headlines are all to be untrue so patient in the west bank tongues and so i'm go with the upcoming palestinian bid for statehood as the un looks like it's falling short this is the us president barack obama vows to veto the move. world markets full following a gloomy assessment of america's economic prospects by the u.s. federal reserve cuts as a fresh wave of austerity cuts comes must protests on strike sin debt ridden greece . on the old not so subtle like his plunging back towards a with hundreds of fragments expected to come crashing down on it but still us scientists have no idea what. to say with us it's now the kaiser report on a lot. because

or i'm stacy herbert paid 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 the 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 and says please i wrote so many bad loans and they've all blown out but help me. and 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 the quiver kidding googling about the proteins easy and if you can see it as a monetary stimulus crabbe 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 whole most of the poverty people don't understand 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 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 today europe. 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 me a liberal washington

consensus model it's all was to expand the day 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 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 it this is larry summers and tim geithner and this little image again 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 with america and their own troika just like greece as the troika curly committing financial terrorist acts against that little country we have to try to in america summers geithner and ruben and robert rubin the three crusaders of unholy financial war fare totally destabilizing the us economy and

raping it for every nickel they can get and now summer 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 essential 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 through also christine legarde rather 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 to read the riot act by tim geithner who took her in the back room. and look no talk about increased cap rates for banks ok and he used 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 we can have a financial transaction tax but as we know with high frequency trading the average holding of any share is what few microseconds so it's honor and privilege. 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 did 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 the system but because they looted it only took five or ten seconds then they're now in jail well so where ever are these on elected officials that to me geithner's the larry summers and christine lagarde of the world walker skulk 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 but the goal is a loss of sovereignty with all the troika has to strip greece of its 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 hunter if you remember the moment was engraved on too long ago people rose up there were the other 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 well max who are the troika e.c. be. the e.u. . just groups of engineered institutions of on elected people that are only

a few decades old we created them and what they want to just 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 that just snap and wake up and let those people go away greece should not be eurozone debt crisis scapegoat this is evangelicals then 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 he's saying he is in battle to try. again need to default

these best or worst dues to begin with they have no legal under the constitution before the memorandum rewrote the causative agent it clearly states that they had no legal obligation to make good on these tariffs but 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 to bring who's older population into to accepting the poison close to zero that's what exactly he's using the word we to the people of greece losing weight acting as if there their desire should be the same as what the bankers and gone told there's a launch he's not a we he's not a greek these are parts not greek and 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. 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. with alexander lebedev and get his life polished out on a lot of television i'll be happy to do it i'll push the dog's life out on this show so let's look at the finance minister for greece and how he has common cause with this right wing nutcase 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 that 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.v. and i am out of these guys i don't know where that were fabricated engineering created out of black culture and which is down hill and chris you look are is a hooper but she's on the box she's not even human she's lost in the dick cheney she doesn't even have a heart because the valve just like a lame valve made of flood wall so this m p u's had one too many sound as 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 especially the way they are blocking the whole passage of the collateral that needed. so you get this loan but as if but that's good. default greek said default so let them glock it

but they don't need a military hunta this guy has taken too many sounds like what he's saying that they . get 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 grown and they're so honored to do the was soon there out there make no sense and in finland it's not sound i stand corrected. but tanks are always part of the equation wherever bankers go the 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 did we not break this to the world a few months ago you were talking about this on the show for weeks but i thank you tony blair's been in libya a lot at work lobbying for j.p. morgan because you 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 fund used to invest the country's oil money abroad that mr blair was one of the three prominent western businessmen who regularly dealt with the fall 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 max this is a classic dead book swap this is how bankers operate their scams so half the money goes to goldman sachs that they lost ninety nine percent of it j.p. morgan apparently didn't lose money for them this is a classic example of card. well thinking on 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 in three or four months and j.p. morgan goldman sachs tag team libya with tony blair and that goldman sachs is positioned as the loser fun but they got a huge cut of the money that j.p. morgan made on this deal they worked together it's troika on wall street those two guys and geithner is racketeering and libya the if they thought they were bad with their weapons and their hijackings and whatnot they didn't know what bad was until tony blair showed up with j.p. morgan now they could drop you know isn't a terrorist really looks like well stacy herbert thanks so much for being on the cause the report thank you max don't go away much more coming your way so stay right there.

you believe just in science and technology from the realms of. the future of coverage. back to the kaiser 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 iran. on international television of course you're referring to this show kaiser report walk us through

your model for iran a b.n.p. perry the biggest bank in france one of the scenarios for a run on their three facets of a scenario is the emphasis for the problem which is the fact that the m.p. is carrying. as is on his balance sheet at par basically as a risk free asset and as many present people know very few as i actually interest free one of their biggest holdings in the sovereign debt perino is the. boss of greece greece is currently trading this three as opposed to trading it at about fifty two percent of car and then actually trading there being quoted at fifty two percent of what i understand from the traders that speak through their no trades because nobody wants to buy it so it goes or sensitive cope's if you actually trade obviously they have to be lowered in order to get a bit so if you don't mark that down say forty thirty five forty forty five cents

