sorry. dynamic. top story the war driving on for a decade the u.s. led invasion of afghanistan passes the ten year mark get a taliban defeat seems nowhere in sight and the human cost is rising faster than ever with this year set to become the deadliest one for u.s. troops. in one of the u.k. enough's enough say protesters calling for a speedy troop withdrawal as they gather in london protest the afghan war activists at the rally are being joined by musicians actors and politicians. and corporate

sentiment spreads fast across the u.s. with protests against inequality and unemployment taking place in dozens of cities the occupy wall street movements criticized for lacking organization but says it's far from chaotic for the long. wall street protests are also want today's agenda the kaiser report two of marx and stacy take a shot of the people they see as the world's biggest financial sharks next. stars are welcome the cousin report the war continues in financial war we called it we predicted it now we're in it stays here max kaiser 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 cartoon is economic trends yet pitchforks up eight and three quarters and torches that seven and a half yes the 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 dissent and you need to get it higher represented as a price because it's a price propaganda so you need to price your dissent 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 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 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 blade 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 from low and bank reversal so markets soared suddenly in the last half hour and apparently the cause according to zero head is f t causes nassib 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 the f.t. apparently it was like well this is these are just discussions there is no real plan this because obviously for the ninety nine percent of americans who are not directly 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 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 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 in for the 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 for 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 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 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 the hedge fund set up and so this is really a big 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 the largest the longest running frauds and then their report 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 china does 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 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. 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 that 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 how do they release those in two thousand and five when these fraudulent securities were being packaged right along 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 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 pede 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 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 sub prime 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 is now buying credit default swap some places like greece and hold 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 our politicians and 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 resto shammy 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's absolutely that's a mental two are operating on a 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 clara's but cameron who endures this type alluding

but puts kid salut a bottle of milk in jail he's been shown to be completely complicitous and you know let me just quickly aside that again with the anonymous hedge fund the 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 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 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 when they cut his credit default swap on bear stearns but in fact 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 the god that they worship and meanwhile want to expose that some low level people are doing the same thing oh my god well we supplied weapons yeah if you're not taking down. banks in order to hand them to j.p. morgan for pennies on the dollar and 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 pairs 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 scooping 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 says pulling fabricated idea out of his bottom again it's its price propaganda he is seeing a price fall as 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 of the people support the corrupt banking system that's the on impeachable truth and then a part of his propaganda is you saying that if gold is falling in a weak economy i magine 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 growing higher in the world we see around us in the occupy wall street occupy as in the occupied melbourne in the occupy los angeles in 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 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 sells 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 abused they then become the rulers against the class of people that are doing the abusing. 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. too low just be getting close and she's terrific. she was traced to store. data.

but spoiled the trucks they lay for. we have the surge books around the. always goes missing. one shot trying to take. out the local drug industries called for the change the most want to trophy is going to. go escobar to great times and parties. 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 has just been rereleased as did bonking economics to the naked emperor

the throne steve keen welcome to the kaiser report thank you max good to be here and good to be holding. my new 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 it meant to the moment is well it's actually a moment doesn't diminish the jostling is more like this is more like it was of them is a millennium because this process began with the death toll it 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 one wind if we go through the same sort of a nine policy as the politicians are currently following by you know following your boss of the morons whose theories i write this book about me across it look honest so it's a it's a permanent shock in the midst. a 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 ponzi scheme is punching merchants people who make money by gambling and rising as a 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 structure growing you go from a period of growing debt 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 twenty years where those had really going back sixty years it could take to one or two decades for that level of debt to be driven down so it's not a ms came out 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 i'm going to be in ireland next month at the hilton omics

