natural 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 people 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 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 some 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 clipped 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 i let me be participating in your fraud but you can't have one hundred percent of kleptocracy available only to the top one percent you can have a club talk receive 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. equipped ocracy that nobody can participate in 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 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 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 rosenburg over paid 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 the current 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 the free market but what we have today is a mess market that's not price discovery were by. the 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 necessary to achieve that price so our priori manipulation where they already have the price they want as determined head 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 and 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 lee and the same kind of thing is that geithner and 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 and 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 in precious metals especially around options expiration dates so how lost are regulators. are and how mistaken their overseers

and washington remain so let's talk about some more precious metals manipulation here over night long intraday 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 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 has 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. 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 backscatter saying bye i'll. download the official anti up location job on the phone called talk from the.

life on the go. video on demand all keys money old girl. and all registry now in the palm of your. question on the dot com. is the eat.

well i'm john harwood in washington d.c. and here's what's coming up tonight on the big picture and i'm the president is giving his state of the union address i'll tell you how the average american really feels about our nation also republicans are criticizing the state of the union as i am speech republicans are also sending out campaign material prior to the speech why are they doing as well as my family and the state senate in indiana

passes right to work for a lot of legislation because that is what does that really mean i explain why you may want to call it right to work for us that. the constitution requires the president to quote from time to time give to the congress information of the state of the union and recommend to their consideration such measures as he may judge necessary and expedient and quote from the constitution every so often the speeches given during times of bowing prosperity low unemployment and peace is given when spirits are high when confidence in our form of government is unshakable and when our nation's reputation around the world is admired and during those times the president can walk up to the podium flanked by his vice president and the speaker of the house and confidently tell the nation

that the state of our union is strong the future is promising and a new generation of americans are such to inherit a better nation but tonight is not one of those times. tonight the state of our nation is grave and if the majority of americans were given their chance to speak out about the state of the union this is likely what they would say tonight forty nine million americans are trying to claw their way out of poverty including one out of every five american children tonight half of all americans can no longer claim to be part of the middle class and instead belong to the working poor or low income and those are the lucky ones because tonight forty six million americans depend on food stamps to put in a food on the table for their families and i five million american homeowners are dealing with the very real possibility of imminent foreclosure and literally living on the streets tonight fifty three million americans don't have health insurance and are one illness or accident away from financial ruin tonight students across

america are saddled with over one trillion dollars in student debt these are not talking points and they're not slogans that can be found on signs that occupy rallies these are the real numbers real numbers that imply a united states of america in the midst of crisis and tragically these numbers don't even begin to tell the whole story because while forty nine million americans live in poverty and forty six million americans depend on food stamps and fifty three million americans don't have health insurance there are other americans who are collecting enormous wealth and are pulling further and further away from the rest of us over the last few through over the last thirty years eighty percent of all new wealth created in our nation has gone to just the top one percent of americans. over the last thirty years the top one percent have seen their income shoot up two hundred seventy five percent while people in the middle class have seen only a major forty percent increase in income not nearly enough to keep up with the

rising cost of health care energy and education as a result the united states of america tonight is one of the most unequal nations in the developed world ranking thirty first out of thirty four o.e.c.d. nations when it comes to wealth inequality we are more on equal the nations like pakistan and the ivory coast there are four hundred billionaires in america who now own more wealth than one hundred fifty million other americans combined in fact there are six americans the six walton heirs who own more wealth than the bottom thirty percent of americans combined roughly one hundred million people this is wealth inequality not seen in america since just before the stock market crash of one nine hundred twenty nine and this wealth inequality is tearing our nation apart two thirds of americans believe there are strong class conflicts between the rich and the poor and hundreds of thousands if not millions of americans have taken to

