that's will be another bush and while their governments haven't had diplomatic relations for thirty years people in fact this town saw beyond politics it would play them black gospel music they do you base it it feel like a feel good feel great you know and make and install but. the house is only twenty thousand dollars away from opening until then the wait continues in fact this town. and i have and i want to go. but. this is the food and the stuff. even for to our city that's this town mississippi and that's going to go for now from one as far as we covered our t. dot com slash usa. have a great night. bringing

you the latest in science and technology from the realms. we've got the future of coverage. the official g.o.p. can join the line called talk from the.

video. speech now in the palm of your. on the dot com. you. guys are on 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 you clocked the guy and i think this is a probably had we had somebody like this as treasury secretary in the united states of the time say all these bankers lloyd blankfein goes to hank paulson and says please i wrote so many bad loans and they've all blown out but he told me if hank paulson i'd just done the same thing but we are in a war that's for sure so that's why i don't understand all this quickly. we have billing about the protein scenes the n.c. keynesianism monetary stimulus 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 and its cable is correct there are casualties of this war and impoverishment the whole most of the poverty people don't understand that 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 europeans that it's so easy to solve your problem you know what you do you take your four hundred forty billion european financial stability fund and leverage it ten times and make it worth four point four trillion yeah well that's the solution in the neo liberal

washington consensus model it's all was to expand the day instead of generals we've got like general electric in there the white house advising obama they have course have a vested interest as obama is 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 heart for the financial war because no war is whole without the artist remember of the troika are we. america had their own troika just like greece as the troika curly committing financial terrorist acts against that little country we had a right to an america summers geithner and ruben and robert rubin the three

crusaders of on a wholly financial warfare totally destabilizing the us economy and raping him for every nickel they could get and now summers is coming back oh my god that's right with this piece in the after 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 better wings 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 he got read the riot act by tim geithner who took her in the back room and said look no talk about increased cap rates for banks ok and use an epithet at that point and then she came out the next day singing a completely different song forget it christine legarde as being some kind of voice of legitimacy she's in with the troika well to me geithner also was in europe

rejecting the common european opinion that there should be a financial transaction tax and you know it they argue that this is capitalism you can't have a financial transaction tax but as we know with high frequency trading the average holding of any share is what few mount micro-seconds six hundred to bill a second. 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 this is done because they looted it only took five or ten seconds then there are now. in jail well so wherever these unelected officials the timmy geithner's now 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

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 a loss of sovereignty the goal of the troika is to preserve 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 or live 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 well they got the troika well how come they're not doing anything about the troika and they most of run out of energy to deal with it max who are the troika the e.c.b. 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 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 source of the country and sell it on the open market for pennies on the dollar because they're supposed 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 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 he's saying he is in bed with the trike.

they need to default these best or were fraudulent billion views 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 their intent to boom who's older population in circling a poisoned chalice things are over 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 i'm gone told there's want he's not a we he's not a greek he's a parts he's not greek and in fact it again he says. we want to stabilize the

situation and then we have to do this thing that is going to be stabilized the situation he's insane he speaks in a little bling 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 and get his life polished out on live television cult be happy to do it i'll push the guys lysaght only show so let's look at the finance minister for greece and how he has common cause with this right wing nut case from finland finished 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 his popularity and could use tanks to enforce some order among strikers and rioters they have a military junta 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.m.f. these guys i don't know where that were fabricated engineered and created out of some black cauldron and which is down hill and chris you look are is a who could but she's on the box she's not even human she's last seen with a dick cheney and she doesn't even have a heart because the valve just like a lane valve made it a floodwall so this m.p.'s had one too many sound was obviously is bringing the shrunk a little bit but he's been suspended for two weeks but he'll be back in two weeks great well these his ideas are 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 should default greek said default so let them block it but they don't need a military hunta this guy has taken too many sound right but he's saying that they they they're trying to block it by not accepting the collateral while the same time saying they need to do a military intervention are totally conflicted that proves the fact that they are growing and there's going to did the was doing their out there make no sense and in finland it's found no sound no i stand corrected. but tanks are always part of the equation wherever bankers go the tanks follow and here's the next headline max 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 that i think it is most that tony blair's read in libya a lot it were blogging for j.p. morgan because they know tony blair's soul is that of

a corrupt wall street terrorist. we knew what he was doing there but now the telegraph has found the documentation and they're also speaking to a man a senior executive from the libyan investment authority who said that the seventy billion dollars fine used to invest the country's oil money abroad that mr blair was one of the three prominent western businessmen who regularly dealt with they follow islam khadafi so he says tony blair'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 back this is a classic bad 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 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 we broke this tony blair story months ago i'll tell you right now this will come out in three or four months the j.p. morgan goldman sachs tag team bolivia with tony blair and the 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. wall street those two guys and geithner it's this racketeering in libya the if they thought they were bad with their weapons and their hijackings and what they did know what bad was until tony blair showed up with j.p. morgan now the good doctor you know isn't a terrorist really looks like well stacy herbert thanks so much for being on the because the report thank you max don't go away much more coming your way so stay right there. you know sometimes you see the story and the six so you think you understand it and then you

glimpse something else you hear or see some other part of it and realize. everything is ok. i'm sorry welcome to the big picture. listen. to the latest in science and technology live from around the russian live we've got the future coverage. of. luck shift focus shifts muxed just for. me. 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 as a report walk us through your model for a rama b.n.p. perry the biggest bank in france one of the scenarios for a run on being big there's three facets of a scenario there's the emphasis for the problem which is effectively and p. is carrying a plethora of asses 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 sovereign debt corrina is the. bonds of greece greece is currently trading. at about fifty two percent. and then actually trading at the two percent from what i

