all of them here in fact it's just a technical error so let's draw a parallel to the global economy because what happened when the stuff first started going wrong three years we knew there was something wrong and what did jamie diamond whitted lloyd blankfein what did they say nothing's wrong you know just carry on they're telling the regulators oh nothing to see here people are dropping off drowning in a sea of derivatives and they're doing nothing about it so this guy abandon the ship and he jumps in the life boat or he trips into the life boat people are dead i would imagine his next job will be skippering an oil tanker for exxon he'll probably be skippering some huge oil tanker and they can run aground on puget sound that'll be his next job because as price on the open skipper market just went down ok so let's go back to the story here because when captain schettino told the coast guard told the people who are regulating the law of the sea when he told them it was just a technical error but in fact was using that time to get into

a lifeboat and escape well once the coast guard found out did they. you know provide him with more liquidity or more coverage know the guy the captain of the coast guard captain gregorio default shouted at him you go aboard it is an order don't make any more excuses you have declared the abandoning of the ship now i am in charge now that's what timothy geitner that's what ben bernanke that's what george w. bush and then obama should have done as in control of the u.s. economy and banking system they said lloyd blankfein jamie diamond all you other sh'ma gagne's you have abandoned ship get off i'm in charge right have ben bernanke you better in charge of rescuing the cruise ship his solution would have been to take a boat out of the ship with a crowbar and make the hole in the boat and all the problems bigger that's the central bank solution to the global economic crisis is to make the whole bigger with artificially low interest rates this is what's making the situation even worse

and of course in europe we find out they're going to expand the european central banks credit lines by a trillion euro that's the exact opposite of what is required to bring some of this accountability that you're talking about the maritime law stepped in people are drowning. don't go in there obviously dying so maritime law came in and said ok we have to impose the law now in the global economy people are dying from the derivatives that are being created that are making the top one tenth of one tenth percent fabulously rich and everyone else is choking on their own fiscal vomit and the regulators are making that easier for the criminals so this captain schettino he's brought to shore he's now everybody knows he's abandoned ship his excuse. captain says he tripped and fell into lifeboat and that's the reason why he abandon ship that sounds exactly like the excuses that lloyd blankfein and jamie dimon gave

to congress i tripped and fell. and to tarp that won't be the nalgene would be the one that they always is is the market did it the markets unpredictable we don't know what the market's going to do and when the market did what it was going to do we had to do what we did even though they themselves are manipulating the market to create the effects that make them coincidentally incredibly rich and everyone else poor that's just a coincidence but this is the same kind of excuse that well this guy saying he tripped into the lifeboat and sell the way in lloyd blankfein and jamie dimon are saying well the market accidentally made me a billionaire i don't know how to you know there's further parallels here max because it's emerged as well that he did he's now confessed that he did. deviate from course to go closer to an island to salute to his friend well he said he's done this before and it's always gone ok but he said i don't know why it happened i

was a victim of my instincts ok well here's an analogy we know that dabbles is coming up a lot of bankers go to devils they prosper hookers and devils has never been higher so to get that really fine hooker material they do stupid banking tricks like don't come for a bank with a few hundred billion dollars with a debt to generate a huge thing to avoid that hooker and that's pretty much what happens at babbo so here's a guy running a cruise ship you see some chick on the beach baby look at me oh you people are dead well i mean accountability and maritime law yes on wall street the city of london no well he said he was a victim of his instincts john chorus line is using that excitement excuse oh it's just my testosterone i'm a victim of my being an alpha male now as no regulators will step up either they've abandoned ship there is one person out there and that is mecca. and let's turn to this video sent to us by a viewer lindsay out of. lax

stuck in the glow of our t. shirt is that as an art so the money mill tell them you want that as their official ad for their show on that network so as we said the global economy is listing it's sinking and what do the regulators do over and over they don't arrest the captains they don't fire the captains and tell them that they're no longer in charge no here's a tweet from jim cramer i must just proposes one trillion increase in lending that's what's needed i.m.f. stepping up to. the table real heat so in fact the i.m.f. expanded their lending to a trillion now they're looking for six hundred billion more right well this is the

