monarchie. on our top stories here on r.t. this hour police sweep through the occupy los angeles camp arresting always three hundred after they ignored and eviction order for the n.c. corporate movement that started more than two months ago is only gaining momentum taking up support from the other side of the barricades. moscow says it can grant because of the russian passports but will provide any aid necessary this comes after thousands for the people citizenship to escape discrimination and hostility from ethnic albanians. and iran faces further isolation as e.u. foreign ministers agree on more sanctions it follows

a mob attack on the british embassy in tehran that prompted london to order all iranian and boys to leave within forty eight hours. that's it for me for the moment i'll be back in half an hour as the news continues in the meantime it's the cars report and the world governments and media networks telling you truthfully about the global financial crisis all on a smoke screen in their illicit activities max keiser now unveils the truth here on r.t. . max kaiser this is the kaiser report 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 is the blue horse walks on the horizon. right this is fascinating so the coded messages are big broadcast into occupied france as a way to communicate to the resistance so it's like call to go get cells like jibberish but there's 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 and let's explain our actually what's going on you start off with a headline like this max i.m.f. drawing up five hundred seventeen billion pound package to see italy spain and the euro within moments i see this tweet from b.b.c.

business remember of the radio london of our modern financial era i.m.f. do not i italy loan discussions right so you have to really do you could what's being broadcast from the centers of the financial war obviously the u.k. is now hunkering down into the trenches ready for warfare with the continent of europe in this new global financial war and you've got the same thing going on income. incidentally 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 dumb kirk 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 plans were also denied by the german government on monday they said there are no plans for chicle a bond or elite bonds said the german finance ministry right but the subtext or the coded messages we know that that's not the case they do have a plan for an elite bond or you might call it the master currency it's a form of financial eugenics. from the germans it's coming and they're communicating visa via the financial press some of the 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 a very special terror centers curlin london york tokyo exactly next you call it financial eugenics and this debt the so-called elite bond 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 a 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. rating at aaa yes the movie the rating agencies are involved in financial eugenics and they give the currency coming out of berlin with the aaa blessing as it were but of course they are exactly the same now others of observe that this is setting germany up for an interesting relationship with the rest of europe or they are in effect 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 of this vendor financing scheme germany being the other big exporter in the world could do the same thing all the rest of the eurozone by creating the uber currency bond market with their fellow master race of currency dealers well actually i think it's yet another front in the layer upon layer of this black propaganda being pushed on us by the banks toure's but before i get to that i want to show you this other headline here i met from paris to arm italy with the bailout bazooka place of their farm was there a lot to go i guess 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 that 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 hardcore involved in financial fraud they created a lot of these toxic fake derivatives that are blowing up around the world they've devastated conley's around the world and now they're pretending that they're that. they're sort of 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. currency balloon devil 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 with derivatives and through and money attacks you see the same patterns

emerging we saw fifty sixty seventy years ago yes and there's black propaganda great propaganda white propaganda is how it goes and this prison somewhere there france vehemently denied reports that so cozy had agreed with angela merkel to equip the european commission with new supranational powers this is a statement from at least a palace the president has a no way aim of giving super national 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 themselves. because he is lying. sarkozy is now occupied by the munchen p.p.p. please return to the obviously the at least a palace is trying to assure people that the people won't have any outside authority governing them it will just be those dirty stinking debtors down there

now getting better is right the protecting the new unit of currency here in france has no connection to the going to spring 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 rykes bank forum an august he said. i wonder whether bernanke you might not say that we believe in a harmonized world but 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 often pricing volatility formula

