anything got dollars right there basically see dollars being printed all they did see dollars being printed by the multiple billion base or interest rates at zero percent and they thought well we'll buy equities will 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 the subject of a recent article i wrote. in my view is a collapse of the oil price 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 and this is gone on record saying it mounts you know. 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 index and their relationship to be in terms of the problems you see in the oil market very interesting story you delve into on your recent piece well this goes back a long way goes back almost twenty years it was goldman sachs who in basically came up with what was called the goldman sachs commodity index it has since been sold off but the g.s.a. yari was basically the idea that you could invest a fund could invest in a basket of commodities of which energy was crude oil was the biggest by far and that they the genius piece of not getting. which they came up with was to basically

sell the best there's what they called an inflation hedge so that and they base all this concept of actually hedging inflation by investing directly in commodities by creating this fund the g.s. c.i. fund and then in ninety ninety five what happened. was that from that 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 sagal and 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 graham 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. during that really sort of happy time which they had and the reason that this work merits i think was that main essentially being very astute

people. realized that they were always hedging their production they were always selling futures contracts they were always protecting themselves against the fall in the price by selling futures contracts and they had a very very big book of contracts and i remember that from my ip address this is are far back 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 on oil 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 all. taken 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 grew i 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 thought i would be as a former regulates of myself i must say i would be very interested in running back through all the interaction between those two for ninety ninety five until two thousand and eight or even more recently they have a bit of a toss laddering in fact with these two parties acting in coordination with each other to completely obliterate a price signal mechanism and it relate 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 in the world of financial crisis interest other lead 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 please opaquely what's happening is essentially some of the inventory. producers have and it could be b.p. it could be almost anybody could be the saudis it could be many producers no one knows exactly who it is but it is definitely going on the only people transparent in this are essentially shell who have entered transparently into a relationship with e.t.f. securities to essentially lease their oil. and

give price exposure the old 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 only 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 we'll sell this. 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 max is 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 market because they destroyed the pricing mechanism if you think about it max the normal price mechanism you know speculators traders they buy and they sell at a profit trying 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 that everybody thinks they're in but the real market out there has been corrupted by the presence of people in it who are not trying 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 they met in saudi arabia there for a second so cross cut when the arab spring broke recently in countries all over middle east north africa saudi arabia immediately gave their population a huge bonus cash bonus to try to appease them and this worked pretty well based on the high price of oil if in fact your scenario plays out oil drops to fifty five dollars a barrel and a status can no longer buy off their population with the oil cash are they going to be in a lot of fire for a revolution as we've seen in other north africa and mid eastern countries but 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 is been a reaction so that you know they are 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 going to need to look again that well how how on earth could they you know reinflate the price to levels at which they could people of 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 marks 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 prescott 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 because the

report with me max kaiser and stacy herbert everything. i guess chris cox there's a lot of so many male players there so i kaiser reported our two t.v. got our you don't get to call me on twitter so next time nice guys are saying by all the bad.

a. lot of parties win an overwhelming majority in egypt's first post mubarak elections claiming more than seventy percent of seats in parliament. ballots are cast over the arab league's a position to be in syria with critics questioning the group's independence while supporters say their presence has failed to use the finalists. police clashed with protesters in croatia's capital zagreb where hundreds of took to the streets to rally against joining the e.u. ahead of the country's referendum. and more trouble in the e.u.

as romanians take to the streets to boys. were from violence the country has seen in over a decade. in broadcasting live direct from our studios in central moscow this is r.t. to write for our top stories this hour islamised parties when you gypped first most first post mubarak parliamentary elections claiming seventy two percent of the seats in the lower house the new parliament is expected to hold its first session in just two days time for notion of brings us the details from cairo. the fact that the absolute majority of the first parliament of new age of post mubarak egypt will be taken by islam if some conservative party is means that the egyptian society rather secular right now will be put under strict

a religious code and of course this is something people will not be happy with this is not something they want to they've been fighting for more open democratic society not just one piece of course is expected to fact tourists which is a very important part of it gyptian economy because tourists don't want to go to the country where they are forced to cover their faces and hands of course since brotherhood is supporting the supreme council of armed forces that took power from mubarak last february the militia that has been the backbone. in egyptian politics since the fall of monarchy in the nineteen fifties i mean the military will stay longer in power and this is of course something also again something people here in egypt are not happy with because they say they want to do the revolution in two thousand and eleven to get rid of the tape issue and they don't want another one

