book about your weather and here is a look at the top stories pro palestinian demonstrations wriggle and spread across the world ahead of the bid for statehood at the u.n. even as brock obama personally vows to any resolution recognizing a free palestinian state. scores of policemen and passers by are injured in powerful twin blasts near a regional police have quaters in the capital of russian republic of dagestan two devices went off within moments of each other both were believed to have been planted underneath parked cars. death row pardon non-branded troy davis is

executed in the us state of georgia after his final appeal was rejected by the supreme court that's despite questionable evidence and widespread protests and he supports. al jazeera the director general resigns due to rumors he is linked to the cia critics say that explains the switching u.s. attitude towards the qatar based news network. so they have lines here in r t up next max and stacey are back to try to figure out why responsible for whose response rather for today's international financial disaster. well. really you believe the science technology some of. the future covered.

skies are on stacy herbert paid big news runner for going to war sister that's right from vince cable we hear that crisis is the economic equivalent of war and max you know in any good financial war any war in fact you need a good general and i vote for alexander lebedev why. well we all know he punched out that guy right you caught this guy and i think this is a probably had we had somebody like this as treasury secretary in the united states of the time say all these bankers lloyd blankfein goes to hank paulson is this please i wrote so many bad loans and they've all blown up help me if i am paulson i just done the same thing but we are in a war that's for sure and that's why i don't understand all this quickly kidding we have a link about the proteins eans the energy keynesianism monetary stimulus krav the

bailout if you're in a foxhole and getting shot out by financial terrorists you need to fire back because it's a war vince cable is correct there are casualties of this war the impoverishment the homeless the poverty people don't understand it they're in a war and they're losing yeah and instead you know in a war what happens in world war one or world war two the guy jumped out of the foxhole afraid and ran the general shot him in the back as the guy was running away this is the equivalent of what the bankers should be treated like they're running away from the financial system that they themselves created instead here's an image from william bonzai seven. yes this is tiny to me and he's in charge of the financial system the eurozone shuns guy in our treasury secretary timothy geithner was in poland last weekend and he suggested to the europeans that it's so easy to solve your problem you know what you do you take your four hundred forty

billion european financial stability fund and leverage it ten times and make it worth four point four trillion well that's the solution in the me a liberal washington consensus model it's all was to expand the dead instead of generals we've got like general electric in there at the white house advising obama they of course have a vested interest as obama's doing whatever general electric wants them to do and this is the ironic country in the interest of the people who you're supposed to serve well of course all the europeans told in debt to me to go take a hike but there was another friend of to me you know we all know fatso and he's returned this is larry summers and tim geithner and this little image i get from william bonzai seven you know we have the financial part for the financial war because no war is whole without the artist a member of the troika are we in america have their own troika just like greece has

the troika but curly committing financial terrorist acts against that little country we have to try to get america summers geithner and rubin robert rubin the three crusaders of on a wholly financial warfare totally destabilizing the us economy and raping it for every nickel they could get and now summers is coming back oh my god that's right with this piece in the f.t. the world must insist that europe act so larry summers is saying an increase in the central financial commitment to the financial stability of member states and a reduction in their financial autonomy is needed if the currency the euro. to survive but also christine legarde got her wings clipped and if you saw that last week but she came out in the press and suggested the banks needed to improve their capital ratios she got read the riot act by tim geithner who took on the back room and said look no talk about increased cap rates for banks ok and use an epithet at

that point and then she came out the next day singing a completely different song forget it christine legarde as being some kind of voice of legitimacy she's in with the troika well to me geithner also was in europe rejecting the common european opinion that there should be a financial transaction tax and you know it they argue that this is capitalism you can't have a financial transaction tax but as we know with high frequency trading the average holding of any share is what a few microseconds. so yeah i mean high frequency trading is high frequency looting and those looters in london i guess the lesson we know about this we can learn is that if the looters in london who were looting the shops if they looted in fractions of a second they'd be called market makers and they were there for any value to this is them but because they looted it only took five or ten seconds then they're now in jail well so wherever these are elected officials the to me geithner's the larry

summers and christine lagarde of the world walker stalk of course riots soon follow greece new austerity new riots the more the greek government does to get bailout money the more likely its citizens are to riot the more they riot the more its g.d.p. suffers apparently the troika is insisting on one hundred thousand more people be fired in greece and they're also demanding deeper pension cuts so we know how the greeks respond to this max well the goal is loss of sovereignty with all the troika has to strip greece of a sovereign saying. as they want to extract the rent from that economy by seizing the income producing assets and they want the greeks to be slaves on it in their own country that's the goal and this is the troika which is just a rebranded hunter remember the hunter was in greece not too long ago greek people rose up got rid of the other got the troika well how come they're not doing

