more news today violence has once again flared up. these are the images growth world has been seeing from the streets of canada. showing operations to rule the day. max kaiser welcome the kaiser report looking back how we cut through the financial propaganda gave you the real deal stays here but yes max this is the last kaiser report of twenty eleven and where going to look forward into two thousand and twelve as many are doing but i want to look back to two thousand and ten at the same time when we were looking forward to what would happen with two thousand and eleven and first i want to turn to this little clip here and we're discussing a story about bank of america and they had bought four hundred thirty nine u r l's

like bank of america sucks dot com bank of america blows that brian moynihan sucks dot com and blows dot com in order to avoid any activists or global insurrection against banker occupation targeted man on line here's your response to that so let me get this straight the bank of america to avoid a public relations problem went out and bought a bride morning sucks. the c.e.o. bank of america brian moynihan sachs brian moynihan blows dot com to avoid a public relations problem and also of course in this propaganda war you want to cover up your crimes of financial terrorism as best as you can and the people on the internet who sussed this stuff out quick you try to divert attention from them because god forbid bank of america should be transparent or obey the law in any way shape or form no no no i want to blow themselves up and everyone around them

because brian moynihan stock start come what else again but. now brian wanted to still there. their share price. down below six touch five dollars recently so that's a form of propaganda using u r l's or domain names or the absence of all those who want to express their dissenting opinion to acquire domain names and as a result those who still own bank of america stock got absolutely sure lacked we told you the truth we could've hoped to avoid a major beating yes and that's probably a theme we're still going to see going forward in two thousand and twelve max because the same guys are still their shareholders and in fact the department of justice refused to remove brian moynihan from bank of america which everybody knows was obviously a criminal enterprise they're always settling lawsuits civil lawsuits with the f.c.c. but he's still there and because of that because the shareholders will not force

him out they're down sixty percent last year at this time you know and there's talk amongst the banking analyst community that bank of america stock is going to go to fifty cents a share in the next six to twelve months well the other thing you predicted you forecasted from last year's new year's eve show the second new year's eve show we did from london where we were trapped during the the snowstorm was we covered a story from francis fukuyama who had asked whether or not america was a plutocracy and his conclusion was that yes it was that the rich have an outsized sort of power over the political process here is your response but it's beyond plutocracy states never it's a clip talker see so it means that if anyone's earning one dollar in america that means that ten dollars are being stolen from them from the clip talk or see and those people who earned a dollar now have an additional ten dollars in debt that's the difference between a kleptocracy and a talker see so once again proven to be more of

a observer of social phenomenon that francis fukuyama who's an overrated time. i said this is not a plutocracy it's a kleptocracy and who was right me again yes but the biggest story of two thousand and eleven max was re hypothecation it came into the public domain in the collapse of m.f. global but you are predicting that there you are saying that for every dollar that a banker steals from you they actually with ten dollars of debt because of their leveraging up on it well let's look at this for a second because there is a myth out there called fractional reserve banking that a bank will have a dollar of deposits and they'll issue ten dollars in loans that's not the way it's done anymore banks have zero in deposits they've all put their deposits outside of their balance sheet because it's considered too much of a liability and they just make loans and dodginess lee from nowhere and they create a ponzi scheme of multiple layers of debt but now the new stage is to

go even deeper with this really hypothecation scam and we see this is just the morgan not only don't they don't have any reserves that they're not placing any collateral to make loans but they're just stealing people's money out of their accounts as collateral to make loans off their balance sheet on the dark pools to offset their shorts over positions and other nightmarish balance sheet items as a way to try to extricate themselves from their own fraud so this is the trend going forward it's not even a zero reserve banking it's mega reserve banking well let's see where this is going in the new year some of the predictions being made by banks and bloggers around the world saxo bank outrageous predictions for two thousand and twelve the perfect storm they predict e.u. declares extended bank holiday during two thousand and twelve they predict that the december e.u. treaty changes proved insufficient to solve e.u. funding needs particularly those in italy and the e.u.

