eleven thirty pm in moscow these are your r.t. headlines and you went to exodus the iranian president's remarks on the holocaust in his address to the general assembly proper mass walkout led by the delegation from france. meanwhile palestine's bid for statehood at the u.n. is on shaky ground with speculation ideals already been struck between the palestinian and u.s. leaders sparking anger both in parts of israel and the west bank. world markets fall after a gloomy assessment of u.s. economic prospects by the federal reserve this is a fresh we had prosperity cuts props massive protests and strikes and debt ridden

greece. kaiser report coming up stay with us. because or i'm stacey herbert a big news runner for the 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 hank paulson i just done the same thing. we are in a war that's for sure and that's why i don't understand all the quick the kid again googling about the proteins eans the answer keynesianism monetary stimulus of 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 this cable is correct there are casualties of this war impoverishment the whole most poverty people don't understand it 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 bonds i 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 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 well that's the solution in the me a liberal washington consensus model it's all was to expand the debt 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 our fatso and he's returned. this is larry summers and tim geithner in 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 when america had their own troika just like greece has the troika but curly committing financial terrorist acts against that little country we had to strike in america summers geithner and rubin by 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 is to survive for 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 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 he came out the next day singing a completely different song forget it christine legarde as being some kind of voice of legitimacy in what 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 have a financial transaction tax but as we know with high frequency trading the average holding of any share is what few microseconds six hundred privilege 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 did learn is that if the looters in london who were looting the shops if they looted infractions of a second they'd be called market makers and they were there for any value to the system because they looted it only took five or ten seconds then they're now in jail well so wherever these an elected officials the to me geithner's know larry summers and christine lagarde of the world walk or talk of course riot 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

stripped greece of a sovereignty because they want to extract 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 junta was in greece not too long ago greek people rose up got rid of the junta now they've 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 the 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 source of the 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 euro zone

debt crisis scapegoat this is event jealous then it's 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 to go again need to default these debts or were fraudulent william dues 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 tariffs well exactly but his very statement max listen to a statement again if we want to stave this 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 bamboozle the population into to accepting the poison. 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 is want he's not a we he's not a greek these are parts he's not greek and in fact again he says. we want to stabilize the situation then we have to do this thing that is going to destabilize 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 a t.v. show with alexander lebedev thank goodness i live polished out on lot of television i'll be happy to do it i'll push the dog's life. 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 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 i don't know where that were fabricated engineered and created out of some black cauldron and which is them yeah and chris you can go on is one who

bought she's on the box. she's not even human she's lost in the dick cheney and she doesn't even have a heart because the valve just like a lame valve made a flood watch so this m.p.u. use had one too many soundness obviously his brain is shrunk a little bit well 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 needed to get this loan but as if but that's good they default greeks should default so let them glock it but they don't need a military hanta 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 by the same time saying they need to do a military intervention are totally conflicted that proves a fact that they've drawn and there's no need to do the was doing their out there

makes no sense and in finland it's not so i'll know 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 think it is tony blair's been in libya a lot it were lobbying 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 the fall is long khadafi so he says tony blair's visit were purely lobbied business for

a bank. deals with j.p. morgan unlike some other deals notably some investments run by the u.s. bank goldman sachs 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 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 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 bolivia 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 in. 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 they didn't know what bad was until tony blair showed up with j.p. morgan now they offer you know as a terrorist really looks like well say security thanks so much for being on the verge because the report thank you max don't go away much more coming your way so stay right there.

i want to go back to the kaiser report last time to go to new york and speak with a red cent 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 a run on b. and p. on international television of course you're referring to the shell kaiser report walk us through your model for a run on b.n.p. perry the biggest bank in france one of the scenarios for a run on being paid their three passes to the scenario as the impetus for the problem which is the fact that b.m.p. is caring for of assets on its balance sheet at par basically as a risk free asset and as many present people know very few assets are actually risk

free one of their biggest holdings in the software dead arena is the boss of greece greece is currently trading this two or three years as the trading at about fifty two percent of par and the national trading i did being quoted i think it was in a bar what i understand from the trade is that speech is there no trades because nobody wants to buy it so those are sensitive quotes if you actually trade obviously they have to be low in order to get a big so if you don't want bed down say forty fifty five forty forty five cents on the dollar and in fact they have b.m.p. leverage is their capital roughly thirty to forty times talking significant losses and that's just in greece. the default and the markets pricing in roughly one hundred fifteen percent chance of. think about them as a hundred fifteen percent let's say up nearly guarantee chancer greece defaulting it's going to put pressure on other peripheral law states as well and their bonds

are trade down and it's a good chance that they may default particularly if it's just see today greece defaults and cheese on top of benefit from it such as i say which is one of the fastest growing space in all the e.u. the e.u. area. then why wouldn't the taxpayers of portugal ireland before the start of going through extreme osteria measures attempting 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 problem there if depositors' realize that there's a significant debt issue as they would probably want to move their savings and checking accounts out of uki this is liquid funding that the infant relies upon reform so we can boost in the short term funding to disappear overnight literally overnight you see this happening united states deborah stearns had to be rescued over the weekend and lehman brothers as well which went 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 i mean brothers here

