take on the banking tyson's. because or this is a kaiser report things are heating up the pressure is building this financial markets about blow so here max kaiser before we get into jamie diamond's tirade we have to look at this poster from singapore this is a j.p. morgan advertisement in singapore we believe humans behavior creates unique investment opportunities many investors make emotionally influenced decisions that can cause market irregularities well that's why we've been talking about that when banks like j.p. morgan create chaos and markets using derivatives people get frightened and they

make irrational decisions and prices jump around and who's they're profiting from this j.p. morgan this is a form of price propaganda this is a form of financial terrorism jamie dimon c.e.o. of j.p. morgan by propagating this form of financial terrorism is by definition a financial terrorist ok so he agrees that human behavior can create unique investment opportunities that this chaos can create opportunities so when you read a headline like jamie diamond's tie read against bank regulators he threw a hissy fit about a capital surcharge for the systemically important banks diamonds tirade was directed at mark carney bank of canada governor in a closed door meeting in front of more than dozens of leading bankers and regulators the financial times reports according to the f.t. things got so heated that goldman sachs c.e.o. lloyd blankfein sent an apologetic e-mail to carney afterwords.

there's been fun doing the bad cop routine screaming at a financial officer of another country get some completely frazzled and income smooth lawyer a bald lawyer smooth come in and talk him down good cop bad cop and this is what we saw tim geithner in europe try to get merkel to accept european tarp who are these american financial terrorists and why are they being allowed to roam the world and call their destruction why castro is but there are jail unless them jared diamond it drives again jamie dimon the c.e.o. of a bank is in a closed door meeting that we don't know about other than the fact that he threw a tirade to our regulators and to a central banker now think about the occupy wall street guys being arrested dozens and dozens of them and maced in the face for walking down the sidewalk here's jamie

diamond was he maced in the face no according to the reports no he wasn't these bankers the lloyd blankfein and jamie dimon of the world are able to me in closed door meetings with regulators and screech at them now let's turn to this now if i miss clip from the b.b.c. where less serious than e spoke to him he spoke some truth everybody in the mainstream media is now dismissing him because shock he loses his own money when he trades but max let's look at his answer when he was asked whether this european stabilisation plan would work. what i would say to everybody is get prepared this is not a time right now to wishful thinking the government going to sort things out the governments don't rule the world goldman sachs rules the world goldman sachs does not care about this rescue package neither does the big funds as we've been saying goldman sachs rules the world the bankers rule over the governments we've been saying this for years now this is should not be

a surprise the trader here is just saying look it's an adversarial relationship i'm trading against you you're my enemy you are the person out there who has to work for a living i get bailouts i don't work for a living i just take all the money the government gives me i make bets if i make a losing bet they bail me out you suffer ha ha you're the loser well he's saying in fact that all of you people out there are waiting for your government to rescue you they are not going to rescue you because they are working for the banks the banks of the world you have to appeal to the bankers to step down come out with their hands up whatever it is you have to talk to them because talking to your government is not going to do anything for you at this point because as he says the banks rule the world and how many times has this dick durbin the senator from america also said this he said the got the banks rule the place so how many times do you have to be told right i mean i don't understand the occupy wall street folks they're down there and they're wondering well we're here we're now what do we do well they have

to demand that the bankers come out their hands up with are going to go in so here he is he says that goldman sachs rules the world and the other big banks now let's turn back a little bit wind back a bit in the interview where he explains the mind of a trader how the trader how a banker looks at the financial chaos in the world for most traders it's not about we don't really care that much how the interface to having a fixed economy and how they're going to fix the whole situation our job is to make money from it. personally. being dreaming of this one for three years i have a confession which is i go to bed every night i dream of another recession a dream of another moment like this why because people don't seem to maybe remember the thirty's depression the depression in the thirty's wasn't just about the market crash there were some people who were prepared to make money from that crush and i think anybody can do that it isn't just for some people in the elite anybody can

actually make money it's an opportunity but once again it shows the asymmetric quality of this drill a war fare between traders that can profit in any market and the overall economy that can only profit in all markets and not only that but a down market because it's driven by fear happens quickly so your any allies rates of returns are higher so they have an incentive to create fear fear pays more than faith traders know this and they love to stoke fear and they are working against the general population who can only have benefits if markets go up so it's a completely asymmetric warfare just like we see asymmetric warfare all over the world where the u.s. will go into iraq for example and call that a war as somebody once said it's a war if somebody's shooting back you know here you have a financial war but it would only be a war if the people getting abused by financial terrorists were shooting back in some way but they're not ok let's wind back a bit here because he says bankers traders do not care about the economy they're

