slogans no no. to putting them up richard says with dollies and really feeling cold on the party list it is sure his parliamentary protection. the liberal democratic party of russia election two thousand and eleven forty. years an hour seven thirty pm here in the russian capital this is artsy your headlines now but police sweep through the occupy l.a. camp i rest of almost three hundred people the big norton of fictional water but the anti corporate movement that started more than two months ago is now only gaining momentum this time picking up support from the other side of the barricades . iran faces further isolation as e.u. foreign ministers agree on yet more sanctions that follows a mob attack on the british embassy in tehran the continent logon to order all

iranian envoys out of the country within forty eight hours. i must go says it can't grant a cause of on service russian passports but will provide any aid necessary but this comes after thousands filed a plea for citizenship to escape discrimination and hostility from ethnic albanians . for my our colleague bill dodds here in half an hour's time but for now in the kaiser report world governments and media networks telling you truthfully about the global financial crisis or are they just smoke screening their illicit activities max keiser now unveils the painful truth here arts. i am max kaiser this is because a reporter you know it's a financial war and coded messages are being transmitted in the financial

pages let's get into this stacy herbert yes max we're talking about financial war all the time here in kaiser report and it made me think back to world war two under nazi occupied france b.b.c. london broadcast coded messages to the french resistance here are some of them max . it was grandma ate our bon bons and now here's the blue horse walks on the horizon. right this is fascinating so the these coded messages are big broadcast into occupied france as a way to communicate to the resistance so it's like all the book itself like jibberish but there is some meaning if you understand the code and we see this now today don't we with this kind of financial some a for loop into our day to day broadcast let's explain now exactly what's going on and you start off with a headline like this max i.m.f.

drawing up five hundred seventeen billion pound package to save italy spain and the euro within moments i see this tweet from b.b.c. business remember the radio london of our modern financial era i.m.f. did not italy loan discussions right so you have to really do you could what's being broadcast from the censors of the financial war obviously the u.k. is now home going down into the trenches ready for warfare with the continent of europe and this new global financial war and you've got the same thing going on income. financial europe and you've got the same thing going on around the world so you have to decode these messages so in this particular instance it was just a straight denial of a coded message but the underlying subtext is that there needs to be a blitzkrieg of cash coming quickly or there's

a dunkirk in our immediate future well i think what it is is that they send messages out like this. but the people who need to know the financial terrorists know to read those articles and look for what is really going to happen so the b.b.c. article for example international monetary fund denies italy loan talks now if you read deep into the article it says over the weekend the german newspaper developed reported that a subset of euro zone countries with the highest credit ratings including france and germany may seek to issue debt jointly however the plans were also denied by the german government on monday they say there are no plans for a aaa bond or elite bonds said the german finance ministry but the subtext or the coded messages we know that that's not the case but they do have a plan for an elite bond or you might call the master currency as a form of financial eugenics. from the germans is coming and they're

communicating viz a viz the financial press so a lot of people don't understand what's happening in the markets or fight it's reaganomics because they don't understand that it's all heavily coded to communicate amongst the various financial terrorist centers or live london york tokyo exactly max you call it financial eugenics and this debt this so-called elite bomb the so-called triple a bond by france and germany is it actually has the same exact d.n.a. of a greek bond or an italian bond or in portuguese bond or a spanish bond it's riddled with banking fraud. it's riddled with too much debt but they have the blue eyes in this case are the you know the fitch and moody's and s. and p. reading it chip away yes the movie the rating agencies are involved in financial eugenics and they give the currency coming out of berlin with the triple a blessing as it were but of course they are exactly the same now others of observe

that this is starting germany for an interesting relationship with the rest of europe or they are in fact in the vendor financing scheme where they are going to be looping loans into the peripheral countries and banking the spread similar to what china has done to us for so many years they just built the u.s. for hundreds of billions and trillions to this vendor financing scheme their money being the other big export in the world could do the same thing with the rest of the eurozone by creating the super currency bond market with their fellow master race of currency dealers well actually i think it's yet another front it's a layer upon layer of this black propaganda being pushed on us by the banks there's but before i get to that i want to show you this other headline here i met in paris to arm italy with a bailout bazooka but if i was. up again that's just a headline they know most people won't read past the headline and that's the

propaganda but if you look into the article germany and france discuss fiscal integration germany and france may seek to implement stronger euro area governance by striking a deal with a core group of euro nations rather than seeking the go ahead from all twenty seven members it was reported so again this. from just germany and france though their banks are hard core involved in financial fraud they created a lot of these toxic fake derivatives that are blowing up around the world they've devastated commies around the world and now they're pretending that they're the. and there's our cozy the. the new vichy government in france basically a cow telling to the occupied german currency forces there's cameron in the u.k. appeasing the buton currency glute of all with his happy talk to his constituency similar to remember i believe it was lord chamberlain who

