nine thirty am in moscow the zero r.t. headline the afghan war marathon runs into its second decade with a rising insurgency and spiraling civilian casualties leaving the coalition struggling for a winning strategy. or wall street movement grows nationwide and despite being dismissed as an artist or proving to be organized aided for the long haul. a dozen leading british lenders see their credit scores drop after the u.k. government says don't prank on us if you get into trouble again. austrian protests

more on that coming up with max and the stuff in stacy kaiser report coming up. stars are well known there was a report the war continues the financial war we called it we predicted it now we're in it place or max keiser yes this financial war is being played out in not only the propaganda being perpetrated by the mainstream financial media but also in prices that's the important thing to look at here first i want to show you a cartoon from the chattanooga times free press by clay bennett and the title the cartoonist economic trends yet picks forks up eight and three quarters and torches that seven and a half yes pro-war plays out on the big board max this cent is as we've been

saying on the show for many many months and we've been talking about for years you need to monetize descents and you need to get it higher represented as a price because it's a price propaganda so you need to price or december first and then get the price higher i know you occupy wall street people can wrap your mind around this just open your mind and think yes and one of the elements of this why pitchforks the price is going up and soaring on the big board there is as president obama had famously said to the bankers i'm the only thing that stands between you and a pitchforks but the fact is that there has been no justice no no none of these bankers have been delivered to justice and so it ends up being pitchforks and beheading so i don't understand why in a country that's so eager to execute people down in the state of texas they they kill hundreds of people down there for trivial crimes why are they so shy about

going after bankers who are committing unbelievably horrid wretched financial crimes of rape and terror surely there are. hot chair or a lethal injection or a guillotine plea for them now let's look at how again this war thought in prices bulls last out in final hour dow is up three hundred seventy seven points for low and bank reversal so markets soared suddenly in the last half hour and apparently the cause according to zero heads is f t causes massive short squeeze with mother of all end of day rumors well the end of day we were it was yet another potential bailout for europe but again it was a rumor and if you actually read past the headline on f.t. apparently it was like well this is these are just discussions there is no real plan it's because obviously for the ninety nine percent of

americans who are not directly tied to larceny on wall street the number that they would want to see go up is the number of jobs the fact that you have all these millions of americans rooting for stocks to go up which only benefit a few guys on wall street is absurd and it just shows you the propaganda is brilliant that higher prices at the end of the day somehow are good for us this is an amazing triumph of propaganda in the twenty first century time prices to a pavlovian type response amongst the population yeah and again it's war and this is being fought intentionally to see these are intentional moves as they have been said it was a massive short squeeze so they were trying to destroy anybody that would bet against the markets yes there are professional hedge fund managers and others to take these enormous sales short sell short positions against the market they're fighting the government who's got their infinite credit capacity to hit them with

by programs and automated program training so you've got one group of hedge fund a few hundred guys who have. several trillion dollars in credit versus the federal government and there are several trillion dollars in credit the people in the middle the ninety five percent of the world that is not either one of those two camps are suffering and asked to accept austerity measures that get worse every single day now i just spoke of people who short the market and on a mass analytics acquiring information through unconventional means this is apparently anonymous hackers set up activist hedge fund this is fantastic because anonymous has picked up the ball you know we introduced the concept of marrying short sales and market activity with activism and boycotts if you google karma bank you'll find the history of this goes back to two thousand and four when back in london we had this hedge fund set up and so this is really

a friend's house that development for the occupy wall street campaign because it gives the occupiers some. some real firepower so you go to a gun fight with a gun you don't go to a gun fight with a knife actually the f.t. interviewed somebody from the anonymous group and they referred to the fact that occupy wall street doesn't have any real fire power and they're saying the only thing that matters is the share price and this isn't why they're creating this fund which they've published a thirty eight page report on chouteau modern agriculture which is apparently one of the biggest agricultural producers in china and so they claimed that they provided evidence of one of the home calling exchanges the largest the longest running frauds and then there were reports according to this article is prefaced with a legal listing disclaimer and unusually for an activist group states that it will profit from any collapse in china it is share price but i'm so proud of anonymous

thank you guys for you know fighting the good fight they should contact reggie middleton and get his work on j.p. morgan go after j.p. morgan. they're short sells their naked short sell softly and say that stock price down to zero profit wildly and share the goodies but imagine had they existed and released this information about all the c.d.o. as for example that for years nobody knew other than the bankers themselves who were packaged these thought fraudulent securities only they had the advantage of being able to short those securities they were creating because they knew themselves as having packaged it that they were toxic imagine if anonymous had been able to release as they've done here the inside e-mails that these people like goldman sachs we know were referring to. deals so imagine that they they released those in two thousand and five when these fraudulent securities were being packaged right while goldman sachs was shorting the products that they themselves created

