you can also follow me on twitter at froggy but i thank you so much for watching hope you have a great night i'm christine. kaiser this is the kaiser report yeah we start of the global insurrection against banker occupation it takes many names now revolutions and jonas cairo occupy wall street

but it started right here on this show the global insurrection against banker occupation satan ever tell us more max in fact today is occupy keiser before i am occupying the set today to occupy me worth are the handcuffs actually max you have been drugged yes report made it to the front page of the drudgery poor bar head bankers rich who won't give up wealth now point out that this is also a right wing site that celebrated when a black man was killed in georgia recently they they wanted up 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 less terrorist ani 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 a show this little clip where he says goldman sachs rules the world but i want to get booed him and then this is what he says if you're thinking that your government's out there hey mr cameron mr obama there is in control just like there's nothing more than slaves to the capitalist gang bang that sounded kind of list this thing to say it was just like that is true yeah this is fascinating that this risk than a guy on the b.b.c. and british television is simply stating some simple truths of 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 planning a 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 simply there is a positive or a salesman trying to show up a shrinking of the british people lies concocted by the banking industry well i can 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 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 and the other

thing is that she set off his contract certain 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 n.y.p.d. the way forward so chased people organ chase recently donated an unprecedented four point six million dollars to the new york city police foundation the gift was the largest in the history of the foundation and will enable the new york city police department to strengthen security in the big guy. paul well you just find more leg breakers and head crackers to go down there protesters and children well ok he's saying it's going to strengthen security in the big out will 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 bankers 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 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 x. 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 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 were either trafficking or doing cocaine that hasn't changed at all but again you know this this mocking this cynicism this ridiculing by the likes of drudge by the likes of bill maher across the culture in america where it's ok to assassinate a us citizen because he said he's obviously a bad guy because the president doesn't like him 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 mubarak tried the same thing. hired more leg breakers 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 first madonna dancing on the edge of tyranny that sounds like

a dance if i ever heard one 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 three of it is due wofully 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 eight just 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 and america's 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 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 the prices every single day because the axiomatic flipside of gold and silver is the u.s. dollar and to 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 saw 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 due to their own stupidity mind you not 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 advocated that position they just want to rely on you know pork rinds and cheap 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 would take over well the report also notes that j.p. morgan's derivatives outstanding now stands at a notional seventy eight trillion dollars seventy trillion dollars this is what j.p. morgan has in the riveters vs the total global. the d.p.

is approximately fifty trillion dollars so there's one bank controls more derivatives than the entire globe's g.d.p. why do they do they need that amount of firepower to keep prices manipulated there are the present you see quoted every day on c.n.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 they take it 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 counterparty 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 the money of the curve this was driving the moves and gold and silver this is why jamie diamond the higher cops protect them against his own bankers are not going bonuses this is a fricken pig and then finally on this so we're talking about these giant amounts of seventy eight trillion into rivet is that j.p. morgan has and this is one of the banks the biggest in terms of how many how much derivatives 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 they're more 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 brains are no longer able to even compute these numbers or you could say that money

has become completely plastic. and able to be shaped by propaganda meisters and that's what we're talking about in the old days base to shape the news and these to flood the news of the law and counterfeit the truth by by counterfeiting lies 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 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 tickertape of lies of propaganda financial propaganda to say boils doing this or the dollar's doing that or the medals or doing something else then drawing conclusions based on lies to legitimize their policies at the other they only accomplish two things make the top one percent richer and make everyone else suffer austerity she no it's one class and even cultural twist of this money meaning nothing she said it deals with the

fines that deal with e.t.s. handling court and now installed webcams in their vaults 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 be wholehearted you are both. well what are you say sara thanks so much for being on the guy's record thank you max i know i must like coming less i'll stay right there. are no. fish fish. fish fish fish.

fish stew.

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 it das is with us here welcome to kaiser 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 they're not sure what that means and yet here is a multiple hundred page book that describes exactly this is about the financial ization of everything as created this bizarro world of extreme money i think you're going to go back in time money has to be something really simple it is basically have mechanism for exchange you wanted me to do something for you paid me i wanted you to do so in a pager sitting with this for event so i saved that money where it could

conceivably future to somebody in the city and the early eighty's is completely haywire right but we know what happened in the seventy's they black shoals option pricing formula came around that the option pricing formula for volatility was invented so that risk more 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 second is the first spot once you strip money away from this idea of real 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 and five we're using that to buy not real things we're using it to buy other that which the other did these are. the same but you've hit the nail on the hit the second part of financial ization was interesting it was risky now originally when you had risk it was kind

