well three thirty pm here on cheers to you watching our t.v. headlines for you know more trouble has broken out in cairo where tear gas has been filed against thousands of egyptians occupying surreal square and i'm getting reports irrationally confirmation for the first time the security forces have been firing live ammo at the demonstrators of course the demonstrators are demanding an end to the country's military rule despite a fierce crackdown. russia lashes out on new u.s. sanctions against iran's financial and energy sectors calling them unacceptable and

not in line with international law washington is ramping up the pressure on china iran warning that increasingly aggressive measures are to follow. and offer six months on the international space station cosmonauts and to ashville safely returned to their russian spacecraft three other space explorers will stay on the i assess for another four months probably giving them a quite the view of the upcoming december new year flying. as are the headlines but for now what caused the fall of one of the biggest financial brokers in the world and just where did all of its clients' money go the sordid details right now with cancer. i am as cars are this is the kaiser report the m.f. global scandal we've been talking about it for

a couple of shows now it's becoming more of a festering sore on the collapsing global economy stacy herbert what's the latest i'm not surprised. well the latest is the entire system has been utterly destroyed by the m.f. global collapse presenting the first m.f. global casualty yes max has borne hard capital management and they ceased operations and in their matter to clients they say the reason for the decision to pull the plug was excruciating lee simple i could no longer tell my clients that their money's impositions were safe in the futures and options markets because they are not the entire system has been utterly destroyed by the m.f. global collapse he goes on to say what was the surprise was the reaction of the exchanges and regulators their reaction has been to take a bad situation and make it orders of magnitude worse specifically they froze customers out of their counts while the markets continued to trade refusing even

allow them to liquidate oh it's not unprecedented on the branch level as i've been explaining the individual branches of brokerages with the compliance officer and the trader within eyeball distance of each other there's a tremendous amount of fraud that goes on this is more of an institutionalized fraud where the regulatory agencies themselves or the c.m.e. are acting like a corrupt branch compliance officer for the same razor and they take huge amounts of bribes under the table lot of cash under the money where there's plenty of money bride cash paid off the c.m.a. folks and regulators i mean that's standard business operating procedure but the central banking. just a man the government believes that this is what's required to maintain liquidity but with the global economy collapsing. you have nothing left but fraud this is a very typical of the end of a ponzi scheme because just as people pull their money out of the system stacy

that's the new money that you need to keep the ponzi scheme going so people are going to pull out of the ponzi scheme then we really do have a big problem this could be much bigger than lehman brothers because it really would attack the kernel of the systemic system that's now at risk due to just too much fraud and the c.m.a. group as we've been reporting for quite some time one of the most fraudulent regulators in the world that's the way the system works and it's benefited people and sold now it's killing people ok banks well the reason why he says it's very unfathomable is that the c.m.e. group would typically provide the liquidity in this case when a group member like m.f. global group goes bankrupt normally c.m.e. group would provide the liquidity and make sure that the client's funds were still flowing and they didn't in this case of the speculation is that if they backed and global then others were behind it and that they couldn't possibly afford that so

we've covered the story that barber capital management out of the game because of m.f. global now talk about the cook game max the koch brothers and m.f. global friends to the end daniel dicker an oil trader and c n b c contributor row on the huffington post and on october third koch brothers pulled out billions from an off global they had eight accounts with m.f. global and had them for decades just like tell slanty had his account for decades and he lost all of his money the koch brothers managed october third they were warned that this was coming down they pulled their billions they save their billions and the article from daniel dicker on huffington post says quote for those still battling the excesses of two thousand and eight and those. occupying wall street this is then another proof of the inside fixed operation of the financial markets when banks though wrong betting big with other people's money losing they can be sure of a bailout take guarantees their bonuses and businesses and when firms are tell

spinning to disaster the richest and most financially influential partners are sure to get a phone call a heads up to save their assets to leave regular people with a mass yes insider trading you know once again drawing on my experience as a wall street broker myself many times it's called the first call if you're on a first call basis with the firm you get the first call when you need to get the first car and that applies to research recommendations it applies to this type of scandal that's about to break that cost a lot of money a lot of broad a lot of graft you know but it's worth it because you avoid these types of losses again it's the way the system works the way the entire industries built there is the clients who are on the privilege with you know people are the bandits not in god versus one percent within the one percent there's the ninety nine one percent they have to be really at the one percent of the one percent like the koch brothers to get the first call if you're not in that group you shouldn't be anywhere near