made the same mistake leading up to world war two so to follow down this path of currency wars replacing shoot 'em up wars with tanks and missiles it's all being replaced of derivatives and their and money attacks you see the same patterns emerging we saw fifty sixty seventy years ago yes and it's black propaganda great propaganda white propaganda is how it goes and this fits in somewhere there france vehemently denied reports cozy had agreed with angela merkel to equip the european commission with new supranational powers this is a statement from the police a palace the president has a no way the aim of giving supernational powers to the european commission we want to discuss the ways of creating more intrusive powers for brussels to monitor countries such as greece so in the same exact sentence they contradict the people sarkozy is lying. sarkozy is now occupied by the goober debt munchen the people is returned to the obviously at least

a palace is trying to assure people that the debt and people won't have any outside authority governing now it'll just be those dirty stinking debtors down there now who are dead and dead or right the tank the new unit of currency here in france has no connection to the bundesbank so either the i.m.f. is bailing out italy or it's not however there is another rumor going around should the fed save europe from disaster nobel economist myron scholes was the first that floated this idea over lunch at the right bank forum an august he said. i wonder whether bernanke you might not say that we believe in a harmonized world that the europeans our friends and we know that the e.c.b. can't print money to buy bonds because the germans won't let them and since the e.c.b. will soon run out of money we will step in and start buying european government bonds for them it is something to think about he said so max tell us who myron

scholz is well of course he's he's a big one nobel prize winner for the black shoals option pricing volatility formula he is to derivatives what einstein is to atomic weapons he created the old idea of splitting the dollar into two parts reward and risk and then trading a risk separately and then creating now seven hundred trillion in derivatives which is pure risk no equity by the way that number's up over the past half year it's a new record amount of people thought the derivatives market was shrinking no it's a new all time highs along with a quantitative easing has come thanks to good old byron shows an option pricing volatility formula we can now look forward to having many more trillions of dollars worth of worthless paper trading on worthless paper which is nothing more than a huge ponzi scheme run out of perlis whose intentions are not to run europe or run the world why would we ever think that they want to change the world how to sing well max jean has

a long mustache grandma ate our bon bons that was one of the sort of statements that my rituals first came out with with this the fed should save europe now let's look at the fed and how they saved the financial system in america secret fed loans gave banks undisclosed thirteen billion dollars well this is information that has emerged from a bloomberg freedom of information act and it turns out that the amount of money the central bank parceled out the war from the treasury department better known seven hundred billion dollars troubled asset relief program or tarp at guarantees of lending limits and the fed. committed seven point seven seven trillion dollars as of march two thousand and nine to rescuing the financial system more than half the value of everything produced in the u.s. that year old corporal way i have to grow my problem.

exactly the same shot more or less with the thing they committed massive accounting fraud right paulson some guide or your is still slinky school of economics it's like oh through some of trillion dollars give us a loan then they get the loan they go oh no it's over in the european banking system to help them think out some kind of bailout package that they can't possibly afford to be lost almost to a pile of us because we have collateral now the banks don't need to be bailed out anymore we want you to spend the rest just like upload a little don't you don't forget no those in south america those who still have no time to go no more suppose on some poor program space ship go to space looking for some aliens ability those days to do some change in three that have been through plus this is just like you school they can move much of number fields into one day we're all speaking german which i'm max cuz or so you know i'm prepared for that eventuality trust well the loans were meant to deceive the public and the congress or at least it gave the congress the plausible deniability that they knew what was going on that seven point seven trillion dollars allowed the banks to transfer all

of our bad debts that would have indicated that they were insolvent to the fed and with that hank paulson was able to go hold up the congress it was a big show for the population however because remember at first congress rejected it because of all their tax payers calling them and then the second time the markets crash and the taxpayer is the one saying congress you better vote for it to start but in fact the tarp never would have happened had they known that the banks were actually completely insolvent and them were the key word there is insolvency vs illiquidity because during the time remember it was positioned as it's a liquidity crisis it's not an insolvency crisis well there isn't a small insolvency crisis because we're going to illegally park seven trillion dollars from one off balance sheet i don't like all and ron to some other off balance sheet item i'm going to point to that and say see there's plenty of capital we just need a little short term to get us over. or oh by the way when it's finished we got to move it back over to some other place that we didn't tell you about before it is

completely illegal so it is insolvency and that's the root of this global crisis is that these bags be in pieces i general h.s.b.c. barclays citigroup bank of america they are insolvent ok so you can write to me and you can come on my show and you can demonstrate why you're not insolvent but you won't because you know i'm accurately telling the truth there you are flipping insolvent and you need to go the way of all dust ashes and dirt and everything that dies and ends up in the ground dead because you've got nothing i don't doubt she was saying ever thanks for explaining the cause a report that begets a freshman rand today. say to the left we're coming away so stay right there. in the. room with. science technology innovation called in these developments from around russia we've got the future are covered.

