europe moving to certain american banks it depends which banks are most exposed which makes the most leverage we've had a lot of play on like bank of america let's say in the u.s. and other banks so it's true you said about morgan stanley come on in their quarterly report and the stock is down today if it was not well it six percent but does it go down if for if a big french bank goes down if they have counterparty exposure to the point that it's going to affect their leverage ratio then yes absolutely. but again the thing with these banks and the thing with with counterparty risk and leverage ratios is that there is so much exposure and there's so much hedging that goes on in the derivatives market that's supposed to protect these banks from possible devaluations or do leveraging that no one really knows no one's fully confident so when a bank rather than sues leverage is the is the pancake effect so locked out and watch what goes on over and europe and in the u.s. because this is going to continue now to meet you i'm laura lister i'll see you back here for more news at seven.

well the field for the weapons grade plutonium is turned into a vital new resources nuclear waste becomes a fuel friendly to the environment and energy outposts among the ends of the earth russian scientists lead the way in making these innovations a reality in a true free from fears of nuclear conquer lives the peaceful revolution is homage energy phone technology obsolete we've got the future covered.

i'm stacy herbert a big news runner for going to war peter 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 up help me this bank

prasanna 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 way the candidates we're pulling about the proteins eans the ante keynesianism monetary stimulus the bailout if you're in a foxhole and getting shot up by financial terrorists you need to fire back because it's a war it's cable is correct there are casualties of this war the 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 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 geitner treasury secretary timothy

geithner was in poland last weekend and he suggested to the european. 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 at the white house advising obama they have 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 we america have their own troika just like greece as the troika that's currently committing financial terrorist acts against the little country we have to try to get america summers rubin robert rubin the three crusaders on a wholly financial warfare totally destabilizing the u.s. economy and already going in for every nickel they could 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 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 also christine legarde clipped or 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. 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 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 kabila 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 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 because they looted it only took five or ten seconds then they're now in jail well so where ever these are on 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 but 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 if you 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 the e.c.b. 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 our 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 so on the open market for pennies on the dollar because they're scum they're a figment of our imagination that you're snap and wake up and let those people go away greece should not be euro zone 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 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 bed with the troika they need to default these debts were were fraudulent million jews 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 debts 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 in terms of their to bamboozle older population into to accepting a poisoned chalice tuesday or 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 needs to get show with alexander lebedev and get his life punched out on blogs television oh be happy to do it all push to go it's lights out all the show so let's look at the finance minister for greece and how he has common cause with this right wing nut case some finland finnish m.p. hala i hope 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 it's called the troika and they use 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 into engineering created out of some black cauldron and which is down yeah and chris you look around is one who took part but she's on the box. he's not even human he's lost human dick cheney and he doesn't even have a heart valve just like a lame valve made out a flaw so this m.p.u. use had one too many soundness 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 they should default greek said default so let them glock it but they don't need a military hunt this guy has taken too many sounds like what 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 proves the fact that they've they're drunk and they're so in the oh good the was soon there out there and make no sense and in finland it's found 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 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 tony blair's soul is that of a corrupt wall street terrorist. we knew what he was doing there but now the telegraphist pounds the documentation and they're also speaking to a man a senior executive from the libyan investment authority who said that the seventy billion dollar 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 a fall islam khadafi so he says tony blair's visit 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 backs 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 a 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 we 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 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 have bad was until tony blair showed up with j.p. morgan now they could offer you know isn't a terrorist really looks like well stacey hurt thanks so much for being on the

cause the report thank you max go away much more coming your way so stay right there. weapons grade plutonium is turned into a vital numerously. nuclear waste becomes a fuel friendly to the environment and energy poses a lot of the ends of the earth russian scientists lead the way in making these innovations our reality the national culture of freedom from the fears of nuclear longer lives the peaceful revolution in the comic energy on technology update we've got the covered. fist. fights to. keep.

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 a run. on international television of course you're referring to this 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 big there are three facets to the scenario there's the emphasis for the problem which is the fact that b.m.p. is a caring. as his on his balance sheet. 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 song is the boss of greece greece is currently trading with three years those currently trading at about fifty two percent over par and then actually trading right there being quoted fifty two percent of what i understand from the traders that speak to that there are no trades because nobody wants to buy it so it goes fit it copes if you actually trade obviously they have to be lower in order to get a big boost so if you were to mark that down say forty thirty five forty forty five cents on the dollar and then affected b.m.p.