knowing that they were toxic and worthless a hedge fund run by a group like anonymous could have also been selling short the c.d.o. and other toxic products but the profits that were generated in the anonymous could have been distributed to building up the occupy wall street campaign around the world and to go to war with the wall street terrorists so they have the potential to make billions and billions of dollars in a hedge fund like this this is an untapped market and there's very little correlation the problem that's what industry right now is that everything is correlated with everything else so everyone's making the exact same bet apple computer for example is one of the biggest holdings in over one hundred eighty hedge funds they're making the exact same bet there's nobody doing something different except now you've got a major player they should make billions and billions of dollars looking to profits it's obvious where the profits are go basically the indian people have been viciously attacked by coca-cola workers in colombia who were murdered by coca-cola they should do stuff and be counter capitalist reverse capitalists again so

anonymous will be vilified for this just as alessio responding was vilified for not being too big to fail traitor. now look at this headline which won't get any attention and shock from the likes of fox and friends meet the texan investor who made millions from the credit crunch and now he's betting europe will go down the drain so first he made money on the subprime mortgage crisis because he believes as the subprime market collapse that the financial crisis was being hidden by rich western governments so because of this he's now buying credit default swaps on places like greece and he'll make hundreds of thousands of dollars if greece defaults now he's attacking these countries with these credit default swaps he doesn't own their debt he's just betting against them. is he vilified no no because he knows how to play the game e he pays off politicians he like in the murdoch enterprise totally corrupt he he

will pay off the tories with cameron and us more completely corrupt so therefore his marauding in the markets and making money by shorting stocks arkan's is considered a necessary lubricant for markets whereas the rest danny who simply is doing something exact same thing but on a smaller scale he's like a home version of a financial terrorist he's held up as being oh my god this guy is absolutely detrimental to our operating on to me and he should be vilified but he's just a low low playing low level punk this guy is a full fledged global financial terrorist cameron who endures this type alluding but puts kid salute a bottle of milk in jail he's been shown not to be completely deployed status and you know let me just quickly aside that again with the anonymous so much fun of billions and billions of profits that they make obviously if they buy physical silver with that it would jack the price up to sixty seventy eighty ninety hundred

dollars an ounce which of course would benefit everybody and could take down j.p. morgan because they want to bring up this this is not this tax this investor is kyle bass kyle bass is the one that ended up collapsing bear stearns which was handed to j.p. morgan which was then delivered all of those shorts on the silver market so kyle bass remember he was the one that was speaking to c.m.t. c. and told them that he started the rumor that he couldn't get the payoff on his credit default swap on bear stearns but it back the next morning it was paid off so he's inside manipulating markets he's a financial terrorist causing human misery death and depravation but cameron and obama are on their knees telling him he's a god that they worship and meanwhile want to expose that some low level people are doing the same thing oh my god we survive with this yeah if you're not take them to . banks in order to hand them to j.p. morgan for pennies on the dollar then you're the bad guy now i want to look at some more you brought up precious metals some more propaganda against the population

here's from the f.t. it's an opinion piece gold bugs beware the bubble is finally bursting this is from a professor at boston university and he says gold's recent volatility disputing investors and destroying demand he claims even though imports to turkey six hundred forty four percent imports to india the biggest consumer of gold in the world up many many times over so where is this guy he says pulling provocator idea out of its bottom again its price propaganda he is seeing a price fall commensurate with demand fall demand for gold and silver is increasing the fact that the price is not going up is because these markets are manipulated by the financial times and people support the financial times the people support the corrupt banking system that's the on impeachable truth and then

part of his propaganda is you saying that if gold is falling in a weak economy imagine if it eventually moves from chaos to prosperity how bad gold will do exactly but as we said at the top of the show the price of pitchforks isn't great go on higher in the world we see around us in the occupy wall street occupy as in the occupy melbourne in the occupy los angeles and occupy the city of london you are that's the price of pitchforks justice has not been delivered so there will be no prosperity this guy just doesn't get it yes of occupy wall street hates fun tells everybody in the world and all these cities who are protesting to start buying silver physical silver one ounce at a time and they themselves are buying it billions of dollars at a time due to their short sales and naked short sellers of corrupt institutions like j.p. morgan and other banks and other companies that are committing financial fraud and financial terrorism the. that's all dynamic of the global market shifts away from the people getting appears that they then become the rulers against the class of

people that are doing the abusing state sara thanks so much for being on the kaiser report thank you max don't go away much more coming your way so stay right there. even the books. on the sacred. is the place. where there is a buddhist prayer. for a shamanistic rich. crossroads of religion and. faith strong spirit.

