you know i sometimes see a story and a seems so for life you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't come on time hard welcome to the big picture. from. morning news today violence is once again flared up in the film these are the images the world has been seeing from the streets of

canada. giant corporations rule the day. from. and i started this is the kaiser report the war of savers versus speculators. thanks to her parents and you know they'll continue so when max kaiser the speculator that's right because they get all the free money. and they care hark our financial system. 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 a blade 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 established in 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 answer to greed and the worse you are paying back your loans the cheaper the interest rate gets and the more motor you get i would get that deal let me twice on the safe harbor and over throw up into a bucket of vomit the fun 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 soar this is a commentary from david callaway on dow jones market watch and he says and one of the more bizarre twists of fate that only markets can bestow the occupy movements burst. 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 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 market one hundred sixty billion dollars company it's within everyone's ability to do so just start drinking coke but i have 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 this 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 hoping to god that they can save their job and that's the only thing they've got cohen meanwhile the top one percent have trillions in debt 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 crowd is 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 simpering on wall street 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 if they raise the red alert as they do in washington to get their way or they crash the market like they do in last week to get their way well that's in the next headline europe's rescue euphoria threatened as portugal enters grecian vortex yes you gave into 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 bullett 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 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 next and in a few currency world they pretend they're where the responsible ones in the room where the buddhist bank can really work keeping everybody else honest but the germans now know that merkel has fallen what the financial terrorists say do they realize if 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 there we don't care if they lose

their sovereignty but the german people now realize that they're about to lose or sovereignty to the i met a lot of 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 and so you know there's no we're speaking to her. we're going to go 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 homeowners smash show room in protest over falling prices a group of about four hundred homeowners a shanghai demonstrated publicly in damage to show room operated by their property developer after the company said it cut prices apparently they cut the 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 money yeah but again on that one small thing yes there they were perhaps one but jibe oh rocks on here's a video another remakes sent to us you might like it if. you .

like yeah those remarks are nice i like oh even. well so let's look at the side of the savers now let's see if the few headlines coming from the savers judge challenges two hundred eighty five million dollars citigroup settlement this is judge jed great coffee 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 fine with s.c.c. i remember we had the conversation were saying how do they get away with this idea

where they don't want to admit fraud they just pay a fine for committing fraud so don't recall if 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 save us versus speculators the savers take it they are quiet they're obedient and here we have the savers behind the wave of citigroup 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 is to shareholders just quietly saying ok will 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 one was able to 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 i 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 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 you know 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 for 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 roche of corps of america which is a private prison operator that needs to preserve and turn a profit so they like it when these people go to joe and finally max the biggest insurrectionist against banker occupation elke 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 them to the new york banks yet in america that was a big headline and build their biggest tabloid in germany so germany's having their currency deflated a way to inflate it 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 oh boy ok let's throw a little match into a tinder box called german social unrest and see what happens that should be fine all right stay here with 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 for you this is your news today protesters on the. streets they have. been canceled due to the good book. says a big huge experiments get. this right to go to trial. and it's all came things assigned. to me to you know confidence in markets and. trade imbalances recession look keep the nations close

to collapsing of some look close. to fail switchblade think and feel like there's a u.s. crash when it. seems. to be are struggling just programs increase the total economy.

my spies are welcome back to the kaiser report time now to go to new york and speak with william a graph goodman former journalist at the wall street journal and author of the asylum renegade the renegade to hijack the world oil market leader welcome back to the kaiser report thanks for having me all right bloomberg business week over 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 illegitimate is a genuine look at what are your 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 there are other protesters and none of them are willing to say there was 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. he was one of the oil traders 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 protestors or for you happen to be very lucky i think he counts and stuff and someone who also quite intelligent so he was a very good trader he did very well he's retired now and i think that's because there are a lot of people even. even on wall street there are critical thinkers who think 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 privatize but 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 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 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 omar gadhafi so is it some kind of cult that drives them a cultish thinking. and i say maybe there's not a physical cult but there is a method ology to the trader i don't know if you can pry wall 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 traders really don't care if there's

a solution to the problem that they don't care if the tech crisis in europe is solved i don't care if us is swallowed by fast because they just want to explode opportunities that stem from that and he was quite brazen about saying it 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's 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 with lloyd blankfein jamie diamond 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 to 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 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 growth 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 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 worth it 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 called bilateral you know parties would be you and i might enter a private agreement and it's therefore unregulated we're 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 call local no kill 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 this is an interesting story line there with the koch brothers they seem to be able to manipulate call it six 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 an 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 a cold and so 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 course in oklahoma where olive oils 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 king but i'm pretty sure they're still in there they 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 as well i mean finding vehicles they named at that because it sounds very honest and of course we all agree with americans for prosperity that sounds very very good to all of us so they're 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 is 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 the rivet is of oil around the world it so 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 that are the water derivatives so after the oil derivatives that we've got water the rivet of what are they where is the market who's the biggest player well who's the biggest

player that's tough. to market itself is still going to sharing there are some very big hedge funds that have emerged i think the most respected respectable one and i think the most capitalized one is called from a club in san diego and they've been added since one thousand nine hundred ninety and 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 regulated so it's 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 cultish jim jones guyana kool-aid mentality that is destroying the american economy but making a few people very wealthy now limit graph 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 how do you see this changing in any way or is it pretty well just the 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 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 out for a day and for that price it could be jacked up the same way with oil but there's a fear if i could happen further along the way a lot of money distorted and let me cut 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.

glamorization 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 start not going to do this because why then i don't get that what's going to stop them there's no regulation there's no morality there's no weapon ics it's just pure wholesale destruction i absolutely don't disagree and what i was what i meant in what i was saying with the curators themselves. speculation in the water i don't think we've seen a fall because it's not deregulated what can be achieved in terms of and haron in trading water but they themselves fear results and that while there are very responsible traders by the way i consider them very i think on 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 means regulated and probably well for as long

as that money is not chilling are our 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 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 kaiser report thanks for having me take care not 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 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.