anything about the troika and they must have run out of energy to deal with it well max who are the troika e.c. b i.m.f. the e.u. . just groups of engineered institutions of an elected people that are only a few decades old we created them and what they wanted to take the sovereignty of a five thousand year old nation and their culture and their artifacts and their history they want to strip it they want to bleed it they want to just take it all the guts on the software program sell it on the open market for pennies on the dollar because their scope there are figments of our imagination they just snap and wake up and let those people go away greece should not be eurozone debt crisis scapegoat this is evangelicals then is the finance minister of greece and he says if we want to stabilize the situation if we want to pervert default if we want to remain in the core of the euro zone if we want the country just stop being blackmailed and humiliated because no citizen should have to put up with humiliation of their country we have to make three large strategic decisions and

that is what more austerity essentially he's saying he is in bed with a trike a game needs a default these best or were fraudulent million dues to begin with they have no legal under the constitution before the memorandum rewrote the constitution it clearly states that they have no legal obligation to make good on these does well exactly but his very statement max listen to a statement again if we want to stabilize the situation if we want to adverse default you don't want to avert default the bankers want you to avert default the words are precise in their meaning and their intent they're to blame who's all the population into to accepting the poison chalice tuesday that's what exactly he's using the word we to the people of greece who's willing acting as if they're their desire should be the same as what the bankers and bondholders want he's not

a we he's not in greek. these are parts. creak and in fact it again he says if we want to stabilize the situation then we have to do this thing that is going to be stabilized the situation he's insane he speaks in a bamboozle ling way to try to divert attention from the fact that he's obviously in the employ of the troika and the bad guys he's together. with alexander lebedev i think it is like punched out on blogger television gold be happy to do it i'll post the guy's lights out on this show so let's look at the finance minister for greece and how he has common cause with this right wing nut case from finland finnish m.p. hala calls for tanks in greece he was quoted on facebook as saying what greece needs at this particular point in time is a military hunta that would not have to worry about his popularity and could use

tanks to enforce some order among strikers and rioters they have the military junta as it's called the troika and these weapons of mass destruction to disenfranchise and to strip the country of its sovereignty already as vince cable who is in the british cabinet says it is an economic war and there is. the economic the three guys of the who are e.u. e.c. b. and i.m.f. these guys out of nowhere that were fabricated into engineering created out of some black cauldron and which is them yeah and this you could go on is one who got she's on the box. he's not even human he's lost a human to dick cheney and he doesn't even have a heart because the valve just like a lame valve made out a floodwall so this m.p. use had one too many sound as obviously is great in the shrunk a little bit but he's been suspended for two weeks but he'll be back in two weeks great well these his ideas are junk and what's wrong with finland anyway they are

blocking the whole passage of the collateral that we needed to get this loan but as if but that's good they should default greeks should default so let them block it but they don't need a military hunt this guy has taken too many sound right but he's saying that they they're trying to block it by not accepting the collateral while the same time saying they need to do a military intervention are totally conflicted that proves the fact that they've they're drunk and they're so in a did good there was soon they're out there make no sense and in finland it's found no sound no i stand corrected. but tanks are always part of the equation wherever bankers go the tanks follow and here's the next headline max carney blair visited libya to lobby for j.p. morgan ok here's the telegraph and they think they have breaking news but max did we not break this to the world a few months ago we were talking about this on the show for weeks but as i think it

is most that tony blair's been in libya a lot at work blogging for j.p. morgan because they know tony blair's soul is that of a corrupt wall street terrorist. we knew what he was doing there but now the telegraph has found the documentation and they're also speaking to a man a senior executive from the libyan investment authority who said that the seventy billion dollars fine used to invest the country's oil money abroad that mr blair was one of the three prominent western businessmen who regularly dealt with they follow islam khadafi so he says tony blair is visits were purely lobby business for banking deals with j.p. morgan unlike some other deals notably some investments run by the us bank goldman sachs j.p. morgan's had never turned bad back and this is a classic dead book swap this is how bankers operate their scams so half the money goes to goldman sachs that looks they lost ninety nine percent of it j.p.