we'll. bring you the latest in science and technology from the room for. the future of coverage. i welcome back to the kaiser report i'm max kaiser time now to go to london and speak with professor steve keen steve is the author of deep ongoing economics which is just been rereleased as the bone king economics to the naked emperor dethrone steve king welcome to the kaiser report thank you max good to be here and good to be holding the line you edition of the barking economics all right steve keen you've been in europe for the past week while extreme volatility has returned again to the sovereign debt and equity markets is this a classic minsky moment type collapse action if so tell us what have been sitting home it is well it's actually

a mystery moment doesn't diminish just as it is more low this is is the miscue millennium because this process began with the debt bubble that took fifty or sixty years to build up in america and will take something like about ten at least ten to fifteen maybe twenty years to unwind if we go through the same sort of in one policy is the politicians currently following by you know following the dos of the morons whose theories i write this book about neo classical economists so it's a it's a permanent shock in the moment comes down to saying that they can do a period of extreme rational exuberance providing through the economy what minsky calls euphoric expectations leading capitalists in general but in particular the scheme is punch emotions people who make money by gambling on rising asset process to take out more and more debt and get to the stage with such a level of debt laden on society that no one wants to take anymore at one point and when the debt stops growing we go from a period of growing good boosting demand to reducing debt cutting demand and that

period of day leverage ing is the beginning of a minsky moment because we've got such a huge level of private debt run up in this speculative bubble in america particularly in the last. when he is with us it really going back sixty is it could take two one or two decades for that level of debt to be driven down side them in scheme and it it's a miniscule any i'm right and basically what we're seeing now is the revelation. that fueled so-called growth is nothing more than an enormous ponzi scheme now steve can only be in ireland next month at the kill canonic festival and i'm sharing the stage with jeffrey sachs was all the fun who's got to be considered a classic economist from academia somebody who in your book i'm sure would qualify someone to deep punk what should i bring to the stage when i'm on stage or jeffrey sachs your thoughts what you could ask him is what is he what does he think about what happened in russia because jeffrey sachs was a major proponent of what i call the shock therapy approach for russia that said

that the way to go the transition from a socialist system to a capitalist system was to do it as quickly as possible in the belief that the market would instantly jump from wherever it was in the social system to an oss equilibrium of the market economy and the regional plan that he pushed through was supposed to take a five hundred day period to go from socialism to free market capitalism now in fact that wasn't fost enough for them they made it one hundred fifty dies and i was in russia just recently speaking with people at the university of humanities there and one of the head of the department told me that a large number of his colleagues dog in that transition because what happened was the actual change from a socialist sic process to free market process could was set in one day i think he said it was the first of january of the second of january and so he woke up to find their wages hadn't changed the process of increase by a factor of four the last year for sex about that because he certainly you know he

was a proponent of that he's now a chinese spots and he joined in with gone and gone you know socially progressive except for except for and again given credit for that but ask him to honestly discuss what happened. what advice to give product transition in russia and what happened because of the transition and wanted to move to equilibrium or chaos but hey so jeffrey sachs in russia with is faulty aires resulted in deaths people died because of his the hearings to the. orthodoxies and economics which have been proven to be a shambolic now on wall street there's the occupy wall street protest because a lot of the bankers on wall street who are creating these financially engineered products that are based on equally faulty economic assumptions are also causing death and disease all over the world in the united states and around the world what should be the punishment for economics and wall street traders and bankers who end

up visa v. their policies killing people one of my favorite cartoons is the wily. cartoon and at one stage there's a cartoon with a bunch of people being dragged down you know obviously in a hill leading down towards the ultimate punishment and there's the devils sending over a lecture theatre saying the eternal economic seminar and one person and one here come because of a god it's worse than i thought i think they should listen to their own stuff interminably in a sensory deprivation shined up but not get them to pay back for the nonsense they've unleashed a crazy thing is a lot of the wall street tried as new there was scamming was plenty of fraud if you're now in the finance sector the academic economists who push this stuff out actually generally speaking believe it and actually think they're doing good and i have a little analogy that i have included in the second edition of the book from one of my old school teachers a brilliant philosopher as it turned out he let us have free discussions in what was supposed to be religion classes and we were discussing

a particular politician back on about eighteen years old seventeen years old and one of the some of the students in the cross said it about this guy who at least is sincere on the whole cost because they do you see sincere. when the teacher who normally shut off and didn't so i would pop up and said don't overwrite sincerity the most dangerous paper potion of meat in your life is the is the maniacs and seal each i should get down the right with an extra to help you head off in the belief it will be good for you well that's the kind of adventure what nicole columnists have done been naive that he has caused this process yeah and this is a been played out recently with the mainstream media in america covering the the wall street occupation and other campaigns going on that while the bankers are sincere in their attempts to do something and this is resulted in a huge mismatch and even crypto conservatives like jon stewart can't seem to wrap their mind around the fact that they're dealing with quite an opposing force of destruction well let's move back to europe for