we want the end of two thousand and eleven and european banks are sitting on the same precipice have we learned our lesson obvious answer now on top of the one of the bank from the depositors you also have coming from kind of parties other banks who basically do business from b.m.p. . give them credit lines on the greens etc if they feel they're being paid may not be able to honor a contractual agreements they basically want to believe the dog first or not that was among the most money the last one i'll give you this trampled so you have a run on the bank from is it to show kind of parties even if they don't run and they can increase their collateral requirements increase margin requirements etc it's all pleasure to be on people's civil defense and. right now to be fair to b.m.p. they're not the only bank in this situation but they differ on a bank or 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 he proposed kind of

a euro tarp to try to solve these bank problems the idea i guess of being that you would take the balance sheet of b. and 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 could work it out ourselves the theory i think is that germany somehow is going to create a blanket european why funding facility where the banks like being paid 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 eurozone could begin with as much growth and remain strong economy very productive to produce real things tangible aspects of it potential good products and services but germany is

still a strong explanation to explore primarily to the e.u. to the u.s. and so much of the sort of sense of egypt 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 second point is assumed from the can pull this off would be the best interest to do it. with the euro is advantageous to germany if they attempt to put everybody through them as a full steady and possibly get the force anyway in germany simply pull back and accept a court on his own let the e.u. forwards 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 it's basically create a mess of derivatives to aggregate the of a mess of derivatives that. are not worth anything then what what's next you know

you had you haven't solved the capra problem you haven't filled the hole you haven't tried any solution you simply soak up bunch of nonsense four months of the table moves to others i was able to 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 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 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 wall sprocket contagion which entities are most at risk but i think you've already covered the contagious aspect of this but how does the dominoes fall in what order would the dominoes fall in france in europe and globally if you see a bank or special deposit a bank or a u.c.c. correct the critics. should i don't know if they can or cannot but my presumption would be the should be to support p.p. in the good self but could be in p.

has quite a counter parties so you have to support the n.p.a. soc gen you know the major french banks and their potential major kind of produce would probably pull it could ease quickly as possible that includes american banks that includes german banks. it will spread to spread quickly it's very difficult to have the exact route but you can see who has exposure to lodge a bank to have any type of considerations that exist 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 a next question from match to narrow from twitter he says ready talks a lot about the system crashing yet advocates taking profits from trades and the very paper that will do with this. how does read you see the endgame what disney is as a store of value ok so this is a question about you have to be very tricky in training these markets because at any moment they could collapse so how do you trade around them 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 the real estate. you know the price of the treasuries and cetera that being said i think the u.s. is on the unsustainable path its past is not as unsustainable as that if you open these push up the medium term because of the. situation in the banks you know europe has backed against the wall and it's about to fall through wall momentarily the last time i was on your show i was asked this very simple question about if the u.s. dollar would be sustainable in the current path and i said now i'm of the on the face of it no but it appears that the triumvirate of economic powers of the u.s. the e.u. and china basically kicking the can down the road to see who falls first will falls first korea's capital flight and so the other two which allows those to take the can down the road before that so we have the u.s. which i've discussed you know in detail the e.u.

which has its back against the wall and i think is go blow it momentarily and then we have china and china is an inflationary bubble sitting on a deficient precipice china was able to ovoid a lot of the visionary as tricks of the bust by doing what the u.s. did close the bubble first place to basically allow me banks to go full force with all the fuss is wide open to lend to anything with a heartbeat oh i didn't have a hard people look at you could have r.p. this is out of the apt when you do that you amass a massive n.p.a. which are not performing as it's going to banking system as yes it's just the value you have a whole significant losses and gaps in the capital and that's going to happen in china it's guaranteed you cannot get fifteen his growth in three years and not. piper for those just a matter who was first right now looks like he was going to fall for. the going to be shot into it if that you would try to convey as been blessed us and us before

it's a matter of who's in the best condition but basically who is the worst of the bad conditions around for 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 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 shota

activist normally you know the mom and pop. household you know by the south who would have the time and and i think vito broker they have through the say so and how the companies rank basically took a list you have a large shareholders were able to direct the larger flows of capital flows the stock purchases the sales and they differ we have that year the company and the company basically does with the shareholders feel more in the best interest because they're right or wrong if you can get the populists to control their deposit money the same way which is actually not difficult but these babies would if you move in unison then you have activist bank depositors and they can get the banks to act in their best interest to deposit these with those because this will. it was interesting and that's very interesting because they have activist bank deposits and basically if you feel that banks are being predatory all taking too much of a chicken which wrist and you simply move your money somewhere else in doing that

you will have banks to comply and they have to comply because they use the causes of very inexpensive very short term funding to do it unwisely because these drugs and funding can disappear in a heartbeat literally overnight so i think would be a very interesting social economic experiment to have a large group of the causes basically say the plaza builds where if you're going to it's right or basically moved because it's accelerates the collapse which is to happen in one form or the other and then go from scratch all right reggie middleton or i have to 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 max kaiser and stacy herbert my guest reggie middleton a blog dot com if you want to send me an e-mail please do so i kaiser report r t t v are you guys are saying by all.