debt crisis returns with a vengeance by mid year in response the stock market finally caves in and drops twenty five percent and short on. i predict that the first country to declare a bank holiday will be the u.k. you predict that absolutely here's a headline from the news in the past week or two which proves that they might actually be correct in predicting that all center on italy exclusive italian banks tap one hundred sixteen billion euros of e.c.b. loans so for the first time ever remember the e.c.b. just issued over four hundred eighty nine billion euros of three year loans this is our first ever for the life of the duration of the loan it's one percent but more than a dozen italian banks including top lenders unicredit and test the sound paolo tapped one hundred sixteen billion euros of that their figure includes forty point four billion euros of state backed bonds which were used as collateral for the

loans so they're issuing debt. in italy to send over to the e.c.b. in exchange for more loans which they can leverage up is this banking or the kama sutra. like this economists of a giant banking positions. this is how they're basing their economy going forward. into slot b. you figure it out i actually make a prediction from your statement there max that silvio berlusconi who is now out of a job well you've just given him a job for two thousand and twelve to write the book the karma sutra of finance silvio's bunga bunga finance just look at the pictures and you'll throw up the never try this type of leverage or history hypothecation at home. ok well the biggest amount twelve billion euro is a state backed bonds taken out by in test a sound pollo which confirmed it had used them as collateral for the loans and said that these would help it complete prefunding for its wholesale medium and long term maturities so where do you see this three hypothecation going no where and how

where do you go once you've jumped the shark this far well in the case of europe and the e.c. big they are several years behind the federal reserve or the treasury in terms of leveraging the balance sheet of the e.c.b. so they have five to ten trillion and fresh loans however they construct it and whatever trick they may use accounting methodology they're going to leverage up the balance sheet by five acheron trillion and of course remember in the eurozone there's over ten thousand tons of gold italy's got over twenty five hundred tons of gold so they could well do this i think that the u.s. dollar is a lot more risky than the euro and certainly the british pound as well the euro will continue to hold its value on a relative basis now it's time to cut a little surprised because we didn't get it always all completely right we were totally perfect and in fact we have some blooper is from two thousand and eleven stuff that didn't make it to air here is our first one here what what what what

other can completely. in congress factoid descends from your lips as we explore this global. is that an appropriate segue that you should come up with something else. yes and to other. sovereignty within that nation when i think just end up where you are talking why do we have to go into an elaborate cockpit nightmare ok. yes well germany of course and there are lovers other countries even more to those who just go to go to a store got to go rock skies. so let's end this first section here on their predictions regarding the u.s. these are big predictions for two thousand and eleven that the u.s. would default collapse blah blah blah this is another prediction for this year

huffington post predicts u.s. defaults on debt because they claim the danger of an accident caused by self destructive partisan politics in the run up to the two thousand and twelve presidential elections is very very small however it is very real look the u.s. is not going to default on its debt the u.s. can print lots of money but what will happen because the federal reserve has already expanded their balance sheet from eight hundred billion to almost four trillion going from tarp forward it is we will see greater reliance on the i.m.f. and the use of special drawing rights so all of these central banks will kick the can down the road by rolling up all this toxic debt that they took from the toxic banks into toxic special drawing rights collateralized bonds and notes and they'll be a whole new generation of ponzi scheme on top of this as the penultimate move by the central planners before they ultimately figure out that they have to go back to

a gold standard yes but max don't you think however that you see so many absurd candidates spouting absurd bizarre stuff in america that even they even though they can print money and they don't need to default do you think it might be so bonkers that you might have like this bizarre situation that they actually do. well last year there was scuttled to various i mean this apologies would fall well maybe twenty twelve is the year we see hundreds and hundreds of municipal bonds go belly up across the nation and then it'll be interesting to see how the federal government deals with bankruptcy and thirty six out of fifty us states might not default but u.b.s. predicts that perhaps u.s. ten year treasury yields break out so right now they're saying that u.s. treasuries remain among the safest assets in the world they're considered safe everybody's buying them the yields are driven down but what could prove those

investors wrong u.b.s. asks they give a few reasons for the answers but the one that's most interesting to me they say alternatively the appeal of u.s. treasuries could be eroded by common bond issuance in the euro zone creating the potential for a larger homogenous market for european government debt that could rival u.s. government hedge money that however seems a remote possibility well this is what the currency war is all about you know a couple of years ago it was thought that the euro would be a replacement for the dollar on the currency side this was the reason why up to thirty percent of global trade was done in europe then the euro started to break apart or be challenge with all of these sovereign defaults being rumored and downgrades so but now the competition will be who can issue the most sovereign debt so now europe in response to the erosion of the euro is coming up with us federal zation fiscal is ation of their crop pan-european financial markets and central

banks and they'll create trollish at the trough just trying to warfare remember world war one was trying to are fair and twenty twelve for world war three of the currency war it's trawlers warfare so they'll come up with trawlers after troughs of this and then the us will have to respond and then that will sink the u.s. treasury market and yield. so go up and talk about flesh and stuff stacy herbert i know you're coming back after the break by popular demand no more guests of the show we're just going to stacy and i have twenty twelve at the gas all right don't go away. the official placation. pulled from the.

