markets. come to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune in to cause report on r.g.p. . if you're just joining me tonight here in moscow help us the on the russian capital top stories thousands of angry a gypsy has refused to leave square where we bring you live pictures at the moment here nazi will continue for the end of military rule egypt's rulers have made some concessions with demonstrators likely to hold a referendum on an immediate transfer of power if people wanted. moscow is slamming the u.s. for punishing iran over nuclear suspicions saying sanctions contradicts

international law and home future talks you can kind of also announce they are cutting ties with iran's banks. and three crew members plant their feet firmly back on the ground after six months in orbit russian american and japanese space travelers landed on the step because it started in a russian soyuz capsule. back up with one of stories what it was for less than thirty minutes when i mean time what caused the fall of one of the biggest financial brokers and just where did all of its clients money go all the sordid details right now with a cause report. i am asked hauser this is the kaiser report the m.f. global scandal we've been talking about it for a couple of shelves now it's becoming more of a festering sore on the collapsing global economy stacy herbert what's the latest

i'm max keiser 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 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 well it's not unprecedented 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 others a tremendous amount of fraud that goes on this is more of an institutionalized fraud where the regulatory agencies themselves or to see any are acting like a corrupt branch compliance officer for the same raise and they take huge amounts of bribes under the table lot of cash out of the money i've witnessed 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 so. and the government believes that this is what's required to maintain liquidity but with the global economy collapsing and 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 provide some time one of the most profitable and regulators in the world best the way the system works and it's benefited people and sold now it's killing people ok back 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 client's funds were still flowing and they didn't in this case in the speculation is that if they backed and the global then others were behind and that it couldn't possibly afford that so we've covered the story that barbara capital management out of the game because of

m.f. global now talk about the cook game max koch brothers in and of global trends 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 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 saved 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 the 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 tailspin into 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 a mass yes insider trading you know once again drawing on my experience as a wall street broker myself many times it's called getting a first call if you're on a first call basis with the firm you get the first call when you need to get a 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 pride 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 is the way the entire industries built there is the clients who are on the privileged with you know people are the bandits ninety nine versus one percent within the one percent there's the ninety nine and one percent said to be really at the one percent 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 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 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 they're on the same team they work together john chorus line helped. 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 if you're in the bottom ninety nine point nine percent well absolutely and you know it's simply not going to stop saw the presence. realize that their presence i mean america is a nation of three hundred twenty nine million presidents and they need

a proper president rivulet but there they don't want to think of themselves as presidents there delaying the end there deferring the inevitable well max we are in london and it is the home of the peasant revolts the failed as a result my state usually fails throughout history the big one in thirteen eighty one that failed the unsuccessful one of course was the one nine hundred ninety. s. which trace the trail of the thirteen eighty one has a revolt ending and right behind you the battle to falter 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 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 is gifted a 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 plan here are big shiny teeth can you make our pranks look like they're not corrupt we'll give you one for a billion dollar gift richard and so he's a sitting there like yeah yeah i'll take the gift you know sure but you don't need to have a blonde hair shiny tooth guy come in with a billion dollar pound gift you can actually just have a regular coke competitive bank set up in twenty minutes on line it doesn't take a genius to figure it out but the government here says 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 it and he's

a total betrayal to his class his people these two tutus you supposed to be representing and cameron just locks 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 the solvent good bank and a bad bank which took on a company's riskier liabilities tolling around twenty one billion pounds which taxpayers may never get back so i think 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 taxpayer is stuck with richard branson gets the good assets he gets it for half price of what the taxpayer put in its work a whole lot more than half a billion pounds right these so-called bad bank concept they have on their books at a certain value which they don't use mark to market accounting they say that the assets on the bad 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 that is 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 to get a bad bank the assets are worth nothing simply right off the bat that's the bankers may if they can't pay back that's 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 well to continue with the banking business and the 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 morphed out piglet saying nonsense well max i let's show you this headline here. millions to lose out as benefits are curbed so there's going to be a billion pounds of 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 they 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 but 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 way they came they rotted ok we're going to reopen those institutions put the disabled people back and they're going to rob the death because they're going to money form because cameron to take well what max they do notice 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 knocks zero because of all the money printing to bail out the banks quantitative easing is 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 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 are 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 that'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 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 its interest rates reflected something other than financial oppression and they put it into the pocket of richard branson because his top line parent shiny team i suggest everyone in britain dollar their blonde 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 hotelier here are though you're perfect at that thank you max stay tuned much more coming your way so stay right there.