he is to derivatives what it is to atomic weapons he created the old idea of splitting the dollar into two parts reward and risk and then trading the 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 to new record amounts people thought that the river's market was shrinking no it's a new all time highs along with the quantitative easing that's come face to could all myron shoulders option pricing volatility formula we can now look forward to having many more trollings of dollars worth of worthless paper trading on worthless paper which is nothing more than a huge ponzi scheme out of. whose intentions are not to run europe or run the world why would we ever think that of berlin they want to teach the world how to sing well max keane has a long moustache 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 to central bank parceled out dwarfed the treasury department's 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 players go away i have to grow my problem. so exactly the same shot more or less with the thing they committed massive accounting for a bank paulson some guy or you're is still sleepy school of economics it's like oh if there's some in chile in dollars give us a loan then they get

a loan they go oh no it's over in the european banking system to help them fake out some kind of bailout package if they can possibly afford a home prospect in the us to lose to a pile of us because we have collateral the banks don't need to be bailed out anymore we don't need the stress test test they got close a little don't you know forget know those in south america know who stood open to the no to more of those also paul krugman spaceship over space looking for somebody else and took a load you know states to do something to in theory that is the group of us this is the slinky school that much of never fails since one day we're all speaking german which i'm max kaiser so you know i'm prepared for that eventuality trust me well the loans were meant to deceive the public and the congress or at least it gave the congress plausible deniability and they knew what was going on that seven point seven trillion dollars allowed the banks to transfer all their bad debts that would have indicated that they were insolvent to the fad and with that hank paulson was able to go hold up to 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 crashed in the taxpayer is the one saying congress you better vote for the start but in fact the tarp never would have happened had they known that the banks were actually completely insolvent then them were the key word there is insolvency vs illiquidity because during the time remember it was positioned as it's a liquidity crisis not an insolvency crisis well the reason it's not solve the crisis is because we're going to be legally parked seven trillion dollars from one off balance sheet item like enron 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 and it's completely illegal so it is insolvency and that's the root of this global crisis is that these banks b. and b. society 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 fricken insolvent and you need to go the way of all just ashes and dirt and everything that guy's and ends up on the ground dead because you've got nothing how do you balance keep us safe there with thanks for what's going on the house report could be cancer fresh and ran today. say to much more coming away stay right there.

welcome back to the kaiser report i'm max kaiser time now to go to venice florida and speak with karl denninger of market sector dot org carl welcome back to the kaiser report may excite you a very good girl then a journalist talk about m.f. global why hasn't john kors name got arrested or at least been pepper sprayed the least we could do is have a little pepper spray and maybe some plastic and caught sight i don't understand this the orderly functioning of the futures markets to me and. customer phones be sacrosanct and never invaded and dead appears at this point to it not happened you know it it's one thing to say i don't know with

a twenty dollar bill when when it's starts a six hundred million in that always so it 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 but it seems like a total breakdown of all of the basic laws of the street this basic law you can't take money out of customers accounts it i mean it's pretty basic i mean if this doesn't work why would anyone keep their money ninety. brokerage firms that's the question max i think that everyone has to be asking now and it is that risk that in my opinion is the largest to do to financial industry and to the orderly function of the markets that we've seen thus far this goes far beyond what happened when the brothers of paris turns in there you now apparently have the futures merchant who got in trouble with their own proprietary bets and instead of facing the fact that they were underwater and insolvent decided to dip into customer funds as a way to try to cover them in the hopes that they come back now anyone who's traded

frame like the time has probably made this mistake where 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 pro it appears that that's exactly what happened here with an m.f. global seems to have gone even further and said you know we'll just cut a rate he bank over here that isn't ours and keep the game going for a while that's that's a deeply 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 right now my understanding is that a p. morgan is a creditor of m.f. global and they're going to push to get settled on any of their accounts that are own money and had these customers as not also some have 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

sponsored 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 bonds so if they are performance bonds then they should be held separately there should be an escrow function and there is supposed to be a fiduciary responsibility it's like a positing 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. during the evidence certainly that it has 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 futurist merchant doesn't it sanely dangerous precedent to set within the marketplace i don't know what digress a little bit because i don't know if you're familiar with or not but let me ask you this question anyway the martin gal system of betting which is the bit doubling down on every roll the dice with the idea that eventually you will win and make

