from the losers the people who make losing bets the people who make losing option bets the people make losing bets on all kinds of investments that money gets recycled into the economy and gets used by those who are able to make better bets who make better use of that capital if in fact you had an economic model that would give some predictability to outcomes. then you would eliminate the entire sea specular capital that forms the basis of what we call free market capitalism so it's very premise is faulty to the core it shows a complete lack of understanding of markets and finance it shows a slavish devotion to academic theories that have long been discredited and it shows a major media who is incapable of challenging the charlatans what i'm saying is that he's failing to account for crying and crying doesn't fit into any financial

model that we are presently using if i steal your rabbit that's not in any sort of model that is going to explain how to operate the global economy well then that's not necessarily true because piracy is a concept is understood was the driving force for example of the american economy the term yankee comes from a version of the dutch word for pirate or thief because when america was started they stole so much intellectual property from europeans the entire internet google for example is driven by piracy they use other people's work and they organize it in a search algorithm and they create a multi hundred billion dollar enterprise so stealing theft and piracy are all in the eye of the beholder and that's part of this ongoing sopa pipa discussion but what this gentleman is suggesting is that the underlying mathematical models need to be improved which indicates or hints at the fact that economics and finance can

be somehow predictable but as steve keener shown and others when you bring predictability into the into the arena with you you're no longer talking about economics and finance you're talking about hard sciences like physics or chemistry which is not the same as economics you're guaranteed to draw bogus conclusions and to prove. then look at what the economy is going through the last four or five years failure after failure after failure because you've got these charlatans thinking they need to tweak the model instead of just letting the free market be free my point is that the sort of market rigging and say packaging faulty mortgages that you don't actually own the title to that sort of fraud i believe hurts an economy if your financial markets are forty percent of the economy and sixty percent of those guys are fraudsters then you need to factor in that your

economy is based on fraud and you know how long can you know fraudulent economies can survive in last and you're as you said the american economy thrived on fraud for in the beginning if we're going to go with that model if you think you know selling fraudulent mortgage backed securities is a good thing you have to say ok how many fraudulent products can we get away with but i think that it's ok for somebody to try to sell for a fraudulent mortgage but there also has to be room for soem to try and sell a legitimate mortgage the problem in the u.s. economy in the global economy is that they fraudulent mortgage sellers squeezed out all the viable sellers of real financial products they totally is like a cancer they've totally killed the host so there is no competition competition would be great the american government for example if they want to cure the financial problems. charter ten new banks that simply do plain vanilla utility banking borrowing lending and you'll see all most of these problems go away because they won't be able to exist in

a real competitive environment but this is ministration doesn't want competition these corporations in america like microsoft or others in the in the software space or in the wall street banks in the banking space they don't want competition because they're not free marketeers they're war profiteers they're quick to kratz now to your point again competition will be helpful if you have an economy that is based entirely on fraud like it is in america today there should be exchange traded funds. yes that are tied to fraud i should be able to buy goldman sachs and j.p. morgan fraud which is a package of all their dark exchange off balance sheet accounting crimes created as a listed publicly listed liquid security i should rather buy into their fraud then do all the fraud you want but i let me be participating in your fraud but you can't have a one hundred percent club talk mostly available only to the top one percent you can have a club talk or see let everyone join the club talk or see or have a free market competition free market system and let everyone enjoy the free market but don't have a club talk or see that nobody can produce

a play then for one percent and then basically abandoned everybody else to just basically fight amongst themselves with some medieval torture so let's look at the next headline price manipulation look for motive this is janet have a koli chicago based expert and derivatives and she's looking at the manipulation of silver prices in the seventy's by alan gross rosenberg and what it is is that he was an arbitrage or started out legitimate based on a legitimate arbitrage opportunity between silver certificates and what the government would give you in exchange for that silver certificates were simberg then figured out a way to make some extra money when he sold his silver certificates he structures the broker to go into the commodities trading pit first thing in the morning and bid up the price of the first silver contract each day rosenberg overpaid and lost money on the contracts ten thousand ounces when he sold the contract later in the day by then the price fell back to the actual market manipulation free price but as a result of his price manipulation rosenberg sold say one hundred thousand ounces