any of these train exchanges because you're going to lose everything well and the other interesting thing max is that of course the koch brothers financed the tea party which is considered the protest group of the right now big of the occupy wall street crowd that is being painted as the the protest group to the left and yet interestingly we always talk about this fake right left paradigm this red state blue state thing that happens in america but those top point one percent the one percent of the one percent they're on the same team they work together john chorus line helps. the kook brothers theoretically they're on opposite sides right they claim but at the end of the day no matter what side you're a partisan member of you get shellacked if you're the bottom ninety nine point nine percent oh absolutely and you know it's simply not going to stop so all the presidents. realize that their present son in america is

a nation of three hundred twenty nine million peasants and they need a proper present revolt but there they don't want to think of themselves as presidents they're delaying the end they're discouraging the inevitable well max we are in london and it is the home of the peasant revolts the failed as a revolt i say usually fails out is three the big one in thirteen eighty one that fails the one successful one of course was the one nine hundred ninety the poll tax riots which trace the trail of the thirteen eighty one peasant revolt and again right behind you the battle of trafalgar now let's move to the u.k. the stories the against the peasants virgin money buys northern rock for seven hundred forty seven million pounds yes virgin money has agreed to buy the good part of northern rock from the treasury for around half of what the taxpayer injected into the bank when it split last year right well it puts a lie to this notion that the taxpayers are going to be paid back by these bailouts

the taxpayers are going to have massive losses and somebody like richard branson gets a massive gift because he can chew gum and walk at the same time that's richard branson's gift to the business world he doesn't trip over shoelaces he's not technically you know mentally deficient like so much of the banking system in the u.k. so they throw him multibillion dollar gift and say oh we love your blown here a big shiny teeth can you make our branch look like they're not corrupt would give you one for a billion dollar gift richard branson and so he's just sitting there like yeah yeah i'll take the gift you know sure but you don't need to have a blond haired shiny tooth guy come in with a billion dollar pound guest you can actually just have a regular competitive bank set up and twenty minutes on line it doesn't take a genius to figure it out but the government here is you know cameron is just so full of himself and he can't see. his own disingenuousness he's just like

completely an origami has folded up in the contortions of his own lies and he's a total betrayal to his class these people these two shoes he supposed to be representing and cameron just walks in and takes all the free money off the floor it's a disgrace well the daily mail about this story reports after its state takeover northern rock was split into two parts a solvent good bank and a bad bank which took on the company's risk your liabilities tolling around twenty one billion pounds which taxpayers may never get back so i like that they call it a risk your life abilities i.e. those assets that are worth nothing there were zero on the dollar on the pound in this case and that's twenty one billion pounds worth that the taxpayers stuck with which of branson gets the good assets he gets it for half price of what the taxpayer put in it's worth a whole lot more than half a billion pounds right these so-called bad bank concept they have on their books of a certain value which they don't use mark to market accounting they say that the

assets on a bet banks' balance sheets are worth one hundred cents on the dollar we know that they're worth zero cents of the dollar you see this in countries all over the world particularly famously nama in ireland they have this bad bank work the assets are supposed to be worth something but they're actually worth nothing same thing in the u.k. same thing with northern rock they've got a bad bank the assets are worth nothing simply right off the bat that's the bankers made it they can pay the back debts that they may then they need to be punished in some way take them off get them out of the banking business for one thing where you continue with the banking business and they've already proven that they are nothing but larcenous to leeching thieves oh because they support cameron and cameron as leeches covering his body sucking his soul out every second of every day he's up there in the house of commons like a zombie treacherous little more thout piglet saying nonsense well max i let's show you this headline here. millions to lose out as the benefits are curbed so

there's going to be a billion pounds in benefits cut and because that benefits are no longer going to be linked to inflation so this is what you call financial repression some might call it financial pression and like the peasants revolt of past the dividing the peasants and shit they're playing them off against each other because pensioners will continue to have inflation linked rises in their benefits but disabled people unemployed they'll no longer have benefits linked to inflation so and. the cuts are quite significant how much they're going to cut from their benefits well they're turning disabled people into a permanent underclass in britain you know back to the victorian age where they put mentally deficient or disabled people in a situations through a they came they rotted ok we're going to reopen those institutions put the disabled people back on their lot of the debt because they don't have any money form because cameron's

a pig well max they do note that you know the problem is that normally benefits are linked to what inflation is in september and that was five point two five percent and the reason why we have five point two five percent inflation max well because of all the money printing to bail out the banks quantitative easing of money printing bails out banks but the banks still rely on the money but they do invest in speculative plays like commodities forcing energy and food to go higher which is causing impoverishment and this is the intent if you go to the bank of england website they actually state this especially the intent of quantitative easing it is in order to basically take your savings and transfer it to the bankers so here you have it disabled people paying for the crimes of the bankers and yet on the other hand you get half a billion the same cost savings that they have with this austerity measure. they basically just transferred to richard branson in the same week oh it's an excellent

plan stacy herbert if you work through the mouth and you put a few of these deals a line em up and you blow away the smoke and the mirrors you see that billions of austerity taken out of the pockets of folks who rightfully are owed this money because if interest rates reflected something other than financial oppression and they put it into the pocket of richard branson because he's got like air a shiny tape i suggest everyone in britain buy their lawn and get big shiny teeth and you too can be a billionaire all right stacy eric thanks so much for being on the kaiser report photo you're a hero you're perfect at that thank you max stay tuned much more coming your way so stay right there.