jim cramer stunt we saw in two thousand and eight member when lehman went bust and there was a liquidity started to freeze up in the system and it looked like banks might have to pay for the mistakes that they made jim cramer went on c n b say and he did a hissy fit then let's cut to jim right now this one is in two thousand and eight and bernanke is being an academic it is no time to be an academic it is time to get the bear stearns school listen open the door facing window he has no idea how bad it is out there is no. yes no you aren't do you cramer today has almost every single one of these firms you know where seventy two hours and he has no idea what it's like out there now cramer he got his way member right after that paulson went in front of congress and said give us three quarters of a trillion or we're going to declare martial law that came out in the in the testimony later which turned into that was tarp and it turned into when you add all the extra tarp features almost fifteen trillion in bailouts we know from request

freedom of information act that there was a seven trillion chunk that went directly into the banks pocket another seven trillion of ancillary kind of was distributed to these guys very simply have that kind of money been used to bail out the homeowners hey the recession depression would have been over already two years ago b. obama would have come out like somebody who's a populist representing the people and not somebody in the pocket of the bankers and see kramer would have been taken off the air by now because he's a charlatan and a scam and as hedge fund as recommendations i presume produced an exact gain over the past five years of negative six or seven percent corn in my calculations so max this. issue of the i.m.f. able to expand their credit facility up to a trillion dollars that's the equivalent of the captain of the ship saying oh it's just a little technical issue as if the i.m.f.

has money as if any of the member nations have money to dedicate it to this facility u.k. faces request for nineteen billion pounds as i.m.f. boosts bailout fund to one trillion dollars. didn't we just cover the fact that debt to g.d.p. ratio in the u.k. is a thousand percent where do they get nineteen billion they engage in massive off balance sheet enron like special purpose entities fraud they create this debt. simultaneously creating an off balance sheet entity that they hope at some point will be made good when the economy reserve is growing well this is basically the model of the arson who's selling the charcoal of the buildings after he burns them down essentially the u.k. doesn't have as money then they cook it up completely in the shadow banking system

the multi hundred trillion dollar derivatives market is going to expand by another one hundred trillion dollars and that is financial repression financial oprah ssion see end up footing the bill if you have any capital you're treated like dirt in this economy if you're if you're a welfare suit queen like wall street in the city of london they roll up the red carpet but while they're distracting you with these so-called technical measures like increasing credit facilities up to a trillion dollars that they don't have in the meantime they're not only abandoning ship but they're actually preventing new from ever being able to jump off the ship even try to save yourself let alone them coming to your rescue because i want to turn to a little clip here from chris hedges a former war reporter who is now an independent journalist and commentator and here he is on democracy now being interviewed about the national defense authorization act he is suing the government to try to stop that and he notes that the

intelligence community in front of congress testified that they don't actually need the authorization that was being granted to them so he asked why and i think we have to ask if the security establishment did not want this bill and the f.b.i. . director mueller actually goes to congress and says publicly they don't want it why did it pass what pushed it through and i think without question. the corporate elites understand that those things of certainly economically are about to get much worse i think they're worried about the occupy movement expanding and i think in the end and this is some position they don't they don't trust the police to protect them and they want to be able to call in the army and if this bill goes into law and slated to go into law in march they will be able to do that the noose is tightening and the wealth confiscation is accelerating it is so max you brought up this chicken right now good story so we're going to go to this here woman offered

sexual favors for chicken mick now gets police say the los angeles woman was seen going from car to car outside a mcdonald's drive through and what it turns out is that she was offering sexual favors in exchange for chicken make now get with barbecue sauce i'm not sure it's worth the while she was trading sexual favors now what about greece which is traded their sovereignty for to can make now gets goldman sachs one greece last and then move back to leave many greeks the scholars aghast greece is culture ministry said tuesday it will open up some of the debt stricken countries most cherished archaeological sites to advertising firms and other ventures well they call this nomination so many months ago they have income producing assets greek greece is not bankrupt they were the victim of a leveraged buyout by a hostile raiders on wall street now they'll be converting their assets income producing assets will be going in the pockets of foreign bankers and the people have lost their sovereignty and they'll be bankrupt and being in the streets as

they were that was you know a nice show but there was no coup d'etat there was no revolution the government still in place so you lost goldman sachs one all right thanks so much for being on the kaiser report thank you max go away much more. coming away so stay right there .