will be the. technology innovation holding these developments from around russia we've got the future of coverage. 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 cause to report hello max pleasure to talk to you all right richard you've been reporting from occupy el x. the 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. sudden october fifteenth there was an announcement to take the london stock exchange and president's desk with this idea floated about a week before when u.k. on cause another activist staged a completion of westminster bridge in an attempt to ward government attempts to

fully privatized any national health service i can see all right so let me just cut in there for a second because of course the occupy movement and they came down at the american from canada from the adbusters organization that started on wall street and it fanned out all over the world and ok i wouldn't necessarily say that i mean i think the thing that identifies itself was the ok point the movement is obviously north and north american perhaps in origin. but of course i mean i think for the disney i mean because the fifteen movements in which are it in boston which was into and inspired of course by events into heat and swearing in egypt and so warm and i think it's the message influence the theory of spring really the way that's that's sort of led into into europe. then going across the atlantic then your people move in more streams of corporate power and maybe taking back here. i think

as far as i'm aware i think that some extent there's also other hands involved here as well i think you can cook of course. if nothing else an advisory role to play here of course and also experts in the occupation of. but 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 and because goldman sachs is now putting their apparatchiks in charge of adélie in charge of greece they're active in ireland they'll be active in spain so they're just strengthening their hand if anything they're using this chaos to just strengthen their hand outright 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

were some progress made to the do 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 don't think that's true at toul i mean i think it's happening on a global scale too i also think it's wrong to the more you know it's it's the those involved you know patient as far as a i've experienced it. go in there in a journalistic capacity you course go in there out of interest and socialize it is a very very very few things and some of the broad church people who would leap will reformists they want capitalism to be interested in the it want to completely smash and study you know it's really very prudent a lot of people who are funding. the cells and funding the children under developing the critique that the innately feel but i think the naivety of

that you might find present too is something that's been kind of like remarked upon and i think no even if he's a really good thing i think it means that you come into this into a situation with a fresh pair of hours you don't know how to be a new learning. also i think it may be might be a rule used to strike too much of a comparison with what it's like to sort of leave and do a part i really meant i do agree that there is definitely a disparity. between those with well 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 sponsor to thirty five percent upwards of three hundred fifty percent what 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 enery and initiatives of that time and it always has. think back to do you think in the near term to something small it's all is that rich or top yes we've already been in a snow for good you know we the magical moon when the fourth wall was broken at millbank the journalist then hang coach for food through it is the shattering of the loss of confidence really the money let's not forget the momentous events that took place in august this year i believe it was august and what you learned there with the london riots. we were already there you know you wait until the mission is really kicking hard with people about their benefits taken 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 noticed

when i latched in those two words poll tax suddenly the energy levels are skyrockets and people are very revenue no astrologer for this moment and ration pretty good very well the people right now let me ask you this question i was talking to stacy herbert earlier in the show and she mentioned and she did a little analysis of how the cutbacks in entitlements 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 of the highest you know it's astonishing and it's a lose lose situation on the understanding i mean the austerity push it is removing

removing benefits should be no social services there's no growth there's no job creation is like a million people young people are employed at the moment there is no way to go and they've got nothing to do so if the people will kick off with the fed up with the crap vote. a reality that's foisted upon them anyway and they're fed up with the crap we drab weak precarious future that's foisted upon them as well you know what you know you get are you really going to be excited about maybe working in a retail store on a six month at best contract for the rest you know what i mean people were before cameron was even elected so you know i think people start to question what reality is. the kind of reality they want and now with this extra kind of salute the brutal camera cars the look attack on public service and it's people are going to get more moved angry i would hope anyway and you know this this civic responsibility is one civic responsibility yeah well there's an underlying economic case to be made

public service. 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. eight 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 creating baby aside on the next generation of entrepreneurs in favor of the richard branson has got a gun to cameron said 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 in 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 particularly cameron is not going to chase down for 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 out of 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 u.k. can't get rid of it without destroying everything i think you have to say really you could just push you to terrorists in some sort of symbolic way you mean you know you know it's. it's not just those individuals it's the system in which could pay to a corruption and that it's the system has to be dismantled main clues the position the system within which people like david cameron are not acting or anything you know the thing about the thing about pools the thing about zuccotti park the thing about oakland the thing about portland the thing about so you the thing 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 occupy other occupations 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 they're not ghosts are pros they want a much more kinetic than 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 you into time and i mean the idea that you as this case now is quite uncommon and it's there for the governments to sit in wait

to choose between a one to a free a for a five a six it sounds like paper it's not. the same boring drab centrist kind of capitalist are the logical factions is not satisfying to people let me come in the first second we've got about a minute left and i want to 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 factor error the poulterer to music in particular in the 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 rather silence as a result of the terrorist financial terrorism in the u.k. what's going to happen in terms of the visual and think you'll see more collective or practice because it makes sense to create the work i want to project to quickly ok public space looking at merging with studios and so on in terms of music i think this is new off a lot of interesting and very very engaged political with lowercase p.

what you also have is a radical rethinking or of. a radical reengagement with a step six you know what what purpose does music sort of in terms of questioning political in economics which is 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 in a lot of sense and has collapsed and else going to require artists ultimately. society and say 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 and 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 you so at kaiser report it r t t v dot are you follow me on twitter max kaiser you can follow stacy herbert c.

on twitter but follow me on twitter so next time x. guys are saying well.