for an extra three or four cents per ounce his profits from the price manipulation on one hundred thousand far exceeded the losses on the ten thousand ounces of silver but will we see the exact same thing for example when morgan stanley j.p. morgan or goldman sachs buys credit default swaps on bonds on a country like greece that are worth more if the country goes out of business so they'll buy a few of the bonds in greece but. it doesn't matter if the country goes out of business because a court of the fall swaps will make more on the failure of greece so this is an old trick it's been around for quite some time it happens when you have these markets trading on different securities in different ways and different points of leverage and arbitrage opportunities if there was genuinely free open liquid market tend to shrink down to a point where there's not profitable to really go in there and exploit them because that's part of a free market but what we have today is a mess market that's not price discovery were buyers or sellers come in and the

result is a price no what we have today is that price is determined before him by wall street for very securities and then they have algorithm program trading come in and do the trades that's a stereo cheve that price so they are priori manipulation where they already have the price they want as determined ahead of time and then they fill in the trades afterward to get to that price that's a complete opposite of what you'd expect would be happening in the traditional price discovery this is just another example of it it's happening in every single market around the world it's enabled by computers and i frequency trading it's a form of stifling a pilfering it's a form of larceny it should be outlawed if we had anyone doing any kind of regulation which they're not she says the anomalous price moves are red flags and it seems regulators aren't even looking for them if regulators ever did decide to launch a genuine investigation the place to start is with those who gained the most in the short run or those who avoided the most short run loss from the price moves and you know this this notion that oh i lost some money is something that lloyd blankfein

has used in testimony to congress lloyd blankfein stood in front of congress and said the proof that i did not commit fraud is that goldman sachs lost money on mortgage backed securities but as this is showing was he making a huge amount more and as nomi prins has said he probably did or goldman sachs probably did on the other side but they say we lost ten bucks here. they don't tell you they made a hundred bucks here on the same trade conversed liam the same kind of thing is that geithner of those folks will say the taxpayer made money on tarp they made money on the bailout they made money on general motors without disclosing in fact on the fed's balance sheet elsewhere they actually lost ten times more than they put in so it's another form of deception and she finally ends max the m.f. global debacle and the price action and precious metals especially around options expiration dates show how lost our regulators are and how mistaken their overseers

in washington remain so let's talk about some more precious metals manipulation here over night long intraday short goldfine more than doubles in just over a year generates forty three percent annualized return so s.k. options came up with an idea of going long overnight in gold and short intraday gold. if you look at these charts here's from two thousand and one to two thousand and twelve have you done that you would have been annualizing at roughly forty three percent per year since two thousand and nine that would have been sixty four point four percent and in two thousand and eleven alone that was one hundred forty three percent what does this say to you max manipulation it's indisputable proof of manipulation and to put on the context of forty to forty three percent annualized rate of return let's say compared to warren buffett you know he does twenty two percent a year and that's and he's just sort of the greatest investor of stocks in the world i want george soros during his best ten year stretch in history he was any

wiser than thirty two percent and that requires a lot of research and training and going on t.v. pretending to be an alchemist a guy here you just have a simple numb nuts strategy long during the night short during the day the annual isaac of forty five percent which as you just pointed out you're doubling your money you know every two years and at that rate of course you would become the richest person in the world very very quickly and i'm going to call my broker i'm going to get all of this right away as a matter of fact what i wanted for i got a good product not me on the phone one of those sort of price anomaly shouldn't happen so consistent in such smooth geometric consistent patterns like that if there was any rule of law now speaking of rule of law and speaking of chicago and where many of this manipulation happens chicago murder free shooting free for first twenty four hour period nearly a year so chicago is celebrating apparently there's been no murders for a whole twenty four hours the first time in

a year congratulations chicago but it's been of course about thirty years since there has been a twenty four hour period of manipulation free of financial murder for a time in chicago exactly right while nobody was getting shot in the head with a bullet on the street they were losing their country and their wealth due to financial weapons of mass destruction all being discussed this weekend. at davos so as ever thanks so much for being on the kaiser report thank you max all right i was going to do it for this edition of the kaiser reform with me max kaiser and stacy herbert if you want to send me an e-mail pleased to report at our two t.v. are you follow me on twitter max kaiser twitter account so next time banks guys are saying by oh. are you sure. you pulled talk from the.

