ok renaissance hotel ok real sweet from pacific resulting. in this real blue cheese available in some of the telltale derrius jerusalem. hour seven thirty pm here in moscow you without breaking news at this hour ukraine's ex prime minister is sentenced to seven years in jail for abuse of power when signing contracts with russia. swap violent clashes between yulia timoshenko supporters and police. going east moscow and beijing boost cooperation and china becomes the first country vladimir putin principal's office stating he will run for the presidency next year. america's anti corporate protests in boston meet

a fierce response from the police to report lead beat up war veterans taking part in a peaceful. time my colleague bill daughter's here now is the kaiser report by this time next and stacy are discussing how banks all around the world are treading on the shoulders of the common man to further survive the financial crisis thanks for which. max kaiser this is the kaiser report so mervyn king governor of the bank of england says that we're facing the worst financial crisis in history had he been watching the show he would have known that this has been the case for many many months he also goes on to say that he does watch the kaiser report but he doesn't have enough financial literacy to understand what we're saying on the show we're making step

aside bring in stacy herbert who should be running the bank of england. i would bury the first day always running at even neglected to mention of course why we are in the worst financial catastrophe of all time and that's because of the central bank of england and america and the rest of the world and the top one percent that they represent and you know there is this building or this global insurrection against banker occupation the ninety nine percent against the one percent so here's the one percent responding headline reads chicago board of trade taunts occupy chicago we are the one percent you know the occupy wall street spread to chicago and you see this photo here max this is from the chicago board of trade and they put up posters inside saying we are the one percent wells are bored of options they see herbert of course as the side of listed options back in the one nine hundred seventy s. the beginning of derivatives as that term is understood today and these are

kind of the ground zero of financial terrorist and chicago school of economics is there this is where obama came from a milton friedman a neo liberal school and these fellows should not be so cocky because the mob is beginning. to circle i can say maybe in those terms in other words it's not as if these people can simply disappear once they punch the clock and leave the chicago board of options exchange i mean they're living breathing human beings for how long well many people don't know this but we're onto a net actually did the same thing she hung a poster outside of her side i say i am the one percent and here's an image from the eight hundred i guess and this is a picture of her being led to the guillotine and i have another picture here max this is the actual blade used to cut her head off soon after she put up her banner

saying i am the one percent i'm going to bid on. like to add that to my collection my robes piri and collection of reign of terror memorabilia prices for reign of terror america memorabilia are skyrocketing all over the world people begin to remember some of the actions that they can take yes and i'm not advocating that i'm just saying this is what happens in history oh i've been saying you know that you need to have something in your back pocket to scare the bankers with it hank paulson can say we need a three trillion dollars bazooka to scare the banks and they're giving us more money than the ninety nine percent and say we've got to get in. so let's move on to herman cain wall street protests are un-american he says he's republican presidential candidate herman cain and he says that the wall street protesters are un-american and against capitalism and quote that protesters shouldn't rally

against wall street bankers or brokers because they're the ones who create the jobs oh herman it is completely wrong on this point i mean the wall street is there to allocate capital area herman cain and current iteration of wall street which is a vast concentration of capital this is of course the complete opposite of what they're supposed to happen with the allocation the equitable and creates jobs is destroying jobs exactly and that's where you're saying at the top of the show that mervyn king is saying this is the worst financial catastrophe in the history of the universe and why it's because bankers have missed out kate of capital is that's their single job they're supposed to allocate capital into productive enterprise is right not into fraud and casinos and and scams right and how do they do that they do that by using derivatives to steer the risk of capitalism into the

public domain and they keep the reward derivatives in that the options volatility formula is kind of like the splitting of the atom you know the split capitalism between risk and reward and created a financial nucular bomb in which they keep all of the reward and all the risk is rotting in the rest of the of the society and he also says it's un-american if you want to look at what is american and what isn't just look up thomas jefferson or john adams what they said about bankers and wall street i mean they make us look tame right jefferson famously thought that bankers were the biggest threat to liberty you know back going back to one thousand nine hundred. i remember the anti-globalization movement as it was called back then they have the battle in seattle and there was a huge outcry against globalization now ten eleven years later you've gotten naomi klein's on the michael moore's of these people finally realize it's the bankers

stupid and now one banker has gone to jail over the last three years and that's bernie madoff and everybody says that was a bad out all the rest of the system is fine and the financial system has collapsed by pure sheer coincidence nothing happened to cause it so we're going to turn to this headline made off whistleblower tells king world news banks stealing from pensions now this is harry my koppel is he's the one that ten years before the made off fraud collapsed he was the one that wrote the s.e.c. a ten fifteen page letter outlining exactly why bernie made off was a ponzi scheme and how it was operating well harry markopoulos is involved in this lawsuit against bank of new york mellon he's the one that gave all the evidence to the attorney general of new york and let's turn to this clip from king world news every day but every time a state pension fund created it would be approximately three ten but one preferred