only. welcome back to the kaiser report i'm max kaiser time now to go to london and talk with former compliance and market supervision director of the international petroleum extremes chris cook welcome to the kaiser report low again mix already chris could you predict the eminent and of the oil market why and how well in simple terms the oil market has become like several of the markets almost completely financial or used by the poetess a patient over was being called a passive investors by god is he calls them passive invest is in the they also called inflation hedging investors and the participation of these investors in not just in the oil markets but commodity markets and

a quick emo kids have completely distorted the operation of these markets right now ok talk about the financial ization of these markets it's a curious term the word passive because. as warren buffett calls it these are weapons of mass destruction financial destruction so it's a very aggressive destabilization going on to make a very few people on wall street the city of london exorbitantly rich while destroying the underlying fabric of these economies but is it safe to say that the connection between the price that you see the paper price has absolutely nothing to do with the real price of the real stuff i think what has happened is that the price of the physical the actual. that we we use it gets refined and into gasoline and then we drive we drive around using it has become inflated. because basically the participation of these firms in the market has acted to raise the

price to a level which basically the demand starts to get destroyed this happened back in two thousand and eight i gave evidence to the treasury select committee back then but they lost interest when the products collapsed and in two thousand and nine maxie basically happened again the price got bumped up and was kept up and see what is being missed here is that we're not talking about speculation we're not talking about people taking a risk so that they can get a transaction profit what we're talking about here is people who want anything but dollars right they basically see dollars being printed all they did see dollars being printed by the multiple billion they saw interest rates at zero percent and they thought well we'll buy equities we'll buy gold we'll buy commodities we'll buy food we'll buy anything books dollars and that is what happened that's what led to

the bubble inflating that bubble is now becoming is being reversed. and the money has been based in the last three to six months has been flowing out of the market again back to the dollar back to the u.s. treasury bills and what we're about to see this was a subject of a recent article i wrote. in my view is a collapse of the oil prices exactly as happened in two thousand and eight for exactly the same reasons this inflation hedging money this risk averse money is flowing out of the markets and what we will see within the first six months of this year in my view this is gone on record. saying it you know i'm putting my money where my mouth is sort of thing i believe we're going to see a collapse of the price probably as low as fifty five sixty dollars maybe even less all right let's talk about all the facts for a second their role in this commodities and acts and their relationship to be in

terms of the problems you see in the oil market very interesting story of delved into on your recent piece well this goes back a long way it goes back almost twenty years it was goldman sachs who in basically came up with what was called the goldman sachs commodity index spitz's been sold off but the g.s. c.r.i. was basically the idea that you could invest fund could invest in a basket of commodities which energy was crude oil was the biggest by far and that the genius piece of marketing which they came up with was to basically sell this to investors as what they called an inflation hedge so and they they they sold this concept of actually hedging inflation by investing directly in commodities by creating this fund the c.i. fund and then in one nine hundred ninety five what happened. was that

from the time onwards goldman sachs and b.p. were essentially i say joined at the head joined at the head they have the same chairman peter sutherland he was the head of the w.t. oh very well connected he was the chairman of both organizations for twelve years and for nine hundred ninety nine john brown lowbrow i'm sorry he was the also on the goldman sachs board for i think some of the most profitable years for b.p. and goldman sachs. that really sort of happy time which they had and the reason that this worked max i think was that they in essentially being very astute people . b.p. realized that they were always hedging their production they were always selling futures contracts they were always protecting themselves against a fall in the price by selling futures contracts and they had

a very very big book of contracts i remember that from my ip day and so this is our far this goes whereas g.s. c.r.u. the fund which came into the market took a long term position on the other side of the market what they were doing was they were basically taking all or you risk and offloading the risk of holding dollars and if you think about it what b.p. were doing was laying off the risk of holding or. taking on the risk of holding dollars they were so b.p. were hedging their production and goldman sachs's customers were. protecting themselves against inflation and with that relationship which brought think broadened and deepened over a period of years and in my view. difficult to say exactly what was going on. because it was all done between consenting adults you know. but i am i would be as