of simple but somewhere in the people found a way to fixedly strip it apart and trade it 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 shuffle it around and give it to somebody else the point here is some people might be able to bear the risk better because they got off sitting position but were black shows and he said i'm sending black shoulder the whole option pricing framework is we now understand risk and more importantly we can dynamically hage it so banks and everybody else get into the idea that we understand risk we know exactly what it is and we can lay it off and hedge it and that insight about risk created this cult that we actually got rid of uncertainty we could make things and everything in finance was not driven by more and more did it because if you don't have uncertainty and you can take on more of it because the problem of not paying it back is a way to some degree and that was the key now you said something very ancient 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 the panicked policy reactions end up where the masses are being asked to absorb the austerity all bankers are capitalists when they make money the moment they lose money they become socialists and line up with it in caps along with everybody else the tax rate of 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 room somewhere people sat down and plugged. down to the last tee it wasn't it was accidental hoping 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. poor of 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 enjoy the money and that led down this path of basically creating income equal inequality and there's a social element to this it's about slavery because you can make people slaves in different ways one is you want to give to borrow and there you money become slaves as well so this bunch of people finance 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 month when they see something which has advantages they take advantage of it so they propel themselves into the sense it's 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 budgets things like for instance in the one nine hundred seventy s. we had speculation you know keynesian mixed economy was and working for people said well what can we try list or a bit of deregulation nobody actually knows whether it worked or not i mean growing reagan is the beatified person on the far right except here in the because

difference it's up to left point in time people forget that on the outside bill clinton is supposed to be left of center if he ran the most right of center financial policies known to mankind so it was just mixtures essentially we had this guy looted 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 the starkly 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 you had a. you years of high level inflation paul volcker came in he raised interest rates to sixteen percent g.d.p. or prime prita twenty one i remember the dirt and it peaked around one thousand nine hundred and then out and then reagan came in now from one nine hundred eighty

and saul gray recently you've had of the longest bond market rally in the history so the people who for twenty thirty years who have become debt 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 against 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 happens bernard certain 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 have you brought with it it keeps its value you hit the

nail on the head houses were the key thing here and when houses fall in value you would never get anything your principal residence isn't actually a source of income so basically you were never going to pay it back in fact it was negative income because all the subsidies absolutely and all the subsidies gradually are in affordable now so under those circumstances you get into a problem what do you make of the current interest rate policy federal reserve banks around the world zero interest rate policy it seems forced quantitative easing one to force heating interest rates artificially low is not just perpetuating the ponzi well doubt 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 answer the banking system of the banking system became literally insolvent and now what we seeing is a concerted effort by the central banks to keep interest rates low because they know for instance that japan is going to. percent debt to g.d.p. that's gross if not net but he pushed up interest rates from one percent to three percent while japan basically goes out the back door quickly wouldn't blink so everybody actually has to keep interest rates and the most interesting recent example has then been ak and the twist but basically what he's doing is pulling

down the long into the curve he's saying all sorts of things like mortgage refinancing they would move this refinancing he wants to create greater capacity for the federal government to basically spend more money almost on the spend thing for a second because the fed under greenspan and now has been completely politicized and yet they're supposed to be independent occupy wall street is now beginning to be a protest against the fed first i realized you know what it's not politics is the bankers and then 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 and promptly all is made as a nation is literally so they're not independent it's become politicized and yet they say they're independent so how do we rectify that problem well i think first you got to break the finance government complex you got to break that same as the defense industrial complex from the night he pitches you to break that which is you got to change campaign finance we'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 lobby they heavily finance lobbying which actually weakens

a little bit station 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 because 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 because interest rates are low the system with money and that created this huge debt burden to a large degree so you can't get off that but i think you've got to break that nexus i agree with that is the thing i was thinking of the wall street protest perhaps rick perry. i would like to go down there are doing that because remember he was the one railing about the fact that the fed was basically should be tried for treason but actually should be tried for treason so perhaps he should lead the charge of murder well 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 really started as a way to get away from the bank of england ben bernanke on made this case 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 local will book and when they introduced at one hundred 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 among more than one tree comics 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 dept issues and if you look at a state like north dakota in america they owns the bank they have a very tight control on the money supply and they didn't have any of these banking probably just going back to hike 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 the mechanical process you need a mechanic and mechanical process of doing that rather than the bank itself because there's no decision making she going to hike solutions to some degree and that's possible additional bank becomes basically utility now they are going to guess that is that well what these investment banks and they 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 no the answer is no otherwise you lock yourself into a band 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 under the circumstances that's what they've locked themselves into to break the nexus in some way. there are other solutions as well which are equally radical why don't you withdraw all the money supply completely and replace it with notes which have to be spent within two years break so you have a time value on your notes correct rights. which under an internet based technology driven society so you can take a group and a i have

a question for you why it was the group. of course people are crazy about getting group discounts so shite yeah or nail polish ink but if you tell them you know what we're going to create a nationwide group and get a discount on health care they say no that's socialism well basically now care and socialism go together as health care and socialism i've never understood the american psyche i mean i have i have completely rational friends who the movies read raising the issue of health care accuse me of being a communist but without any discussion without a discussion i never really understand that sort of jumped into logic like that groupon is exactly the same as you say it's a form of socialism to some degree that's not so much me in the guise 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 pass if you want to send me an e-mail please do so i kaiser report at r t t v are you until next time this is nice guys are saying.

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