look so chill in the car drones these are the children of an issue marco results in a little or so that the sochi olympics. focus on results mccall's as any closer to home revealing the tone with cintra hotel mccown. one thirty pm in moscow the news here are the headlines of the afghan war marathon runs into its second decade with an escalating insurgency and spiraling civilian casualties leaving the coalition struggling for a winning strategy. for occupy wall street movement builds nationwide and despite it being dismissed as an artist they're proving to be organized and in for the long haul. a dozen leading british lenders see their credit scores cut of the u.k. government says don't bank on us if you get into trouble again. kaiser report

coming up stay with us. stars are wild on the cars the report the war continues the financial war we've called it we predicted it now we're in it states are max kaiser yes this financial war is being played out not only in 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 cartoon is economic trends yet pitchforks up eight and three quarters and torches that seven and a half yes plays out on the big board max this sun 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 your descent 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 the pitchforks but the fact is that there has been no justice 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 like 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 baggers who are committing unbelievably horrid wretched financial

crimes of rape and terror surely there are. hot chair or a lethal injection or a plea for them now let's look at how again this war thought in prices bull's bust 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 the 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 and the fact that you have all these millions of americans rooting for stocks to go 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 response amongst the population yeah and again it's war and this is being fought intentionally the 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 and 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 to pass to the to hit them with buy

programs and automated program trading 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 nine percent of the world that is not on 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 anonymous 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 there 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 huge fund set up and so this is really a fantastic 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 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 largest the longest running frauds and then there were reports according to this article is prefaced with a legal list a disclaimer and unusually for an activist group states that it will profit from any collapse in challenges 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. their short sells their naked short selling author lee and take 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 had 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 that inside e-mails that these people like goldman sachs we know were referring to. deals so imagine have 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 side fund 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 what they do with the profits it's obvious where the profits are go feed indian people have been viciously attacked by coca-cola feed workers in colombia who are 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 astonied 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 believed 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 like in the murdoch enterprise totally corrupt he he will pay off the tories of 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 rest danny who simply is doing something exact same thing that 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's absolutely that's a mental two are operating on a me and he should be vilified but he's just a low low plain low level punk this guy is a full fledged global financial paris mccarron who. has this type alluding but puts kid salut a bottle of milk in jail he's been shown now to be completely duplicitous and you know let me just quickly aside that again with the anonymous so much fun the billions and billions of profits that they may 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 taken more because i want to bring out this this and not this texas 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 a 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 pay off and cut 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 deprivation 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 won't be resupplied with the yeah if you're not taking guy. 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

piers from the f.t. it's an opinion piece gold bugs be where the bubble is finally bursting this is from a professor at boston university and he says gold's recent volatility is speaking investors and destroying demand he claims even though imports to turkey up 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's just pulling fabricated idea out of his bottom again it is priced 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 that corrupt banking system that's the on impeachable truth and part of his propaganda is you saying that if gold is falling and we could come to me and

madge and 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 is higher in the world we see around us in the occupy wall street occupy as an 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 it's fun tells everybody in the world and all the 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 a view and 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

much more coming your way so stay right there. close of the screen to the spitzbergen archipelago. for the world's northern bostock you will preside over a ghost. town archie goes to. a group of silage volunteers rebuild the palace from roots. where technological breakthroughs save

lives. and where people are forced to. close so on the marquee. i welcome back to the kaiser report i'm max keyser 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 the throne steve kean welcome to the kaiser report thank you max good to be here and good to be holding. my new edition of the viking economics all right steve keen you've been in europe for the past week while extreme volatility has returned again to the sovereign equity markets is this a classic minsky moment type collapse action if so tell us what have minsky moment

is well it's actually a moment doesn't diminish it just as i think is more low this is because of 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 so that in one policy is the publication's the cowardly following by you know following your boss of the morons whose theories i read his book about neoclassical economists so it's a it's a permanent shock in the dimity moment comes out of saying that they can be 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 punching merchants people who make money by gambling on rising asset process to take out more and more debt and get to the stage with a such a level of debt laden on society that no one wants to take anymore at one point and when the debt stops growing you go from a period of growing debt boosting demand to reducing debt cutting demand and that

period of the 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. what he is with us is really going back sixty years it could take one or two decades for that level of debt to be driven down so it's not them in scheme of it it's a miniscule any i'm right and basically what we're seeing now is the revelation that this debt fueled so-called growth is nothing more than an enormous ponzi scheme now steve king and i'm going to be in ireland next month at the tail comics best of all and i'm sharing the stage with jeffrey sachs was the only 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 bunk what should i bring to the stage when i'm on stage jeffrey sachs your thoughts what you could ask him is what is the 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 of 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 the wherever it was in the social system to an equilibrium of the market economy and the original plan that he pushed through was supposed to take a five hundred day period to go from socialism to free market capitalism and in fact that wasn't fast enough what made it one hundred fifty dies and i wasn't russia just recently speaking with people at the university of humanities there and one of the head of the department told me but a large number of his colleagues gawd in that transition because what happened was the actual change from the socialist sit process to free market processes occurred was set in one day i think he said it was the first of january of the second of january and so they woke up to find it wages hadn't changed their process it increased by a factor of four das jeffrey sachs about that because he certainly you know he was

