and taking do it yourself point classes to learn how to use their money makers those are some the stories will have on tap next week but that's going to do it for tonight show thank you so much for watching go to our t. dot com in the meantime and have a great night. wealthy british style. market why not. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars a report on r g. h r in here broadcasting live from washington d.c.

coming up today on the big picture. the official policy of location giuliani phone call touch from the i q sampson. like. video on demand. calls an r.s.s. feeds now in the palm of your. question.

welcome to the kaiser report imax kaiser stacy herbert so talk to me we've got something happening out there of the twitter us share stories here max you're fragger. well according to the b.b.c.'s paul mason on his tweet he says hash tag greek details people switch off t.v. because too depressing get used from dot dot dot max kaiser and perez hilton also specialist web sites cultural frag yes cultural fragging you know what we are the church is just nasty but it's good you know we don't take any prisoners i say

if i could actually fire you right there in the airport. hurt tourist becoming head and when i get to twenty thousand followers whatever is way twenty thousand followers are going to want to sew for oil and coal and let's go back to the street is name is paul mason he's from the b.b.c. and he's saying the greek people don't go to the news they go to max keiser so max kaiser is officially what jon stewart is to the domestic u.s. audience max kaiser is to the global audience because not because we report on the great aids that have already blown up we report before they blow up poljice and famously went to reykjavik a few years after we went there and warns of the icelandic people that that country would blow up i want to show another flashback here max we're going to flashback whoa oh oh. oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh oh this is max kaiser from two thousand and seven well i think people are starting to realize that

the gangs are exposed to understood billions and trillions of dollars worth of bad paper and it's a little bit more than just a liquidity crisis the banks themselves are lending to each other the over nine rate interbank rate is quite right there is a freezing up a seizure in the credit markets these. says through being forced to be mark to market as opposed to mark to model what the phone as i said on your show last night is about holding one hundred cents on the dollar they're holding zero cents on the dollar so this is a catastrophe this is a controlled demolition of the banking system this is a banking system is nine eleven if you will this is a controlled demolition of the global banking system floor by floor by floor and we're going to see. the salute banking catastrophe and that's my best case and there are some facts you saw that the global financial system the banking system would come down floor by floor by floor and yet every single month month by month we're told by the i.m.f. the e.u. the e.c.b.

the federal reserve bank of england the paul mason's of the world that it's better now it's all better now including this headline max e.u. competition commissioner joaquín allouni warns that banks may need further bailouts yes once again apparently they took the stress test in july put things have changed since then and because of the debt crisis joaquín says the banks are now more in that it thing shadow banking system but towns back in two thousand and seven the shadow banking system peaked at around eight hundred nine hundred trillion dollars in derivatives that's been falling ever since two thousand and seven and two comedy is off balance sheet losses central banks and investment banks have had to print up google's little's of more money but they're scared to death of the shadow banking system so they don't circulate that money in terms of lending it out to get the economy started they keep it on their books in case there's another frozen assets

like we saw in two thousand and eight remember the overnight commercial credit repo market froze and corporations are frightened of this they want cash on hand how is a shadow banking system doing which is all i pointed out what i said that the banking system around the world and fall. floor by floor by floor florida controlled demolition like building seven during the nine eleven incident because the shadow banking system is passed to continue to collapse until it reaches equilibrium but that won't be for another four or five hundred trillion in fake toxic through viv's so we're talking much more carnage to come central bankers by not admitting this either they're being duplicitous or stupid or both and what's under sure i've got the go what does it say it says if by yes. but let's go back to this because here's this guy

joaquin almunia he's the e.u.'s competition commission or he says sadly as the sovereign debt crisis worsens more banks may need to be recapitalized now max why is the solver in debt crisis worsening member hank paulson he put a gun to congress is that is that either you take three quarters of a trillion dollars out of wall street's bad debts and put it on the fed's balance sheet we're going to blow this economy up and once we recapitalize banks once again what will happen more austerity measures the sovereign debt crisis will worsen whatever is advocating is a spiraling we he they're trying to flush us down the global quitely these two you are succeeding with the globe is being flushed down the global toilet and this is what the people at occupy wall street in new york city don't quite get they think it's something that has to do only on wall street that will see the global dimensions of this like we've been covering on the show for a long long time but that's why we're cultural fragging here in fact you and i are

