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 that look at what the economies go 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 lassen 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. seller 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 or e.t.s. 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 a let me be participating in your fraud but you can't have one hundred percent talk or see available only to the top one percent you can have a club talk or see let everyone enjoy the kleptocracy or have a free market competition free market system and let everyone enjoy the free market but then have a cup talk or see that nobody can participate in for one percent and then basically abandoned everybody else to just basically fight amongst themselves in some medieval torture center so let's look at the next headline price manipulation look for motive this is janet have a koli chicago based expert in derivatives and she's looking at the manipulation of silver prices in the seventy's by alan grier 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 whereas. emberg

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 point 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 where 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 necessary to achieve that price so our 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 siphoning a pilfering into. all of larceny should be outlawed if we had anyone doing any kind

of regulation which they're not she says the anomalous price moves are a red flag 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 but 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 so 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 intra day short gold fun 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 that a 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 what 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 analogous to 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 or as a matter of fact what i wanted for i got a good product that 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 week in. and at davos says 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 report with me max kaiser and stacy herbert if you want to send me an e-mail please do this at kaiser report at r t t v that are you follow me on twitter max kaiser twitter account the next

time back guys are saying by all. the world. technology innovation is developments around russia we've got the future covered.

pressure rounds of violent attacks in libya as qaddafi loyalists clash with supporters of the new regime in several cities all across the country. defines incomes as the business news of this struggle to some calling from a resistance which is growing of a slide back into civil war. from the region just a few moments. gulf states to withdraw their observers from syria as the e.u. stop fresh sanctions on the troubled country. and paying a four black gold with the yellow one india reportedly finds

a way to buy iran's oil despite the recent. global news live from the heart of moscow this is on with me roll receipt showing in libya fresh clashes erupted between colonel gadhafi supporters and fighters loyal to the new government at least five people were killed in the former leader's old stronghold of bani walid which was one of the last to fall in a conflict that's not the latest in north africa of course for them or if an officer in the region maria we heard that the m.d.c. one of apostles a possible civil war but how volatile is the situation at the moment. the situation is very serious even the last few days the situation has been very tense and dangerous and we. the number of anti government protests and clashes between

the pro-government forces and the forces loyal to the ousted leader could be taking place in different. towns all across the big risks are indeed very high that the country may fall into civil war the most of all and the most deadly incident happened in the town of bani walid. southeast of the capital tripoli once known as duffy's main stronghold forces loyal to the full mcconnell khadafi managed to take control over the city and did manage actually to raise the green flag at one of the city's. gates the green flag symbolize in khadafi the facilities far as the local officials happen reclusive least five national transitional council people have been killed as a. as a result we can say for sure what was the reason behind this fallen seraph to

unbundle the what we know that the same day the libyan justice minister announced that the international criminal court had allegedly agreed to let say for this long duffy's song to be tried in leaving and under leave in law although it hasn't been confirmed by the i.c.c. itself but. analysts say that these two the violence and this announcement may be connected just hours later we've been hearing about violence erupted in another part of the country in the eastern part in the town of bint goes he wants known as the rebel stronghold with three move people killed and later on we've been hearing about the volunteers around people the around the capital so as you can see the situation is very hands and complicated and dangerous thank you maria so as we as we understand here the national transitional council has in some areas certain areas production checkpoints where but how is how is the

to see actually responded to the ongoing violence. well indeed they've said several checkpoints around tripoli fall. the clashes report is there but also we can see that the n.c.c. a warning that the country may fall into civil war the situation very dangerous trying to calm down for tasks and trying to take control over the tensions and not to load them to escalate further. we've seen that. protest in benghazi when people have been demonstrating against and to see it been expressing their anger when it. was lack of transparency and slow reform pace in the country one of the high ranking for file members of want to see was resigned so we can see and to see this trying is trying to take control of the

situation but unfortunately so far with little success right out it's very. correspond in the region. means i'm a former member of the m.d.c. says that he had warned of a council that could have a loyalist could return to attack but that his concerns were simply ignored journalist patrick hayes says the new government is ultimately failing in his job. the national transitional council itself was very much something that was already chosen by the west not something that was chosen by the libyan people it was very much kind of put in place and then they were kind of helicopter didn't get afy was gotten rid of so the thing i find very striking here actually is that the n t c isn't doing itself any favors into the pro-democracy campaign is also seeing off the. supporters as well warnings for a long time that this could happen in bani walid people were saying very least two months we may get a pro get off the uprising here and the m.t.c.

