max kaiser this is the kaiser report oh that rose to the starting i think tomorrow this is the major global swap meet for dealers of weapons of mass financial destruction and they compare notes on how to destroy each other's economies for fun and profit states herbert max if you do a google search for davros two thousand and twelve you will find out why the banks tours are behind so why they want sopa because as you see the first two results are world economic forum that's actually the group that puts on number three result is from max keiser dot com that's before c.n.n. before the telegraph before the guardian before all the international news media where first and what does it link to but original artwork from william bond's i seven you can see this right here davus two thousand and twelve too many bankers

species one planet no future world poncing nomic summit many species that got the gorillas the central bankers they've got the primary dealers i think there's twenty eight of them these are the ferrets that are kind of. you know met manipulating markets to try to ease that push of quantitative easing into the global economy well max let's turn to some banker species in the headline the first one the correlation of laughter f o m c meetings this is the central banker species the f o m c is the federal open market committee at which the poll of three or zero sets global interest rates well apparently somebody had the clever idea of actually looking through the transcripts of the meetings and they found that the number of recorded laughs actually increased in frequency from two thousand to two thousand and six the peak of the global financial bubble in two thousand and one the fed f o

m c erupted into laughter sixteen point five times per meeting on average in two thousand and three it was over nineteen in two thousand and five twenty seven and then in two thousand and six the f o m c burst into laughter nearly forty four times per meeting yes because there should be printing money or doing something responsible but instead they're smoking this money. who are federal reserve chairman who you know the problem is that the stuff can make you see hallucinations which i'm not and this is the illusion is guys are selling their stone and saying. well. this is some quality money printing i can't believe this quantitative easing work and i got a nickel bag of this and you think you got high return on holy smokes. well yes so they were it laughing all the way to the top here's another species of banker max it looks like these people are followers of maybe timothy leary goldman

sachs enters a billion pound parallel pay universe a billion pound parallel universe drop out and pay or suffer huge bonus until they've let me said that in between as a hit well of course many people. get a bad batch of lsd often are found standing on the edge of buildings saying i'm god i can fly but there's some guy carries over to new york fed i'm flying look at things in titanic he's a titanic the entire economy sinking anything is getting a hug by leonardo dicaprio while payout by investment bank equating to two hundred thirty eight thousand per employee provokes anger among unions in the u.k. but you always do the same accept they have they would have to go off planet to pay off all the derivatives they've spun so well look i mean the unions are upset but the unions have no place at the table the unions have been. taken out of the equation many years ago this is a battle between savers versus speculators that's the battle unions and jobs are

gone it's only about people who have capital want to save and get an interest rate on savings versus borrowers want to low interest rate on those things to borrow and speculate to build out actually max ok this brings me to the next species the banker and that's the global organizations like the i.m.f. and world bank because the i.m.f. christine lagarde said that we need to bring unions back to the table because i am a foreigner of threat to global economies posed by austerity drives reflecting the i.m.f. concern about over aggressive deficit reduction programs the joint statement said governments should manage fiscal consolidation to promote rather than reduce prospects for growth and employment it should be applied and socially responsible manner well let me explain something i'll give you a lesson in economics in twenty seconds it's centrally planned it's central bank plan it's low interest rates to favor speculators to the point where unsustainability has now gripped the global economy by the throat

forcing one of two outcomes and there are only one of two outcomes a bank central banks begin to raise interest rates which would in fact spur interbank lending. which would be inflationary which is what they want to curb this deflationary nightmare or big they raise minimum wage they double or triple minimum wage that would also cause inflation that would also cure the problem those are the only two outcomes raise rates and interbank lending or raise minimum wage to suggest anything else. is is only favoring the speculators and the borrowers to the detriment of everybody else who's not one of those people who are borrowing with impunity with zero risk remember they're not taking risks like mitt romney over you know graduate of being capital when they were out