in the. welcome back to the kaiser report i'm max kaiser time now to go to venice florida and speak with karl denninger of market taker dot org carl welcome back to the kaiser report are you doing very good carl denham journalist talking about m.f. global why i asked john course being better rested or at least been pepper sprayed the least we could do is have a little cover spray and maybe some plastic and caught sight i don't understand this the orderly functioning of the futures markets demands. customer

phones be sacrosanct and never invaded and dead appears at this point to have not happened you know you know it's one thing to say i don't know with a twenty dollar bill what but when it's starts a six hundred million in it all the sudden becomes a billion plus you've got to wonder these guys not only can't find the money they can't seem to figure out exactly how much is missing that's a problem well it seemed like a total breakdown all of the basic laws of the street this basic law you can't take money out of customers accounts and i mean it's pretty basic i mean if this doesn't work why would anyone keep their money and i mean these brokerage firms that's the question max i think that everyone has to be asking now. and you do so the risk that in my opinion is the largest two to financial industry and to the orderly function of the markets that we've seen thus far this goes far beyond what happens when an brothers of paris turns in there you now apparently have a futures merchant who got in trouble with their own proprietary bets and instead of facing the fact that they were underwater and saw been decided to dip into

customer funds as a way to try to cover them in the hopes of a comeback now anyone who's traded for a length of time has probably made this mistake or you get stuck in a bad position and you add to it because you're sure it's going to turn in everything's going to be ok well anyone who's done that for any significant length of time knows what happens you go broke it appears that that's exactly what happened here but then in a full seems to have gone even further and so you know we'll just kind of rape he take over here that isn't ours and keep the game going for a while that's that's a key plea troubling thing because if you have any kind of money on deposit with a brokerage you have to wonder whether or not this is happening somewhere else all right now my understanding is that c.p. morgan is a creditor of m.f. global and they're going to push to get settled on any of their accounts that our own money ahead of these customers is not authentic bad methods to the retail banking customer out there the real question max is again whether there is or is

not separation between customer funds that are on deposit or is performance bonds and let's remember this is what the c.m.e. calls these if you go to the web page and you look at the margin deposits that are required to trade contracts they actually call them performance pons so if they are performance bonds than they should be held separately there should be an escrow function and there is supposed to be a fiduciary responsibility if like depositing escrow money for real estate transaction with a czerny it's supposed to go into a segregated account if that in fact has been violated here in the evidence certainly that it as then essentially when. you are treating with somebody you are using them as a broker you are for all intents and purposes backing their bets it doesn't matter whether it's a bank or a futures merchant doesn't it sanely dangerous precedent to search within the marketplace i don't know what digress a little bit because i don't know if you're familiar with or not and let me ask you this question anyway the martin gal system of betting which is the bit doubling

down on every roll of the dice with the idea that eventually you will win and make some money this seems to be what every wall street firm is doing they are continuously losing but they are doubling down on every subsequent throw because they know that they've got unlimited cash in their disposal from the fed. is this sustainable and is the correct way to describe what's going on your thoughts i think it probably is i'm i'm familiar with their strategy bankruptcy everybody who tries it eventually because although the probability is that this will work out the fact of the matter is that for any sort of quote random trial each probability of success is distinct and separate from all it came before it and so it is entirely possible to get its fifty two times in sequence and run out of money can go bankrupt and that's the problem is that everyone says this is an infinite source of

funds to the federal reserve but in fact there is no such thing as an infinite source of anything and eventually you will run out of the ability to hype these games and it will blow up in your face and that is a that is it appears what happened here all right and another quick question that i would judge rake up recently in new york he admitted that he had no authority to get anything but it minus the f.c.c. for their settlements when citigroup and bank of america for a fraction of the l. gotten gains on mortgage think kerry frauds your thought we need to see some security and much less looting recalled as one of the good guys he's at least out there raising an issue honest but you know max good the real problem we have here is that there's this deadly embrace between the federal reserve wall street and congress congress desperately wants to spend more than it takes in in taxes because it is supporting the myth that the economy is is ok at least it is not totally collapsing you have the wall street banks that are anxious to earn their big so

they can pay their own assist and then you have the federal reserve which is the hand me that it is enabling both those things along with the poor shoring into disastrous trade imbalance in all three of these parties are kind of locked together holding in sing la la la la la la la la and what you end up with at the end of the day is selling a bunch of trash to people claiming that it's a perfectly good paper when it blows up in their face. then you end up in front of judges like break off who say hey guess what guys you swindled people and then there's a problem because if you actually claw back the money that was stolen in impose a realistic punishment and if you look at the statistics on these financial firms you'll find it under are three strikes laws for felonies essentially all of them would be in prison for life at this point which means they'd all be dissolved not a business so why is it that we continue to give these people class while at the same time the common street criminal that robs granny ends up locked up in a cell well i'm going to repeat that point carla counter because i thought it was such a good point three strikes you get locked up for life or the state sometimes you

