able to publish it but that's really end of your career. and again this is also you coming to life for most of the headlines. to use a long stick boston of us robots revolution with a monument to the monitor set himself on lights on to have sundays to protest movement a bastard arab spring but many people in the country are prostrate that flank of the train sings the uprising that still will be over before it's. kazakhstan's authorities impose a crowd here in a normal town in the west of the country saying it's behind the control of friday's drive that left at least eleven people dead than the rest began during celebrations of marking twenty eight it's an essential country one independence from the saudi troops. on trial and it said here in new york close links that iran provided

material support to al qaida the non the tocsin america critics however say tehran is not guilty but if there's merely a pretext to demonize iran and a way to. remove good stories about six minutes time also the close a reporter who is gunning for shady finance is in a moment. max kaiser this is the kaiser report yeah time magazine finally recognizing what

everybody else already knows there's a global insurrection against bragger occupation stays there ever tell us more well max in order to talk about the story truck really i was ten a little bit this is tiago soup lose now this is it plain clothes sort of canned here because of course you can walk around new york city holding a can of kaiser soup so take a look at the artwork here but the real town looks like well a lot of people don't realize it's actually alphabet soup so you can spell out david cameron as a schmuck why are enjoying some hearty broth well it is the favorite soup of the s.l.a. i don't know if their photo made it into the actual time magazine but of course they are part of the spirit of what time's person of the year is the protester from the arab spring to athens from occupy wall street to moscow a year after cheese and fruit vendor set himself ablaze is said to spread across the middle east to europe in the us reshaping global politics in redefining people

power yes people power is on the march i think the arc of this whole movement is quite interesting it goes back really ten years twelve years to the anti-globalization movement which kind of petered out for lack of vision but then it was resurrected as this global insurrection against banker occupation or occupy wall street or. the uprisings all across the mideast and north africa next year in two thousand and twelve we're going to see the economies of scale can again so all these millions tens of millions or hundreds of millions of people around the world realize that collectively they are purchasing power if channeled correctly can top all these corporate and banker occupying forces don't you think yes and max you know the interesting thing watching this time news story being covered here in the u.s. is that all the commentators several of them actually came up to the point where they couldn't mention the name banks they couldn't. they talked about the dictators

that were overthrown in the middle east and then they got to that occupy wall street and they just couldn't say the name of what it was they couldn't name the culprit because it's like they are too scared of the really happening in their own country right the common theme throughout these countries are wall street and city of london banks third of course you don't hear about it in the city of london or in america because this is the the areas that provide safe harbor for these financial terrorists so time magazine of course they want to get the commercial optic from spreading the me much of global insurrection against banker occupation they want to sell some magazines but they don't have the journalistic integrity to point the finger and say it's all about goldman j.p. morgan barclays h.s.b.c. the true financial terrorists that are people are finding finally figuring out must come down well of course they have some photos of various protesters around the

world and they also have that clenched fist image but they also did yellow dog that we call them. in athens so they are inviting people out there to send me pictures of your dogs because i have one hairy giago hairy so we have to have these you know it does very little mascots as we storm the banks through barricades of fraud yaz. all of that's a fantastic idea everyone must have their own dog yes well actually my mind don't carry i should have a sock puppet called john for science look at he didn't do it this he's a very brutal jiao but in fact. in the next headline that's why i had to remove harry from the roof course i knew and used clients' funds says. so m.f. global holdings ltd chief executive officer john course i knew that the company made a loan out of segregated customer accounts before it went bankrupt c.m.e.

group incorporated chairman terence duffy told the senate. whose company is and global regulator of principle exchange is the one and said this yes well it's becoming clear stacey herbert is that once anyone puts money into a bank they no longer have the rights to that money it's now the right of the bank to control any money in the bank all of the protections for anyone who's putting money in any of these banks or brokerage firms are now gone they're a blin aerated thanks to all the deregulation of the last ten years orchestrated by criminals like john karr's on the mass the important bit about this testimony from duffy is that john corey's line had only testify that earlier that day that he knew nothing about m.f. global taking segregated funds right they caught him lying under oath now typical a

this would mean that there is some kind of penalties but since this is a wall street crime look for the supreme court to suddenly convene and rewrite all the criminal code pertaining to this case making this type of lying under all the legal for the benefit of national security you know the trustee james kids is also quoted in this article because he told the senate i don't think we're magically going to come. to a pot of gold at the end of the rainbow whether or not they'll ever find client funds missing one point two billion he said or more he did say that both the commodities exchange act and the securities investor protection act give priority to customers and if there is a shortfall there are provisions of both statutes that say other assets ought to be reached to cover those shortfalls he added however max and this is the important bit that other parties may see that issue as a matter of conflict i j.p.

