where technological breakthroughs see. little and where people are forced to. should live so on the margins. they're watching art see a live from moscow our top stories we are please get tough on thousands of occupy wall street activists furious their taxes are being used to prop up corporate america protesters have staged their biggest rally in three weeks after being joined by unions. as they're in a woman seen as the symbol of the regimes brutality against its own people reappear is alive and wow after reportedly being beheaded is for several media into back tracking after giving her supposed death saturation coverage. and

eurozone finance chiefs look to help out banks that may suffer a blow from greece is burgeoning that crisis meanwhile the athens violent protests erupted against ever talk to me off guard even after. the cars report is next here in our city stay with us.

ffs. ties are this is the kaiser report yeah we started the global insurrection against banker occupation it takes many names now revolutions internists cairo occupy wall street but it started right here on this show the global interaction against banker occupation say sir tell us more max in fact today is occupy keiser report i am occupying the set today to occupy me worth are the handcuffs actually max you have been drudged yes report made it to the front page of the drudge report. had bankers rich who won't give up well now i want to point out that this is also a right wing site that celebrated when

a black man was killed in georgia recently they say they would tell when a muslim guy an american citizen was assassinated without any due process no evidence ever even presented yeah well those people didn't have the advantage of being white and you know last week we covered a lesser restante who broke through the matrix broke through the mainstream media and caused an uproar when he said that goldman sachs rules the world well he was invited on to i.t.v. news and he was there this week and here's a video of him where he's asked first they show this little clip where he says goldman sachs rules the world the audience booed him and then this is what he says if you're thinking that your governments out there hey mr cameron mr obama out there is in control guess what they're nothing more than slaves to the cops with. some kind of listening to say it was just like that is true yeah this is fascinating that this we're standing on the b.b.c.

and british television is simply stating some simple truths above the bed. making industry and has become suddenly us a call celeb like oh my gosh what do we do about these rogue bankers these banking terrorists and as if it's something new but of course it's the reason why david cameron is finding it very difficult to manage the country's affairs along with george osborne is because it's been infiltrated by banking terrorists in the city who support him and he's simply there is a positive or a salesman trying to show up the strange thing of the british people lies concocted by the banking industry well again going back to drudge being soft on crime in america a gang bang would get you the electric chair in many red states that's right but not in britain or in america if you're a gang banging banker then you get a reality t.v. show now let's move on to occupy wall street because we have said that one of the shortcomings of this movement is that they have it targeted towards those responsible the gangbangers behind it all i want to show you this little video from

occupy wall street san francisco. jamie diamond well i'd say that time is running out for jamie diamond well and the other thing is that she says all she's concerned about is that he doesn't take her house but the fact is he will take her house they will get away with taking all of americans properties because they are protected now let's turn to this headline j.p. morgan chase and why p.t. the way forward so chase people work in chase recently donated an unprecedented four point six million dollars to the new york city police foundation it just was the largest in the history of the foundation and will enable the new york city

police department to strengthen security in a big out. well you just buy more leg breakers and head crackers to go down there and beat up protesters and children well ok he's saying it's going to strengthen security in the big apple the big apple is the financial center of the united states and therefore the world do you see as this fourth quarter begins max do you see more security in the financial system is there more stability in the financial system yes well they need more security in wall street especially look take a firm like goldman sachs for example it now looks like they won't be paying their bankers any bonuses at all this year so like life i mean security from his own brinker's well but it also there were many i saw on twitter all the bankers and brokers i follow and they were saying oh all the conspiracy theories are going to start all that jamie diamond and j.p. morgan paying off the n.y.p.d.

it's a big conspiracy blah blah blah but i remember we covered liam a graph goodman who wrote the asylum the renegades who hijacked the world oil markets and she said in no uncertain terms on the nine next there is why scale drug dealing happening there and that because they pay the new york city police department so much they never ever look for drugs there of course not that's another truism on wall street new york times wrote a story when i was working there in the eighty's speculating that ninety eight percent of the people working on wall street are either trafficking or doing croquet that hasn't changed at all but again you know this this mocking the cynicism that's ridiculing by the likes of drugs by the likes of bill maher across the culture in america where it's ok to assassinate a us citizen because he's he's obviously a bad guy because the president doesn't like them or that this is ok for j.p. morgan a private corporation to pay your police department a huge sum of money the largest in the history of new york this is something that

we saw in the mubarak regime it's not mubarak tried the same thing soon. hired more leg breakers and it didn't really help in the end you know but again max this notion that there's some sort of exceptionalism and that we can you know dance at the edge of of tyranny and not ever for some reason because we're superior americans fall over into a corrupt system whereas madonna dancing on the edge of tyranny that sounds like a dance if i ever heard it so again ok here's j.p. morgan and we're told by all our fellow americans to worry about them paying off the new york police department here's another headline regarding j.p. morgan the anglo american precious metals to rivet have to walk really quarterly o.c.c. report so this is from the u.s. office of currency comptroller and they've just issued their quarterly report on the derivatives exposure of u.s. banks and trust and lo and behold very poor it shows that j.p. morgan has about eighty percent of the gold derivatives the other twenty percent is