of every transaction every time a pension fund bought a currency but they would mark a high price but today it would look better because currently afraid that a twenty four hour clock with a bank of new york would do it look back twenty hours in a fine holding a pension fund purchased. and every time a pension fund tried to sell a current thing they would find overpriced with a lot of the day they would pocket the difference and they did not produce ten years but for decades every day. well that brings up three points as i count them number one that pension funds are abused this is where banks dump risk when they. make a bad bet and it's a losing bag they don't put in a pension account i myself have done this on wall street many times when i was working on wall street we did these look back phrase is this here jim cramer moment and i've said this before you know you put on a big option trade volatility trade at the end of the day don't give an account number to the options dealer on the desk you know because they're in line for

a big christmas bonus and then the other day if it's a loser you don't get into a pension account or you give to a corporation for a tax loss if it's a winner you go into an account that you've already got a prearranged relationship with where there's a massive kickback and this is written most of the trading on wall street is like this number two the scam itself of skimming pennies skimming small amounts of money on every single transaction it went completely unnoticed for years and years and years what can i say last week if you introduced a tobin tax which is exactly the amount of money we're talking about here nobody would notice it i go to e-mails from people like of course people would notice that it would destroy the banking industry with tobin tax because they have a perfect example they stole a certain percentage of every single transaction nobody noticed for decades similar with its open tax a small half a percent or one percent transaction fee that a single person would notice if you never told them so this is the centrally

a tobin tax that bank of new york mellon has been about imposing upon the bottom ninety nine percent but dare you suggest that we reverse that and take that back from the one percent and with a tobin tax they're like screeching that this is on american this is anti-capitalist well what is it one bank of new york mellon does that to the ninety nine percent of their customers it's fraud but they say it's fraud in the service of liquidity and market making the same thing goldman sachs as lloyd blankfein when he goes to congress he says we guess we commit fraud every day but we needed to keep markets open now the third point of course is that this revelation will go unheeded and nobody will act on it. they're part of a criminal syndicate and this is why they go unpunished because they're not being part they're not being prosecuted as a racket as it is under rico to explain to the audience who the bank of new york mellon is here's the wikipedia on them they have one point two trillion dollars in

assets under management and twenty five point five trillion in assets under custody and administration thereby being the largest deposits bank in the world is the oldest bank in corporation in the united states tracing its origins to the establishment of the bank of new york at seven hundred eighty four by alexander hamilton and those are passive accounts from old ladies sitting on fortunes and every single month they get their statement and they get up a magnifying glass and they try to figure out the bank stole money from them this month but they're very good at doing it so they can pick it up and or other pension accounts or their teachers or their fireman remember all these public workers accounts they're being vilified because they want a living wage meanwhile their pensions are being destroyed by bank of new york and other banks so they're getting really gangbang from both directions but harry markopoulos points out in the interview that if you have a pension basically you have been defrauded by bank of new york mellon because

everything passes through there that's the twenty five point five trillion asset it flows through there as the deposit back so it looked to emphasize that point as far as the infrastructure goes and in management of the pension fund industry they because they are at a key choke point in that whole infrastructure and as gatekeepers are bandits essentially because as the money goes through the system they stand there as a gatekeeper as a bandit and they steal every single transaction and now it's just been becoming revealed the attorney general have to be bought off or bribed or caught a sex scandal so no prosecution and nothing will become of this and now importantly there's the occupy wall street they're down well they're trying to get a new york stock exchange. right around the corner is the bank of new york mellon surrounded by police and here's the last clip from harry markopoulos i want to play it al qaeda had done and still american seal team six will be dropping him but the banks did that and so maybe law enforcement needs to go up into those corporate boardroom and treat them like steel teams six feet at a time a bit

a lot these bankers think they're above the law they're arrogant they're saying they get out of them but they are in effect yet they refused a fair trial and are stealing tens of millions of americans and by the way bank of new york mellon for tarp bank that we bailed them out so they could pay bonuses by stealing our pension money does we've been saying these are financial terrorists now finally other people are comparing them to other terrorists there's a strong case to be made and yes these are financial terrorists number two america has the death penalty already they're already killing dozens and hundreds of people in states like texas ok and senate focusing on killing poor black people why not go after the rich white guys on wall street you've already got the death penalty in place pull the frickin trigger you listen is so like he said you know seal team six those police protecting bank of new york nolen from the protesters their pension funds have been defrauded by the bank behind them that they're protecting why don't

they take the bank drop it into the ocean somewhere put it on an airplane fly it over the atlantic and drop it in the ocean or the cops in front of the bank trying to protect the bank from the protesters and behind their back the banks are ripping them off blind you stupid second cop it's safe here ever thanks so much for being on the kaiser of course thank you mike got away much more coming once they write their. final. pulled from the.