which is a military dictatorship right now this is how they take things in egypt right now so again we can expect protests and tensions between military and people on the streets to escalate. you have been a reporter at the druze jerusalem post who has written extensively on the muslim brotherhood says the new egypt will be much more hostile to the west than the old regime. people have called for democracy in egypt this is the result when people call for democracy they may not always this realize that the electorate has a very different vision of how they would like their society is run then in other places such as western europe we have islamist hardline parties coming to power and it's going to be an earthquake for both egypt and for the region the muslim brotherhood has been preparing for this moment for decades they have a very thought out detailed agenda for how they wish egypt to look like and it's

a very different egypt from what we've known until now going to be a much more religious conservative place and much more hostile to the west. and in neighboring libya around two hundred protesters stormed the building of the national transitional council's headquarters in the city of benghazi crowds have protested the slow pace the country is moving towards democracy protesters threw stones and about abroad have been breaking windows and damaging the car of the m.t.c. chairman. hundreds of young men many of whom were wounded in the revolution but was pulled off a vented their anger at the level of compensation that they received from the interim government that they helped to install the demonstrations have been arranging for weeks and been buzzing with protesters also demanding more transparency about how the n.p.c. is spending libyan assets radio host and author stephen london believes the crowds are unhappy with the new government serving as the puppets of the past. a couple of hundred former fighters all more rebel fighters storm oliver garrison

they used here in grenada took a little while getting the problem in a blue out the base told about women to take the blame you know he probably treated properly the were like sure well i wasn't brought up the people were promised they would have a stadium these people have given no say whatsoever everything is in secret in any in d.c. government let's face it is a puppet western government serving western interests absolutely no interest in ordinary libyans i expect protracted violence i expect a western major media so ignore it. you're with our team and still have for you this our. man is not just stepping on the moon people stay there find out russia's latest plans for the great. responsibility to

guide the lemmings down a better path no loving the mind of the old. we explore how ready people are to believe made up stories when you throw in a much like thread the resident was out on the streets of new york that. the arab league is set to decide whether to extend its mission to syria may be mixed results for the observers as both sides question their effectiveness and officials from the league have indicated the mission is likely to continue as the presence of monitors has reduced the level of violence in some areas parties safer is following the situation in syria. the arab league ministers going to be meeting to present their findings on what's been happening ok. this makes me. doubt the arab league mission in the country even the implementation of the.

syrian government among other things that included the release of prisoners the withdraw. troops and tanks from some of the towns and cities because success. has been the case of. the arab league mission final day here in the country there are questions raised as to the neutrality and the credibility of the mission certainly seeing the way that they operated coolants the question really just how independently they were able to operate in the country. didn't really seem to be taking a i can't. think of passing he wanted still another question the question is whether these monitors what is going to be interesting meeting for. this mission. because they can very divisive. the

response to the people the hospital some people think this really is essential to this mission continue and in fact just possibly speaking to one of the former advisers to the government the previous syria because listen to his opinion on the situation. syria. you have to put that you have to. go. first let me spin it after the conflict came in because he will start it off as a peaceful protest that's become increasingly. that if you have to be you know it right now become the no longer have control can you call the actions no one really

knows anymore the point the people what i think the number of people we've been speaking. of major concern. the violence in the country has reportedly continued unabated after a rally of twelve thousand anti-government protesters in the city of zabadani to the west and i suppose our jesus or first visit they're sending updates on the latest developments here history the most recent photos from the scene of heavy fighting sara says there's an uneasy ceasefire in place with half of the city under government rule happen fall by your armed opposition and she also says that locals are very afraid that violence will get. police have clashed with protesters in croatia's capital zagreb hundreds that rallied against joining of the european union and other countries membership referendum clashes erupted when demonstrators attempted to take down an e.u.

