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news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to look for each and to rule the day . i am ask asure 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. 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 letter to clients they say the reason for the decision to pull the plug was excruciating lease import 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 on the branch level as i've been explaining the individual branches of brokerages with the compliance officer and the trader then i ball distance of each others a tremendous amount of fraud that goes on this is more of an institutionalized fraud where the regulatory agencies themselves are c.m.e.

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 under the money i've witnessed plenty of money pride cash paid off the c.m.a. folks and regulators i mean it's standard business operating procedure but the central banking says. 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 a 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 praja lent

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 the c.m.e. group would typically provide the liquidity in this case when a group member like m.f. global goes bankrupt normally the c.m.e. group would provide the liquidity and make sure that the clients the funds were still flowing now they didn't in this case of the speculation is that if they packed and left the global then others were behind and that they couldn't possibly afford that so we've covered the story that farmer capital management out of the game because of m.f. global now talk about the cook game max the koch brothers and am a flow book friends today and daniel dicker but an oil trader and c m b c contributor wrote on the huffington post that 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 jealous lines he had his accounts 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 last this is then another proof of the inside fixed operation of the financial markets when banks go 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 believe 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 going to first cop if you're on a first call basis with the firm you get the first call when you need to get across

a 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 the way the entire industries built there is the clients who are on the approval it wouldn't you know people are the banners ninety five versus one percent within the one percent there's the ninety nine one percent there could be really if 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 trading exchanges because you're going to lose everything but any 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 do you have the occupy wall street crowd that is being painted as the the protest group of the left and 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 or one percent of the one percent they're on the same team they work together john chorus line helped. the koch 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 oh absolutely and you know it's simply not going to stop saw the presence. realize of their presence i mean 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 peasants they're delaying the end they're deferring 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 throughout history the big one in thirteen eighty one that failed the one successful one of course was in one thousand nine hundred the

poll tax riots which traced the trail of thirteen the 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 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 plan here

a big shiny teeth can you make our banks look like they're not corrupt who did you one for a brilliant 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 gift you can actually just have a regular comp competitive bank set up in 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 he's just like completely an origami is folded up in the contortions of his own lies of his and he's a total betrayal to his class his people these situations are supposed to be representing and cameron just walks in and takes all the free money off of florence and the scrapes 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 a risk your liabilities i.e. those assets that are worth nothing they're worth zero on a dollar on a pound in this case and that's twenty one billion pounds worth that the taxpayer is stuck with which of grants and gets the good assets he gets it for half the price of what the taxpayer put in let's work 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 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 and countries all over the world particularly famously nama in ireland they have a 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 the worth nothing simply right off the bat that's the bankers made if they can't pay the bad debts that they may then they need to be punished in

some way take them off the good of the banking business for one thing what do continue with the banking business is it 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 next on the list 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 pressure and like the peasants revolt of past the 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 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 in a situation through way they came they rather ok we're going to reopen those institutions but the disabled people back in their little rock to death and then any money form because cameron to take well well max they do know that you know the problem is that normally benefits are linked to where 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 of money printing bells up 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 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 point stacy herbert if you work through the mouth and you put a few of these details a line em up and blow away the smoke and 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 not blonde hair or

shiny teeth i suggest everyone in britain tie their hair blond 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 photos or your hair oh you're perfect thank you max states much more coming your way so stay right there. this is the. creation of the group the school system the global food system is not created to feed the people of the world it's created to maximize the profits. you're not treating the actual physical grain or trading promises for grain to be delivered a month or six months or twelve months or eighteen months in the future. for

reasons moderately silver or gold they can be negotiated in order to some degree. place. yet or. possibly it's not traded now but it could be in the future. emission free accreditation free transport charges free. arrangement for free or for free for folks to type for free. the old city block just plug in video for your media projects i feel dogs are cheap dogs talk.