only looking to profit now who gets appointed to run the economy in the united states in france in britain in germany in italy at the i.m.f. who are hired who are the head guys of the treasury secretary the economic policy who gets to determine that former bankers at goldman sachs goldman sachs and j.p. morgan so this guy has just said these guys don't care about the economy and so why are you putting them in charge of economic policy. put ben bernanke in that camp ben bernanke the only thing he cares about is reinflating the housing bubble which only benefits the bankers who are short those bonds that they got destroyed in the housing bubble collapse he's done caring about workers' wages economic growth the viability of the u.s. economy the u.s. standing abroad i mean think of one of these done to america's standing abroad he has trashed it he's made america the laughing stock of the world but remember this

now famous tweeter and less serious than me said that bankers don't care about the economy investors tell m.p.'s bank reforms must be watered down top institutional investors have warned m.p.'s the reforms proposed by the vickers report must be significantly watered down to avoid damaging british banks that's wrong that's false but as alessio said bankers love crashes they profit on the way down to let these banks crash but now they're going crying to our m.p.'s saying oh you can't let us crass what it was so either they like crashes or they don't like crashes what do they like class or intellectual profile of a psychopath they they go to they they're two faced they serve two masters simultaneously and they go to the regular saying we don't want to crash and they hope to get mollycoddled by regulators like oh well we'll have to fire a few bankers and then who will buy our yachts in the back room they're committing

acts of financial terrorism trashing themselves as a suicide banker worse than any jihadi the warning which in effect was a demand for radical u.-turn from the government was made at a secret meeting between leading investors and members of the treasury select committee last week in the u.k. again secret meetings these bankers get to have face to face meetings with our representatives and threaten them they threaten them with tyreese they shout in their face and they are never maced know where is nick clegg in all this. maybe carrying some pepper spray next time each one of these bankers in the city should have some brains cable vince cable said it's a financial war so what is he going into these meetings without any pepper spray to spray in there fearing what they vents cable's not pepper spraying these bankers why is vince cable not bringing pepper spray into these meetings why is the cable not bringing pepper spray into these meetings well one senior investor said quote the banks are trading at half their book value and if we're ever going to get our

money back the return on equity has got to be higher this is not going to happen under the provisions laid out by higher capital reserve requirements there's no book value this investor thinks well there's some great deal there why doesn't he just buy the whole bank and then break it up and make it like twice this money because i've got thirty times their capitalization and liabilities on their balance sheet and the break up value is a negative five thousand percent this is what the problem is around the world this is why the i.m.f. has to bail out the banks but the i.m.f. is broke because they're made up of banks and they need a bailout from another series of banks who by the way need a bailout from a series of banks go roaming around this mobius strip carousel of dead musical chairs and then once the older ones gone their burst or it's gone now they're going to go after big guy you know god please make j.p. morgan go away in this next musical chairs round up we want to get rid of these terrorist blues blues a max member at the top of the show we showed you a poster from j.p. morgan to tell you that they signal to me told her what the game is here's and

here's the signal a headline from january twentieth levon earlier this year but we covered it from davos world needs one hundred trillion dollars more credit says world economic form this is where all these guys lloyd blankfein and jamie diamond of the world meet and they say we need one hundred trillion more dollars. chutzpah let's see about what they're doing to put that plan into action multi-trillion grand plan to save the euro zone is being prepared so european officials are of course planning a two trillion or three trillion or four trillion euro bailout we don't know it changes all the time but they need to rescue the euro system by november fourth before cam before account because the price of course goes up on november fourth as i went to write but listen one hundred trillion dollars is the real number and because that's what is going to take to recapitalize the world bank but of course i mean every single currency must be recalibrated and just about every single country

the world loses its sovereignty and you've got all of dark and global bankers running the show and that's the new world order ok well let's move back to the story here because let's see how this plan is going to work they're saying first that europe's banks would have to be recapitalized with many tens of billions of euros to reassure markets that a greek or portuguese default will not upset the system and then if the banks are unable to raise that money those tens of billions on the private market they said well to leave or go to the taxpayer or the european financial stability facility right the second leg of the plan is to bolster that yes african hair that doesn't have the money to bail out the banks that they say this coming plan relies on right so they've got both foot on both sides of a teeter totter they're bouncing back and forth juggling water balloons while being shot at by a b.b. gun held by a psychopath and claiming that economic policy all right stacy hammer thanks so much for being on the gaza report thank you max that's going to do it for this half but stay there much more coming your way don't go away.

discovery's be. communicated with the one. becomes. nature can give you.

