by morning mr.

today violence is once again flared up. these are the images the world seeing from the streets and chatted. for a shelter all day. and i started this is the kaiser report the war of savers versus speculators. thanks to her and you know continues to win max keiser the speculator that's right because they get all the free money. and they share our hearts are financially. hard showrooms 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 why bail out and the bankers were happy their shares soared yes the speculators their ransom requirements were met you know this was all stuff of two thousand and eight remember when hank paulson put a gun to congress the 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 i will get that deal in other words let me twice on the safe harbor cover throw up into a pocket of vomit if i am 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 to 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 sure 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 burst. to 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 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 head 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

attack stock 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 like a one hundred sixty billion dollars company it's within everyone's ability to do so to 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 a fraud and it's all puffery in an imaginary wealth oh well this is one of the wall

street going to school in the pentagon you know the pentagon has laws worried about existential threat we need another five trillion dollars for some advanced weaponry and simply go all through they 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 either they raise the red alert as they do in washington to 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 political 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 basement is the goal and now the eurozone has gotten away from all of the bundesbank concerns about having a sound unit of currency yeah no central bank cares at all about that max and in a few currency world they pretend that they're where the responsible ones in the room where the boom just bank and really were keeping everybody else honest germans now know that merkel has fallen what the financial terrorists if they do that they realize that they're going to lose their sovereignty to the i.m.f. to determine just like 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 there we don't care and those are sovereignty to the german people now realize that they're about to lose their sovereignty to the i met how do they feel about that he wanted to give don't give up the ghost german people tell me one population that hasn't iceland stood up to the bank was nowhere speaking to. we're going to go and start her next week and she says in fact it's the opposite so to not even electing a lesbian to run your country saved you like 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 homeowners smash show room in protest over 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 we are suffering now is too great for us to afford so how is that not the same as hank paulson they looked at hank paulson they said that guy is a genius he goes i need a refund i require a response or all these bogus get rid of 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 money back yeah but again on that one small thing yes there they were perhaps one but john breaux rocks on here's a video another remakes sent to us you might like it. yeah

those remarks are nice i like oh give them. 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 rake off in manhattan and his 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 funding with the f.c.c.

but i remember we had the conversation were saying that how do they get away with this idea where they don't want to admit fraud but just pay a fine but after two meeting fraud so much rake off as to how can a securities fraud of this nature and 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 save us 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 front running based on his insider knowledge the same thing is here's the shareholders just quietly saying ok well 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 finding 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 stock 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 now 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 face twenty years in prison for this one billion dollar fraud yeah that's their remaining a crime relatively speaking doesn't even exist when you compare to what citigroup doing well how how can teen 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 to preserve 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 a 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 them to new york banks in america that was a big headline and built their biggest tabloid in germany so germany's having their currency deflated of late and 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 or boy hey let's throw the little match into a tinder box called german social unrest and see what happens that should be fine

all right stay here or thanks so much for being on the kaiser report thank you don't go away much more coming your way so stay right there. a very warm welcome to you this is your news today protesters on the. street they are. intensely to try to get. this of the human experiment. to see this right here is what it. was looking trying to look and it's all changed things must find a template. to me to you know confidence in markets and. wants to be seems way to

balance his recession look to keep the missions close to sing a song like close. to fail so we played the game feel like it's a us crash. team is this. week the experience programs increase the total economy. if you. couldn't take three. three. three. three. three. three. for your media drug free media john darche john tom.

you're welcome back to the kaiser report time now to go to new york and speak with lay on the graph goodman former journalist at the wall street journal and author of the asylum renegade the renegade to hijack the world's oil market really a welcome back to the kaiser report thanks for having me back all right bloomberg business week cover on occupy wall street asks. who's gone the mask you know you've been. the occupy wall street leaders tells what's going on down there is there someone behind the mask is this is a legitimate is a genuine look better you know impressions what i find pretty interesting about this question is a lot of it has to do with who's holding the purse strings i mean of course who's talking to those holding the purse strings and it seems right now there are some quiet private funders and there are the protesters 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 i mean founder robert helper who's in the asylum book i wrote he was one of the oil

shooters who had been very successful as an independent oil trader didn't work for anybody and he is giving them thousands of dollars to fund a movement ok so this gentleman is betraying his class. i don't know if you get five or four by protesters therefore if you happen to be very lucky i think he counts and self as someone who is also quite intelligent so he was a very good trainer he did very well he's retired now and i think he empathizes with because there are a lot of people even. even on wall street there are critical thinkers who think that at this point democracy has been robbed and 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. well 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 i mean he's a insider trader and market manipulator and this has been well documented and he pays lip service to his secretary all the time we know it's 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's ripping the country apart this is like a suicide cult these speculators because ultimately at the end of the day they're destroying their own country going to 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 i say maybe there's not a physical color but there is a methodology to the thought of. i don't know if you thought i could wall street has a few web sites but one of them actually has a video that was sent rivaling it was a trader in london who was basically saying that traders really don't care if

there's a solution to the problems that they don't care if the crisis in europe is solved i don't care if the u.s. is swallowed by its own success because they just want to exploit opportunities that stem from that and he was quite brave going about saying it shocked the people interviewing him at the t.v. station in london and in this video and 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 lloyd blankfein jamie diamond there are psychotic suicide bankers who saw that a 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 purchaser's how the right idea you and i were on this program not too long ago or 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 protestors amongst themselves called the tourists they will talk about you know the art of disruption in 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 thinkers point out them as being violent ok so they're upping up their game in terms of financial warfare to fight back against the speculators and searching for economies of scale searching for leverage searching for ways to push back so far nothing has 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 that market substantially oh well in the oil market and the energy market in general it was it was right here in manhattan traders first decided they're going to try to trade oil when reagan lifted restrictions allowing why. well and and heating oil crude oil and gas and 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 their 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 bets between two parties they called bilateral you know parties would be you and i might enter private agreement and therefore unregulated were 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 to follow up on a coat brothers we know that they are involved in funding and creating some oil derivatives. and now they're involved in funding the tea party so it's an interesting story line there with the koch brothers they seem to be able to manipulate politics and market simultaneously there's only one on 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 says i 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 in 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 this group americans for prosperity you know about is one of them in finding vehicles and they named it 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 but they're really serious libertarians they really believe that they are leading the way libertarian

this 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 derivatives of oil around the world it 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 the market itself is still the charring there are some very big hedge funds that have a marched i think most or smack 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 consumed to 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 cultist jim jones guyana kool-aid mentality that is destroying the american economy but making a few people very wealthy now limit graft goodman 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 i mean do you see this changing in any way or is it pretty well just doomed but i want to leave you with your thoughts and the first one is on the water most speculators don't believe that water simply 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's a fear that that could happen further along the way a lot of money discarded for a second 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 the u.s.

conglomeration 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 if you're saying that they're going to their not going to do this because why again 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 security awareness what it meant in what i was saying with traitors and selves. here speculation in water i don't think we've seen the full extent because it's not the regulated it can be achieved in terms of the dangers inherent in training 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 and means regulated and probably will for as

long as 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 do they the speculators are not going to stop somebody stops them for them all right well anyway mcgrath goodman thanks so much for being on the casa report thanks for having me take care act all right and 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 liam a graph goodman she's the author of the asylum the renegades who hijacked the world 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 max guys are saying bye you know all. the way.

that's.