a proponent of that he's now change his spots and he joined in with. you know a socially progressive eccentric setter and again give him credit for that but i ask him to honestly discuss what happened. what advice did you get proud of the transition in russia and what happened because of the transition and wanted to move to equilibrium or chaos ok so jeffrey sachs in russia with his fault theories resulted in deaths people died because of his the at hearings to the. orthodoxies in 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 than wall street traders and bankers who end

up visa v. their policies killing people one of my favorite cartoons is the wily cartoon and on 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. peta saying you're totally economic seminar and one person in one country says about oh god it's worse than i thought i think i should listen to their own stuff interminably in a sensory deprivation trying to. get them to pay back for the nonsense they've unleashed the crazy thing is one of the wall street tried as needed i was scamming there's plenty of fraud or now in the finance sector but 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 board from one of my old school teachers a brilliant philosopher as it turned out he had free discussions in what was

supposed to be religion classes and we were discussing a particular politician back on about it saying is old certain thing is old and one of the other students in the cost said that about his god but at least he is sincere on the whole cost chimed in yeah yeah we copy do you see sincere. and the teacher who normally shut off and didn't so i would popped up and said don't overwrite some say we're the most dangerous people to post no meat in your life is the is the money x. and seal each i should get down the right with the next trying to help you head off in the belief it'll be good for you well that's the kind of prevention about me across all columnists have gone been naive that he has caused this crosses 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. how's this going to save europe steve cain is going to cited by during an unrelated yet no debt i mean you do need a government sector stimulating the economy when you go down in the private sector but this whole thing is trying to solve it process by assuring more debt that this are going to be paid back and go to come back to market house and sequester cries and this whole point gets the economy replied want he replied what we need is not more and more debt rescheduling and and leverage ing of current levels of rescue and yet more debt the embattled country has to apply we need to abolish launched much of the state it should never been issued in the first vice and it's the finance sector the should weigh the pine and not the ordinary person and grace all 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 stick ends are creating the austerity measures that are causing poverty disease famine

and death so they're killing people literally there's an there's an axiomatic relationship more death equals more death you know we need something like that is we still want the phase where we're. denying that there is a long term crisis people still think i'm going to come out of this thing you know and it just because of this this package will get a cyberspace call that's i believe to move back to the next turn that's the same attitude they had in nine thirty one and thirty two in the great depression and put in a long time to realize hill this is serious we're stuck here and it took a turning point in the political approach to the process and then on a thirty's which got us out of the great depression to some extent on forcing the second world war by the major role there was a commission now at the core a commission of where an absolutely rabid prosecutor went for the head of j.p. morgan and basically got him and completely crippled the political power of the bankers at that stage and set the scene for the 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 that occupy wall street movement which i now see is replicated in my own country with occupy because sitting occupy melbourne and a few others taking up around the world that public movement may be what's needed to ship the politicians and stop them being in the pockets of the bankers and put the bank has behind bars instead because it's and so a few of them end up the same to hide is going to continue yeah i'm on a mailing list with dylan ratigan mats i see. 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 and i'm built like a smile this nomination and a bill did a brilliant job of the sightings in the commission he put hundreds of people behind bars who belonged there for approaching that behavior in the siding two months crossus that was a drop in the water compared to what happened since then with the 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 goals to fight them on and put people behind bars over this and start breaking down the political power. that world straight still has yet to bill black needs to get medieval and jamie diamond. all right let's spend the next a minute or start talking about australia you famously have been calling for the australian real estate market top out and started the client 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 if you bring us up to date be able to do it right i made a call about house prices falling forty percent over ten to fifteen years in a docking oldest of two thousand and seven and in october 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 cause seven thousand australian dollars was it as

a as a deposit towards the first time they gave them fourteen thousand and twenty one thousand they bought a new place and states like victoria weapon after an extra fifteen thousand dollars so in the case of victoria depending on where you bought you can get a good five thousand dollars check from the government some because saying you're going to go and buy a house now that restock of the bubble which had started to boost at the time so when i made that cool house process would fall in about five percent on an annualized vices from that point. the first time going to d.m. about one hundred billion dollars more borrowed money was injected into the market and how about now the right thing percent across the country now that it takes a while from the dimensions to turn around and it's finally started turning around and of course the success of the first time and interest boost 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 kicks itself and it's on i think end of it there are just simply out of many blogs out there anymore is talking to get the flow of new demand being less than the flow of new supply across or to discard when any why so the overhang which is the printer you

to a full and housing market is well and truly established now and we're seeing process turning down in every market except apparently sydney which is still slightly positive i have a. an annual loss by a source but certainly perth and grisman ironically the two capitals of the two major mining sites have seen quite so substantial falls in process already and the mental is really growing right steve kane that's all the time we have thanks for being on the kaiser report if 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 stacy herbert i want to thank my guests the company's new book the banking economics the new expanded version if you want to send me an e-mail please do so at kaiser reported r t t v dot ru until next time this is backscatter saying by all.

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