is that complete opposite of of the main discourse in the us that taxes are

considered the root of all evil and any call for raising taxes is immediately equated the communism and i completely agree with that but we have to remember that this is rooted in israeli history because israel used to be unlike the u.s. it corporate a society where which one had a very strong welfare state and a very strong system of union and that worked for jewish citizens only jewish citizens and for and the you lead of society with collaboration with the government and with the major employers and to create a kind of society where there were very strong social policies but only for jews and maybe for jews who originated from european countries and this is a memory that appeals to a lot of young israelis who in today's new liberal economy find that they can no longer count on the government to help them and in finding an apartment they can no longer be sure that their wages will be enough to sustain their standard of living they get very worried and now they're saying let's go back to what we had with the

welfare state and twenty thirty years ago forty years ago and more all right so the people of israel are for peace and justice they're out there a huge percentage of the population of five percent of the population is in the square in the streets protesting for peace and justice however the government of israel of course is attracting here it's a problem america by playing the violence card by playing the terrorism card by committing acts of terror in palestine and around the region now let me ask you a question that way you see a u.s. politician like sarah palin. wearing a star of david he's identifying with the people of israel as an editor say he's done a fine with the government of israel though is basically what you're saying is he's for a senseless slaughter of innocents and therefore he should be president isn't that kind of what's going on there is that the message let's make it very clear the united states does not give aid to these really society at all the u.s.

gives three billion dollars every year to to the israeli government but the money comes in the form of vouchers by which the israeli government can only buy american made weapons so let's be very blunt about this this is a subsidy to the u.s. arms industry that's what this money is for so when an obama or painting or any other u.s. politician are talking about and sustaining the friendship with israel and the longstanding alliance between the u.s. and israel what they're actually saying the u.s. will continue to subsidize the arms industry and make sure that the middle east will continue to be very volatile very violent so that it will continue to buy weapons so that the neighbors of israel will continue to buy more weapons and that will create huge profits for the u.s. arms manufacturers does that make the live the life of israeli citizens any better certainly not but it does make the life of israeli prime minister netanyahu better because he knows that the one weapon he still has by which he can finance the

protests and already he's hoping to silence the protests with is what is there going to be another war in the middle east if there's going to be violent clash with the palestinians or with the lebanon and then or with iran then in the name of a state of emergency he can recruit and the young people and they will no longer be in the streets in the. plaza demonstrating that instead they will be in uniform and fighting a war and that will be the end of the protest i asked my twitter account last kaiser at twitter to ask you some classes and one of those questions referred to war and i will get to that a second but before i do. elements continue on these protests so you're saying that the needs of the warfare state and israel is primarily a warfare state cannot go along power pursue with the welfare state so the protesters are they how are they going to square that circle is there

any way to transform the israeli economy which is currently now almost entirely contingent upon the war how are they going to transform the israeli economy what can they do to make israel something less of a pariah and more of a functioning economy that's interested in the betterment of itself and those around it they join economy is not really contingent on a million on war the military part of the economy is about twelve percent that's a lot that's more than any other country in the world probably but that it leaves eighty eight percent which is not military related and these eighty percent or more most of the people that's where and people where you find the doctors the teachers and the social workers people who are who are barely making ends meet without addressing the deep roots of injustice in israeli palestinian society in the fact that there are millions of his dinner if you g.'s who have every right to to return

out of time but they're not allowed to do it without addressing the issue of and the fact that israel to close it defines it for the jewish state so that palestinians cannot be equal citizens in israel without these issues and of course the occupation of the west bank in the gaza strip where at about a third of the population are not citizens they're subject without any rights that are addressing addressing these three issues there is not going to be a real change in the way that these are in society works but we were talking before about about violence and should the demonstrators use violence i would say there are clearly divided. testers should not turn violent they don't need guillotine to change israeli society need to do exactly the opposite they need to refuse to take up arms and any israeli young israeli who refuses to become a soldier for yet another imperialist war in the middle east yet another kind of distraction by the israeli government to distract from from the social issues

they're going to bring the real change they're going to allow the most important issues to come to the fore the issues of justice well said so they do believe the tipping point of a mass movement toward refusing to serve in the israeli defense initiative is upon us for the first time there is a clear understanding of most of the protesters that it's likely that the government is going to try to use war to silence of the most ration and that that security and excuse is really nothing nothing more than an excuse and that's that's something very that is never been the case before pride my style what role has the increase in food prices played in regards to the recent mass protests any chance that it could lead to more food related riots the food prices where the trigger for the right the first thing that protesters a organized the first kind of protest was overcrowded she's right and they did this

by use of facebook and twitter and they organized a massive consumer boycott within israel and they were excited by the success of this campaign and i think that was one of the reasons that they felt more confident to move into other issues because the cottage cheese is important but it's not the most important thing the things that people and need much much more acutely and in the cheese but yeah food prices in israel actually very expensive more expensive than they are in countries where the income per capita is double and the reason for that of course is the massive burden of security the cost of the army the cost of the cage all right second class and it comes from random u.k. human on twitter. he asks what is the probability of israel attacking or blowing up a red this is the big the big question you have this is a very big question and i'm not a prophet i wouldn't be able to answer this but there is a there is a real risk and unfortunately the world community is not doing enough to try to prevent this kind of war which could be catastrophic iran is doing at the moment

nothing to provoke israel into attacking by germany for example actually sending israeli air it is wrote the marines that could be used to launch such an attack and i think one of the beacons of hope at least for me is the worsening relations between israel and turkey mean that it's much more difficult for his road center did its planes over to bomb iran without cooperation with turkey and so maybe there is also sort of a lining due to a bad story day here ever thanks so much for being on the kaiser report thank you max and that's going to do it for this edition of the cause report with me max kaiser and stacey harbor or thank my guests here have or if you want to send me an e-mail please do so at kaiser reported r.t. t.v. dot ru until next time this is backscatter saying by. the way.

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you're watching on cheese grater have you were there is the headline. together in grief more substance take place across here and as the world's ice hockey community remembers people from three victims of the plane crash in central russia an emotional ceremony has also been held at this stadium in batteries where the team was supposed to play this season's opening mine. president barack obama lays out his much anticipated the full congress and he wants to invest more than a four hundred billion dollars in putting people back with special and this is all construction workers teachers under the long term unemployed is counted as a stick a nation of the child market in the world's largest economy the greatest concerns over the ability of the united states to pull out of the economic crisis and we're bringing you some live pictures from washington right now also the british government faces legal action as doctors demanded a new inquiry into the death of almost inspector david kelly who was the first to reveal britain's new.