a second your thoughts on the european financial stability fund even the proposed revised expanded and leveraged version. has this going to save europe steve game oh it's going to slide by bearing in on the old debt i mean you do need a government check to stimulating the economy when you go down in the private sector but this whole thing is trying to solve the debt crisis by assuring more debt disavow to be paid back to go to come back to markel hutchins question in this whole point it's like combi replied want be replied what we need is not more and more debt rescheduling and and leverage ing of current levels of risk you would get more debt the embattled country has to pry we need to abolish large types of estate that should never be an issue in the first place and it's the finance sector the should with the pine not the ordinary person and graceful the rest of europe well yeah i mean look the the debt that was created by these economists and bankers following corrupt theories and their own larcenous thick ends are creating the austerity measures that are causing poverty disease famine and death so they're

killing people literally there's a there's an axiomatic relationship more death equals more death you know we need something like that is we still want the fires were. denying that there is a long term process people still think i'm going to come out of this thing and it just because of this this package will get a cyberspace call that's either let's move back to the next term that's the same attitude i had a nine hundred thirty two in the great depression of the open a long time to realize hill this is serious we're stuck here and it took the turning point in the political approach to the process in the non thirty's which got us out of the great depression to some extent the one for sure the second world war by the major role there was a commission now is the corps a commission where i'm absolutely rabid prosecutor went for the head of j.p. morgan and i simply got him and completely crippled the political power of the bankers at that stage and set the scene for the new deal and result speech about i think what he's trying to bank is out of the palace we need

a political shift like that in many ways i think is occupy wall street movement which i now see is perpetrated in my own country with occupy occupy sitting apply millburn and a few others taking up around the world that public movement maybe was needed to shift the politicians and stop them being in the pockets of the bankers and put the bank has behind bars instead because it's until a few of them end up there the same behavior is going to continue yeah i'm on a mailing list with dylan ratigan matt be and others bill black and they're all debating what the demands should be and even if they should make any demands but steve king would you say that a simple demanded be we need a new book or a commission yes absolutely we need somebody with bulls running it i'm bill black is my obvious nomination there bill did a brilliant job of the sightings and was commission he put hundreds of people behind bars who belonged there for fraudulent behavior in the siding for lunch process that was a drop in the water compared to what happened since then with the dot com bubble in the subprime but nobody's going to jail over it now there's absolutely bucket loads

of fraud in the entire system and you need somebody with the bulls to type them on and put people behind bars over this and start breaking down the political power. it will straight still has yet bill black needs to get medieval and jamie diamond. all right let's spend the next a minute or so talking about australia you famously have been calling for the australian real estate market top out and started declining of all your work steve came this is the one prediction that has a lot of the others but it seems as though you're being vindicated to bring us up to date. right i made a call about house prices falling forty percent over ten to fifteen years in about i think oldest of two thousand and seven and in october of two thousand and seven the government brought in what i prefer to call the first time vendors boost where rather than giving the first time seven thousand australian dollars as a present as a deposit towards the first time they gave them fourteen thousand and twenty one

thousand they bought a new price and sites like victoria went on after an extra fifteen thousand dollars so in the case of it tory depending on where you bought you can get a thirty five thousand dollars check from the government simply for saying you're going to go and buy a house now that restock at the bottle which is sort of the boost at the time so i want i'd like whole house process unfold in about five percent on an annualized basis from that point once the first time going to be in about one hundred billion dollars more borrowed money was injected into the market and house prices rose about on the right ten percent across the country now that it takes a while from the mention to turn around and it's finally started turning around and of course the success of the first time been disbursed was by dragging people who were going to buy in two thousand and ten and two thousand and eleven into two thousand and eight and two thousand and nine so it actually keeps itself and it's on i think end of it there are just simply out of many blogs out there anymore you starting to get the flow of new demand being list on the floor of a new supply process or to discard people in any way so the overhang which is the

krill you into a fall and housing market is well and truly established now and we're seeing crosses turning down in every market it's safe apparently sydney which is still slightly positive. on an annualized basis but certainly perth and grisman ironically the two capitals of the two major mining sites are saying quite so a substantial falls in process already and the men have been well and truly growing right steve kane that's all the time we have thanks for being on the kaiser report you're welcome i think again all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guests pick up his new book debunking economics the new expanded version if you want to send me an email please do so at kaiser reported r t t v are you until next time this is maxed out or saying.

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