video. but come back to the kaiser report max kaiser oh boy here it is this is the book i've been waiting for investing in troubled times by charles hughes smith big fan of charles two spacewalking the kaiser report thank you max charles are just right you are here in europe that you describe as a neo feudal kleptocracy a five hundred million debt service tell us more well max as you've covered on the show many times it seems that we have to ask who is the recipient of all the sacrifices being asked of the european people both the taxpayers in germany and elsewhere and those who are being are suffering under the austerity programs of

greece etc and it seems that the answer is not the people of those countries but the banks which are overextended massive quantities of debt to the sovereign states and to the individuals right well this is a point that's being made more and more people understand that the banks are at the heart of the problem i've got this occupy wall street campaign all over the world where were they told anti-globalization and now they figured out well you know behind these companies are the banks are going to focus on the banks and yet there is still nobody standing up in the political arena to say like the pechora commission of the one nine hundred thirty s. where they said you know what we got to go in there start arresting some of these scoundrels what's your thought on the absolute agreement. first we have to establish as a society what is right and wrong and clearly the status quo would have us believe in sort of a jedi mind trick that looting as long as it's under the auspices of the status quo is is not a wrong it's like norma you mentioned looting and i mean i think of what's happened

in london recently they had a looting spree from folks and david cameron the prime minister came out in very harsh terms castigating those looters and yet he wouldn't be the prime minister unless it were for the looting of the bankers who paid for his election campaign so what it was why did the british people accept the fact that their prime minister is a loser in chief but should they just beginning banking licenses to the kids were breaking into shops on the street and they can grow the economy by living that way yeah you could ask preface same question of ireland in greece how are those people accepting the idea that there are. nations are being looted fundamentally to save the banks and the owners of the banks and their political lackeys let's talk about the us for a second you write that the stealth coup d'etat of two thousand and eight two thousand and ten so what's going on there. i think it's the culmination of

this. buying of the political process by the by the financial sector that reached its apex in two thousand and eight and so lackeys of both parties across the entire political spectrum you know did whatever was necessary to save their financial masters essentially all right and so now we've got the the latest incarnation of the anti-globalization movement it's called occupy wall street and you bet they only client i think is finally figured this one out and she is joining the barricades so what do you make of the protest. i think it's. a useful. i think those people are heroes. to stand up in public they're heroes but i think that we can also look at what everybody that's not gay or could do and this ties in to your campaign of buying silver in other words what kind of direct actions can everyone do from the safety of their home without a risk risking arrest and so points over closing your accounts that means your

brain either reneging on your loans that you can never pay or paying them off i mean exiting yourself from being a supporter of the banking to provide the necessary things i want to as to what about a mass default on mortgages across the country and it's on one designated day that would certainly put the kybosh on the banks no that's a great idea so occupy wall street should make a day in the next couple of weeks and say that we demand that the country the united states of america everyone has got an underwater mortgage for sure or anyone else to strategically default on their mortgage do it today this is put the banks under and would force the government to create a new bank that was claimed that simply did deposits and made loans at a reasonable price and they did exactly what happened during the s. and l. crisis. yeah i know as a follow up the citizenry could demand that instead of five banks which control everything that are there for too big to fail that by regulation there there has to

be at least two hundred fifty banks or twelve hundred fifty a vast number of banks which are unable to amass the concentration of wealth to buy or to political process but i think that's called competition. yeah it's a strange concept in some ideology called capitalism which we used to have you know what let me ask about that because michael moore's made a big thing about being anti-capitalist and yet there we don't have a capitalist system is capitalism is means competition and it wouldn't have this problem to begin with words to getting it wrong and i think there is so-called classical capitalism that is that we're basically told exists across the spectrum but and exist still in small ways like you can go out and become an independent contractor as a capitalist or you can be steve jobs and start a computer company without any political pull. but but i think what most people miss is that spectrum of classical capitalism is a rather narrow band of the entire economy globally and certainly in the u.s. and in the park it's controlled by those with immense concentrations of wealth and