understand from a trade is that there are no trades because nobody wants to buy it so it goes was considered quote if you actually trade obviously they have to be lowered in order to get a big so if you don't mark that down say forty five forty forty five cents on the dollar and then effectively leverage is a capital roughly thirty to forty times you talk to significant losses and that's just increased. to default and the market is pricing in roughly one hundred fifty percent chance to think about them as one hundred percent nearly guaranteed chance of greece defaulting is 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 just seabed. she some type of benefit from it such as i say which is one of the fastest growing states in all the e.u. oh that you ever get then why wouldn't the taxpayers of portugal ireland the full

extent of going through the state most every measures it's something to pay back massive amounts of it that they probably wouldn't be a pay back anyway so long story short you have was a significant debt problem there if depositors' realize that this is a dead issue they would probably want to move their savings and checking accounts out of the m.p. this is liquid funding that p.p. relies upon roughly seventy percent of short term funding to disappear overnight literally overnight you see this happening united states look at bear stearns had to be rescued going to be the end lehman brothers as well which went bankrupt overnight so it's a problem that was probably gone from the beginning of investment banking but defeat came to light in two thousand and eight with the best there is a lehman 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 now on top of the one of the banks from the depositors you also have funding from kind of bodies of the banks who basically do business from b.m.p.

. give them credit lines swap agreements and set up if they feel they're being came in a. contractual agreements they basically one of those leave the door and first one out the door one of the most money in the last one i'll use it as travel so you have a run on the bank from a central cyber kind of place even if they don't run they can increase the collateral requirements increase margin requirements in several this all pushing the g.o.p. from several different sites now to be fair to be a.p. they're not the only bank in this situation but they differ on a bank is a bank that is in a situation and there is a tradition now tim geithner they the u.s. treasury secretary is it made a trip to europe and they propose 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 wide funding facility where the banks like being p. can 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 to begin with as much force and germany's strong economy very productive to produce real things tangible aspects and tangible products and services but germany is still a strong explanation they spoke primarily to the e.u. and the u.s. and so much of this sort of sense asia if the u.s. broke which much of it is. then is going to germany you know germany can sell

things that people who can afford it and those second point is assume germany can pull this off would it be an abyss interest to do it. with the euro be advantageous to germany if they had some to put everybody through medicine for austerity and possibly get a false anyway or should germany simply pull back and have to go it 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 massive derivative to aggregate the of a mess of the river to those 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 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 match 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. 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 sprocket contagion which entities 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 again cross pressure deposit bankroll use the c p provide liquidity. to the good i don't know if they can or cannot but my presumption would be should be to support p.p. and of itself but the b. and p. has caught a counterpoise so these if you have to support him p. soc gen you know the major french banks and their potential to produce will probably pull the could ease quickly as possible that includes american banks and includes german banks. it will spread to spread quickly very difficult to map the

exact route because you can see who has exposure and be in peace to lodge a bank to have any type of incident such as this in a vacuum so if you were to have a run and run would you have control it would ever 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 it advocates taking profits from trades in the very paper that will do with the system how does reggie 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. special u.s. banking system real estate. you know the price of the treasury and cetera that being said i think the u.s. is going to an unsustainable past its past is not as unsustainable as that of

europe of these push up to medium term because of the sorrento 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 your show i was asked this very similar question about if the u.s. dollar would be sustainable in the current path and i said now mainly on the face of it no but it appears that the triumvirate over at the number powers of the u.s. the e.u. and china basically kicking the can down the road to see who falls for who falls for those can use capital flight and so 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 the e.u. which 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 was able to avoid a lot of the creation every aspect of the 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 thousands wide open to lend to anything with a heartbeat so i didn't have a hard people look like you could have hardly this is out of the act when you do that you amass massive n.p.a. switcher now from as in banking system as the s. is thought to devalue you have whole significant losses and 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 that so just a matter who falls first right now looks like he was going to fall first and looks like they're going to be china to it if the e.u. and china can as spend in the u.s. the u.s. before it's a matter of not who's in the best condition but basically who is the least worst of the bad. conditions a trumpery now last chair 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 engage 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 shota activists normally you know the mom and pop household you know by the south through a retirement plan or through to a broker they have very little say so in how the company's brand could care less if you have large shareholder where you go through direct knowledge of flows of

capital flows of stock purchases the sales and the diff we have the ear of the company and the company basically does what the shareholders feel more in the best interest whether 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 it is a different good to move units and then you have this bank depositors and they can get the banks to act in the best interest of the causes of these what those causes will be because interest and that's a very interesting cause that they have activist back to causes and basically if you feel that banks are being predatory or taking too much of a future in which we just simply move your money somewhere else in doing that you will have banks and comply and they have to comply because these deposits of. very inexpensive very short term funding to do it unwisely because destruction from a can disappear and hard to be overnight so i think it would be a very interesting social economic experiment to have

a lot of people deposit is basically say deposit bills where if you don't think it's wise eat or basically move the deposits accelerate the collaboration to happen among the other and then go from scratch all right mental center i have to cut it off there thanks so much for once again being on the kaiser report thank you for coming back all right that's going to do it for this edition of the kaiser report with me 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 until next time backscatter saying by all. means today as well this again flared up. these are the images our world.