the headlines on odd see the demonstrations ripple worldwide ahead of the bid for statehood of the united nations this comes even as barack obama personally vows to veto any resolution of recognizing a free palestinian state. schools or policeman passers by injured in powerful twin blasts in the capital of the russian republic of dagestan one of the bombs was planted inside a parked car while the other was hit near the regional police headquarters. al-jazeera as a director general resigned. to the cia critics say that explains the switching u.s. of the chewed towards the base news network. if you stay with us here on r.t.

up next the kaiser report with max and stacy trying to figure out who is responsible for today's international financial crash. if. my scars are i'm stacy herbert a big news runner for going to war there 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 he clocked this guy and i think this is a probably had we had somebody like this as treasury secretary in the united states at 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 hank paulson a just done the same thing oh yeah we are in a war that's for sure and that's why i don't understand all the quid the kid again googling about the pro keynesians the anti 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 cable is correct there are casualties of this war the impoverishment the whole most of the poverty people don't understand and they're in a war and they're losing yeah and instead you know in a war what happened 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 geitner treasury secretary timothy geithner was in poland last weekend and he suggested to the. and 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 yeah well that's the solution in the neo liberal washington consensus model it's all was to expand the dead instead of generals we've got like general electric in there 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 not how you run a 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 our fatso and he's returned ok this is larry summers and tim geithner and this little image again from william bonzai seven you know we have the financial heart for the financial war because no war is whole without the artist a member of the troika are we america had their own troika just like greece has the troika curly committing financial terrorist acts against that little country we had to try to get america summers geithner and rubin and robert rubin the three crusaders of unholy financial warfare totally destabilizing the u.s. 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 is to survive but also christine legarde got her wings clipped if you saw that last week but she came out in the press and suggested that banks needed to improve their capital ratios she got read the riot act by tim geithner who took on the back room . and look no talk about increased cap rates for banks ok and he used an epithet at that point and then he came out the next day singing a completely different song forget it christine legarde as being some kind of voice of legitimacy shoes 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 we 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 clicks on or to villa seconds. 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 therefore adding value to this is dumb because they looted it only took five or ten seconds then they're now in jail well so where ever these elected officials the timmy geithner's the larry summers and christine lagarde of the world walk or talk of course riots soon follow greece new austerity new riots the more the greek government does to get bail out 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 the goal of the troika is to strip greece of a sovereignty because they want to extract rent from that economy by seizing the income producing assets and they want the greeks to be slaves on that in their own country that's the goal and this is the troika which is just a rebranded hunta remember the hunter was engraved not too long ago greek people rose up got rid of the junta they got the troika well how come they're not doing anything about the troika they must have run out of energy to deal with it max who are the troika the e.c. be that 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 country and sell it on the open market for pennies on the dollar because they're supposed to there are figments of our imagination there snap

and wake up and let those people go away greece should not be eurozone debt crisis scapegoat this is even jealous then is the finance minister of greece and he says if we want to stabilize the situation if we want to avert default if we want to remain in the core of the euro zone if we want the country to 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 is saying he is in bed with the trike. game needs a default these were fraudulent million views to begin with they have no legal under the constitution before the memorandum rewrote the constitution it clearly states that they had no legal obligation to make good on these terms 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 they're intent to blame who's older population into to accepting a poison chalice to zero over 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 i'm gone told there's want to spot a we he's not a greek he's some parts. greek and in fact again he says. 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 needs to get t.v. show with alexander lebedev thank goodness and life punched out on live television

oh be happy to do it i'll post the dog's life. 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 junta that would not have to worry about its popularity and could use tanks to enforce some order among strikers and rioters they have a 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 a couldn't he cannot the three guys of the who are e.u. e.c. b. and i.m.f. these guys i don't know where that were fabricated engineered and created out of

some black cauldron and which is there and christine lagarde is a little but she's on the box. he's not even human these last few minutes explaining that he doesn't even have a heart because the valve just like a lame valve made out a flaw so this m.p.u. sad one too many sound has obviously his brain is 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 wrong 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 then you should default greek said default so let them clock it but they don't need a military hanta this guy has taken too many sound right but he's saying that they are 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 drawn and they're so into did did the was doing their out there makes no sense and