video. oh and thanks for being with us at half past the hour and karen tara syria rejects arab league proposals for president assad to cede power to his deputy and the formation of a national unity government with the opposition damascus calls the initiative an interference in its internal affairs and an attack on syria sovereignty arab league observers are set to stay in the country for another month this as at least six hundred people are reportedly killed since the arrival of the mission. slops more

sanctions on iran targeting the country's main source of income boil the union has reiterated that the move is negotiable provided to halt its nuclear program that the west sees as a threat and returns to the negotiating table russia says the measures will only jeopardize diplomatic efforts to resolve the standoff. and croatia says yes to e.u. membership but a poor turnout for the referendum and violent protests exposed deep divisions within the balkan nation the country is now set to become the union's twenty eight states by july next year but only after all the other members ratify the move. takes you to see the stunning scenery of the caucasus nature reserve in southern russia that's in our special report don't go away.

southern russia. he didn't away in the mountains this faraway place can only be reached by helicopter. the first few special permission to travel around here. to meet three slaves and his son kim such damage but it only allows them to film the landscapes it's about this close ridge it's all set up i can't tell you how beautiful. the weather was right. this mountain crossland the mountains. many centuries ago called this place you

know sco has declared the area a world heritage site. makes up only a small part of the total area of the caucuses make sure. a long time ago the people of the caucuses used to shepherd droves of sheep across the a bug of lambs were often targeted by hawks even today. back to this past. july. this is a bearded vulture i need is the bows and. arrows of this kind bigger nests on low lying logs of thirty or forty kilometers from here.

but when they go hunting for. fifty kilometers in search of food. they're interesting creatures. the above go is situated close to the greater northern slope of the caucuses mountain range from the grassland you can get a panoramic view of the mountain ridge of the caucuses nature reserve. there is also a clear view of mt fished one of the highest points in the western caucuses the work of let's try to get the mountains in frame filming is best done from the highest point on the bar go it's about nine hundred meters above sea level here dimitri is teaching a son killed how to set up for the filming. look. normal

you can see that the lighting is on one side or the mist covers most of the valley . we don't want to film only the mist we need to focus on the foreground look at the grass gleaming in the sunlight and it's light of the valley is dark. so the light strip will show this shot to the best advantage. no. the great in northern slope is a continuous chain of mountain ridges tops by snowy peaks millions of years ago there was a vast sea in this place the smallest part of it the black sea is now hidden behind mountain ridges they form a shield in the way of warm breezes blowing from the sea the warm air creates a sub tropical climate in the foothills of the southern slope of the greater caucus's ridge there is a moderate zone further upslope the kingdom of eternal snow and ice on the mountain

tops is more than three thousand metres above sea level. which is the. i'm going to film these magnificent landscapes we never know in order to show them. to the hundreds of people who never venture here. or with either because they have no time one with you when you go because they don't understand the meaning of nature. be able. to go lives side by side with the pass translated from the caspian language means the mountain of caucasian goats the reserve is the only habitat of western caucasian goats in the wild here they don't move about very much a small herd might well stay for decades in the same area high in the mountains one thousand nine hundred metres. the only trail leading across the past

begins in the above go grassland. caucuses reserve ranges often use it to make rounds of the area they always do it on horseback a round trip usually takes one week. where they come across poachers interests on this path through the brook and europe is the only way here there are rocks on one side and a thick tangle of red and rain on the other it is very difficult terrain. to. pull. the ranges camp out in small parts

and it's always cold in the mountains at night. or. shortly before dawn the me three and killed head to a small flat mountain top according to an old caucasian legend do you often meet the sunrise in the mountains lives a long and happy life. get real if you can never seem to go and you're right in the video the sun will rise from behind the aspen pass. we're going to choose the highest point for filming we'll only have ten to fifteen minutes for that.

