grown to be the neutral macao of a nation marco resort hotel resort of the same. resort michael beverly closer to home a riviera beach only central hotel. this is artsy la from moscow with me rory sushi and your headlines now thousands of angry refuse to leave square as calls continue for the end of the military rule. says the live ammunition has been fired at protesters meanwhile the former head of the u.n. international atomic watchdog mohamed el baradei has agreed to form the new government . moscow gets out of the u.s. for slapping more sanctions on iran over its nuclear ambitions saying it contradicts international law and will hurt prospects for future talks the u.k.

and kind of i have also announced they're cutting all ties with tehran's banks. and three crew members accomplish out of this world mission to plant their feet firmly on the ground after six months in other russian american and japanese space travelers landed on the steps of kazakstan in a russian soyuz capsule. my colleague of billboard is here in half an hour's time 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 and money go. right now because a report. i am asked azure this is the kaiser report the m.f. global scandal and 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

imax kaiser 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've ceased operations and in their letter to clients they say the reason for the decision to pull the plug was excruciating only simple i could no longer tell my clients that their money some positions were safe in the futures and options markets because they are not the entire system as 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 accounts while the markets continued to trade refusing even allow them to liquidate well it's not unprecedented branch level as i've been

explaining the individual branches of brokerages with the compliance officer and the trader within i balled 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 are the c.m.e. are acting like a corrupt branch compliance officer for the same reason they take huge amounts of bribes under the table lot of cash out of 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 bank. and 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 but 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 the 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 to see any group would typically provide the liquidity in this case when a group member like m.f. global group goes bankrupt normally the c.m.e. group will provide the liquidity and make sure that the clients the funds were still flowing and they didn't in this case in the speculation is that if they backed and global then others were behind it and that they couldn't possibly afford that so it covered the story department capital management out of the game because of m.f. global now talk about the cook game max the koch brothers and and global friends

today and 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 dell 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 zero. occupying wall street this has been 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 that 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 and leave regular people with the mass yes insider trading you know once again drawing on my experience as a wall street broker myself many times call getting 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 call 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 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 perfect with you know people to venice ninety nine versus one percent within the one percent there's the ninety nine and one percent you 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 and the other interesting thing max is that of course the koch brothers finance the

tea party which is considered the protest group of the right now they have the occupy wall street crowd that is being painted as the the protest group of 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 one point one percent the one percent of the one percent there on the same team they work together john chorus line helps. the cooke 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 of your 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 presence i mean america is a nation of three hundred twenty nine million presidents and they need a proper president revolt but there they don't want to think of themselves as

presidents of the delaying the end they're deferring the inevitable well max we are in london and it is the home of the present revolt the failed as a revolt i say usually pale throughout history the big one in thirteen eighty one that failed the one successful one of course was in one thousand nine hundred. thirteen eighty one has a revolt ending in right behind you the battle of trafalgar now let's move to the u.k. the stories 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 to 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 blonde hair big shiny teeth can you make our brands look like they're not corrupt would give you one for a billion dollar gift richard branson is 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 a pound guest you can actually do some regular coke competitive bank set up and twenty minutes on line it doesn't take a genius to figure it out but the government errors you know cameron is just so full of himself and he can't see. his own disingenuousness is just like completely an origami has folded up in the contortions of his own lies of his and he's a total betrayal to his class these people these two tutus you supposed to be

representing and cameron just walks in and takes all the free money off of florence and the sprays 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 riskier liabilities tolling around twenty one billion pounds which taxpayers may never get back so i like that they call it the risk your liabilities 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 the books of a certain value which they don't use mark to market accounting they say that the assets on a bad banks' balance sheets are worth one hundred cents on the dollar we know that there were zero cents of the dollar you see this in countries all over the world

particularly painlessly nama in ireland and the bad bank were 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 write off the bad debts the bankers made if they can pay back that's that they may then they need to be pushed in some way take them off get out of the banking business for one thing well to continue with the banking business and the already proven that they are nothing but larsen istic 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 morphed out piglet saying nonsense well max finally let's show you this headline here. millions to lose out as benefits are curbed so there's going to be a billion pounds and 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 question and like the peasants revolt of past they're dividing the peasants and to 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 bet how much they're going to cut from their benefits right while 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 into situations through where they came they rotted ok we're going to reopen those institutions put the disabled people back on their little rock to go because they have any money form because cameron's a pig well well max they do know 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 zero because of all the money printing to bail out the banks quantitative easing is money printing bails out banks but the banks still agree lend 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 essentially 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 in the mirrors you see that billions of

austerity taken out of the pockets of folks to 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 blond hair and shiny teeth i suggest everyone in britain buy their hair blond and get big shiny teeth and you too can be a billionaire all right stay here or thanks so much for being on the kaiser report don't tell your hair though you're perfect at that thank you max stay tuned much more coming your way so stay right there.

are in the world 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. you. know what i am asked as are welcome back to the kaiser report let's turn to richard thomas he's an independent radio journalist richard thomas welcome to the cause to report hello max pleasure to talk to you all right richard you've been reporting from occupy l.a. the london stock exchange censored 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's not an october fifteenth but it was an announcement to take the london stock exchange and come to school with this idea floated about a week before hand when u.k.