financial markets fragging because i'll give you the urban dictionary definition of fragging by the way to throw a grenade in your officers blank or in a bullet or rate your officer from vietnam war it was known as to assassinate one superior using a grenade usually for convene. or spite in this case it's convenient that we fragged them before they get us friendly fire and it's kind of i have no because friendly fire could be like thirty thousand feet up in the air it's a drone i accidently killed my own side this is you take this grenade and you throw it at the guy across at the superior cross and you intentionally throw it out them fragging i mean john large set it back in seventy nine he did any he said when the social contract is broken the people must revolt who are there revolting against their own governments whether it's in greece and ireland in america america's asleep at the switch man you've got to get this insurrection going so let's look at why we it's important that we fragged here's

a headline from greece popping dre oh convenes cabinet to speed cuts for aid this is like high frequency austerity that's right this is what we would have warned about that there's going to be a floor by floor another layer of your economy taken every single time once they pass through one set of measures as they did when we were there in may or june and the whole country was erupting well then they give you another layer i mean public trials that are going to say he's being held hostage by bankers essentially like why doesn't he just tell the people help me save me i'm being held hostage by banking terrorists and then the people feel safe and dry i'll put them on an island somewhere and hide him from the bankers because he's been co-opted he's been corrupted he's no good anymore they need somebody in charge who's going to stand up to the terrorists that have seized greece and are milking it for every penny they possibly can this is been going on for several years now it's quite obvious public

trial is simply moving i want to point to another story we're talking about high frequency austerity measures. system handles market data and six hundred nano seconds this is a new high frequency trading firm and we've talked about high frequency. steps in front of orders from like pension funds and like scoops out all our wealth well that's treating and microseconds this is now trading in nanoseconds this new company burstein can process a new piece of data and six hundred billions of a second regardless of how much data stock markets are producing right now they're producing six point one million messages per second and they're just filling up much faster they're not adding liquidity they're not making a market they're looting they're looting they're stealing they're looting this is a high frequency looting and saying oh we've got to speed up the austerity measures from the i.m.f. that's another for form of high frequency looting but as like you said in the video

i showed at the top of the show it people keep on saying it's a liquidity crisis and it's always been in insolvency crisis everything is bankrupt because we have high frequency trading trading more and more debt more and more debt just because they hold onto it for now nanoseconds it doesn't make it go away but it does allow the fluff the cotton candy derivatives economy to grow even faster and bigger and out of control almost of this place never to get a liquor store and the wholesaler arise with a truck full of liquor and they start to shelves a liquor store and then people come in they steal the liquor and then after that some people go their regular customers looking to buy a bottle of liquor it's all gone this is what's going on the banking system the federal reserve system throws money at these banks and then the insiders steal the bank they loot the bank using high frequency trading they steal it and then when people go to get money for a loan or something else of useful to do in

a productive economy there's no more money left it's all gone they're saying no no we have to deal with austerity measures this is losing so william k. black who we've had on the show wrote that the best way to rob a bank is to own a bank so a lot of guys got into that business of owning banks so they could rob it but then it came along these high frequency traders. who looted those banks. so the best way to rob a bank is actually to loot the guise of robbing the bank with your high frequency trading algorithms it's a living arms race and the computer algorithm traders who are using these black box trading mechanisms are scooping out billions and billions and impoverishing millions and the policy makers call making a market but that is clearly not the case they are losing what don't you understand about the word looting is not just gangs on the lawn and stealing from the corner shop if if you were fair you would give them banking licenses and have them around for you but you're not fair you're just condoning one form of looting and

condemning a different form of living exactly those guys would do it for just a six pack of bottled water apparently right so the cost of living would fall if you gave all those right leading riders in london access to this one frequency trading that they blew through for a lot less money well the article quotes larry tabb making the jump from microseconds to announce seconds will ratchet up the competition who is giving the profits over to these guys when these high frequency trading machines algorithms trade at nanoseconds where do they scoop the profit from before they were making one hundred million dollars a year for every increase in microseconds it now they're trading at nanosecond so how much more per nano second are they taking and who are they taking it from max they take it from the action on the exchanges when you look at the paper that says oh yesterday there were two billion shares traded on the new york stock exchange every single one of those transactions included eluding procedure using our frequency trading as we've just described it when they say all of the action on the

bond market yesterday was twenty trillion on the four x. market or five there's four trillion dollars per day in the forex market that's the foreign exchange market that means that a four trillion dollars per day action on that market there is every one of those transactions includes a. that goes to a looter visibly high frequency trading and finally max regarding this high frequency trading now having broken the sound barrier having broken now the speed of light twenty two percent of americans want god's invisible hand to guide the economy so according to a baylor university study forty point nine percent of americans believe that god has a plan for me not me but pretty the study also found these people also tend to earn less money and have less education and god has a plan for most americans to work on a plantation picking cotton and playing video games for companies like zynga that's