my welcome back to the kaiser reports i'm not to go to los angeles and talk with former goldman sachs and bear stearns banker nomi prins know me as author several fry and it's all crash books both nonfiction and now fiction with their latest one thousand twenty nine crash model black tuesday many friends welcome back to the kaiser report thank you max all right nomi prins your novel is about the great depression are we in another great depression and if so are the central banks the g twenty i.m.f. world bank leaders making it worse i believe we are in a second great depression so let me get that out for a stay i'd written about why we were in there and coming into that it takes a pillage and and doing the research for this novel and just watching everything that's happening around us every day it becomes more and more clear that our global economy is in a depression and the world leaders are doing absolutely nothing to try and understand exactly why and instead it's sort of like there's there's all mold in

the walls of the global economy and they keep sort of repainting over the walls as opposed to getting in there figuring out what caused the mold to begin with and so continues to rot from the inside out and you have all these bailout measures and conversations about bailout measures in return for austerity in return for you know waiting until the next bailout measure is discussed without actually looking at. the internal causes of the rot within the banking system are examined the lister for second central banks the i.m.f. world bank all of those entities are effectively on the same side of the table they're all bankers helping bankers there's nobody actually whose interests lie with those are being victimized by these bankers is that true well that's true take a look at greece for example which which none of these people these leaders seems to really done besides for the conversations about bailouts versus austerity measures and whether it's going to default or not the fault in the camp the fall because we're going to bail out all these like conversations are going on if you

take a look at the actual reports of their conditions from even the last annual report from the national bank of greece for example there is there is a very clear discussion about how their mortgage loans for example have deteriorated their positions in what they purchased in terms of the u.s. dollar denominated toxic mortgages and also the ones in the loans that are within their own country so this problem with deteriorating investments and credit within their own balance sheet with only within their own books which you can see in every other bank you know throughout greece and italy and spain in the u.s. and none of these leaders are addressing how to fix things from from that bottom from the colonel level up where it would be a loan to loan fix with respect to an individual where there would be a complete write down and dissolution of a toxic asset with respect to an investor if we had ever started to do that from the beginning of when this crisis in two thousand and eight became known in the united states and perpetuated throughout the world because it cannot be anything

but a global crisis because we have a global financial system where things get created in one country and perpetuated and sold everywhere else it has to be a global crisis and there was no looking at the bottom level that the mechanics of what was going on bailing out investors and banks from the top does not help fix what is the. foundation of the problem at the bottom end it can't and it won't and i know the friends we just played an interview with a banker in london that's making the rounds on you tube right now it's gone viral the banker says quote the government governments don't rule the world goldman sachs rules the world that was a former managing director of goldman sachs yourself your thoughts the banks do rule the world economy in that respect they rule the world because you know any but we look to this crisis and we look to the crisis in one nine hundred twenty nine where there was a where there was a crash on wall street a proliferated to a global great depression for a decade what happens is that the banks and the bankers create securities or assets

and in twenty nine it was trust but they basically are you know these nontransparent ways of sucking in money from people from investors where they've created securities or trust or whatever that are not able to sustain themselves they bank the money up front they they shorten the securities if they can and the world and individuals are left holding the bank in that reason holding the bag somewhere that was a freudian slip and the bankers have at this point made their money collected their fees created these assets created these securities and are out where where the rest of the world is left holding all of the deterioration that has a much longer life than the moment in time where we're goldman sachs banker came up with a new security and sold it throughout you know u.s. pension funds municipalities towns in norway towns in iceland banks in greece and they're out and they made their bonuses and they're done and that is how bankers

continue to control the global economy and global leaders like we're just discussing are. enabling and oblivious or both probably enabling and it continues ok so no moment ago you said that nobody's taken care of the underlying root problem the root cause of this global. financial crisis we can now say without any misgivings that the root cause the root problem is fraud now that fraud is not being addressed by the regulatory commissions d.s.e. see this all the other various regulatory agencies so if they're not going to take care of the fraud and at what point in the socio economic political chain of command is there a backstop against this in other words we know bernanke the is a fraud we know geithner is a fraud i mean it appears as though barack obama is a fraud so is it is it really

a point now of no return where as there's just simply no one is going to step forward as they did in the thirty's you might want to talk about this i guess is by comparison the pechora commission where people address the fraud nomi prins well yeah in the thirty's and that was kind of just for what i was doing with the knob of the pechora commission hosted bankers up in front of congress which which has happened in the last few years but the difference is they actually. dismantled the banking structure as it was back then rather than continue to allow banks to have the benefit of people's deposits and to make loans and to use that as fodder to create securities and speculate and trade and make all sorts of fees and moneys and profits along the way with that what the pechora commission ultimately did is divide banks so that they could continue to provide commercial services you know take deposits give loans create infrastructural programs etc for businesses and