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 let you know 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 they 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 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 and in fact that wasn't fast enough what made it one hundred fifty dies and i was in russia just recently speaking. people at the university humanities there and one of

the the head of the department told me but a large number of his colleagues dog in that transition because what happened was that the actual change from the socialist sit process to free market process could was set in one day i think he said it was the first of january and the second of january and he woke up to find a way just hadn't changed that process it increased 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 changed the spots and he joined in with bono and gone you know socially progressive eccentric senator and again given credit for that but i asked him to honestly discuss what happened what advice to give prada 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 fault theories resulted in deaths people died because of his 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 wildly known secret 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 peta saying the eternal economic seminar and one person and one one one because of a god it's worse than i thought i think i should listen to their own stuff interminably in a sensory deprivation chamber. that might get them to pay back for the nonsense

they've unleashed the crazy thing is one of the wall street tried is new that was scamming this plenty of fraud or 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 lives have free discussions in what was supposed to be religion classes and we were discussing a particular politician back in about eighteen years old seventeen years old and one of the of the students in the cross said that about his caught but at least his sincere on the whole. we copied a yes he's sincere and the teacher who normally shut off and inside would pop up and said don't overwrite sincerity the most dangerous people in a meeting your life is the is the maniacs and seal each i should go down the right with the next trying to head off in the belief it'll be good for you well that's the kind of prevention what newcastle columnist 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 can't oh it's going to slide it by going in on late and you have no debt i mean you do need a government sector stimulating the economy when you've got a downturn in the private sector but this whole thing is trying to solve a debt crisis why showing more debt disability back you go to come back tomorrow house and sequester in this whole point it's the economy replied won't be replied. when they does not do more and more debt rescheduling is and and leverage ing of

current levels of rescue and yet more debt but the and battle country has to pry we need to abolish large slabs of estate that should never been issued in the first place and it's the finance sector that should weigh the pine 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 falling 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 debt equals more death you know we need something like that this we still want the phase where we're denying that there is a long term process people still think we're going to come out of this thing you know and it just a crisis of this this package will get us ivers play god that's over let's move back to the next boom that's the same attitude they had in ninety one and thirty's when the great depression of hope in the long time realized hill this is serious we're stuck here and it took the turning point in the political approach to the

process and on thirty's which got us out of the great depression to some extent the one for sure the second world war i the major role there was a commission now is the core a commission 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 new deal and result speech about if it will be throwing a bankers 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 replicated in my own country with. milton and a few others taking up around the world that public movement may be both needed to shift the politicians and stop them being in the pockets of the bankers and put the bank has behind bars instead because if it's all a few of them in doc they're the same to hide is going to continue yeah i'm on a mailing list with dylan ratigan in the. 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 balls running out onto a bike was my obvious nomination day bill did a brilliant job with the sightings and commission he put hundreds of people behind bars who belonged there for the behavior in the siding to lunch process that was a drop in the water compared to what happened since then with the the dot com bubble and so on but nobody's going to jarl over it now there's absolutely bucket loads of fraud in the system and you need somebody with a bulls to take them on and put people behind bars of it is and start breaking down the political power that wall street still has yet bill black means 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 the client of all your work steve this is the one prediction that has a lot of the others but it seems as though you're being vindicated can bring us up

to date the i will do right i made my call about house prices falling forty percent out of ten to fifteen years in about i think oldest of two thousand and seven and in iraq in 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 deposit towards the first time they gave them fourteen thousand and twenty one thousand they bought a new place and sites like victoria lachlan after an extra fifteen thousand dollars so in the case of victoria 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 bubble which is sod it to burst at the time so i want i made a cool house process would fall in about five percent on an annualized basis from that point once the first time then as the am i've got one hundred billion dollars more borrowed money. is injected into the market and house prices rose about

another right twenty percent across the country now that would take a while from the dimensions of turnaround that has finally started turning around and of course the success of the first to have 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 kicks itself and it's on i think end of it there are just simply out of many bodies out there anymore you're starting to get the flow of new demand being wished on the floor of a new supply the process of too high discard people in any way so that overhang which is the pearl you had to fall into and housing market is well and truly established now and we're seeing crosses turning down in every market except apparently sydney which is still slightly positive over on an annualized basis but certainly perth and grisman ironically the two capitals of the two major mining states have seen quite so substantial falls and process already and the minimum is well and truly 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 would thank my guests leave 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 max guys are saying.