the streets in the last four months here protest against this inequality against what they see as a government an economy that favors the very rich over the struggling many. and how did our nation that supposedly respects free speech and the rights to peaceably assemble respond with mass arrests police brutality and constant criticism in the mainstream media that would make thomas jefferson and the rest of our founding fathers korean our civil liberties are disappearing we now have to walk to radiation scanners display our new bodies to t.s.a. agents before boarding an airplane our phones could be wired stepped our internet searches retrieved in our library book records examined in the name of so-called homeland security and in just the last few weeks new powers have been granted to the president to indefinitely detain americans who are suspected of being what he identifies as terrorists we've traded liberty for temporary security and as ben franklin once said we now deserve neither in the name of the so-called security we

have now and manned drones flying all over the world in search of terrorists our war machine has spread out across the middle east operating both overt and covert wars that are draining our nation of critical resources and leaving thousands of young american men and women physically maimed mentally scarred and dead and we are now on the brink of what could be another war in the middle east as threats are being made against the world's oil supply flowing through the straits of hormuz. this is all the result of our nation failing to adopt a comprehensive energy plan ever since jimmy carter who had one left the white house and ronald reagan who didn't took down the solar panels that sat on top of the white house our failure to move toward renewable isn't just causing strife abroad it's turning the planet against us the state of our union is under attack by freak weather last year there was a record breaking ten natural disasters that each cost more than one billion

dollars more than seven hundred americans were killed in these natural disasters mostly mostly in freak mile long tornadoes that are becoming all too common as our planet gets hotter and hotter and we refused to heed the warnings coming from japan's nuclear disaster at fukushima and also suffered the same consequences a nuclear power plant in nebraska came within inches of being flooded by a rising river we got lucky last year this year we may not and most troubling tonight americans don't have faith in our laws makers to solve any of these problems i just mentioned as the approval ratings of congress the first among our three co-equal branches of government the branch of government that is most responsive to the people stands at an all time low of just thirteen percent. this is a house of representatives that was bought and fayed paid for by a record breaking three hundred million dollars plus in secret corporate cash as a result of the citizens united supreme court ruling and is thus now one of the

most corporate controlled republican house is in the history of this nation it's a wall street controlled house that set out to dismantle social security against the will of the majority of americans a big pharma and big insurance controlled house that voted to end medicare as we know it against the will of the majority of americans a richie rich controlled house that held hostage tax breaks and jobs for the middle class to ensure that the top one percent don't see a fraction of a percentage of a tax increase and oil industry controlled house that has defended taxpayer subsidies for giant trans national oil corporations while trying to cut back on employment benefits for working people a corporatist republican controlled house that is put at the top of their priority list not helping americans fight a job but instead putting the president of the united states out of a job and this is a house that will be up for reelection at the end of the year again when over a billion dollars will be spent by special interest groups to make sure that their interests are protected this is the reason why our state of the union is grave

tonight it's because our democracy has been sold to the highest bidder and policies have been pursued to benefit that highest bidder at the expense of the majority of americans who just want economic security a good job a home anough money to put their kids through college and have money to take a vacation every now and then and enough money to retire at a reasonable age. this is what the american dream used to mean and it used to be available to the majority of us and it won't be again until we root out this corrosive corporate influence is dragging our nation to the brink of collapse tonight the president will talk about help for the middle class they'll talk about jobs about wealth inequality and about renewable energy and it'll all sound great but the truth is none of it will be possible unless something else changes we need a revolutionary change in america is the millions who take into the streets since the ninety nine percent movement began have demanded and to achieve that change we

need to get money out of politics and corporate personhood and say explicitly that money is property not speech tonight tragically the president will not call for a constitutional amendment to achieve all of these things and end the great selloff of our democracy but we the people the majority of americans who understand the true state of the union can still keep the pressure on him and the rest of our elected lawmakers go to move to amend or. this corporate takeover of our congress that i was just referencing in that room. pseudo state of the union address is not accidental it was put into motion back in one thousand nine hundred six by a group of robber barrons railroad actual robber barons claiming that the fourteenth amendment which was passed in eight hundred sixty eight to free the slaves also freed the corporations because want to reference the word persons it