individuals and on the other side if they wanted to trade they could they could choose to trade they could choose to speculate they could choose to create to trust but they will be backed by the government that was why the f.d.i.c was created to preserve people's deposits not to preserve and to bailout and to substantiate speculative trading what we have had. in the last few years is something completely the opposite it's not even as bad as it was in one nine hundred twenty nine as it was fixed by the pechora commission a glass steagall act that came out of it in one nine hundred thirty three to separate the banks why it's worse is because all of these leaders that are refusing to acknowledge that that fraud at that that rot at the bottom of the system continues to exist and continues to be created and continues to deteriorate the global economy rather than acknowledging that from the regulator from the fed level from from obama's level from geithner from from the i.m.f. from the e.c.b. they are basically bailing it out they are substantiating without dividing the banking system the global banking system as it exists today and therefore

continuing to allow the fraud at the bottom to stay there the securities that occur are created from the fraud to continue to be marked at or not marked at any kind of realistic level so it continues to seep into our global financial economic economy and this is a problem and this will continue right now we had up for two ninnies there have been many investigation committees that have hosted c.e.o.'s the lloyd blankfein was up there jamie dimon you know in front of washington and nothing has come of that we have president obama's campaign on this idea that the wall street fat cats would not be allowed to continue what they're doing well they continue to make you know profits and bonuses and that's not even the worst problem the worst problem is they continued in a banking system that has not been separated that has not been examined and that continues globally to fester as it is so we are actually i believe in a more prolonging depression state because of the people that we have in leadership

right now are so entwined with these bankers are so intertwined with the status quo of the banking parameters and the landscape and how banks can do everything in one entity and bailing them out when it fails that we are just going to have real prolonging pain with the exception of here and there are a few settlements and if you civil suits and a couple. lawsuits that really end comparison will not extract a renewed stable banking landscape yeah we've seen something similar going on in the u.k. after the crisis there was a commission they looked at the crisis and they determined that some new regulations needed to be implemented in what's called a vicar's report the report was saying we need to separate the speculative bank from the deposit bank the need to be ring fenced basically the same thing that was done in the thirty's but now after a few weeks' time the lobbyist in the u.k. are saying no we can't accept that it would destroy jobs and you're going to kill

the industry that the goose that laid the golden eggs and now they're going to water down those even feeble attempt at regulation so i would take it that these the same thing as are saying in the us and this is really i guess also interesting a global situation same thing for banks in europe and in the us there is this tendency to just let the speculative elements run right. through then not only are not only there is a tendency there's a will there is a willingness there is an enabling to let this system run riot it's fueling this system by the bailout discussions that happened in the united states tim geitner was in europe recently saying that the you know your of should continue to do the same thing because only by you know sort of printing money by bailing out the system as it is by making whole the investors by making whole the banks without any regard to what's actually going on at the book level of these banks that the loan level at the toxic asset level devaluation level forget all that they have no

interest in knowing about the true state of any of these institutions they will just continue to find the funds to bail them out at the expense of the greater. global population in the greater economy what's happening in the process is jobs are being lost and loans and homes continue to be foreclosed upon and that's not just in the night. states that is proliferating throughout europe as well there's a deterioration of all sorts of individual versus bank credit agreements because the jobs aren't coming because there isn't a stable surrounding economy for people to use to up their living standard and to have any sort of comfort or confidence or stability of that's just happening at happening and leaders you know they might spout this you might have a commission here and there it might get in the papers for a day or two but in terms of fundamentally addressing these problems rather than speaking about them they are not doing that and instead they are just making it worse by throwing the fuel of bailout money to these fires and not changing

structurally globally these banks and listening to this notion accepting and enabling the notion that banks have to stay as they are because otherwise jobs will get lost well we have lost millions of jobs throughout the world we have lost standard of living throughout the world we have twenty five percent or more on employment among the youth of the world having banks remain as they aren't being bailed out has done zero to to to fix any part of the economy and instead continues to suck the blood right out of it with the enabling institutions again only proves run a time thanks so much for being on the kaiser report thank you all right and that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i was like my guest nomi prins it want to send me an e-mail please do so at kaiser report r t t v are you until next time this is max kaiser saying go.

germany gives the go ahead for a hugely inflated euro zone valid fanta as it guarantees billions to prop up its currency colleagues. with it in a very different need tale the speech about to begin outside the parliament building people try to take that patience is running out we'll bring you the latest on that just to keep it a bit. serbia and its breakaway kosovo teeter on the brink of boiling over after checkpoint clashes that's russia warns nato to steer clear of taking sides. and china is heavenly assented and this is orbiting lab heads for the stars as part of the beijing space station aspiration.