with. her in more mouths to feed but where will the food come from and can science provide the answers to the future of food under the microscope. we've got the future. i am asked azure welcome back to the kaiser report let's turn to richard thomas he's an independent radio journalist richard thomas welcome to the kaiser report hello max pleasure to talk to you all right richard you've been reporting from occupy. london stock exchange sense of began tell us how the occupation began work stands today in terms of the concerns and a list of demands or goals ok so it said in october fifteenth there was an announcement to take the london stock exchange and presidents to square this like

the floaty about a week before hand when you see another activist staged an occupation of westminster bridge in an attempt to warp government attempts to for the province i was named national health service i guess all right so let me just cut in there for a second because of course the occupy movement and they came down to merica from canada from the adbusters organization that started on wall street and it fanned out all over the world well i wouldn't necessarily say that i mean i think the thing that identifies itself as your camp or the movement is obviously north and north american perhaps in origin. but of course i mean i think there's been a further disney i mean it goes back to the fifteen movements in madrid and barcelona which was into and inspired of course by events into him square in egypt and so warm and i think it's the message influence of the arab spring with really the way that's that's sort of led into the into europe. and then going across the

atlantic then your key point movement happening in wall street and zuccotti park and they are paying him back here. i think as far as i'm aware i think that cynics there's also other hands involved here as well i think you can cook of course. if nothing else an advisory role to play good of course and also makes the patient. and well let me ask you this visiting with some of the demonstrators and protesters here occupy u.k. it seems very much of going to a gunfight with a knife the protesters themselves don't understand really the nature of the enemy that they're attacking there's a headline out today talking about how the entire crisis in the eurozone is just playing into goldman sachs' hands because goldman sachs is now putting their apparatchiks in charge of italy in charge of greece they're active in ireland will be active in spain so they're just strengthening their hand if anything they're using this chaos to just strength of their hand out right now going back

a few decades couple of decades i remember in apartheid south africa it wasn't all there was a full on global boycott of barclays bank that in fact the world stood up and there was some progress made did the good these various global movements need to consolidate and create some economies of scale and really go on a global basis because right now they're there they're doing it piecemeal and they're losing you. i didn't think that's true i mean i think it's happening on a global scale i also think it's wrong to do more generous it's the those involved in your completion as far as a i've experienced it. go in there in a journalistic capacity of course you know in the art of interest and socializing is a very very very few of them and some time it grew church people who were liberal reformists they want capitalism to be interested in the they want to completely smash the state you know i mean it's really very rude and there are

a lot of people who are funding. the cells and funding each other in the underdeveloped in the critique that the innately feel but i think the naivety of that you might find present is something that's been kind of like remarked upon and though i think naivety is a really good thing i think it means that you come into this into the situation with a fresh pair of eyes you don't know how to behave and. i also think. maybe it might be a rule used to strike too much of a comparison with what it's like to sort of leave under apartheid i do agree that there is definitely a disparity. between those with with wealth from those without but i think it's a slightly different situation for what we do see a form of financial apartheid if you're in the top one percent for example your cost of funds is zero or less than zero if you're not of the top one percent your

cost of funds would be thirty five percent upwards of three hundred fifty percent but these payday loans so it's a bit of a financial apartheid or financial pressure but i want to go back to one nine hundred ninety two the poll tax riots here in the u.k. because this is when the u.k. population really stood up rose up and pushed back against the thatcher era regulations energy and initiatives at that time and it always has. back to do you think in the near term something volatile is that richard tom yes we've already been there in the snow for good you know we the magical moon when the fourth wall is broken at millbank the journalist then hancox for food is the shattering of the loss of confidence readers money let's not forget the momentous events that took place in august this year i believe it will boost would you lower the london riots . we're already there you know you wait until there is he is really