held by h.s.b.c. you know they manipulate that market and it's been proven over and over and over again and any time they get into a court of law they claim that it's for national security that they need to manipulate is markets and meanwhile capitalism and economics in america is crashing on the rocks and turning into a huge embarrassment for everyone who lives there this is why many people are trying to get out. and again bringing this back to j.p. morgan and occupy wall street and the cultural crisis in america michael moore famously said oh we would need to end capitalism as there outside of occupy wall street but is this capitalism that one of the most important markets in the world when the most important currency markets in the world gold is controlled by two entities one hundred percent of all the derivatives are controlled by two entities yeah well and why do they control gold and silver why do they monopolize gold and

silver why do they all of the buys in the cells on these markets and manipulate these prices every single day because the axiomatic flipside of gold and silver is the u.s. dollar and so have the u.s. dollar as world reserve currency which is the foundation of the american policy scheme which gives america the right to charge rent from six billion humans on planet earth as part of their soft empire requires dollar currency printing willy nilly and for the price of gold and silver to remain oprah asked this is the true battle because as the american empire collapses do their own stupidity mines you know because it's simply the time for them to go away they're just shooting themselves in the head gold and silver vigilantes are saying ok well it's a new era a new century we've got to take gold up to five six seven thousand dollars an ounce and see who out there wants to compete who wants to be a world leader not america they've abdicated that position they just want to rely

on you know pork rinds and keep guns and wal mart burger king whacking homeless people sloshing about on food stamps looking for some crack pipe that's all they got so who else can take over well the report also notes that j.p. morgan's derivatives outstanding now stands at a notional seventy eight trillion dollars seventy eight trillion dollars this is what j.p. morgan has in derivatives the total global. the d.p. is approximately fifty trillion dollars there's one bank controls more derivatives than the entire globe's g.d.p. why do they do that they need that amount of firepower to keep prices manipulated there are the prices you see quoted every day on c n b c those are the prices that j.p. morgan goldman sachs allowed to be printed those are not derived from price discovery from free market buys and sells those are propaganda american style they print prices that they produce through american version of prompt c n b c and from there

if they take it shrink down into the gutter well for those who are going to try to press the propaganda that oh these are just notional values and it's all hedged since netted out of course the counter party risk as we saw with a.i.g. or lehman brothers it could disappear like that the counter party risk is austerity measures in greece all over europe all over the world that's the hedge against abuse of the derivative markets and this is what's driving the global insurrection against banker occupation this is striving for money in the curve this was driving the moves in gold and silver this is why jamie diamond has a higher cops to protect them against his own bankers about getting bonuses because he's a frickin pig and then finally on this so we're talking about these giant amounts of seventy eight trillion and derivatives that j.p. morgan has and that's just one of the banks the biggest in terms of how many how much to rivet its exposure they have but it's very hard to get that through to the

people out on occupy wall street or occupy america all across america there we're focused on little things because these numbers are just so big headline from the after he reads why fourteen thousand billion no longer scares us so this is gillian tett and she's saying that money has basically gone virtual because there's so much of it so our brains are no longer able to even compute these numbers or you could say that money has become completely plasticine. and able to be shaped by propaganda meisters and that's what we're talking about in the old days they used to shape the news and these to flood the news of the lives and counterfeit the truth by by counterfeiting lives and just lying twenty four hours a day this would be create a new normal that people would have to adjust to and that's the secret of a pair of propaganda from the old days now they just issue billions and billions of mis pricing non existing securities and they use that ticker tape of lies of

propaganda financial propaganda to say oil's doing this or the dollars doing that or the medals or doing something else then drawing conclusions based on lies to legitimize their policies at the end of they only accomplish two things make the top one percent richer and make everyone else suffer austerity she know it's one fascinating cultural twist of this money meaning nothing she said that it deals with a fine to deal with e.t.s. handling gold have now installed webcams in their wallets to prove that these funds are backed by tangible bully on investors it seems want to watch those gold bars they don't trust the idea of zeros flying about in cyberspace it's. like you can't base gold star has been bought books who are all right thanks so much for being on the guy's report thank you don't go away much more coming away so stay right there.