morgan apparently didn't lose money for them right this is a classic example of cartel thinking or mafia thinking or racketeering j.p. morgan and goldman sachs work together on this and i can break that story here just like the provos tony blair story months ago i'll tell you right now this will come out in three or four months at j.p. morgan goldman sachs tag team of libya with tony blair and that goldman sachs is positioned as the loser fun but they've got a huge cut of the money that j.p. morgan made on this deal they worked together it's a troika on wall street those two guys and geithner it's this racketeering and libya the if they thought they were bad with their weapons and their hijackings and what they did know of bad was until going to blurt out what j.p. morgan now the gadhafi you know isn't a terrorist really looks like well so you see her thanks so much for being on the cause the report thank you max go away much more coming your way so stay right there.

immediately. back to the cars or report let's go to new york and speak with. blog dot com reggie on the way to the studio you wrote this on your blog quote i will fly in the face of common wisdom and walk through a run. on international television of course you're referring to this report walk

us through your model for b.n.p. perry the biggest bank in france one of the scenarios. there are three facets to the scenario there's the impetus for the problem which is the fact that the m.p. is carrying the rope as is going to the balance sheet at par basically as a risk free asset and as many practical people know very few as i actually have this free one of their biggest holdings in the sovereign debt arena is the boss of greece greece is currently trading. the trading at about fifty two percent of par and then actually trading i did being quoted if. what i understand from the traders that speaks to is there are no trades because nobody wants to buy it so it goes. to actually trade obviously they have to be lower in order to get a bid so if you were to mark that down say forty thirty five forty forty five cents

on the dollar and then affect their leverage is their capital roughly thirty to forty times to talk to significant losses and that's just increased. the default and the market is pricing in roughly one hundred fifty percent chance of closing think about them at five hundred fifty percent of the c.e.o. the only guarantee. the fourteen is going to put pressure on all the peripheral states as well and the obama trade down and it's a good chance that they may to fold particularly if it's to see if they. she some type of benefit from it such as i said which is one of the fastest growing space in all that you know that you area. then why wouldn't the taxpayers of logical island before the start of going through history most every nation has the time to pay back the massive amounts of debt that they probably would be a pay back anyway so long story short you have a significant there problem there if depositors' realize that this is the if the

debt issue they would probably want to move their savings and checking accounts out of the m.p. this is because funding their p.p. relies upon roughly seventeen percentage the term funding to disappear overnight literally overnight you see this happen the united states look at prestone so we have to be rescued over weekend at lehman brothers as well it's going bankrupt overnight so it's a problem that was probably done from the beginning of investment banking but if you came to light in two thousand and eight with restaurants remember this here we go into the end of two thousand and eleven and european banks and sitting in the same precipice have learned our lesson obvious answer now on top of the one of the banks from the deposit is you also have funding from kind of parties of the banks who basically do business from b.m.p. . give them credit lines the swap agreements and cetera if they feel their pain pain may not be of the honor of the contractual agreements they basically want to leave the dog in first or not the dogs among the most money in the last analysis of

his travel so you have a run on the bank from a situation inside the kind of place even if they don't run and they can increase their collateral requirements increase much of the climate to settle this all pleasures b.m.p. from civil defense right now to be fair to b.m.p. they're not the only bank in this situation but they differ on a bank is a bank that is in a situation and situation now tim geithner they the u.s. treasury secretary is it made a trip to europe and a proposed kind of a euro tarp the try to solve these bank problems the idea i'd. as being that you would take the balance sheet of b.n. pay which is completely unsustainable by their ongoing operations in other words the bank is technically solvent they don't have the ability to roll over their debt the rumor was that they were begging for dollar funding just a few days ago they're on the precipice they are the lehman of europe potentially and now timothy geithner was in europe saying well the solution is to create a euro tarp but then he was rebuffed they said no no we can work it out ourselves

the theory i think is that germany somehow is going to create a blanket european wide funding facility where the banks like being taken to roll up all the trash that on their balance sheets is that possible that workable or does not give germany an awful lot of control over the entire euro zone to begin with was and remains strong economy very productive to produce real things tangible aspects of tangible products and services but drum the is still a strong explanation primarily to the e.u. to the u.s. and so much of this expense to egypt if the u.s. broke which much of it is then is going to for germany you know germany can sell things to people who can afford it and the second point is assume germany can pull this off would it be in a place interest to do it. with the euro. is advantageous to terminate

if they attempt to put everybody through medicine for austerity and possibly default anyway i should tell me simply pull back and it's him to court on his own let the e.u. full resume and then possibly go back in these i don't have the answers to this but these are different things that need to be tossed up what guy was suggesting is basically creating a mess of derivatives to aggregate the oven as a derivative that. are not worth anything and then what what's next you know you have you haven't solved the capital problem you haven't filled the hole you haven't tried any solution he simply so. bunch of nonsense from one side of the table moves to the right is extend and pretend it's a roll up it's kicking the can down the road now we went to the twitter us fair i went to max kaiser account on twitter for questions for reggie middleton and we got a couple of questions here one from blog lot being prepared does not see a bank run or they do see a bank run what impact will this have on the european global banking markets will