god's plan for you well i think it's a sign of the financial propaganda the likes that paul mason is unwittingly admitting to that they operate on behalf of those guys like lloyd blankfein they pushed lloyd blankfein of goldman sachs his message out saying that bankers are doing god's work they see we can we can go faster than the limits of god the speed of light the speed of sound we can go faster well the markets ultimately will smite the high frequency traders in the form of a global insurrection against banker occupation get your gear team sharpened hard global financial apocalypse. phantasmagorical stacy herbert thanks so much for being on the kaiser report thank you rex go away much more coming your way so stay right there. three. three. three. three.

three. we've long. for your media. real john darche john tom. illegal. election.

plain was. liam in the morning and welcome back to the kaiser report i'm max kaiser time now to go to london and speak with ned mailer leeland asset management ned welcome back to the kaiser report tom nice nice to be here at all boy we've invited you back on the cars the reports of talk about the latest in the j.p. morgan silver manipulation lawsuit and scandal tell us about the latest developments well look i think it's a really interesting story nice i think is probably worth just ramoni yourselves the timeline of this of course we had the last twenty ten we had the c.s.e. hearing it's a silver manipulation and as you well know neither the regulator nor the accused have come up with anything in in that timeframe which is pretty spectacular stuff in and of itself but further to that last year i think it was september of last

year almost exactly a year ago there was a cost action lawsuit that was circulated naming j.p. morgan h.s.b.c. as the accused but there was much detail in not talking a lot if you had a look at it they won't necessarily overly sort of impressed with the document but what's obvious is that in the year that has passed since then obviously these cost action noise in your commune working very hard on the detail in front of flesh out the lawsuit and find out exactly how the manipulation works and dig into all the detail of it and then obviously on the fourteenth of this month the first we heard was that he was bloomberg put out some. news piece saying that his p.c. had been dropped from the lawsuit and i think that caught people's attention they said really is this change has been amended and then the lawsuit became available and people have a look at it and it's very clear there's a lot of very interesting detail in there which of course is being something which

those people who haven't necessarily being alone with the still going to play short story of complaint about you know where's the detail where's the where's the beef here and it appears that it's within this document let's start some of the details start tell me about spoof trades twenty five spoof trades listed in the. saxo bank tell us about this the screws trades are actually not the same as what your friends which is a fake trades the tax code bank part of the stories i read it is that that platform is the place from which the people affecting the supposed manipulation they're using this platform now normally when you when you look at silver trading platform and the platforms that collected all at least most of the time people look at. pricing platforms this is that's about platform was not a collating platform so the vast majority of people operating in a market wouldn't have seen these fake trades go through the system as any people

operating the saxo bank. slashdot your bank platform has seen the fate trades now what is the way i read it is is this follows. you know you can imagine a maybe once in a very blue moon a fake trade might be in printer into a trading system and you know yourself how likely that would be nice is pretty unlikely now what i would say is the the probability of this taking place repeatedly you know twenty five times or more the probability of that taking place on a regular basis and leading to the exact same price movement afterwards is pretty slim to me that seems. quite incriminating a very large. there are terms straight here because you're making a distinction between fake trading spoof trading and let me bring in another another one here quote stuffing it sounds like quote stuffing and spoof trading you're making an equivalency there but another words i know this from the flash

crash incidence on the various exchanges what they find out is that computers will flash a price that they're willing to do a transaction at only so long as it creates an uptick or down sick and then they remove that water they never put up any money and therefore just manipulating the price without actually putting up any money so this would be quote stuff and so it was also then spoof training spoof trading course often would be similar fate the fake cool is this is a different thing altogether but yes moving effectively way you you put a very large volume trade up with no intention of having it filled this is sort of form of bullying of the loans so you stick on the screen what looks like a very large trade which will from the longs out of their position but with the intention never actually having them filled so yes in a way it's very similar it's quite stuff and easy as you relate to fate trades more like. if a trade part of this story was within the rules it was you know really one of those

need to actually read this these documents a sort of follow the trail through but that's actually more like a just a signal of information it's just a signal of this is where. the market will be going with this is what will be pulling all bids to over the next. twelve to twenty four hours is the level at which the fate trade was marked so it's like a little thing a little email within that platform but not available to all the people so that people can see it and go all so that's why we're trading so on the back so system which is available to insiders they're posting fake bids and offers as a way to telegraph where they plan to manipulate prices in the near future this gives traders on the inside away the front runner. strays and profit from that insider information and again it's not about price that's the accusation absolutely zero and as to cause the core of the entire. you know all human old old people who gets into subjects over long time friend right and now i was talking in the first half the show about