in finland it's not sound i stand corrected. but tanks are always part of the equation wherever bankers go their tanks follow and here's the next headline max tony blair visited libya to lobby for j.p. morgan ok here's the telegraph and they think they have breaking news but max not i did we not break this to the world a few months ago we were talking about this on the show for weeks but 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

a fall islam gadhafi 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 and j.p. morgan's had never turned bad max this is a classic dead book swap this is how the bankers operate their scams so half the money goes to goldman sachs they lost ninety nine percent of it j.p. morgan apparently didn't lose money for them but 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 you broke this tony blair story months ago i'll tell you right now this will come out of three or four months of j.p. morgan goldman sachs tag team bolivia with tony blair and the 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 work together it's

a 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 didn't know what bad was until tony blair showed up with j.p. morgan now the gadhafi you know is a terrorist really looks like well seriously hurt thanks so much for being on the kaiser report thank you max don't go away much more coming your way so stay right there. with three. or. three. free stews free. video for your media projects and free media gondar teton tom.

i want to back to the kaiser report let's go to new york and speak with the red metal tin of boom bust 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 iran on b. and p. on international television of course you're referring to this shall kaiser report walk us through your model for a run on b.n.p. paris the biggest bank in france one of the scenarios for a run on being big there are three facets to the scenario there's the emphasis for the problem which is the fact that b.m.p.

is carrying a plethora of assets on his balance sheet at par basically as a risk free asset and as many practical people know very few assets are actually risk free one of their biggest holdings in the software and dead arena is the bonds of greece greece is currently trading two and three as those currently trading at about fifty two percent of par and then actually trading right there being quoted if you can what i understand from the traders i speak to is there are no trades because nobody wants to buy it so it goes to quote if you actually trade obviously they have to be no. so if you were to mark that down say forty thirty five forty forty five cents on a dollar and then affect their p. and p. leverage is their capital and roughly thirty to forty times to talk to significant losses and that's just increased. sort of default and the market is pricing in roughly one hundred fifty percent chance of greece defaulting think about their

math one hundred fifty percent of the c.e.o. nearly guarantee chance accused of faltering it's going to put pressure on other peripheral law states as well and their bonds and trade down and it's a good chance that they may default particularly if it's perceived that greece defaults and she some type of benefit from it such as i said which is one of the fastest growing states and all that you know that you area then why wouldn't the taxpayers of logical island before the state of long think to most every measure is it something to pay back massive debts that they probably wouldn't get paid back anyway so long story short you have a significant there problem there if depositors' realize that this is the debt issue they would probably want to move their savings and checking accounts out of the n.p.t. this is a little funny maybe a few lies upon roughly seventy two percent of the time fun they can disappear overnight literally overnight you see it is happening united states get breast turns which had to be rescued over me again and 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 we came to light in two thousand and eight with restaurants i mean brothers here we go into the end of two thousand and eleven and european banks are sitting on the same precipice have we learned our lesson obvious answer and on top of the one of the banks from the depositors you also have funding from kind of parties of the banks who basically do business maybe and people give them credit lines swap agreements and cetera they feel they've been coming out of the honor of through the construction agreements. one of those leaves the door first about the doors the most the money the last but now he gets trampled so you have a run on the bank from his and which was kind of parties even if you don't run it they can increase the collateral requirements to increase margin crime is the center of this or pushes a few people several different sides now to be fair to be m.p. they're not the only bank in a situation but they differ on a bank or is

a bank it isn't a commission 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 to try to solve these bank problems the idea i guess being that you would take the balance sheet of the end pay which is completely unsustainable by their ongoing operations in other words the bank is technically insolvent 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 all the solution is to create a euro tarp but then he was rebuffed they said no no we could 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 pekin to roll up all the trash that on their balance sheets is that possible is that workable or