morgan and other creditors right this is the amazing thing and going back to the commodity futures modernization act of two thousand where they legalized derivative trading before that it was considered a form of gambling but they legalized derivatives trading it also gave banks that have huge derivatives positions like j.p. morgan the ability to claim that those derivatives positions are existing outside or above any existing laws that would protect any current accounts by any customers so derivatives the things that have destroyed the global economy are now preserved at the expense of all customer accounts and so mostly notional value of derivatives is ten times bigger than the global g.d.p. paying then every single customer account in every single bank account the world is really nothing more than a blank piece of paper with a bunch of symbols on it but it's not your money or your securities no no no those are now on the ownership side of banks like j.p.

morgan who have no compunction about simply stealing it for national security well speaking of us stealing funds for national security purposes and this global cash morgan presumed its own so it can pay the bankruptcy trustees so here you have james good and j.p. morgan negotiating basically to keep the twenty five point three million dollars in cash held in. which is presumed to be m.f. global's but j.p. morgan apparently tried to deal with the trustee saying that they could have the cash. granted j.p. morgan alina and all of the company's assets right so j.p. morgan is cutting deals outside of the legal framework what's also amazing is that the silver that was in the m.f. global collectively all their one hundred forty thousand accounts that the quantity of silver disappeared from all those accounts but now magically has appeared on j.p. morgan's balance sheet as you know they're massively short some where they've been

scrambling for a way to cover their short position rumor has it that just a few weeks ago was about to be busted and j.p. morgan technically had to go bankrupt so what do they do to prevent going bankrupt i've always said j.p. morgan like enron one day to wake up it'll be worth zero in order to stop that from happening two weeks ago as it almost did two weeks ago zero j.p. morgan stock price they wanted to m.f. global accounts one hundred forty thousand of them they took to so many other commodities and just stole them that's their that's their response to their criminality and why they got away with it for national security there was a brief headline that they might possibly face consequences i don't think it's real but this is from zero hedge j.p. morgan stop breaks down and news companies role as little lender to be productive so they post a picture of a bloomberg headline morgan actions and this lender likely to be proof says liquidator and as you see this there's a nice chart of the players and j.p. morgan share price but the liquidator of the endless global brokerage said that

certain actions of j.p. morgan a lender to the brokers parents are likely to be the subject of investigation but max if you look at this chart it's felt less than three percent whereas goldman sachs fell over three percent at the same time so i think it's more an issue it's just the global financial system melting down not that there's ever going to be any justice for jamie diamond or any of their role and global fraud well ah. remember what happened over at enron a few people wanted to gel one of the i think i was the chairman blows brains out the so we have something to hope for let me just say that they were really hypothecation and hypothecation is going to be as important going forward as they were special purpose entities account every member and ron had over seven hundred special purpose entities accounts or they had all the dead bodies of their balance sheet we don't hear about those anymore value about hypothecation real papa cash on the infinite hypothecation through the bowels of the regulatory nonexistent city of

london of course all leading to a j.p. morgan stock price of zero and then if there's any justice this like jeff skilling going to jail and the chairman a blow his brains out now speaking of bankers max i have this headline here beggars cost each one of us eight pounds forty for every pound they produce studies show so bankers can to day be exposed as a huge drain on society costing the rest of us eight pounds forty for every pound they produce a study by say ten new economics foundation the average banker destroys forty two million pounds a year in value well creating just five million pounds well absolutely this is the biggest you know revelation that must bring shouted from rooftop to rooftop you know it costs seven eight times more in liabilities to keep these exotic pet banking fraudsters alive than any benefits of crude there are of not only don't

they don't add any value and no jobs and no germain g.d.p. growth they suck it out of the economy in a ratio of seven to eight to one what do you call that's a financial cancer that's not an industry well and this is why the global is rection it is safer occupation because in the mainstream media you just see the propaganda that enables these banks toure's so the media will. well tell the population that oh this banks deserves a million pound bonus because he treated five million pounds of wealth so he's just taking a share of his contribution to society they fail to mention that in making that five million pounds of value he destroyed forty two million pounds so they never talk about the externalities they never talk about the externalities and this is what's causing the austerity to be imposed in places like the u.k. which i just saw in the u.k. people are now homeless rate is skyrocketing as well as the jobless rate so thanks

to cameron has clocked all buddies in the city of london people are dying in the streets now that's the real cost big for bailing out real kleptomaniacs stays here at thanks so much for being. part of a future all right don't go away much more coming your way so stay right there. well. it's technology innovation all the developments from around russia we've gone to the future or covered. three. three. three.