kicking hard when they benefit steak and when they basically can't afford to eat people who can they really kick off people are capable of great volatility and they have no faith institutions of power i notice when i mention those two words poll tax suddenly the energy level just skyrocket same people are very revenue no other styles are for this moment in recent years three one of the people right now let me ask you this question of the states herbert earlier in the show and she mentioned and she did a little analysis of how the cutbacks in title mince in the u.k. if you added them all up and then the gift that the u.k. government is giving richard branson to take over northern rock you can see that the government is basically taking money out of the people that were riding due to their mistreatment by the government and they're putting that money directly into the pocket of richard branson how can this government get away with just transferring wealth directly from the lowest. on the social ladder directly into

the pockets to the highest how do you know it's astonishing and it's a lose lose situation with understanding i mean the austerity budget is removing removing benefits you know social services there's no growth there's no job creation is like a million people young people unemployed at the moment there is no way to go and they've got nothing to lose if the people will kick off but they're fed up with the crap thrown. a reality that's foisted upon them anyway and they're fed up with the crap drab weak precarious future that's forced upon them as well you know what you know you get you get you really going to be excited about maybe working in a retail store on a six month contract for the rest you know what i mean if people were before cameron was even there like you know i think people start to question what reality is. the kind of reality they want and now with this extra kind of. brutal camera cars they look at have gone public service and it's people are going to get

more moved and green i would hope anyway and you know it's this civic responsibility it's one civic responsibility yeah well there's an underlying economic case to be made public services. by the government participating on a wholesale level to provide services to a majority of the population you end up increasing your g.d.p. because there's some economies of scale there and public services are not it's not socialism it's part of a dynamic economy attempting to create a meritocracy in a pro-competition environment by cutting off your future entrepreneurs' by simply. you know killing them in the in the cradle essentially the camera is doing is committing baby aside on the next generation of entrepreneurs in favor of the richard branson has got a budget cameron said and says give me half a billion pounds and as a gift or we're going to take out another portion of the european economy but without the london being the center of the global money laundering rackets and

a global banking fraudsters of course the u.k. economy would have no growth at all. do you think the if the u.k. government took it on the camera is not going to chase down you know terrorists like for example the financial terrorists that destroyed iceland are currently have safe harbor in london while dealing songes being deported of course cameron lets these terrorist safe harbor in london should cameron what should he go after the terrorists or is terrorism just too much part of the economy here in the u.k. can't get rid of it without destroying everything i think you have to really you could just push you to terrorists in some sort of symbolic way you mean you know. it's not just those individuals is it's the system which perpetuate the corruption and that it's the system has to be dismantled and clues the position the system within which people like david cameron are not acting or anything you know the

thing about the thing about st paul's the thing about zuccotti park the thing about the thing about portland the thing about so you think about madrid the thing about barcelona and. hundreds and hundreds and hundreds of other occupations also it's worth mentioning there's a lot of walking other walking patients occurring in public spaces around the u.k. is that it whether it's about the one percent of the ninety nine percent it is obviously caught to to why we're talking today but i think the other fundamental sort of real interesting aspect of it is it's what it's about is people want their not dos are pros they want a much more kinetic the nomic persistent. active engagement with politics but not necessarily the form of politics that we. are currently available to us i mean if you think about it it's just the parliamentary parliamentary model we have feels like such an anachronism in a world where you crowd source your entertainment i mean the idea that you as this

case now in question cameron announce their five year governments to sit and wait to choose between a word to a free a for a five a six it sounds like paper it's not. versions of the same boreen drab centrist kind of capitalist or ideological factions it's not satisfying to people go at it let me coming up for a second we've got about a minute left and i want to watch a comment on what you see happening in the next couple of years on the culture side because of course during the fatter era of the politic years of particular nikkei was explosive and world beating davis of course the sex pistols and the clash and other fantastic acts of that era are we heading into a cultural rather silence as a result of the terrorist financial terrorism in the u.k. what's going to happen in terms of visual arts and think you'll see more collective or practice because it makes sense to click through work on

a project to quit and be occupying a space like an emerging with the studios and so on in terms of music i think this is all off a lot of interesting very very engaged political with lower case p. what you also want is a radical rethinking. of. a radical reengagement with respect to explaining what what purpose does music sort of in terms of questioning political or economic structures the same thing probably needs to go on with the music as was somehow right this concentration of wealth over the past twenty or thirty years or squeezed out artists. and collapsed and else going to require artists ultimately rebbe. society and save the backsides of these financial terrorists as it always has been throughout history the artists ultimately are always the ones to carry the ball for civilization going forward ok richard thomas thanks so much for being on the kaiser report thanks very much all right and that's going to do it for this edition of the kaiser report with me max keiser and stacy

herbert i want to thank my guest richard thomas they're going to send me an e-mail you so at kaiser report it r t t v dot are you follow me on twitter max kaiser you can follow stacey her over to you on twitter but follow me on twitter so next time next guys are saying well. mom.