spark a contagion which entities are most at risk but i think you've already covered the contagious aspect of this but how do the dominoes fall in what order would the dominoes fall in france in europe and globally if you see again cross pressure deposit or bank roll he provide liquidity. to the. i don't know if he can i cannot but my presumption would be the should be was appropriate peat in the itself but d.m.p. has caught a kind of parties so these you have to support him p. such and you know the major french banks and potentially major kind of parties will probably pull a pretty quickly as possible that includes american banks and includes german banks and. it will spread the spread quickly it's very difficult to map the exact route but you can see who has exposure and be in peace to lodge a bank to have any type of incident such as that exists in a vacuum so if b.p. were to have a run and run would it get out of control it would ever very very quickly

throughout europe and we have the next question from match to narrow from twitter he says reggie talks a lot about the system crashing yet advocates taking profits from trades in the very paper that will do with the system how does range you see the end game what is the use as a store of value ok so this is a question about you have to be very tricky in trading these markets because at any moment they could collapse so how do you trade around and what do you see ultimately as a store of value but i have been very bearish. on. on the u.s. special u.s. banking system real estate. you know the price nutritionist etc that being said i think the u.s. is on an unsustainable path its path is not as unsustainable as that if you open these push up the medium term because of its already vanzant situation and the banks you know europe has backed against the wall and it's about the fall through the wall momentarily the last time i was on the show i was asking for

a similar question about if the u.s. dollar would be sustainable it's going to pass and i said nominally on the face of it no but it appears that the triumvirate of economic powers will be us the e.u. and china. kicking the can down the road to see who falls first befalls prose creates capital flight and so the other two which allows those to take the can down the voting for that so we have the u.s. which i've discussed you know in detail view of the e.u. which has its back against the wall and i think is go blow up momentarily and then be able to china and china is an inflationary bubble sitting on a deflationary precipice china would be able to avoid a lot of the inflationary as parts of the bust by doing what the u.s. did close above the first place basically allowing the banks to go full force with all the fuss is wide open to lend to anything with a heartbeat so i didn't have a hard people look like you could have a heart because when you do that you amass

a massive n.p.a. switch and now from the as a banking system as the as is just the value you have the whole significant losses in gas and the capital and that's going to happen in china it's guaranteed you cannot get fifteen years of growth in three years and not pay the piper for those just a matter who falls first right now looks like he was going to fall first and looks like they're going to be challenged with the e.u. and china can ask. us and us before it's a matter of not who's in the best condition but basically who is the least worst of the bad. conditions are trying for it now last year eric cantor called for french citizens to withdraw their cash from the banks as an act of resistance in this ongoing financial war now the population itself never did withdraw their deposits can you point and there is of course this protest on wall street going on occupy wall street is this an effective way for citizens to gauge in what is obviously

a predatory aspect to the way the banks are doing business versus how people around the world are getting screwed by the banks is forcing a bank closure by withdrawing deposits. and possibly going into another currency or precious metals would this be an effective way to fight this financial war you know it would be synonymous to a large institutional investors who are basically show to activists normally you know the mom and pop household you know buys a stock food retirement plan a family to a broker they have very little say so in how the companies rank basically took care lest you have large shareholders who are able to direct the larger flows of capital flows of stock purchases to sales and they differ in how the year the company and the company basically does with the show to feel more in the best interest with their right or wrong if you can get the populists who can show their deposit money

the same way which is actually not difficult but is babyfood good for the movie units and then you have activists bank deposits and they can get the banks to act in the best interest of depositors are these what those causes will be best interests and that's a very interesting concept to have activist bank deposits and basically if you feel that banks are being predatory or are taking too much of a chicken which risk you simply move your money somewhere else and doing that you will have been some comply and they have to comply because they use the positive. very inexpensive very short term funding they do it unwisely because this short term funding can disappear and hard to be overnight so i think it would be a very interesting social economic experiment to have a large group of causes basically say the plaza goes where it's going to expire or basically move the deposits accelerate the collapse which is. the other and then go

from scratch all right then also really have to cut it off there thanks so much for once again being on the kaiser report thank you for coming back all right that's going to do it for this edition of the kaiser report with me and. my guest. blog dot com if you want to send me an e-mail please do so at kaiser report r t t v are you. saying by all. home. mom.