on the streets of kandahar. trying to look for asians to rule today. eleven thirty am and moscow these iraqi headlines the arab league is making a last ditch attempt to end bloodshed in syria demanding president assad speak with the opposition and with draw his tanks from the streets violent clashes between anti regime protesters and security forces have claimed some three thousand lives since on the rest started in march from. washington holds funding of unesco hours after the u.n. cultural arm grants palestinians will membership by a majority vote the move seen by many as a sign of growing international support for palestine spending the un statehood. hollowing sharif mainstream media resurrecting

a russian spy ring case code named ghost stories as the f.b.i. releasing footage featuring sleeper agents uncovered in the u.s. last year including fem fatah out of chapman. coming up max keiser and stacy herbert tell us why speculators may be tearing apart the world economy leaving every day savers to pick up the tab when everything goes wrong kaiser report coming up. nice guys are this is the kaiser report the war of savers versus speculators. plays to her parents and you know will continue so when max keiser the speculator that's right because they get all the free money. and they share our heart our financial system. show rules as they're doing in shanghai if they

don't get their way so you can either politely protest around the world or you can scream and shout and get your way first headline here max banks stocks of blame you know we have a trillion something european wide bailout and the bankers were happy their shares soared yes the speculators their ransom requirements were met you know this was all stuff in two thousand and eight remember when hank paulson put a gun to congress and senate got almost a trillion dollars from congress to give goldman sachs and his buddies now they did the same thing in the euro tarp so this is moral hazard times moral hazard it's moral hazard to the nth degree and the worse you are paying back your loans the cheaper the interest rate gets and the more money you get how do i get that deal in other words let me explain something say however if i were to throw up into a bucket of vomit if i'm part of the top one percent i can take that to the fed and get

a billion dollar loan is that as collateral but if i'm in the bottom ninety nine percent all i've got is a bucket of spew. well let's look at the bottom ninety nine percent in this next headline a banner day for the one percent as bank stocks soar this is a commentary from david callaway on dow jones market watch and he says in one of the more bizarre twists of fate that only markets can bestow the occupy movements brew. fame around the world this month has been accompanied by the biggest october for the dow jones industrial average in its one hundred fifteen year history up more than eleven percent as of this writing so notice those words he uses their bizarre twist of fate that only markets can bestow when in fact it was the heads of central banks around the world heads of government around the world heads of finance departments around the world who are in fact responsible for the booming stock market has nothing to do with the one percent creating wealth that's why i

tell the occupy wall street movement the only way to be taken seriously is to a tax cut price if the other side is going to point to a rising stock price and say see we're right you're wrong then the only answer to that is to take down a stock price like coca-cola for example take it down to zero not that one hundred sixty billion dollars company it's within everyone's ability to do so just stop drinking coke but i've a feeling that these occupy wall street types they like to talk all day but when it comes to sacrifice like not drinking a coca-cola product they're not willing to make that sacrifice but you know again the more important thing to look at here is the speculators and why they get their way and they shriek and they shout and they say the world is ending and the ninety nine percent who are trying to save are eking out a living they're just being quiet and hoping to god that they can save their job and that's the only thing they've got going meanwhile the top one percent have trillions and debts and they freak out and they scare the bejesus out of any single

person that walks in their way dare they mention that it's all fraud and it's all puffery in imaginary wealth oh well this is where the wall street has gone to school in the pentagon you know the pentagon is of worried about existential threat we need another five trillion dollars for some advanced weaponry and something also we do say oh there's an existential economic threat we need high frequency trading algorithmic trading speeded up so we need another. five trillion dollars and they always use these imaginary threats to feed their pockets and when they don't get their way you know they raise the red alert as they do in washington they get their way or they crash the market like they do on wall street to get their way well that's in the next headline europe's rescue euphoria threatened as portugal enters grecian vortex yes you gave in to the speculator terrorist on greece and now they're going for portugal monetary contraction in portugal we are told has intensified an alarming rate and is mimicking the pattern seen in greece before its

economy spiraled out of control telegraphed interview simon ward of henderson financial and he says the e.c.b. must cut interest rates immediately and launch a full scale pull it of quantitative easing of up to ten percent of euro zone g.d.p. well this is the plan for the eurozone that they're going to lever that up by trillions and trillions of euro and try to completely debase the euro because as our friend talks about it's a currency war where a currency de basement is the goal and now the eurozone has gotten away from all of the bundesbank concerns about having a say and unit of currency yeah no central bank cares at all about that max and it in a few currency world they pretend that they're where the responsible ones in the room where the buddhist bank and really we're keeping everybody else honest but the germans now know that merkel has fallen what the financial terrorists they do they