did nothing about it so it's not surprising and it does seem like the m.t.c. is impotence and he's reflecting the needs and desires of anyone in libya at the moment there was a lot of congratulates three talk by cameron sarkozy and the bomber who kept a bit of a distance but was still involved after the fall of gadhafi i think they're going to be very reluctant to admit that what they didn't do was bring about democracy in the country they just basically puts the struggle of the libyan people on hold while they were getting rid of gadhafi this is arts he now gulf nations are pulling the arab league observers out of syria even though the mission has been extended for another month syria's foreign minister accuses some arab states of joining of foreign conspiracy against the country and of a blatant interference in syria's internal affairs damascus insists it will continue to take all necessary steps to protect the country against the chaos syria's already rejected an arrow brokered a peace plan calling for president assad to step down while the e.u.

has imposed fresh sanctions to further squeeze the regime. further reports it's the syrian people who are ultimately bearing the brunt. trying to shine a light on what's happening in the country the observer mission looks set to continue now for another month but every day is proving more and more of a challenge for the people. due to the european sanctions in syria to argue syria we don't have any tourist we don't have any for most the e.u. has no one pays its eleventh consecutive round the sanctions this time putting a travel ban on people and businesses linked with the assad regime says we've been finding out the cascade of sanctions to swamp syria's struggling economy actually they are punishing the syrian people in a way or another i mean if they have governmental sanctions to be imposed by big business with the syrian government not with the people but the power is completely

outside this door in the center of damascus at the moment and this is one of the main criticisms aimed at the economic sanctions is that the simply affecting the low every day syrian people is that most businesses in this area now are dependent upon these types of diesel generators that are needed because power cuts have become an almost daily part of people's lives where the not everyone can afford the backup at home with his wife and children and then says when the power cuts out the family simply have to make do generator very expensive costs like. sixty thousand three hundred pounds as i know it's not cheap and it's not just families and small businesses that are being affected oil production has fallen dramatically after an export involved and the cost of raw materials here has risen as one official from the chamber of commerce tells us a plummeting currency and rising prices have pushed many businesses to take their

trade and money elsewhere in the business of money don't put all the money in the business keep somebody maybe outside maybe. this is the. market because norm or cash money for money. entry to recent form halfway through our interview the lights go out. oh. yeah. i have. but your who. stops in are and one. of the spy coups that dialogue has been political and economic pressure on the country that's been favored in attempting to resolve the place. the arab league observers mission has also made little headway safe then they say they were there simply to investigate

and to reports there have been numerous calls for even more observers to be allowed into the country i think the real issue is that the syrians need to allow in a much much more neutral a much more wide ranging a much more forceful international observer mission if they've got nothing to hide if it's if they're genuinely not killing innocent people then one of the the the sanctions impact is heavily contested this need doubt that they are putting pressure on an increasingly isolated government many people in the country it will say made an already desperate situation even worse. damascus syria and meantime russia insists that its shipments to syria are legal it's amid reports suggesting that moscow will supply new combat trainer jets follows a shipload of military cargo which came on a question from other countries foreign minister sergei lavrov says that shipment

checked all the boxes under international law. you're pretty we believe we don't have to explain or justify ourselves as we're not breaking any international agreements or any un security council resolutions the only items we sell to syria are those not prohibited by international law certainly sanctions that have been adopted unilaterally and imposed by the us the e.u. and some european countries cannot be viewed by us as legitimate for russia's actions generally unilateral sanctions always undermine collective that with regards to iran and syria or any other situations. here with r.t. and still ahead of you in the program here one sided limits. very disappointed in fact discussed state thanks for that you are a student of faces extradition to the u.s. on charges of breaching copyright pulled out to a british american treaty that's being slammed as unbalanced. and no pay no