will be. renewed elitists in science and technology from the ground floor. we've got the future covered. but imagine the kaiser report i'm max kaiser what a treat this is the book if you don't have this book already you've got to get this book the author saw das is with us here welcome the guys reports very nice to be with you nice of you to ask me all right so this is the book extreme money and it's a fantastic book because a lot of people say the problem is you've got all these weapons of mass financial destruction but that's a very obtuse phrase i'm not sure what that means and yet here is a multiple hundred page book that describes exactly this is it not the

financialization of everything as created this bizarro world of extreme money i think you're going to go back in time money's to be something really simple it was basically admission isn't for exchange you know you wanted me to do something for your paid me i would use it and so be my pager second it was a story about. so there i say to put money where it could consume in the future to some way in the seventy's the early eighty's that we're completely haywire right but we know what happened in the seventy's they black shoals option pricing formula came around that option pricing formula for volatility was invented so that risk or volatility could be treated separately from rewards so to speak that they kind of split the atom of capitalism and where am i wrong in that thinking i think you're right but i think the risk of a second there is a thirst but once you strip money away from this idea of realty what it became was

like a strange world which went round and round and round and round i'll give you a very good example of that if you take c.d.'s collateralized debt obligations the most interesting thing about them was by say two thousand five reusing that to buy not real things we're using it to buy other did which then what other did. in the second bite you hit the nail on the hit the second part of financial position was interesting it was risk now originally when you had risk it was kind of simple or put somewhere in there people found a way to fixedly strip it apart and trade are now i believe greatly in what i call the law of conservation of risk which is risk cannot be lost all you can do is travel around and give it to somebody else the point here is some people might be able to bid the risk better because they've got offsetting positions but we're black shows and the key to understanding black shoulder hole option pricing framework is we now understand risk and more importantly we can dynamically so banks and everybody else get into the idea that we understand risk we know exactly what it is and we can laid off and that insight about risk created this cult that

we actually got rid of uncertainty we could make thing certain and everything in finance was not driven by more and more did it because if you don't have uncertainty then you can take on more bit because the problem of not paying it back is a way to some degree and that was that they said something very interesting a conservation of debt. and hedging now people are curious why this wealth and wealth and income gap keeps spreading more and more can we say that those who are controlling the capital they are creating the volatility and yet they're completely hedged but the crashing markets the policy reactions a panicked policy reactions end up where the masses are being asked to absorb the austerity all the capitalists when they make money the moment they lose money they become socialists and line up with it and comes along with everybody else gets taxed to pay but you hit the nail on the head in terms of a very interesting interaction between the average person and finance and everybody

has conspiracy theories and everybody assumes that doc somewhere people sat down and plugged this down to the last t it wasn't it was accidental holding series of things fell into line and while these developments and risk were going on parallel to that there was a problem which the incoming which are getting poorer so what did we do when people got poorer we basically democratize credit and said hey you know you want that. you may not earn enough but we'll into the money and that's led down this path of basically creating income equal inequality and there's a social element souter's it's about slavery because you can make people slaves in different ways one is you one think of the borrower and they're your money become slaves as well so this bunch of people finance here is now what propelled into the center stage of all of this where they control this entire crisis purely accidentally but the one thing about finance is this much when they see something which has advantages they take advantage of it so they propel themselves into the centerpiece the other thing that you mention which i think is really fascinating

about the whole period of history is what was really going on is a reaction to a whole budget things like for instance in the one nine hundred seventy s. we had sex you know keane's in mixed economy wasn't working so people said well not every truck let's try better be regulation nobody actually knows whether it works or not i mean growing reagan as a beatified or a person of the fire. i accept your in the because there's this it's up to let put into people to get back on the outside bill clinton is supposed to be left of center and he ran the most drive of said to financial policies known to mankind so there was just mixtures essentially we had this diluted process with political ideology became unhinged because nobody really knew what to do and the finances said hey efficient markets and we are the answer so they were able to almost combine political power economic power financial power in this one person which of course now we know has been talking about this historically over the past few decades and since the creation of the modern derivative era now after options

a listed options chicago board of options exchange were created and you had a few years of high level inflation. came in he raised interest rates to sixty eight hundred percent and libeler prime preet to twenty one i remember the dairy and it peaked around one thousand nine hundred and then out then reagan came in now from one nine hundred eighty and saul very recently you've had of the longest bond market rally in the history of the people who for twenty thirty years who have become death slaves but they did so on the back of all of of a rising bond market or lowering interest rates absolutely so they were unaware of the fact that even though they were spending lots of money and they were taking loans out to get their house they were actually going broke then suddenly two or three years ago the party ended suddenly houses are underwater suddenly people are now find themselves as debt slaves but this was not something that just happened oh