a new company that's very proud that they've introduced ways to trade on the exchanges and nanoseconds a quantum leap more fast than microseconds and they claim that they're quote unquote adding liquidity but isn't it in fact they're just speeding up the rate at which they're alluding of course i'm not and i can tell you for myself operating within you know wealth management the deal is who do what i would call real investing. not running h.s.t. programs the operating adult who's going through making real investments for real clones you know they're just terrified because the volume the real knock is just dropped off completely and and it's not just only being taken off by these by these h.s.t. is the fact that they're now able to. you know. great the speed of light or whatever it is they do is it is just a frightening development in my opinion i really find it amazing that there hasn't been any action on todd regulates press oppose in light of the other thing we're

discussing maybe it isn't a surprising all right and then let me go back here for a second because you used a phrase what i want to talk about it you use the phrase dark pool or now dark paul you can also include in that phraseology the shadow banking system something we talked about the first half of the show the shadow banking system and this is not in debate even gordon brown former prime minister refer to the shadow banking system as a problem within the banking system this is where their trainers and bankers are parked hundreds of trillions of dollars worth of toxic securities over the past three or four years the shadow banking system has been crumbling and as a result the policymakers have been flooding the system was cast but not at a rate commensurate with the rate at which the shadow banking system is collapsing so this crisis continues you've got this deflation or risk balance sheet recession going on because of the collapse that's really invisible because it's happening in

the shadow banking system or in the dark pools as you put it is or what at what point do the dark pools of the shadow banking system collapsed down to a level where we've got some equilibrium how many more trillions of toxic debts need to evaporate before we have any traction at all of the squad autonomy and i'm sure the also border would say is i think that a lot of this. this problem plays into the overall than an economy can take whether it be shadow or public as for the shadow banking system one thing we do know is we don't know because it's all special purpose vehicles of punish the extension and you know i. unlikely to find this out i'm afraid until after the event but one thing i do keep an eye on personally so this is interesting see the guys who are more likely to know about some of the top level politicians that area in the u.k. and i've noticed that there finance whether it be. the coalition

members or the opposition they are genuinely rattled at the moment in a way which i haven't seen before so that suggests to me some data relating to shadow banking system which is so. she doesn't very very pretty let's go to some questions on facebook this is from mark betteridge she asks what will be the impact on the so over market if j.p. morgan are found guilty of manipulating prices relating to this particular lawsuit and possibly not what you would be expecting and the reason for that is the fact that the with a class action lawsuit it's highly likely that they will settle completely as i believe the evidence is is very strong from my reading that they will be guide orders on the people who. effectively take the settlements the way the price to move higher is by the likes of you and i getting your publicist into this document because in truth you could bear in mind that it's key to the

guys who are being accused of this this document doesn't get the option of publicity you know that they will be relying on the idea that they can settle out a call with a gag order so it can be talked about therefore it won't have a price transportations that you and i would hope for which is why i believe it's important to talk about it potentially even maybe. the other guys involved in best in journalism to have a look at this document because it is reached a new stage now where there is. meat on the bones for people to pay cats but of course if if the story starts to go to spread wildly and people start become very interested then clearly the price action is going to be geometric i just. seem to be too over excited about this and also because of the way it's like it's a rollout the interesting thing will be though that if people become aware on some level that there have been settlements taking place i'm very confident a lot of people who are not part of the existing class action lawsuit who want to come in after this sort of first wave so all of this is going to. one would hope

put a story in the front runner all about bunny if it's full of people talking about it then you should anticipation covering the page short covering would need to stand the high prices i'm sorry just like the companies you don't have that would be miles of the bottom line is everybody around the world. sick of being victimized by banking fraud which includes all the biggest too big to fail banks around the world a moral obligation to advice over this is one of the rare instances in history where doing the right thing actually can make you rich at the expense of the bad guys so this is a unique period and unique time in history people get really paid well to do the right thing. that's going to do it all the time we have but thanks again for being on the kaiser report. all right that's going to do it for

this edition of the khans the report with me max kaiser and stacy herbert i want to thank my guests and ned nader leyland chivian management if you want to send me an e-mail pleased. to report at our c.t.v. are you until next time this is back on saying buy. a charmer here broadcasting live from washington d.c. coming up today on the big picture.