a former regulated myself i must say i would be very interested in running back through all the interaction between those two from ninety ninety five until two thousand and eight or even even more recently they have a bit of a false laddering in fact with these two parties acting in coordination with each other to completely obliterate the price signal mechanism and manipulate markets now of course viewers of this program know peter sutherland from his role in getting the irish government to throw the nation into perpetual debt servitude by bailing out angle irish bondholders so here's an all star all star the world of finance the whole crux better sutherland so tell us what dark what is dark inventory and why does it matter what's happening is that people are essentially leasing they're selling oil. today and they're buying it back

a month from now this is the physical oil they're essentially backs leasing the oil and they're not doing it on exchange they're doing it between consenting adults completely opaquely what's happening is essentially some of the inventory that producers have and it could be b.p. it could be almost anybody could be the saudis it could be many projects no one knows exactly who it is but it is definitely going on the only people transparent in this are essentially shell who invented transparently into a relationship with e.t.f. securities to essentially lease their oil and give price exposure the oil price exposure to the customer but most people are not doing this transparently so what's happening max is there is oil which the entire industry thinks is owned by the producer but it's not been sold already to somebody

else and what that means is when they see the price going a certain way in the physical market or the forward market they think are well will sell face. and then what happens is what they don't realize is that the person who bought it from them actually already has control of the oil and they get what's called squeeze what we're talking about maxie's a market that has become entirely corrupted entirely corrupted might musters. a well known commodity expert he gave evidence to congress in june two thousand and nine and he brought the world down on his head the entire financial world down on his head because he was saying exactly what i'm saying he was talking that he was saying that passive investors as he called them have no place in the commodity markets in fact no place in any markets because they destroyed the price mechanism if you think about it max the normal price mechanism you know speculators traders

they bought and they sell at a profit or try to or they sell and they buy back at a profit and it's a two way market and it's a zero sum game that's the market everybody thinks they're in the real market out there has been corrupted by the presence of people in it who are not buying to make a profit they're buying one to avoid a loss this is just not visible people the general public are participating in a market that is basically dead it's a zombie it's a walking dead market ok so just to emphasize your thesis there were looking for a trap door to open up under the price of oil and a price. moving down to the fifty five dollars a barrel range now imagine saudi arabia there for a second so crosscut when the arab spring broke recent laying in countries all

over middle east north africa saudi arabia immediately gave their population bonus cash bonus to try. to appease them and this worked pretty well based on this high price of oil if in fact your scenario plays out oil drops to fifty five dollars a barrel the saudis can no longer buy off their population what they all cash are they going to be in a lot of fire for a revolution as we've seen in other north africa and middle eastern countries i believe that is the very reason what you know the price dropped in two thousand and eight before from one hundred forty seven dollars to thirty five and i think it's fair to say that there were crisis meetings all opec and all the rest and i think what's happened there's been a reaction to that you know that they're basically entered into this sort of arrangement because they're prepared to give away some of the upside in protection against some of the perceived downside and yes if the price those fall. they're

going to need to look again that well how on earth could they re inflate the price to levels at which they could double their course. that's not difficult for opec to do i guess it's safe to say that saudi arabia is mostly in the paper business and more so then actually in the oil business i think there are a lot more in the paper business much than people realize but i have no proof i would just be very interested in seeing the transactions that go on in that market all right fair enough chris tucker out of time but thanks so much for being on the kaiser report it's been a pleasure max thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guests chris cook if you want to send me an e-mail please do so at kaiser report r t t v dot are you don't forget to follow me on twitter so next time x. guys are saying by all. the known.

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with the blood still flowing and the body count growing the arab league reportedly wants to carry on monitoring inside syria despite being slammed for being totally in effect. silenced and thrown out iran's english language press t.v. channel gets kicked off british airways. something to try to clear act of censorship. president protests against corruption turn ugly with hundreds arrested dozens injured in clashes with police.

a very warm welcome to you from all of us here at r.t. moscow. the arab league is reportedly leaning towards prolonging its monitoring mission in syria for another month amid widespread accusations that it's actually failed to curb the violence the final decision is expected on sunday after the observers report comes under scrutiny at the catherine in cairo. the arab league minister is going to be meeting to present their findings of what's been happening. discussed what the next me will be the arab league mission in the country to even see the implementation of the arab peace plan by syria's government not months.