realize that they're going to lose their sovereignty to the i.m.f. to determine what is that greek then lose our sovereignty we don't care we just go there to get drunk italy we just buy our shoes and we don't care if they lose their sovereignty what do the german people now realize that they're about to lose their sovereignty to the i.m.f. why do they feel about that he wanted to give that you don't have those german people tell me one population that hasn't iceland stood up to the banking to you know this no we're speaking to. bergie to go on star trek next week and she says in fact it's the opposite so anyone to not even electing a lesbian to run your country saved you mike so let's look at how the other speculators operate and we see that the chinese are learning very well they're very smart they mimic very well by the way that's how their education system is all rote learning now look at how they're rote learning from the west how they are seeing who the power lies with shanghai homeowner smash show room in protest over a falling prices a group of about four hundred homeowners in shanghai demonstrated publicly in

damage to show room operated by their property developer after the company said it cut prices apparently they cut their prices by twenty five percent because no buyers new buyers were showing up and one of the protesters is quoted as saying we require a refund because the loss of your suffering now is too great for us to afford so how is that not the same as hank paulson they looked at hank paulson and they said that guy is a genius he goes i need a refund i require a response for all these bogus derivatives i had goldman sachs dumped onto the population what about the teamsters goldman sachs lost money in their pension fund and only by threatening physical violence were they able to get that madiba yeah but again on that one small thing yes there they were perhaps one but just go brock's on here's a video another remakes sent to us you might like it. please

please please. please. oh yeah. yeah those remakes are nice i like oh good. well so let's look at the side of the savers now let's see if a few headlines come in from the savers judge challenges two hundred eighty five million dollars citigroup settlement this is judge jed rate cough and manhattan and he's challenge lawyers to explain why he should approve a settlement of serious securities fraud allegations when citi group incorporated neither admits nor did nice wrongdoing so remember last week we covered the story where citi group settled a one billion dollar fraud fraud. again fraud they settled this

fraud for two hundred eighty five million of which ninety five million is the fine print with the f.c.c. remember we have a conversation we're saying that how do they get away with this idea where they don't want to admit fraud but just pay a fine but africa meeting fraud so called asked how can a securities fraud of this nature of magnitude be the result simply of negligence and he also asked why citi group shareholders not the individual executives responsible for the alleged fraud are required to pay so once again this is the same risk versus speculators the savers take it they are quiet their obedience and here we have the savers behind the wave of citi group speculators who were all involved in the fraud because remember bernie made off was able to defraud people of sixty billion dollars because they all knew most of his investors knew he was a fraudster but they assumed that they were gaining from it that he was just front running based on his insider knowledge the same thing is here's a shareholder just quietly saying ok we'll obediently pay this two hundred eighty

five million dollars fine because we know that there's probably far worse that they've stolen on our behalf and as long as it will just pay this little fining move on the shareholders of citigroup have no expectation in the u.s. economy that fraud would be penalized at any time so they never give it a second but even though they know the banks are committing fraud they don't see anyone using a lot of stop any of these banks from committing fraud so why should they be the ones to stand up and say we don't want you committing fraud when it obviously is the accepted modus operandi of the entire industry the industry is based on fraud yes and now here you have the third largest bank in america citi group involved in this f.c.c. decision where they get to just pay this fine and not admit to any guilt and look at how the bottom ninety nine percent are treated eleven charged one billion dollar us real world health scam. so eleven people were charged last week in

a one billion dollar fraud where employees of a busy new york commuter rail service used fake medical diagnoses to boost their incomes with disability payouts these are union members on the long island railroad and they faced twenty years in prison for this one billion dollar fraud that's their penalty for committing a crime relatively speaking doesn't even exist when you compare to what citigroup doing well how how can team trillion dollars alone go missing from the u.s. economy in fraud thirteen trillion which dwarfs this fraud here and nobody has faced any time not even an investigation because the bankers who committed the fraud also own shares and companies like director of corps of america which is a private prison operator that needs new prisoners to turn a profit so they like it when these people go to joe and finally max the biggest insurrectionist against banker occupation out there is gold and that has been the most trouble sum of all the insurrectionists to the global banking cartel final

headline venezuela scrambles to bring home gold reserves we've been following this apparently the hundred ninety ninety tons that venezuela has asked for back from mostly from the bank of england is on its way but the propaganda against hugo chavez for asking for his gold back is stunning in this because they're saying it's just the latest in a string of grand gestures and controversial plans by the unpredictable socialist leader so they're ridiculing him as if he this is some ridiculous plan that one should want your own gold in your nation again i ask about germany they're nervous about their gold sixty percent of it sell the new york banks in america that was a big headline and built their biggest tabloid in germany so germany's having their currency deflated a way to inflated away to nothing because merkel is drank the kool-aid of psychosis . and they don't have most of the gold that they think that they have o'boy

a let's throw a little match into a tinder box called german social unrest and see what happens that should be fun all right stacy ever thanks so much for being on the kaiser report thinking don't go away much more coming your way so stay right there.