end up on death row and and you know why don't we apply this to the crimes being committed in the financial space and would it be appropriate to apply capital punishment in cases outright fraud from guys like hank paulson for example i don't know but capital punishment revoking corporate chargers is certainly something that could be done i mean after the third offense it's pretty clear that you're not going to reform right the only way that we're ever going to see this stuff max is if it stops being a business model if i can you know if you put a sign out that said robbing banks means that you only have to give back half of the loot if you're caught to be a line up who are guys with ski masks and guns in so there's really no reason for these institutions not to engage in this behavior when that's the penalty right karl denninger a bloomberg freedom of information request has uncommon evidence that the fed gave banks seven point seven trillion in loans most of them in secret in order to make

the banks look healthy so that the congress would give them those tarp funds going back to two thousand and eight your thoughts the biggest scandal there max isn't it we we gave this money out in terms of loans in. a lot of this was in terms of ass securities another was allowing people to push collateral there was could the big scandal here is the fact that everyone. these institutions c.e.o. seems to have shown up on c n b c or somewhere else for claiming how strong and healthy their firm was when in fact if you look at this tape it says something entirely different i thought we had this law called serbians oxley it apparently doesn't apply to people showing up on you know period stream media outlets proclaiming how wonderful they are will their company is on the brink of collapse fold but there needs to be some kind of enforcement mechanism here when you have firms that have their representatives showing up in the media to claim things that turn out to just plain old fashioned be faults i don't understand how this is not

something that you could sue over as an investor but it appears that you know this falls into the idea that well you know we all the first amendment right to speak and it doesn't really matter whether know we say has anything you know any any resemblance to the truth right now off course the banks earned the thirteen billion from processing the secret lungs most of those earnings were then paid out as bonuses so the does the taxpayer have the right to reclaim at least that thirteen billion that was fraudulent least on from them unfortunately probably not you could potentially i suppose file let's call it we can lawsuit essentially suing in a place of the federal government for the fraud that has taken place but in terms of the individual taxpayer having standing in these kinds of cases it is been repeatedly held that they don't even know it is the taxpayer that gets ruled and again this is just another example of the best congress money can buy all right i

got two more questions than i.m.f. is either drawing up plans or not drawing up plans for another eight hundred billion dollar rescue of italy and spain and all its member nations are bankrupt then where does the i.m.f. get the money to rescue these bankrupt member nations called benatar bedo. so i mean i think it's a curious thing that they floated this rumor. it was some word six hundred billion three hundred billion. i don't know where they think they're going to get the money from because it doesn't exist they increased their special drawing rights allocations of course but the problem is that the i.m.f.'s to be funded by subscriptions from its member nations and thus far i think something like two or four of those nations have actually passed the allocations the rest of it not including the big ones like united states so i don't know where they think they're going to get the money from i actually felt like rather using it was good for a pickpocket the futures put i don't see where the bear is there right now i meant

a special drawing rights and this appears to be going to be a kind of a new global currency and wentz to roll up all of this bad debt and reprice it racing characterize it create new maturities and basically increase somehow and that bubble to even new heights of absurdity but finally let's talk about the ending this never ending bailout for banking and market raiding frost there is the seeing and a group in your latest ten kids you listed occupy wall street as a threat to their bottom line so who's the bigger threat here karl denninger occupy wall street are the bankers to their own fraudulent activities i don't know to tell you the truth max i think the problem with occupy wall street today who's that they are still trying to figure out exactly what they stand for here and i have pointed out i'm on a couple their mailing list sort of pointed out to them that if they get into the way we want free blankety blank ok pure i'll save you from the believe that they're going to end up being relegated to the dustbin of history because there is no such thing as a free beat has to come from somebody on the other hand if they stay focused like

a laser beam on a fraud in the financial system they have the potential to do with the tea party failed to do and that is to get the public focused in its righteous anger on what's been done to them i don't know which way this is going to go on the other hand you the european banking system just teetering on the edge of collapse you have all. these institutions including ones in america that waterfall this day in southern europe thinking that this was going to be some great investment because it was trading at a fabulous disco if i could matter is it was trading at a fatalist discount because they can't possibly pay so how you're going to resolve things i'm not sure but frankly i see both of them being very badly sometime next year all right karl denninger at a time thanks for being on the kaiser report thank you all right now going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests carl then injure of market taker org you can follow carl on twitter

at ticker guy you can follow us at kaiser report of both twitter and facebook you can send us an e-mail at kaiser report at r t t v that are you and the next time max has are saying by all.