no it's thirty thirty forty years but the point you make is is interesting there's nothing wrong with debt per se good assumes a couple of very important things firstly what you bought with it produces income so basically you have the income to pay back the interest and the principal but also what you have is what are you bored with it it keeps its value. you hit the nail on the head houses were the key thing here and when has a school in value you're never going to earn anything your principal residence isn't actually a source of income so basically we're never going to pay in fact it was negative income because all the subsidies absolutely and all the subsidies gradually are affordable now so under those circumstances you get into a problem what do you make of the current interest rate policy is better with our banks around the world zero interest rate policy it seems forced quantitative easing one to force heaping interest rates artificially low it's not just perpetuating the ponzi well down to some degree but the ponzi now is the government's because the government actually took over the debt from the private sector because they had to through the banking system of the banking system became

literally insolvent and now what we're seeing is a concerted effort by the central banks. because they know for instance take japan it's a two hundred percent debt to g.d.p. that's gross debt not net and he pushed up interest rates from one percent to three percent or japan basically goes out the back door quickly didn't blink so everybody actually has to keep interest rates now the most interesting recent example has been at the end the twist or basically what he's doing is pulling down the long and he's saying all sorts of things like mortgage refinancing mortgages refinancing he wants to create greater capacity for the federal government to basically spend more money i want to stick on the spend thing for a second because the fed under greenspan and now at carnegie has been completely politicized and yet they're supposed to be independent occupy wall street is now beginning to be protest against the fed first they realize you know what it's not politics is the bankers and they realize you know who's behind the bankers is the fed bankers they know that they're moving in that direction and you've got a big uptick in brown paul has made this initially socially so they're not

independent it's become politicized and yet they say they are independent so how do we rectify that problem one of the first we go to break the finance government complex you got to break the same is the defense industrial complex from the one break that and she's got to change campaign finance you've got to basically look at the banks and make sure the banks can influence politicians in the way they do cut out of the lobbying heavily. finance lobbying which actually weakens a little bit and the other thing is i'm not sure that you want an entirely independent federal reserve board anyway but you want one which makes decisions purely on the economics of the case on the politics of the case and the crucial thing was greenspan you're absolutely correct because greenspan more than anybody politicize the process because he was basically at the end of the day a political person he was a very poor economist everybody agrees that it was a very poor economist and he basically knew how to keep the bankers happy his constituency was always the bankers from eighty seven on with every time the banks had a problem to cut interest rates and blow the system with money and that created this huge debt to

a large degree so you can get off that but i think you've got to break that nexus i agree with that you see thing i was thinking of the wall street protests purser piri would like to go down there or join them because remember he was the one railing about the fact that the fed was basically should be tried for treason but i think should be tried for treason so perhaps he should lead the charge of a couple there has been a lot of chatter along those lines is there a role for a federal reserve bank it's a relatively in america a correlation restarted as a way to get away from the bank of england bank right and made the state you know what the reason we started america was to get rid of the bank of england get away from them it was created by german strangely enough. and when they introduced in one thousand and thirteen they brought in the income tax that's ok so now is there a case for a federal reserve bank at all i suspect you would need it because in the modern montreal colonics you cannot get away from a central bank somebody has to print money so he has to control the money supply somebody has to control the debt issue but if you look at a state like north dakota in america they owns the bank they have a very tight can crawl on the money supply and they didn't have any of these

banking probably just going back to hide and basically say you have a rule based system where you're basically saying look there's a series of rules you just follow the rules in which case is a mechanical process you need a mechanic and mechanical process of doing that rather than a bank itself because there's no decision making so you gauge your height solution to some degree and that's possible but it's not a bad become especially utility now they are going against it is that well what these and. banks and i have so much money flowing through the system you're feeding the entrepreneurial economy you're feeding nasdaq you're feeding the loans you're feeding risk taking so there's the there's a give and take right there however are what we're saying is there a way to get out of this conundrum that the fed finds itself in they've got more debt on their books they can possibly grow their way out of they're going to have to do something radical is there any solution that's going to be less than a radical very painful solution the answer is no otherwise you lock yourself into a japan like solution of twenty years of nothing we basically try to grind out in japan still can't get out the other side simply because there is no answer to the

fallacious under those circumstances that's what they've locked themselves into to break the nexus in some way i mean there are other solutions as well which are equally radical when you look through all the money supply completely and replace it with notes and have to be spent with india's right so you have a time value on your notes correct right. which under an internet based technology driven society so you're a contact group and i'm a question for you why is the group on. the course people are crazy about getting group discounts on social yeah or nail polish ink but if you tell them you know what we're going to create a nationwide group bond and get a discount on health care they say no that's socialism well basically now here and socialism go together it's health care and socialism i know around stupid american psyche i mean i have i have completely rational friends who the movies read raise the issue of health care accuse me of being a communist but when i was very discussion we had a discussion i don't really understand that sort of jump in the logic like that

group all is exactly the same as you say it's a form of socialism to some degree that's not so much me and as a report nice to be with you are and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert if you want to buy this book i suggest you do so by our good buddy das if you want to send me an e-mail please do so at kaiser report at r t t v are you until next time this is max keiser saying.

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