flag recent surveys suggest around forty percent of the population are against joining the union patrick young from the investment consulting firm devi advisors says the sentiment is easy to understand as crowds can see their neighbors in the block facing hard times. the key consideration here is that when we look at croatia referendum he was being barely one m.p. in the entire parliament he's actually turning round and publicly saying anything against the e.u. itself so the fact that we have this amazing groundswell of support at something like forty percent easing credible it demonstrates the fact that the political classes are completely and utterly out of touch with what the people are thinking and what the people are thinking is quite simple big scene near facing similar who are emerging european countries such as themselves people like slovakia venia as stony are all coming into the european union they've joined the euro zone and they're kind of the worst choice and childless imaginable because slovakia nurses

and pensioners are not getting paid a third of what they would get paid if they were working in greece and to add insult to injury they're actually paying money to the greeks in order to support their euro zone bailouts that's why the people in croatia are deeply concerned and that's why it's going to be a very interesting referendum result tomorrow. romania is witnessing its worth of riots and violence in over a decade for a second week running thousands of people on the streets demanding the resignation of the government and the president. reports. things turned nasty in the streets his book arrest. protesters have been peaceful for the past few days but now the demonstrations turn file. fighting as group it out between police and protesters just behind me you can see the protest is bringing up fences and now expected to clash with the police line

here they've started to throw bottles and other things at the police line and they're going to chime course these fences into the police line now. this is the dollars everyone hoped that they could avoid today but it seems that it has broken out after all there's a fence thing thrown. earlier in the day thousands that poured into the remaining in the capital to demand the resignation of the malian president try and assess the opposition politicians the dress the crowd will that change has come from all over the country means that this right has begun and it must not stop until we reach what we want what we need. back and some people are upset because they've lost their job service because their pension was cut and others because they're being humiliated every day there's one

thing that unites is all that we all want to siskiyou to leave. but later on the mood to came more militant. the bankruptcy all the factories all the hospitals schoolchildren the country have to look five kilometers through the snow to school that the youth nowadays what choice do we have to go out and start to steal start my gay people for birth so we'll go to italy spain and germany to start to steal what fork we want jobs we can seize them if you look over the line now some of the missiles that is being thrown. just in stages that police are trying to move forward include a square with a meeting with a lot of resistance from the protest to see it. as the crowd was broken up it revealed those affected particles. and the struggle of those seized. day and night protesters have been demanding big

political change romania but if this is anything to go by the road to reform will be long and hard fought tom but r.t. and you are with are still have for you this hour. hungry wildly that. you know ten ways people in the u.s. get good food for free. russia has announced ambitious plans to send unmanned vehicles to the moon with the eventual aim of building a permanent colony ross cosmos hopes to work in partnership with the u.s. and e.u. with the permanent base offering benefits for space travel and exploration ips peter oliver has the details. because most want to send first off to an manned probes to the surface of our nearest celeste steele neighbor and take samples bring

them back to earth so they can study and analyzed with the hope eventually that we can settle a permanent base on the move now this all sounds very science fiction but it could very soon be science fact a moon base has been said that it could very well be a very good place to to launch spacecraft from would also be a very good place to build spacecraft of course the the gravity of the moon much less than there is on earth we get see the effect that lesson gravity or zero gravity would have on a spacecraft much more than we can ever simulate on earth hopefully lots of very exciting things that we can see coming up in the next few years i say that hoping to these unmanned probes can be the first step towards perhaps setting up a permanent home on the moon. so moon bases are still a thing for the future for now some people are ready to prevent a thing. of this out in the streets of new york to find out if the u.s.

is really going to put a man on the moon to spy on iran. in the case of iran's nuclear capabilities people are quick to make judgments based on what they hear in the media but are they actually listening to what's being said this week let's talk about that do you agree with president obama's initiative to monitor iran's nuclear program from the moon. yes why i think it's important to know what's going on i do yeah why well just because of the threat to the world what it is is a threat specifically. our safety as. we can all. do you agree with his program. i think you're putting me on you don't believe that from the moon. maybe from a satellite but i think you're putting me on would you be surprised to know that

a lot of people just say by me that they agree with the program from the moon oh that wouldn't surprise me at all if people not humans are lemmings well for things i like to jump off cliffs doesn't the media have a responsibility to guide the lemmings down a better path no lemmings should have their mind of their own and they should be educated i mean people are watching t.v. radio internet so if you know even if you're looking for some kind of disease you know you find so many interpretations so which one is the right one this difficult time people say i start an internet so i believe it's absolutely true so it's. very hard to find the right source most people just don't have the time don't have the inclination calm people that they get into if you ever try to have a meaningful discussion with someone about politics i try every day it's pretty pretty bad to be honest say you never going to know anyway even if they did personally i wouldn't know.