on the dollar and then the fact that b.m.p. leverage is their capital roughly thirty to forty times the top the significant losses and that's just increased if greece were to default and the market is pricing in roughly one hundred fifty percent chance to think about them as one hundred percent of the c.e.o. the only guarantee a chance against a faltering it's going to put pressure on other peripheral states as well and their bonds are 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 space in all that you know that you've ever you. then why wouldn't the taxpayers of logical island before you said i'm going to steal most every measure is something we paid back massive amounts of debt that they probably wouldn't be a payback anyway so long story short you have a significant there problem there if depositors' realize that this is a dead issue they would probably want to move their savings and checking accounts

out of b.m.p. this is the group funding that p.p.p. lies upon roughly seventeen just in the short term funding could disappear overnight literally overnight you see this happening that is the best. had to be rescued over the weekend and lehman brothers as well bankrupt overnight so it's a problem that was probably gone from the beginning of investment banking but if we came to light in two thousand and eight with restaurants i mean brothers throughout the end of two thousand and eleven and european banks and sitting in the same precipice have learned our lesson obvious answer and now on top of the one of the banks from the deposit is you also have funding from kind of the bodies of the banks who basically do business from b.m.p. give them credit lines loans swap agreements etc if they feel they've been claiming not. through the contractual agreements they basically want to leave the door first with out the door someone with most of the money the last one now using his travel

so you have a run on the bank from its kind of parties even if they don't run and they can increase the collateral the crime it's increased more than the crime is better this all pushing to be ok from civil defense sites now to be fair to p.n.p. they're not the only bank in this situation but they differ on a bank is a bank it isn't a situation and there is information about 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'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 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 well 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 p. can 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 its muscles and drive a strong economy very productive they produce real things tangible aspects and tangible products and services but german the is still strong explanation this quote primarily to the e.u. to the u.s. and so much of this sort of sense asia if the u.s. broke which much of it is then it's going to germany you know germany can sell things to people who can't afford it and as a complaint is assumed the can pull this off would be in a business to do it. with the euro be advantageous to germany if they had some to put everybody through him as opposed to ready and possibly good

to force anyway or should germany simply pull back and it's hard 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. suggesting is basically create a mess of derivatives to aggregate the of a mess of the river to those that. are 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 brought in the solution is simply to. 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 want to the twitter us fair i want to max kaiser i count on twitter for questions for 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 it 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. would be good i don't know if they can or cannot but my presumption would be should be to support p.p.p. in of itself but could be m.p. has called a counterpoise so these if you have to support p.p. soc gen you know the major french banks and their potential major kind of parties will probably pull the critics quickly as possible that includes american banks and includes german banks. it will spread to spread quickly very difficult to map the exact route which you can see who has exposure and the appeals to a bunch of banks to have any type of incident such as that exists in a vacuum so if you were to have a run and a road to get out of control it would ever very very very quickly throughout europe

where we have a next question from match to narrow from twitter he says read he talks a lot about the system crashing yet advocates taking profits from trades in the very paper that will do with the system that is rangy 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 of the treasuries and cetera that being said i think the u.s. is on an unsustainable path its path is not as unsustainable as if you are please for the other medium term because of this over and the situation and 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 on the show i was asked is very similar question

about if the u.s. dollar will be sustainable in its current path and i said now movie on the face of it no put it appears that we're going to triumvirate of economic powers with the u.s. the e.u. and china basically kicking the can down the road to see who falls for arse overflows froze crees capital flight and so the other two which allows those two to kick the can down the road for other so real to us which i have discussed you know in detail go the e.u. which has its back against the wall and i think is go blow it momentarily and then the of china china is an inflationary bubble sitting on a deflationary precipice china was able to avoid a lot of the inflationary aspects of the bust by doing what the u.s. did because 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 thing to look at it could have hard to fathom that when you do that you amassed a massive n.p.a. switch and now performing as

a banking system as the as to start to devalue you have whole significant losses and gaps in their own capital and that's going to happen in china it's gammons he cannot get fifteen years of growth in three years and i pay the piper for that so it's just a matter who falls first right now looks like he was going to fall first and looks like he's going to be challenged to it if the e.u. and china can as the end outlast us and us it's a matter of not who's in the best condition but basically who is the least worst of the bad. conditions are strong for now last care eric cantor called for french citizens to withdraw their cash from the banks as an act of resistance in this ongoing financial war the population itself never did withdraw their deposits can you see the point in 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 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 through the 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 is to veto broke or they have very little say so and how the company's brand basically to care less if you have large shareholders were able to direct the larger flows of capital flows the stock purchases the sales and the diff we have here the company and the company basically does what the shareholders feel or integrate the interest with their right or wrong if you can get the populists to control their deposit money the same way which is actually not

difficult but is may differ with if you can move units and then you have activists bank depositors and the big banks to act in the best interest of the positives but those deposits will be perceived risk and that's a very interesting concept to have at this bank deposit was basically if you feel that banks are being predatory or taking too much of it you're too much risk you simply move your money somewhere else in doing that you will have banks comply and they have to comply because these deposits. very inexpensive very short term funding to do it unwisely because this short term funding can disappear in a heartbeat the overnight so i think it would be a very interesting social economic experiment to have a large group of good causes basically see the possibility for if you want to x. y. z. or basically move to the closets accelerate the collapse which is probably happening . and then go from scratch all right grady mental center i have to cut it up there

thanks so much for once again being on the kaiser report thank you for the comeback all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our 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 guys are saying by all. home. mom.