leverage is that capital roughly thirty to forty times you talk to significant losses and that's just increased. to the full and the market is pricing in roughly one hundred fifteen percent chance of holding think about them as one hundred percent of the c.e.o. and the other guarantee chance against a faltering it's going to put pressure on other peripheral states as well and there was a trade down and it's a good chance that they may default particularly if it's perceived that greece defaults and. she sums up a 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 portugal ireland before you said i'm going through history most every measure is 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 debt problem there if depositors' realize it is a significant debt issue they would probably want to move their savings and checking accounts out of being a key this is a liquid funding that b.p. relies upon roughly seventy two percent

a short term funding to disappear overnight literally overnight you see this happening united states look at bear stearns which had to be rescued over the weekend and lehman brothers as well it's going 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 remember this year we watch the end of two thousand and eleven and european banks are sitting on the same precipice have you learned a lesson i always answer now on top of the one of the banks from the depositors you also have funding from kind of broad east of the banks who basically do business from b.m.p. . give them credit lines loans swap the greens etc if they feel that you came in out. of contractual agreements they basically want to leave the door the first one out the door as among the most money the last one i'll get is trampled so you have a run on the bank from kind of place even if they don't run and they can increase

your collateral requirements increase marginal crime this is settle this all pressures be ok from civil defense right now to be fair to be impeded not only back in this situation but they differ on a bank is a bank that is in a situation and there is intrusion 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 do. 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 all 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 y.

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 because my thoughts and remain strong economy very productive they produce real things tangible aspects and tangible products and services but germany is still a strong explanation days called 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 affect 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 business to do it. with the euro is an advantage to see germany if it simply put everybody as opposed to every and possibly get befalls anyway or should germany simply pull back and it's time to go out 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 is greece agreed create a massive derivative to aggregate the of a mess of the group of those that. are not worth anything and then what what's next you know you had you haven't solved the capra problem we haven't filled the hole you haven't provided any solution simply to. bunch of nonsense from one side of the table moves to the table right it's extended for times 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 to reggie middleton and we got a couple of questions here one from the blog law being be carried out 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 a bank already has p.c.p. provide liquidity would be good i don't know if you can i cannot put my presumption would be the should be would support p.p. and of itself but the b.n.p. has called a counter protest so these if you have to support creampie soc gen you know the major french banks and potentially major kind of parties who probably pull the cookies quickly as possible that includes american banks and includes german banks . it would spread the spread quickly is very difficult and that's the exact route which 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 a p were to have a run and a road to get out of control it would have a very very very quickly throughout europe where 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 rangy see the endgame 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 in and what do you see ultimately as a store of value but i have been very bearish and. on the u.s. question the u.s. banking system real estate. you know the price of the treasuries instead of that being said i think the u.s. is in an unsustainable past its past is not as unsustainable as that if you openly for the short to medium term because it was so friendly to the situation and the banks you know europe has backed against the wall and it's about the fall from the wall momentarily the last time i was on your show i was asking very similar questions about if the u.s. dug would be sustainable and its current path and i said now movie on the face of

it no but it appears that we are in a triumvirate of economic powers with the u.s. the e.u. and china basically taking the can down the road to see who falls for its pros crees capital flight and some of the other two which allows those two to kick the can down the road for others so we have the u.s. which i've discussed you know in detail because of the e.u. which it has its back against the wall and i think is go blow up momentarily and then we have china china is an inflationary bubble sitting on a deflationary precipice china will be able to avoid a lot of the deflationary as basically bust by doing what the u.s. did that caused the bubble the first place basically allowing the banks to go full force with all the fuss is about open to lend to anything with a heartbeat but i didn't have a hard people look like you could have a heartbeat if it's out and that when you do that you amass a massive n.p.a. switcher now from as in banking system as the s. is just the value you have the whole significant losses in gas and capital and

that's going to happen in china it's guaranteed you cannot get fifty years of growth in three years and i pay the piper for that so it's just a matter of who was first right now looks like he was going to fall for us and it looks like they're going to be china to it if the e.u. and china can last in the outlast the us the us before it's a matter of who's in the best condition but basically who is the least worst of the . condition trumpery 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 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 show to activists normally you know the mom and pop household you know by the south who the retirement plan is through veto broker they have very little say so and how the company's brand. could care less you have more shareholders who were able to direct the larger flows of capital flows the stock purchases the sales and they differ we have that you have a company and the company basically does with the shareholders feel more in the best 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 maybe different given movie units and then you have activist bank deposits and they can

get the banks to act in the best interest of the causes of these with those deposits who have it as interest and that's a very interesting concept they have activist bank deposits and basically if you feel that banks are being predatory or are taking too much of it you can which wrist you simply move your money somewhere else in doing that you will have banks to comply and they have to comply because these deposits guilty. very inexpensive very short in funding they do it on lies the because destruction funding could disappear in a heartbeat literally overnight so i think would be a very interesting social economic experiment to have a large deposit is basically a room above the plaza building where it is going to x. y. z. or basically move the deposits accelerate the collapse which is bound to happen in one form of the other and then go from scratch all right grady little 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 max keiser as they say harbored our my guest reggie nettleton of boom bust blog dot com if you want to send me an e-mail please do so at kaiser report r t t v are you it's a life time black guys are saying by all.