does not give germany an awful lot of control over the entire euro zone begin with muscles and drive a strong economy very productive to produce real things tangible aspects of it tangible products and services but drum the is still a strong explanation primarily from the e.u. to the u.s. and so much of the sort of sense the asia if the you was broke would show much of it is then is going to germany you know germany can sell things to people who can afford it and those that complain is assumed room the can pull this off would be an abyss interest to do it. with the euro. is. advantageous to germany if they had some to put everybody through as opposed to ready and possibly get the force anyway russia germany simply pulled back and it's time to go out on his own let the e.u. forward as it may 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 suggesting is

please agreed create a mess of derivatives to aggregate the other mess up the river it is dead. by now worth anything and then what what's next you know you had you haven't solved the capital problem you haven't filled the hole you haven't tried any solution you simply took a bunch of nonsense from one side of the table moved to the table right is extend and pretend it's a roll up it's kicking the can down the road now we want to twitter us fair i want to max kaiser i count on twitter for questions from reggie middleton and we got a couple of questions here one from blah blah if b. and b. perry about 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 as these are most at risk 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 a bank or special deposit or bank running c.c.p.

provide liquidity. should i don't know if they can or cannot but my presumption would be they should be with appropriate pete in the self but the m.p.'s go to counter parties so these if you have to support p. and p. soc gen you know the major french banks and their potential the major kind of parties will probably pull of liquidity quickly as possible that includes the american banks and includes german banks. it will spread the spread quickly it's very difficult to map the exact route but you can see who has exposure and the europeans 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 rome would get out of control it would never ever very very quickly throughout europe and we have a 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 die. out is rangy see the end game what does he 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 in and what do you see ultimately as a store of value i have been very bearish. on the u.s. especially the u.s. banking system real estate. you know the pricing in treasuries 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 for the shelter medium term because of the. situation in the banks you know europe has backed against the wall and it's about to fall through the wall momentarily the last time i was going to show i was asking very similar questions about if the u.s. dollar would be sustainable path and i said now i'm of the on the face of it no but it appears that going to try and rid of economic powers of the us the e.u. and china. kicking the can down the road to see who falls for us who will fold

first creates capital flight and so the other two which allows those two to take that can down the road into further so we have the u.s. which i've discussed you know in detail go the e.u. which it has its back against the wall and i think is go blow momentarily and then we have china and china is i envision everybody sitting on a deflationary precipice china will be able to avoid a lot of the inflationary as parts of the bust by doing what the u.s. did close the book in the first place basically allowing things to go full force with all the files is wide open to lend to anything with a heartbeat so i didn't have a hard to look at you could have hard to get us out of the gap. when you do that you are a massive massive n.p.a. as a banking system as yes it's just the value you have the whole significant losses the gaps in the capital and that's going to happen in china it's guaranteed you cannot get fifteen years of growth in three years and i pay the piper for those just a matter who falls first right now looks like you is going to fall for. good so if

you're going to be trying to do it if you and trying to convey as. us the us before is the measure of who's in the best condition but basically who is the least worst of the bad conditions and driver 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 what is obviously a predatory aspect to the way the banks are doing business versus how people all 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 the large institutional investors who are basically shareholder activist normally you know the mom and pop household you know by the south who the retirement plan is through itto broker they have very little say so and how the company's brand basically could care less if you have a large shareholders were able to direct a lot of flows of capital flows the stock purchases the sales and the different have that year the company and the company basically does what the show does feel more in the best interest with their right or wrong if. the populists who controlled their deposit money the same way which is actually not difficult but his baby gift with getting a movie unit and then you have activist bank deposits and they can get the banks to act in the best interest with deposits but those are causes few of their best interest and that's a very interesting concept to have activist bank deposits and basically if you feel

that banks are being predatory oh i'm taking too much of a chicken with wrist you simply move your money somewhere else and doing that you will have banks to comply and they have to comply because you posit a very inexpensive very short term funding to do it unwisely because destruction funding can disappear in a heartbeat literally overnight so i think it would be a very interesting social economic experiment to have a large people deposit. say the positives where if you don't do x. y. z. or basically move the deposits accelerate the collapse which is bound to happen among the other and then go from scratch all right. cut it up 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

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