ancoats another activist staged the patient of westminster bridge in an attempt to walk. fully privatized the national health service seconds all right so let me just get in there for a second because of course the occupied movement it came down to merica from canada from the adbusters organisation that started on wall street and then it fanned out all over the world well i wouldn't necessarily say that i mean i think the thing that i think the flows itself was the. movement is obviously north north american perhaps in origin. but of course i mean i think because but for the disney i mean it goes back to the fifteen movements in madrid and barcelona which was into an inspired of course by it and so he did square in egypt and so on and i think the message influence of the arab spring greedy and the way that's that's sort of played into the into europe. then going across the atlantic then your tea party movement and even more street and zuccotti park and they are taking it back here. i

think as far as i'm aware i think that there's also the hands involved here is world i think you can cook of course. if nothing else an advisory role to play a game and of course they will say experts at the completion of. well let me ask you this i'm 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 strengthen their hand out right now going back a few decades couple of decades our member 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 were some progress made to the to 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 it. i don't think that's true tool i mean i think it is happening on a global scale i also think it's wrong to much annoyance and to. those involved in your completion as far as a i've experienced it either go in there in a journalistic capacity you go in there out of interest and socialize it is a very very very few of the innocent pun he drew church people who were leaping reformists he won't capitalism to be just in the they want to completely smash the study you know it's really very proved and they will all people who are funding. the cells and fund each other in the underdeveloped in the critique that the

innately feel but i think the naivety of. that you might find present to something that's been kind of like remarked upon and think naivety is a really good thing i think it means that you come into this into a situation with a fresh pair of eyes you don't know how to behave and you learning. i also think the maybe 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 from 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 out rose up and pushed back against the thatcher era regulations and right and initiatives of that time and it always has. think back do you think in the near term to something volatile is that richard top yes we've already been the will for good you know we the good the magical moment when the fourth wall was broken at millbank the journalist then hancox for food through the shattering of loss of confidence readers of money but let's not forget the momentous events that took place in august this year i believe it was august which you were there with the london riots. we were already there you know. you wait there it's the measures really kicking hard when people don't pay benefits taken when they basically can't afford to eat people are going to really kick off people

are capable of great volatility and they have no faith institutions of power and i noticed when i mentioned those two words poll tax suddenly the energy levels are skyrockets and people are very revenue no stylistic for this moment and ration per unit three whether people are right now let me ask you the question i was talking to stacy herbert earlier in the show and she mentioned and she did it will analyse 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 did this government get away with just transferring wealth directly from the lowest. on the social ladder directly into the pockets of the highest how do you know it's astonishing and it's a lose lose situation or to understand it 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 are employed at the moment and there is no way they go and they've got nothing to lose if the people will kick off with the fed up with the crap vote. but reality that's foisted upon them anyway and they're fed up with the crap we're dreher week precarious future that's forced upon them as well you know a lot you know you get you get you really going to be excited about maybe working in a retail store on a six month best contract for the rest and you know what i mean people before cameron was even elected you know i think people start to question what reality is . the kind of reality very want and now with this extra kind of absolutely brutal cam i can see like attack on public service and it's people are going to get more movie were angry i would hope anyway and you know this this if it responsibility is one civic responsibility yeah well there is an underlying economic case to be made

public services. by the government participating on the 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 what cameron is doing is committing baby aside on the next generation of entrepreneurs in favor of the richard branson has got a gun to cameron said and says give me half a billion pounds of it 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 of the 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 terrorist that destroyed iceland are currently have safe harbor in london while dealing songes being deported of course cameron lets these terrorists have safe harbor in london should cameron it was so you 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 it's the it's or 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 me includes the position the system within which people like david cameron are not acting or 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 bo sloan and. hundreds and hundreds and hundreds of other occupations also it's worth mentioning there's a lot of other walking missions occur in public places around the u.k. is that it whether it's about the one percent of the ninety nine percent it is obviously caught to two why we're talking today but i think the other fundamental sort of real interesting aspect of it it's what it's about is people want their not dos are pros they want a much more kinetic dynamic. system. 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 is quite uncommon is there a fixed five year government to sit and wait to choose between

a one eight to a free a for a five a six it sounds like paper it's not. versions of the same boreen centrist kind of capitalist are the logical factions is not satisfying to people go at it let me cut in the first second we've got about a minute left and i want i want you to comment on what you see happening in the next couple of years on the culture side because of course during that fatter era of the politics of particularly u.k. 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 renaissance as a result of the terrorist financial terrorism in the u.k. what's going to happen in terms of visual arts i think you'll see more collective or practice because it makes sense to create if you work on a project to quickly occupy a space like an emerging studio and saw in terms of music i think this is all off

a lot of interesting very very engaged political with the lower case p. what you also want is a radical rethinking or of. a radical reengagement with the statics you know 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 well as some right there's a concentration of wealth over the past twenty or thirty years or squeezed out artists in a lot of sense and collapsed and else going to require artists ultimately. 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 kaiser and stacy herbert i want to thank my guest richard thomas if you want to send me an e-mail do so at kaiser report it r t t v dot are

you follow me on twitter max kaiser you can for all these days and over to you on twitter but follow me on twitter until next time x. guys are saying well.