you're welcome back to the kaiser report time now to go to new york and speak with lay on the grass goodman former journalist at the wall street journal and author of the asylum renegades the renegade to hijack the world's oil market les welcome back to the kaiser report thanks for having me. all right bloomberg business week cover occupy wall street asks. who's behind the mask you know you've been. the occupy wall street leaders tell us what's going on down there is there someone behind the mask is this is a legitimate is a genuine what are your impressions well what i find pretty interesting about this question is a lot of it has to do with who is holding the purse strings and then of course who's talking to those holding the purse strings and it seems right now there are some quiet private funders there are the personal stories and none of them are willing to say that there is a leader but they have identified some of the funders and strangely enough there's

under robert help for who's in the asylum book i wrote he was one of the oil changers who had been very successful it was an independent oil trader didn't work for anybody and he is giving them thousands of dollars to fund the movement ok so this gentleman is betraying his class. i don't know if you've ever not for the protesters or for you happen to be very lucky i think he counts and stuff and someone who you've also quite intelligent so who is a very good trader he said very well he's retired now and i think he emphasizes because there are a lot of people. even on wall street there are critical thinkers who think that at this point democracy has been robbed and it has been undermined by money so there are people who are in the one percent who agree warren buffett would be one of them as well he publicly agrees anyway i think behind the scenes he still likes to take advantage of the one percent. oh not only that but he likes to break the law and he

likes to sponsor people who break the law like wachovia bank part of wells fargo who broke the law graciously you need he's a insider trader and market manipulation or this has been well documented and he pays lip service to his secretary all the time we know his true love is charlie monger but you know also that he is no way shape or form going to do anything to stop the huge social injustice that ripping the country apart is like a suicide cult these speculators because ultimately at the end of the day they're destroying their own country they'll have no place to go and they'll probably all go the way of moammar gadhafi so is it some kind of cult that drives them a cultish thinking. and they say maybe there's not a physical call up but there is a methodology to traders i don't know if you saw i can probably all street has a few websites but one of them actually has a video that was sent widely it was

a trader in london who was basically saying bad traders really don't care if there is a solution to the problems that they don't care if the tech crisis in europe is solved i don't care if the us is swallowed by its own success because they just want to exploit opportunities that stem from that and he was quite brazen about saying it shocked the people interviewing him at the t.v. station in london and this video had millions and millions of heads because it was seen by the occupy wall street crowd as an admission by the traders themselves that there is no interest whatsoever in solving problems but in exploiting the disaster right a suicide bomb. walks into a cafe and tell of a or somewhere else in the world they don't care who they kill including themselves because they're psychotic same thing with but with lloyd blankfein jamie died and there are psychotic suicide bankers we saw that on nine eleven but what do you think about this obama certainly isn't going after banking crimes that every

republican candidate is promising so you go even easier on these welfare queens on wall street. your thoughts is there anything in the pipeline to stop massive welfare giveaways on wall street i think the purchasers have the right idea you and i were on this program not too long about earlier this year and i said the only thing at this point is people just running into the streets and disrupting and if you speak with some of the more movement building type protesters as opposed to what the protestors amongst themselves called the tourists they will talk about you know the art of disruption our strategic civil disobedience they are studying it they have training sessions every day down on wall street how to do this properly without having fingers pointed out them as being violent ok so they're opening up their game in terms of finance a warfare to fight back against the speculators and searching for economies of scale searching for leverage searching for ways to push back so far and nothing is

really worked out let me ask you about the invention of the modern derivatives contract because in your book the asylum which talks about the birth of the modern oil trading platforms derivatives and how that evolved were a huge part of the story so just to give viewers a bit of a background here can you just describe how the derivatives came into being in the oil futures market and how that changed the market substantially oh well in the oil market in the energy market in general it was it was right here in manhattan that traders first decided they're going to try to trade oil when reagan lifted restrictions allowing oil. well and and heating oil crude oil and gas that would be gasoline and then as well as natural gas all these things are now allowed to freely be traded not be regulated at fixed prices so when that happened it freed up the markets to trade in a way it never had been able to before it was like letting the dollar float after the gold standard was lifted and that introduced these derivatives in my book i