imax guys are 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 el x. the london stock exchange sense it began tell us how the occupation began word stands today in terms of the concerns and a list of demands or goals ok so. sudden october fifteenth there was a new management to take the load and stock exchange and promise to squeal on this idea floated about a week before when u.k. on cause another activist staged an occupation of westminster bridge in an attempt to ward government attempts to fully privatized the 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 then it fanned out all over the world and also i wouldn't necessarily say that i mean i think the thing that identifies itself as the occupier and the movement is obviously north and north american perhaps in origin. but of course i mean i think

there's but for the disney i mean it goes back to the fifteen movements in madrid and barcelona which was into and inspired of course by events into heat and square in egypt and so warm and i think it's the message the influence of the arab spring really the way that that's sort of led him to see europe. then go across the atlantic then the occupy movement and wall street in zuccotti park and they are painting him back here. i think as far as i'm aware i think that a certain extent there's also the hands in four theaters world if you can cook of course. if nothing else an advisory role to play here that of course they will select your completion of. and let me ask you this i've been 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 they'll be active in spain so they're just strengthening their hand if anything they're using this chaos to just strength of 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 do they 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 or losing. i don't think that's true tool i mean i think is happening with global scale i also think it's wrong to do more generous and to. those involved in your completion as far as a i think spirits that. go in there in the journalistic presence you go in the art

of interest and socializing is a very very very effective the sort of planning group church people who would leap to reformists they won't capitalism to be interested in the it want to completely smash the screen it's really very proved and there are a lot of people who are funding. the phone to each other in an underdeveloped in the critique that the innately feel but. i think the naivety of the you might find present too is something that's been kind of like remarked upon and i think naivety said 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 live under apartheid i do agree that

there is definitely a disparity. between those with 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 those top one percent for example your cost of funds is zero or less than zero if you're not in 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 energy and initiatives of that time and it always has. back to do you think in the near term just something volatile is that richard thomas yes we've already been there for good you know we had the magical moment when the fourth wall was broken at millbank the journalists had been hanged caught for food through the

shattering of a loss of crap for this reason i mean let's not forget the momentous events that took place in august this year i believe it was a list which you learned there with the london riots. we were already there you know. it's there it's measures really kicking hard with people about the benefits they can when they basically can't afford to eat people who are going to really kick off people are capable of great volatility and they have no faith institutions of power i noticed 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 when the people right now a massive question start in the states herbert earlier in the show and she mentioned and she did a little analysis of how the cutbacks and entitlements in the u.k. if you add 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 oh you know it's astonishing and it's a lose lose situation i don't understand i mean the austerity budget is removing removing benefits or shutting them 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 they go and they've got nothing to do so if the people who can go with the fed up with the phone. a reality that's forced upon them anyway and they're fed up with their crap drab weak precarious future that's foisted upon them as well you know what you know you're 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 but before cameron was even elected i think people start to question what reality is. and with a kind of reality very want and now with this extra kind of. brutal chemical and the like attack on public service and people are going to get more move or 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. paid because there are 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 in as a gift or we're going to take down another portion of the european economy but without the london being the center of the global money laundering rackets and 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 because you do terrorists and some sort of symbolic way you mean you know. it's not just those individuals is it's the system which perpetuate corruption and that it's the system has to be dismantled the includes 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 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 is obviously caught to two 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 trolls they want a much more kinetic dynamic persistent. active engagement with with

politics but not necessarily the form of politics that will. occur i mean if you think about it it's just the parliamentary pond really kind of 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 and it's there for you 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 centrist kind of capitalist are the logical factions is not satisfying to people deliberately cut in the first 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 that factor error the culture of the music 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 rather silence 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 click that we work on projects to click to be occupied space sort of emotion with studios and so on in terms of music i think this is new off a lot of interesting very very engaged political with a slower pace p. what you also have is a radical rethinking or of. a radical reengagement with a static scene and 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 something like this concentration of wealth over the past twenty or thirty years or squeezed out artists and a lot of sense has 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 keiser and stacy herbert i want to thank my guest richard thomas did 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 guys or you can follow stacy herbert on twitter but probably me on twitter until next time x. guys are saying well. the official. we pulled from the dumpster.