this is all see coming to life in most of the headlines. the u.s. led invasion of afghanistan haunted that ten year anniversary with the taliban defeat in no way in some ways and meanwhile the human cost of finding that out with the number of civilians killed this year alone approaching total coalition forces in a decade of time say. while the month of demands on the streets for the country's troops to leave a pakistan anti-riot reflecting on the latter she. has claimed almost four hundred

british military lives. and occupy wall street protests against frank i believe you are spreading to dozens of the markets it is from richmond to los angeles and hitting the compass all the fancy. headlines up next grazer shop marks and stacey are ready to take another shot at the world's major money shocks that's on the kinds of reports yasi. max times are well down the cousin report the war continues in financial war we called it we predicted it now we're in it stays there 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 cartoonist 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 dissent 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 this sense and you need to get it higher represented as a price because it's a price propaganda so you need to price for 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 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 i found in the state of texas they they kill hundreds of people down there for a 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. chair or a lethal injection or getting played 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 a low one bank reversal so markets soared suddenly in the last half hour and apparently the cause according to zero head 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. 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 pov lovi and 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 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 capacity to hit them with buy 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 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 sells 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 prince asset development for the occupy wall street campaign because it gives the occupiers. 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 hong kong 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 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 your naked short sells awfully and take that stock price down to zero profit wildly and share the goodies imagine had they existed and released this information about all these c.d.o. so for example that for years nobody knew other than the bankers themselves who 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 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 run 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 property go beijing feed indian people have been viciously attacked by coca-cola the workers in colombia who were murdered by coca-cola they should do stuff and be counter capitalist reverse capitalists again so i'm not amiss will be vilified for this just as alessio astonied was vilified for not being too big to fail trader. now look at this headline which won't get any attention and shock from the life 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 swaps 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 day he's just betting against them. is he vilified no no because he knows how to play the game e he pays off politicians and the 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 is an 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 parasite cameron who. has this type alluding but puts kid salut a bottle no in jail he's been shown to be completely deployed to this 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 they 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 pay off 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 can we survive with this yeah if you're not taking the. 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 pairs from the f.t. it's an opinion piece gold bugs the where 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 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's 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 a corrupt banking system that's the. 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 is higher in the world we see around us in the occupy wall street occupy as the occupy melbourne in the occupy los angeles and the 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. tells everybody in the world and all these cities who are protesting to start buying silver physical silver one ounce of the 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. the total 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 they sara thanks so much for being on the kaiser report thank you don't go away much more coming away stay right there. and discover it's b.c. . communicate with the wind. and become free. nature can give you.

a mission. couldn't take three school children three. months three. three. three. three book your videos for your media projects a free meal gone to r t tom. welcome back to the kaiser apart i'm not surprise or time now to go to london and speak with professor steve keen steve is the author of deep banking economics which is just been rereleased as the bonking economics to the naked emperor the throne steve keen welcome to the kaiser report thank you max going to be here and good to be holding. my new edition of the barking economics all right steve can you

ben 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 a minsky moment is well it's actually a moment doesn't diminish it just as i think it's more like this is more like is the minsky 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 nine policies that all the titians currently following by you know following the dos of the morons whose theories i read his book about neo classical economists so it's a it's a permanent shock in the de mint scheme and it 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 puncture 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 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 profit that run up in this speculative bubble in america particularly in the last twenty years or does it really going back sixty years it could take to one or two decades for that level of debt to be driven down sides 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 fueled so-called growth is nothing more than an enormous kanzius game now steve king 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 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 deed punk what should i bring to this. age when i'm on stage 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 they call the shock therapy approach for russia that said that the way to go to 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 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 foss enough for them they made one hundred fifty two and i was in russia just recently speaking with people at the university of humanities there and one of the people that 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 the socialist sit process to free market crosses occurred was set in one day i think he said it was the first of january of the second of january and he woke up to find it wages hadn't changed that 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 changed the spots and he joined in with. you know a socially progressive eccentric senator and can give him credit for that but i ask 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 theory resulted in deaths people died because of his the hearings to the. orthodoxies in economics which have been proven to be a shambolic now law 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 word. 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. turn 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 are you totally 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 trying to. get them to pay back for the nonsense they've unleashed the crazy thing is will go to the wall street try to xnews i was scamming there's plenty of fraud as you know 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 go of included in the second edition of the book 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 in about eighteen years old so him saying is old and one of the other students in the class said that about this guy but at least his sincere on the whole. he's sincere and the teacher who normally shut up and so i would popped up and said don't overwrite sincerity the most dangerous people in your personal meet in your life is the is the maniacs and sealy trashing you down the right with the next trying to copy head off in the belief it'll be good for you well that's kind of eventually what newcastle columnists have done then naivety has caused this crisis 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 crew. 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 gain oh it's going to slide of i'm going in late and you get the most 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 showing more data to support to be paid back and go to come back to market house and classic fries and this whole point this that contrie replied want me replied what we need is not more and more debt rescheduling them and leverage ing of current levels of risky would be yet more debt at the end battle country has to pry we need to abolish that estate that should never have been issued in the first place and it's the finance sector

the should weigh the pine not the ordinary person and grace all the rest of europe 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 a there's an axiomatic relationship more debt 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 process people still think i'm going to come out of this thing you know and it just because that is this package will get us ivers they call that so i will it's move back to the next boom that's the same attitude they had a ninety one could show in the great depression and took them a long time to realize hill this is serious we're stuck here and it's the eternal point in the political approach to the process in the not in thirty's which got us out of the great depression to some extent the unfortunate the second world war by the major role there was a commission and now is the commission where an absolutely rabid prosecutor

went for the head of j.p. morgan and by 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 difficulties trying to 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 bankers behind bars instead because of tinsel a few of them end up there the same to hide is going to continue yeah i'm on a mailing list with dylan ratigan. he 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 nuke or a commission yes absolutely we need somebody with balls running it on bill because

while these nomination day bill did a brilliant job of the sightings and commission he put hundreds of people behind bars who belonged there for approaching that behavior in the siding for months process that was a drop in the water compared to what happened since then with the dot com bubble an unsolved crime but nobody's going to jar live right now there's absolutely bucket loads of fraud in the system and you need somebody with a bolsters like them on and put people behind bars over this and start breaking down the political power that will straight still has yet bill black means to get medieval and jamie diamond. all right let's spend the next minute or start talking about australia you famously have been calling for the australian real estate market top out and start of decline of all your work steve came this is the one prediction that has lagged 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 process holding forty percent over ten to fifteen years in about

i think august of two thousand and seven and in a tub or 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 draws seven thousand australian dollars as a deposit towards the first time they gave them for ten thousand and twenty one thousand they bought a new place and states like a tory a weapon 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 restart of the bottle which had started to burst at the time so when i made that call house process would fall in about five percent on an annualized basis from that point i would bounce for the first time going to be in about one hundred billion dollars more borrowed money was injected into the market and house processes rise about another right ten percent across the country now that it takes a while for the convention to turn around and it's finally started turning around and of course the success of the first time vendors 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 at the 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 a process of too high discard people in any way so that overhang which is the pearl you to a fall and housing market is well and truly established now and we're seeing process turning down in every market except the pair of 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 sites have seen quite sort of substantial falls in process already and the mini well it's really growing right steve came that's all the time we have thanks for being on the kaiser report with your welcome mat 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 team pick up his new book the banking economics the new expanded version if you want to send me an email please do so at kaiser reported r t t v dot are you until next time this is

max guys are saying. from.

all.