videos for your media project. hi i'm max kaiser welcome back to the uk is a report time now to go to new york and speak with aaliyah mcgrath good men author of the asylum the renegades who hijacked the world oil market les is also a journalist formerly with the wall street journal welcome back to the kaiser report welcome back happy holidays thanks so much now live time magazine has just named the protester the person of the air the high price of oil of course contributed to global uprisings oil is still at one hundred dollars per barrel opec says it's due to speculators. it's due to supply constraints so who is right in this debate is it the speculators driving the price up or are we running out of oil well i think i.e.

a they don't really have. an axe to grind or an ass to save as they say in the sense that they're just looking at what the fundamentals seem to be you know a pack usually has a slightly more complicated situation because they want to keep oil prices as high as possible without any backlash so for them to say it's the speculators this pretty convenient i don't completely disagree with them having said that but i believe they're both speaking certain truths i don't know if it's proper to spend it all the way one way or all the way another way all right let's talk about the strait of hormuz because now there's rumors that it may be closed. on the rumor the price spike three percent do you see this as a viable risk going forward in the next couple of quarters from what you're hearing is this a rumor that has some legs to it is this going to happen do you think i don't know i can't speak to that i do know about the strait of hormuz. and the oldest trick in

the book whenever they're trying to push prices they always say something about hormuz so i don't know if you can just just based on the rumor itself is enough i haven't heard anything beyond the rumor my stuff and i don't know of any traders felt strongly about it in fact yesterday when i spoke to a few of the they're mostly laughing because this is an old that's been in the market forever they're always scared of something happening in her home. and whether an awesome is going to happen i think remains to be seen right so the rumor result in the price spike of three per cent which is an enormous intraday move in any commodity and after reading your book the asylum talking about oil traders and a lot of the high jinks that goes on there how much of these rumors are just put into the marketplace by traders of speculators as a way to scare the markets into making a quick buck but i think the structure of the market is such now that that is very easy to do whereas in the past when you had the trading floor and then you had. and

the like all trading from different locations but the each had their own sort of pool of information they would often start to break each other for example someone would start a rumor and then the trading floor would run with it and then they would do a lot more investigating into it i think because now it's moved largely to the screen you don't have the same sort of shy and groups of people who are able to share information with each other which obviously had its own problems in the past because they were front running prices but now the problem is on the screen a rumor can start and who's to say it's not true you don't have the large group of people often in training these training. floors you might have your office but it's really every man for himself so if they hear a rumor they're a lot less likely to be able to start to break it really quickly the way they used to be in the past. in the past you know they were pretty good at figuring out if it was something like a bank trying to start a story or if it was legitimate ok so if

a training firm. unlimited credit unlimited margin at almost zero cost at almost zero cost and they are able to program algorithmically automatic trading to kick in and force prices to loom to levels worse human beings then react isn't it therefore true that most of the trading action today is by computer generated rumors as a form of price propaganda just simply suck a lot of human beings it's a making silly decisions well it's true that most of the trading now is electronic and as a result as you know it's easy to click your mouse and one of the traders who i spoke to this week he said you know member in the past when prices went up they would almost fight to go higher and then they would fall fast and he said these days what we're seeing is sort of the opposite effect with screen trading you see the price and to go down and he said as a result he actually feels that there is

a lot more control over keeping prices propped up in the past when it was a different sort of market and the structure was different wasn't just clicking a mouse in order to prop up the price it was not as easy to do that these days you see price jumps of three dollars yesterday five dollars sometimes even ten dollars you don't even have a war breaking out or an oil well that's exploded nothing like that in the past that's what it took to make prices to that exactly so it's no longer a case of price discovery it's price propaganda and as you just described we don't have price discovery which is the balance of buyers and so. we have computers predetermining the price at which they want a commodity to trade to gain a lot of stupid human beings and then that price is fixed by computers will have access to unlimited credit at almost zero cost let's talk about another major fraud

m.f. global another major scandal how do other trainers in new york where you are. being wronged by one of their own because now we've got a broker dealer robbing other into broker dealers so the fraud is moved up from retell to institutional how do people feel about this in new york yeah it's funny the same day that i keep my wall street had its big you know sort of final rally i guess you could say they were having an occupy wall street bankruptcy court situation going on with a bunch of former traders and people in the futures market who were finding all their assets for and against them so it is definitely an issue of more wealthy people versus more wealthy people instead of the very lowly unfortunate people versus people so i think as you see people getting bolder yes they will move up the ladder you'll start to see more of this happening and the crux of this problem is americans are still largely self policing you had the chicago mercantile exchange