video. feed now in the palm of your. on the dot com. good to take three. four three. three. three. three. video for your media project preview deodato r t v dot com. welcome back to the kaiser report i'm max kaiser with stacy arbor time to find out what your predictions were at facebook dot com forward slash max kaiser stacy ever max the most popular of the sixty four predictions made by viewers of this program

was from ash raised up merkel and sarkozy to release a sex tape while they worked for paris hilton. and i mean if they were to release a sex tape i'm sure you've got a tremendous amount of views on you tube but speaking of releasing tapes online i want to ask you about this what you see for two thousand and twelve on on the. online distribution market because there's a very interesting story that broke at the end of the year and that was louis c.k. i am giving away half of one million dollars from live show so this is comedian louis c.k. and he announced he was giving away the lion's share is actually seventy five percent because he himself is only taking two hundred twenty thousand of the million for his own fee on the proceeds from is online only stand up comedy event live at the beacon theater so here is what he himself louis c.k. wrote on his website he said hi so it's been twelve days since the thing started and yesterday we hit the crazy number one million dollars. now i want to break here

for a second he released this without any digital rights management on it against the advice of his own advisers who said no everybody will release it bit torrent sites you can't do this and he said no i just want to make it as easy as possible so instead in twelve days he made one million dollars that's a lot of money really too much money i've never had a million dollars all of the side and since we're all sharing this experience and since it's really your money i wanted to let you know what i'm going to do with it and he's giving it away a lot of it well this opens up a number of different issues and louis c.k. israel i underlined some very interesting facts here number one the push by the motion picture association of america the m p a to sue people for copyright infringement on the basis that it would destroy the end history and as an artist is false here you have an artist who went directly to the market raised

a million dollars for their show clearly making a huge profit motive and they cut out all the middlemen they cut out hollywood they cut out the eye of speed they cut out all the digital rights management technologies that would be interfering and getting in the way it also legitimizes to a huge extent bit torrent bit torrent is the future bit torrent is part of a growing digital economy to let the m p a a they represent only a quarter of a million of americans in hollywood who make over budgeted monstrosity of films at the expense of free speech and technological innovation and innovation is a monstrosity and he had legislation like stop online piracy act which i don't think it got passed in the end because it's clearly not the public's interest so these are just two or three trends that this is now a exemplifying and another big one and ancillary trend that i see. moving forward

in two thousand and twelve is the emergence of bit coins yeah well let's stay on this story here because i think this is a very interesting one in that is that steve jobs had made the same argument to the record industry he said you know they're going to continue downloading your music illegally unless you offer them an easy way to purchase it and this is what louis c.k. has done if you make it easy for the people to download and share amongst themselves they will pay for it well and also disrupts the model of what's called the hollywood model of spending fifty percent of the films budget on marketing let's take the latest tom cruise movie for example maybe it's cost two hundred million dollars to make those spend one hundred million dollars on marketing to create that first weekend box office illusion of a success and then they sell forward based on that created illusion of success do two hundred million dollars of marketing spend here is louie c.k. who didn't spend any marketing dollars you simply put out

a product of quality people paid for quality that means that unless you're willing to come to market with quality you're not going to get paid so this is actually great for the artist so that's a myth that the m p a the r i a the recording industry association of america like to put forward that this is bad for artists no it's great for artists they make a lot more money than they would in the current system this is going to be encouraged going forward and now let's turn back to some more viewer predictions and this one comes from leah complera and she predicts that john kors sign is acquitted on all counts of financial peeta feely well financial paedophilia is a new statute that was first revealed here you know we talked about it a couple of years ago actually and we had a scholar a legal scholar talking about the introduction of financial pornography and paedophilia as a classification of financial crime as a deterrent and he should be brought up on financial paedophilia any will get off

because jamie done. and we'll just make a call to whoever it is to make a call to get off scot free but let's move on to the other big prediction a lot of people a lot of banks a lot of bloggers are making this one the chinese economic miracle falters too many u.s. t. bills tying it to post-industrial western economies is part of the reason but in fact they say that the most serious economic damage will come to australia who's basically gone long all in on this bet china sustaining their economy and their housing market bubble yeah this is interesting because a couple years ago the theory was decoupling the china's economy would grow fast and then they would leave america's economy in the dust then as it started to come clearer that with all the ghost cities that were being built and the incredible lying by the government terms of their g.d.p. numbers that the decoupling theory was really christened as reverse decoupling that the us economy was going to grow in spite of