political power control like eighty and ninety percent and that's crony capitalism or cartel capitalism right now my friend alex jones he's making a move to go down even deeper into the disease by going for logic by wall street occupy the fed and he's targeting the dallas fed as part of this texas initiative is that in your mind the right direction absolutely and what's interesting max is how we see this movement gathering force it either into the spectrum that we have. we have the some leftist realizing that the fed has got to be brought under the treasury or and in from the right ron paul is like a ball if the fed i mean either one is a move in the right direction so maybe we're getting some consensus right. the fed should be under the treasury that's a proposal by dennis kucinich yes and which is part it's pretty much the exact idea of audit the fed or what ron paul has been talking about what about this idea that

then if the senate says nationalize the fed put it under the treasury affectively making it transparent within the government's ability to do so but is that a good idea oh absolutely i mean it's as to whether we should have a fed is the secondary question but certainly if we have one then it should be under the tree which is nominally under the elected government right so what would be the objection them and if he said to the fed look we're just going to put you into the treasury department your reports it's in geithner now ben bernanke and we're going to put a guy in tim geithner's office to make sure he knows not doing too many horrible things what can they say back to why that's not a good idea well i think the jedi mind trick is we need an independent fed owned by the banks to make the correct policy for the elected government right but greenspan kind of blew that concept behind and fed by every single time there was a political problem in washington he lowered interest rates which created the bubble was created the enormous banking fraud which created this massive depression

now you mentioned so over a moment ago and we did that crash j.p. morgan by silver campaign it caught huge attention all over the world crisis over that time was twenty six rocketed up to fifty dollars an ounce there's been a pullback down of the thirty range still in a bull market still looking good but walk us through how you how that works you're taking physical silver off the market so how does that crash the banks well actually you're you're probably more adept at that argument than i am and you've made it many times and better than i can but i think the key the key function to me is silver amongst many other commodities is actually traded as a commodity and the futures far exceed the actual physical product right so. if we the people go out and physically own most of the physical product then that reduces the amount that's available for leverage and financialization right the banking

crisis is due almost entirely to over leverage which is fueled by speculation and the cost of speculating is near zero because interest rates are near zero thanks to this corrupt yes and any time to make a mistake they dump it into a pension account somewhere and it's all however still stacked on top of something physical at the base of the ponzi scheme that's right now as you so if i take a hundred dollars of silver out of the ponzi scheme i am capitalizing the ponzi scheme by probably close to a thousand dollars at this point yeah that's how bad the us own credibly leverage the system is yes so it would cause again the politics game to crash which sounds horrifying unless you realize that it's a ponzi scheme banking cancer and you're trying to get rid of the cancer that's right so it's the leverage seems to be removed and you do that by taking the fundamental layer out of of of this layer cake of fraud as it were now we've got to herman cain who's running for president he recently stated that the

occupy wall street protesters are on american for it's bankers that creates jobs your thoughts one wonders at the audacity of that statement the audacity of of cluelessness that should be is campaign slogan. yeah if if if the bankers create so many jobs and they've been ascendant for at least the last decade then we should have zero unemployment but actually what they're really good at is not creating jobs they're good at creating wealth off the backs of people who still have jobs yeah they're parasites yeah they're absolutely perfect and you know you can look at a mortgage as the equivalent of the physical gold but you know. you're making your payments or your student loan or whatever you're making a payment of one hundred dollars an hour they're leveraging that and turning that into a financial it's the scheme that supports

a thousand dollars of speculation so once you know there's only banks and you're just giving your plasma to keep their zombie mobile even though they died years ago yeah that's right ok i'm talking to the want to know me charles you smith this is a book investing in troubled times i suggest you read this with alacrity one last question. your post imagining a middle class does not create one tell us what is a middle class what does create a middle class why is a middle class even necessary we've got about a minute left if you tell people they're their middle class then they tend to become passive and they say you know oh this is wonderful it's kind of like it's men inching perception as opposed to their actual financial circumstance which isn't a good advisor it's totally are you the star wars fan what is up with. yeah i didn't bring my lightsaber but yeah it's very much like a movie script that we're being told we're middle class even as the middle class as defined by security and our financial situation which is slowly improving over time

is deteriorating well many people in america now believe that they are in the middle class when in fact when you compare their status to other the g. twenty nations there have barely out of poverty that's right and compared to what they used to earn thirty years ago or even twenty years ago then their income has declined right so the the folks in the banks and washington are hitting this middle class button and people believe it even though the truth is they're there wealth income status is crashing and if they if they face up to that if they accepted the reality then they'd have to become more politically active yama served on the president yeah it was the pitchforks were the good thing absolutely it's all star wars. all right well charles you smith thanks for being on the show that's all the time we have ok thank you very much max my pleasure all right that's going to do it for this edition of the kaiser report with me next kaiser and stacey every hour

thank my guests i'll see smith this is the book that your mind this is a jet i might require what you want to send me an email please do so at kaiser report at r t t v are you until next time this is maxed out or say.