policing m.f. global although they're making so much money off of global and now you have a situation where they weren't able to catch anything in time it doesn't seem like that artists were very good and yet you have these situations now where you have fairly wealthy people and hedge funds fighting to get money that was literally stolen from them by their broker so i mean yeah it's sort of a new world i mean one of the hedge fund managers i talked to said let this be a lesson that if anybody takes your money no one is going to help you and right now there's a big struggle trying to figure out who's going to be helped if anybody well i mean beyond learning a lesson from this it. an obvious problem. the banks like j.p. morgan feel that it's within their purview just simply take money out of people's accounts so that they don't suffer even a penny of loss even though they're the ones who took the risk so. it of course the defense from john corners on m.f.

global is that they're self policing so that the congress will say in a hearing you broke the law and his defense is well we're self policing so what does that in i mean i mean does that what does that mean i mean is that a mass murderer can go down into a seven eleven and gun down thirty people in his defense give me well i'm self policing so therefore it doesn't i just as well read it well it'll be a lot less people to worry about in terms of welfare it goes i'll be dead all right let's move forward so tell us about the article you wrote for forbes the boy wonder global nightmare yes so and this stuff sells into what you were just saying one hundred fifty years the futures trading we have never seen people who just had a brokerage account literally find their money taken from them so this is one of those people the thirty year old lawyer and he actually doesn't even practice law he has had fun that he's more self described techno geeks that has fun largely runs itself he hires traders and that's why he's able to go to bankruptcy court and take

all this time to fight this he was able to get about eight thousand followers within two weeks other people also had their money and what he's doing is pulling together people at northwestern where he graduated and a couple law firms that have m.f. global clients people whose money was taken and he's brought them all together and they're basically working around the car to show that customer money should not be lumped into the larger state along with j.p. morgan and other creditors but some interest or trying to do including j.p. morgan bank of america and a few people on the creditors committee are trying to let the customer funds be lumped in with everyone else which is really for. because the customers didn't agree to lend money to and of global they felt it was their money where it should be morgan is a creditor because they agreed to be a creditor so this man james could tulis the saying no way come first this was literally taken from us and the problem is the bankruptcy judge doesn't really know anything about future is just

a bankruptcy judge it's just another case he has to figure out whether or not he's going to allow super superiority to the creditor to the customers and that's all being debated right now but there are a lot of people fighting and you have. funds traders traders banks pitted against banks or so lemme grass goodman what chance does he have against going up against j.p. morgan and a trustee that has that close relationship to j.p. morgan it's a real david and goliath story i think. j.p. morgan has given a lot of business to the law firm of james good and the bankruptcy court and if you look at the law firm's website it's just pages and pages of business from j.p. morgan so unfortunately it can't be really seen as neutral. of the c.m.e. who's former executive is now the head commissioner at the watchdog agency in washington c c f c c trying to unravel and investigate what happened but everyone seems to have too many hands and too many too many conflicts of interests and i

don't think that's a good idea it seems like almost no one here seems to care other than the thirty year old lawyer who's just trying to get his money back and trying to make sure customers get their money back they just want what's theirs back they didn't ask for it to be taken it be like a bank of america went bankrupt and all of our bank accounts just ordinary people's bank accounts were taken it's like that so let me get back to the oil first like i . said the production at current producing oil wells is declining generators seven percent a year and that's a newer sources of oil more expensive so we've got this peak oil peak energy scenario playing out now your thoughts seems like the international. you know they've never been right on every time but i think there's something to be said that the meter producing field are producing last we wouldn't have we wouldn't have horizon with deep water drilling and we wouldn't have tar sands being exploited so heavily and if it wasn't that we were now it's great being as hard as we could for

every last bit of fossil fuels we can get here these things are very expensive and you wouldn't be doing it if we still had low hanging fruit so we're obviously moving into a non low hanging fruit situation any way you want to spend it that's obviously with happening because the oil companies want to pay so much more to do things like shale and things like tar sands if they didn't have to rather just drill somewhere you see well the great thing about fracking which is another result of having go peak oil is that a lot of the water is actually flammable so in recipes like cherries to believe you can actually have the recipe explode spontaneously without actually having you know to use anything but their water coming out of your tap so it's a recipe book about flaming water and i'm sure oprah winfrey will sell a million copies of that so this is america genius at work all right well liam a graph goodman that is all the time we have thanks so much for being on the kaiser report thanks for having me max happy holidays are that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my

guests leah mcgrath goodman you can follow us on the report either twitter or facebook you can send me an e-mail the report of r t v are you until next time just as much as are saying by all.