didn't have the word natural before it which would be humans the supreme court pick this up dozens of times over the years most recently was citizens united but the fact of the matter is that no congress has ever passed a law saying that corporations are people or that money is speech. and the money is speeches that are probably no president has ever pushed for it on the contrary many presidents have condemned it and going all the way back to grover cleveland in eight hundred eighty seven the year after the santa clara county decision in the supreme court where he said that corporations had become the masters of the people and that their iron heel was on our neck in his state of the union address in eight hundred eighty seven as obama mentioned in his state of the union address in twenty ten when he called out the supreme court for the citizens united case and sam alito said there and sat there and mouth not true when president obama predicted exactly what has happened over the last two years this explosion of corporate money and

billionaire money coming into our political system and wreaking absolute avick. this money power which has taken over congress we must take back and the only way we're going to take it back is through movement politics it's not going to happen through the political parties they're captive of all this money right now politicians democratic and republican a republican would love to not have to spend thirty to seventy percent of every one of their working days on the phone asking for money they'd love it but they are so captive of these of the of these organizations that they need us to create a nationwide movement that will push them to say money is property not speech corporations are corporations not people we need a national movement just just like back when in the in the seventy's sixty's and seventy's when when in just less than six months we passed a constitutional amendment to allow eighteen year olds to vote we need another one

to say that's it corporations are not people go to move to amend for more information. coming up president obama delivers his state of the union address tonight will likely try to instill a positive spin but what does our state of the union really look like for the average american will ask our panel. if. there are those who desperately need it to survive. this spoiled kong is the time to give money to on the lookout. for gold in the fish. and the suppresses the prize the rights or the fruits of. those who don't get their share of the trades. just by downloading got to put up article in today's new and don't

last but not the one that upset people need to know about it i mean not look any from the company from. those who sell to prosper. and sign the seeds and say. coming up from. some. nice life is. no one can live without it's in one of the largest blood banks in the world. a lot of nigerians. on our team. wealthy british style sign some time to. find little.

guy. market why not. find out what's really happening to the global economy with mike stronger or a no holds barred look at the global financial headlines tune in to conjure reports . even before the president step to the podium to give his state of the union address conservatives are laying out their call her arguments the republican national committee sent out an e-mail this morning entitled state of failed promises which hits on the typical conservative talking points of slender a debt and obamacare things that are clichéd talking points for hannity and limbaugh conservatives say the state of the union address is nothing more than a campaign speech this year and appear to be backing up that argument with their

own campaign material in the form of that flyer so is there anything the president is saying tonight that can lead to real coffee rise in action in congress for more analysis of the president's state of the union address and how it will be received on both sides of the aisle and welcome my panel tonight brian darling columnist of human events and director of government studies at the heritage foundation and richard follower democratic strategist and advocacy director for young democrats of america welcome to you both thanks for all young the president is promoting insourcing. giving tax breaks to companies that bring their jobs back home this is actually something that passed congress when nancy pelosi was speaker of the house and got filibustered by republicans in the senate. brian let me start with you i don't get what's wrong with that well here's first of all this is going to be a campaign speech republicans are right it's going to be the president's occupy congress speech where you when exits finger at those evil members of congress republicans and democrats blames them for all of the problems that he's created for america to the extent that a president is trying to get his agenda forward and if you want to call it

a campaign speech that's fine but hasn't every president on that you've been he had can get a little of both chambers of congress he had to tell you did you vote majority in this first year he did not have in this not here he did not have a filibuster proof you know his version your he did he in and then scott brown was sworn in he lost his filibuster lieberman is not a democrat he's. owed this and ben nelson this is why the demo i think said nelson has a has a rabid weasel on his head i mean it's just it's i guess you need a hardcore leftist to occupy congress you need to examine it but in any case. richard your thoughts on the republicans have their way would be pretty simple there would be no say to the union address because they keep saying this are going to present giving a campaign address with the president is addressing the nation about the strength of the union and i think what you can hear from the president tonight he's going to say this the union is strong but we could be stronger and we could be stronger republicans in congress get to work and stop you know fussing at the president really.