talk about the traders who first put these together and then of course the koch brothers further developed over the counter products as you mentioned and those derivatives were even more complex and exotic they were not standardized futures contracts which are also derivatives they were tailored but between two parties so they call it bilateral you know parties would be you and i might enter a private agreement and it's therefore unregulated more sophisticated players nobody's allowed in our business we're not trading on an exchange it's all over the counter which is off market poet will not go to others we know that they are involved in funding and creating some oil derivatives. and now they're involved in funding the tea party so this is an interesting story line there with the koch brothers they seem to be able to manipulate politics and market simultaneously this does anyone on their level in terms of manipulating both politics and markets. well you know i'll tell you something i met with the head of m n a for goldman sachs

told me he said if you really want to look at something you should look at the koch brothers because the things that they are doing are beyond description and when someone and i have to call them and assume that he might know what he's talking about the koch brothers they're very very secretive and recently they pulled out of coaching oklahoma where all the oil is kept in the united states they actually just got rid of all their assets or you know they at least don't have a name and there anymore i'm assuming they're leasing space so that they don't have to be associated with the game but i'm pretty sure they're still in there they're just don't want anyone to know about it. they like to do everything very privately so finding the tea party movement you know that this group americans for prosperity you know about is one of the main funding vehicles and they named at that because it sounds very innocent and of course we all agree with americans for prosperity that sounds very very good to all of us so it's very clever about it they're really

serious libertarians they really believe they are leading the way libertarians in that their definition of course means financial terrorism it's not true libertarianism yes ok now i read somewhere that for every barrel of oil that people actually use in business there are about sixty thousand barrels of oil traded in as represented by various to rivet of oil around the world and it's so that the enormous abstraction of that market and leverage and control by the people who feed into the derivatives market the people who lend money to the derivative terrorists like the j.p. morgans and the goldman sachs they have a market that is not only destroying people's access to energy but also destroying the global market as a whole but i want to move on to another big market that you cover and then the water derivatives so after the oil derivatives that we've got water derivatives

what are they where is the market who's the biggest player well who's the biggest player that's tough i think that but market itself is still maturing there are some very big hedge funds that have emerged i think the most are stocks respectable one and i think the most capitalized one is called from a global in san diego and they've been added since one thousand nine hundred nine they have about five hundred million i believe under management water still seen as a pretty tricky market because it's so heavily regulated it is the last big market in the united states that is not steve regulated so it is not something where you have a ton of players coming out all right so now the words the goal for those who are. bringing in the water derivatives trading market is to go the route of the oil market so for every gallon of water consume do keep life afloat on this planet they'll be sixty thousand gallons manipulated in the futures market making a few people rich who then will be able to afford to buy water to keep alive and everyone else will of course die but i guess again it gets back to that suicide

mentality of the speculator on wall street and that kind of cultish jim jones gay on a cool aid mentality that is destroying the american economy but making a few people very wealthy now lame a graph given do you have any final thoughts on the occupy wall street and the state of financial markets and the fraud that is now running the entire american economy how do you see this changing in any way or is it pretty well just the the doom's well i want to leave you with your thoughts and the first one is on the water most speculators don't believe that water should be speculated on because they understand the dangers inherent in what could happen as that market matures i don't think right now we're looking at a situation where water could be hoarded and where the prices could be jacked up the same way with oil but there is a fear that that could happen further along the way a lot of money doesn't cut it for i like it let me come in for a second i mean we've got the example of bolivia and bechtel who privatized

rainwater and people died because bechtel u.s. has gone aeration with affiliates on wall street decided that water they owned the rainwater so we know the mentality of the psychopath on wall street and the american businessman is to rape and pillage that we know so water is clearly an untapped market so what's to stop them here saying that they're going to their not going to do this because why dan i don't get that what's going to stop them there's no regulation there's no morality there's no ethics it's just pure wholesale destruction i absolutely don't insecurity and what i see what i meant in what i was saying with the traders and fellow. speculation in the water i don't think we've seen the full extent because it's not to be regulated what can be achieved in terms of the dangers inherent in trading water but they themselves fear results and that while there are very responsible traders some global by the way i consider them very ethical in the way they handle it but there are many others that are looking

to explain and that is a fear and that is why this industry i mean regulated and probably well for as long as that money is not sure is the wing or regulation out again but that could happen right well yeah as far as water becoming a dangerous market every heroin addict fears that hot shot that's going to kill him but they don't stop shooting heroin day that the speculators are not going to stop until somebody stops them for them all right well anyway mcgrath goodman thanks so much for being on the cars to report thanks for having me back all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guests leo mcgrath goodman she's the author of the asylum the renegades who hijacked the world's oil market you can tweet us at kaiser report or visit our facebook page at facebook dot com kaiser report if you want to send me an e-mail please do so at kaiser report at r t t v are you until

next time this is madness guys are saying bye you know all.

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