some money this seems to be what everyone else the 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 is the correct way to describe what's going on here thoughts i think it probably is i'm come from lawyer with their strategy that 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 random trial each probability of success is distinct and separate from all that 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 eventually you will run out of the ability to hide these schemes

and it will blow up in your face and that is it that is it appears what happened here all right here's another quick queston federal judge rake up recently in new york he admitted that he had no authority to do anything but had monist the s.e.c. for their settlements with citigroup and bank of america for a fraction of their ill gotten gains on mortgage securities fraud your thought we need to see some cutie in much lower. saluting recall because 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 texas 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 pigs so they can pay their own ases and then you have the federal reserve which is the handmaid it is enabling both those things along with the

offshoring to disastrous trade imbalance and all three of these parties are kind of locked together holding hands sing la la la la la la la la and what you end up with at the end of a date is selling a bunch of trash to people claiming that it's perfectly good peeper when it blows up in their face then you end up in front of judges like break off who say hey guess what guys use little 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 the financial firms you'll find it under a three strikes laws for felonies essentially all of them would be in prison for life at this point which means it'll be dissolved and out of business so why is it that we continue to give these people a pass 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 kills it 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 when in all but capital punishment but revoking corporate charters is certainly something that could be done i mean after the third offense it's i think it's pretty clear you're not going to reform right the only way that we're ever going to see this stuff max is if it stopped. in the 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 get caught to be a line poor guys with ski masks and guns in so there's really no wesen for these institutions not to engage in a speedier when that's the penalty i crawled under bloomberg freedom of information request has uncovered 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 part funds going back to two thousand and eight your

thoughts the biggest scandal there max isn't that we we gave this money out in terms of won't guarantee is a lot of this was was in terms of ass securities another was allowing people to pledge collateral there was could the big scandal here is the fact that every one of these institutions c.e.o. seems to have shown up on c. and b. c. or somewhere else proclaiming how strong and healthy their firm was when in fact if you look at this data 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 false i don't understand how that's 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 or no we say yes i think you know any any resemblance to the truth right now of course the banks earned the thirteen billion from processing nice secret loans and most of those earnings were then paid out as bonuses so the doesn't taxpayer have the right to reclaim at least that thirteen billion that was fraudulent least own from the unfortunate. probably not you could potentially i suppose file what's called a lawsuit essentially suing in the place of the federal government for the fraud that is taken place but in terms of the individual taxpayer having standing in these kinds of cases it is been repeatedly told that they don't even though it is the taxpayer that gets roped in and again this is just another example of the best congress money can buy already 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 manager they don't. 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 scriptures from its member nations and those far i think something like two or four of those nations have actually passed the allocations the rest of 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 it like rather amusing it was good for a pickpocket a futures but i don't see written there is there right sound i met a special drawing rights in this appears to be going to be a kind of a new global currency and waits to roll up all of this bad debt and reprice that

race to characterize it create new maturities and basically increase somehow the debt bubble to even new heights of absurdity but finally let's talk about the ending this never ending bailout for banking and market raiding france there's 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 or the bankers. to their own progeny activities i don't know to tell you the truth max i think the problem with occupy wall street today is that they are still trying to figure out exactly what they stand for and i have pointed out i'm on a couple their mailing list of pointed out to them that if they get into the way we want free blankety blank i'll keep you 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 freebie has to come from somebody on the other hand if they stay focused like a laser beam on the 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 to destroy the ring on the edge of collapse you have all of these institutions including ones in america that bought up all this debt in sovereign europe thinking that this was going to be some great investment because it was trading at a fabulous discount the fact that matter is it was trading at a fatalist discount because they can't possibly pay so how you're going to resolve those two things i'm not sure but frankly i see them ending very badly sometime next year all right karl denninger at a time back to being on the kaiser report thank you all right not going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest karl denninger of market ticker dot org you can follow karl on twitter at ticker guy you can follow us at kaiser report on 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 bye ya. know.

and.