a falling apart china now twenty two of what we have is a mutually destructive decoupling mutual decoupling both china and the us and those reliant on chinese fake g.d.p. reporting like australia and canada are all collapsing so this is the the end of the last harber of growth in those economies china australia canada you know the canadian real estate market vancouver for example is there on the descent so now we're talking about a huge crash in canadian real estate as was predicted on the show well max is not so cut and dry because two legendary investors who are right now as we speak in a war of words over this issue mark fall over jim rogers clash over china and commodities agree on gold they're actually having a slanging match via the media and on c.n.n. b.b.c. it started with mark robber who said that he was more worried about

a chinese economic downturn than recession in europe. jim rogers responded to that and said mark still does not understand china there are going to be several hard landings in the next few years but china's will be less hard overall than others such as greece and the us he told c.n.n. b.c. mark responded saying well he's been wrong on lots of things tim rogers well i think if you take the face value of their words of jim rogers says there will be several hard landings china is included then that's admitting that china is in for a hard landing he's not saying that it's in for a soft landing as he would have said maybe only six months ago he's saying yes china will be in for a hard landing this is an economy that's been growing at nine ten twelve percent a year for several years so hard landing in china would be catastrophic so jim rogers in the sea is going to run into the tall weeds of anon accountability by

saying that well give it ten or twenty years then it looks like farmer could have the upper hand here and i want to take this moment maxa turn to another blooper from the past year like the somali pirates of the right idea they loot the ships and then they sell shares in the next ship that they're going to loot on an informal exchange like a group honor or a facebook share market or shares post isn't like an electronic internet based market that only people who actually have a proven record of criminality aren't eligible to be involved with and they take those public the somali pirates and hold us again and watching in my for free vision here because you know like i got to go there all right so so the proof revision for free version the somali pirates yeah the somali pirates in somalia pirates they got the right idea of the oh i want back to the beginning.

we're going to say we have a list i carry on we know you're already with us three minutes is going to be a special hour we're going to be channeling guys are coming to a theater near you well again we were on to something that we could release a feature length is a report online just like louis c.k. they should raise money to send us to somalia to do a report on pirates you know was raise money on pirate my film bucko. anyway you know there are a lot of predictions being made about elections the u.s. election is of course the big one in the news but i want to look at the french election because of course how the economy is doing and how people feel about the economy is very crucial whether in a company to get reelected french most gloomy about economy so this is according to a poll and the two gloomiest on the economy are the brits and french almost one in

ten britons or nine percent expect their economy to improve in the next six months and only ten percent would describe the economy in britain as good but there is more pessimism in france as just two percent of the people are optimistic about the next six months and only seven percent said the french economy is good well you can't compare the french of the british because they're from. you know whatever it is everything is gloomy to them if they're not getting some kind of freebie from the government at any given moment they're gloomy and down in the mouth and having an existential crisis they may think of me you know in the middle of disneyland well but they're gloomier than normal so that's why star cosey is far behind in the polls he's predicted by every single poll that he's going to lose this is unusual for an incumbent but it is it's a desperate economic situation an economy trumps the economy stupid that's going to be proven once again in two thousand and twelve unless your opponent is beyond

stupid and that's what you're going to see in the u.s. i there's a there's a history in france of the polls notoriously being completely wrong people say one thing and vote completely different because they're duplicitous best of the front duplicity is a french word well ok so i said in the poll seven percent of the french people believe that the economy is good compared to germany where sixty four percent of the germans believe their economy is good us right because the germans are all as optimistic about the future that's why. they're able to engineer such fantastic engineering products ok finally max let's turn to this one tiny little blooper of the last one here well so he calls gold investors lunatics ok but so with that max i want to turn to paul that i forgot i was going to say me you didn't do. so all right stacey you have another great year coming up thanks so much for being on the kaiser report thank you max all right well. have

a nice year if you want to send me an email please do so because the report at r t t v dot ru until next time nice guys are saying oh you all.

me if he. if he succeeds. six.

hello i'm tom arbonne in washington d.c. and here's what's coming up tonight on the big picture big picture team has the night off for the new year so we wanted to share with you two of our conversations with a great minds that we think are just as important today as they were when they first aired a few months ago we'll begin with another look at my interview with author environmentalist and activist bill mckibben a true advocate for the planet and a man who's.