spray the american emergency workers letting home people drown because they fear lawsuits. eleven minutes past the hour here iran has apparently found a way to stay in business despite a new oil embargo and a freeze on its bank assets announced by the new india has reportedly agreed to pay iran in gold for its oil instead of u.s. dollars reports suggest iran's bigots customer china could follow suit artist is in new delhi with more details. india actually has already bought iranian oil using gold instead of u.s. dollars and this is extremely significant because every year india actually spends twelve billion u.s. dollars on iranian oil and now actually beijing is also saying that it might want to jump on board with new delhi and also look into some sort of agreement with iran

to continue to get oil new delhi and beijing actually account for forty percent of the imports of iranian oil the e.u. only counts for twenty percent obviously we've been talking about all week about this oil embargo that the e.u. announced on monday that they're hoping to roll out and put into place by chalabi first and obviously if new delhi and beijing find a way to continue trading with iran using gold instead of u.s. dollars this would severely hurt what the european union in washington is trying to do russia has also said that it wants to continue trading with the run using domestic currencies instead of u.s. dollars obviously the point of the e.u. oil embargo would be to bring iran back to the negotiations table over its nuclear program obviously iran has consistently maintained that this is the peaceful nuclear program the west believes that they are potentially developing nuclear weapons so in response to the was announcement on monday that it will place in oil

embargo on iran and iran has that that it's going to shut the strait of hormuz which is actually where twenty to thirty percent of the world's oil supply shuttles through in the united states is that it will absolutely not allow that to happen even sort of alluding to the fact that it could potentially use military force to make sure that that strait stays open moscow has also said that think sions are an obsolete form of sort of punishing a country and that it's actually going to be counterproductive and another interesting thing to note here is that if beijing and new delhi continue to trade with iran with gold it's actually going to increase the value of gold. decrease the value of the u.s. dollar as the global reserve currency. well india's been quick to take advantage but what other consequences could be used banned on iranian oil have now that's the question we're asking you today on our web site if you log on to our teas dot com you can take part in our latest world wide poll the front of the numbers here and so far more than half of you believe that china will buy all of iran's oil at

a cheaper price less than a quarter thinks it's europe's economy that's going to suffer eighteen percent say the embargo will make russia the number one oil supplier to the e.u. and just a minority here say it will hamper iran's nuclear program to go online and participate have your say to dot com. a vigil is being held at moscow's international dome idea to airport exactly a year after the deadly bombing in the arrivals hall people are bringing flowers and lighting candles for the victims of the tragedy a suicide bomber blew himself up killing thirty seven people investigators identified the man as a twenty year old from russia's republic of training by islamist terrorists in the north caucuses seventeen militants linked to the attack work killed in special operations last year four others have been detained and investigators are about to charge them but one of the world's most wanted terrorists models who claimed

responsibility for the bombing is still on the right. but the u.k. student faces extradition to the u.s. for setting up a web site giving people free access to movies online is not a crime in britain but in america he could get up to ten years behind bars it's because of a controversial treaty between the two countries originally intended to extradite terrorist suspects result he's been it found out the deal is putting many british citizens in an extremely vulnerable position. from running a website in his bedroom with links to pirated movies to up to ten years in a u.s. federal prison richard o'dwyer is the latest victim of the u.k.'s controversial extradition treaty with america his actions aren't even a crime in britain but counters copyright infringement in the us for the judge that was enough for richard's mother it was devastating. very very serious

impact because they know the fact that you brigid citv shank was seized by u.s. authorities last year this is what you see on the home page now he didn't host any illegal videos itself but posted links to where users could find them u.s. prosecutors claim richard banked two hundred thirty thousand dollars in advertising revenue from the site although he's never been to america they claim his actions had a direct consequence is there to be treated unfairly slightly. here because he was just pro extradition for well after it all about but i'm just going to go with the other side anyway so. all that work that we. and all but he were there when he's i'm not sure if you were there last time before when he said with a good strong argument that all went out the window completely. you know giving up .