is a mystery to the one used to it no single one is ever the same doesn't it. it's truly wonderful guy. the nearest settlement is far away radio is the only means of communication with human civilization. hey folks if you're listening to our movement of radio show us your house once again you katrina and your last term

and talked about the history of the caucuses nature reserve good you can go to the small studio broadcasting the movement show is in the town of scores of kilometers away from the a bar go for schoolchildren tell locals about the caucuses reserve journalist. oversees the programs the children talk about the reserves animals surviving trees mountaintops and rare plants. they draw on their experiences reporters and engineers working in various protected areas therefore they always fully prepared for the program when they go on their.

own who have then i think when people look at it they try to imagine what these tree saw a long time ago. as for me i always have this on the county feeling that my agent stature martin significant in front of these or inspiring giant. one of the most famous parts of the caucuses nature reserve is the growth situated close to the black sea coast the oldest tree here is over a thousand years old. the grove has survived several generations of tourists and many natural disasters. according to scientists the greatest of them took place some eighteen million years ago. a rupture in the earth's crust created a natural labyrinth and the gorge the gorges bed was filled with water from a mountain stream. this landscape has undergone no changes since then.

visitors are fascinated by the mysterious origin of the grove and the agent trees there in they think of it as a living relic of the distant past. i can tell you that i really do feel mystical about it was that people rarely break the rules here they're not eager to destroy or cut things down so that wish that some people might say i'm crazy but i honestly believe nature herself is at work here and i think this place is protected by higher forces. a small canyon and the outer edge of the grove marks its natural boundary in the north the west and east in horns of an infamous mountain river called the haast joint where the canyon is at its most narrow and the never ending roar of water is a sign of its dangerous allure. then you'll know. this canyon is

notorious because the water rises quickly when the snow melts or after terentia already has been above though the whirlpool form a strong water splashing against one side of the ravine and then against the other . anything that falls into the whirlpool gets sucked down to the bottom people trying to swim or walk across and end up drowning or. there have been several deaths as a result. that's why this place is infamously knowing that it's not the devil's guys in the top of bottle. there are four major waterways in the caucuses reserve a river is one of the deepest which is down has been put up there a small hydro power station supplies electricity to the heart's in the upper reaches of the reserves northern sector where ranges stay for the night. but the. water is clean through there is a. well w.

bush wherever you are you can get some water from any spray or small river border to hear more about what they saw fit for drinking and. international rafting competitions take place on the belle i river every year the route is extreme the rapids a near impossible to clear. legal eagle. cultures that so much as i can which are called his wife on account of them so here it is the biggest and most expensive elections money can buy this is how many american see what are called political action committees or super pacs.

can you communicate. i pull a cargo helicopter flies through a mountain gorge before it reaches the weather station and juga judah is situated in the mountains of the caucuses nature is a as an altitude of more than two thousand is about sea level it is the optimised station in the west and caucuses it's total square is two hundred eighty two thousand had to change our reserve is the only one in russia that occupies the territory of three russian regions it's really unique.

the directive the coaxes reserve personally oversees the rotation of stock and food supplies in this remote area. the helicopter rarely stops at juga for more than twenty minutes but even such a short period of time is enough for dimitri says an anchor and his son killed to get several shots on take. most of the world's weather stations located in major cities record changes in the atmosphere resulting from industrial waste and vehicle fumes the data collected juga and similar stations is important for fundamental research into how the

earth's climate changes in an area situated far away from manmade sources of pollution. now the temperature of juba is fifteen degrees above zero but a couple of days ago trees were falling to the ground under the impact of strong gusts of wind which by the way where the snow is usually one made a deeper around this time in december temperatures were unusually high in november and it may well turn out to be the warmest november in twenty five years. each day courses reserve staff record temperatures wind velocity humidity and amice fair expression. one team is on shift for two months.