there in the private equity space slashing and burning companies left and right remember he took his zero risk his cost of capital was zero and the cost of making a mistake was zero he's just a guy who steals money who doesn't drink coffee so christine lagarde is saying that governments in europe should stop cutting things and actually start investing and in particular investments to target civilians in education in the us equip people for the future but of course the last thirty years of these banking species running the world has been the exact opposite it's been the bain capital model of extracting as much equity as possible from your community including the capital of human knowledge right well kristie look are enough to give her enough ammunition to duke it out there at the i.m.f. level of sums some kind of gravity to us if they're not going to raise the wages

for workers or give them some education then you've got to start raising rates at the central bank level those are your two choices so present it in this way and give them the you know either or solution because if she just goes down one path and leaves the other one completely on guarded she will not make any traction in her arguments whatsoever of course the other way to look at it is that the i.m.f. the day before had only requested an additional six hundred billion dollars from the taxpayers of the world so maybe she's trying to pretend to them make a false promise that hey we're going to invest back in new and hopefully you'll have a better future oh yeah she's she's just the stupid old old the. bag she knows what to say to get people to write the checks is a good saleswoman but she's a she's she's an assassin because these policies are killing people with their collateral damage of risk bomb exploding in people's faces and destroying their lives that's terrorism well the another banking species max is the famine victim

hedge funds may sue greece if it tries to force a loss so hedge funds are considering suing greece and the european court of human rights after greece said that they're basically demanding a fifty to sixty seventy percent haircut for these bondholders well i'm ok so the hedge funds are going to sue grace right and then the european human rights court right because they know that they're the ones that are heading to the hague in these human rights courts so the best defense is a good oftens because they're trying to flecked their prosecutions in these human rights courts they're trying to deflect this nuremberg trial for hedge funds and private equity groups like like romney's bain capital because they know that they'll be at the head at the end of a noose so they take the off and they say oh it's the greek people need to beat the greeks oh we're going to sue greece because we raped and pillaged them for going to show them i mean this is an old strategy and the greek people i'm sorry that your

country has been sold to fresh food franchises and cell phone networks but hey five thousand years of history you had a good run well i just mentioned the famine victims here is that the banker who's had too many munchies i guess you could say over his lifetime surely president obama is joking about this have larry summers run the world bank thing so larry summers apparently has been is being floated as a possible world bank chief had floated floated yet like a big giant macy's day balloon which which but the article points to a ron suskind bow. confidence men and it talks about some little bits from inside that book inside the obama white house and one of the interesting things is that apparently larry summers through a major hissy fits when he was not nominated to be ben bernanke to be the central bank chief to replace alan greenspan in particular he got very angry with timothy

geitner who didn't support his nomination so this is what he wanted to be he wanted to be the polar bureau in chief the fat cat top smoking those obama dollars who's a fatter pig is it larry summers or chris christie i have to look that up who's the biggest pig but you know the fact is that larry summers and the readers editorials in the financial times are preposterous because you keep harping on about the same thing for years now we just need to increase demand increase demand increase demand by stoking the markets with more credit and giving people more means to borrow more money to go out there and demand never goes you say that there should be maybe a supply maybe a supply of manufactured goods for example maybe savings that would create capital for your capital's model he never talks about supply he only talks about demand and how to increase demand as if we're living on a planet that can support hundreds of millions of people in the us and billions of people around the world all demanding stuff and borrowing money to get that fulfill

their demand but never ever actually manufacturing a single thing unless you're at foxconn eight hundred thousand slaves making i pods and i pads all day so that people in new york and flash around central park with their little gadgets making googly eyes at each other even though they're supporting slave labor you know there has been a massive supply of financial products under him a massive supply of fraudulent financial products he was actually pushing alan greenspan to be less regulating of fraud and alan greenspan was one of the maestro's of allowing fraud to flourish as a way to. to provide liquidity to the markets ok let's examine that for a second a supply of financial products that are all based on debt and debt is the killer of the economy and people demanding more debt is not the same thing as fulfilling a supply curve where the demand curve this guy larry summers is an abomination

everything touches turns to garbage he uses this position of government to invest in things like square that new online start up company insider trading inside information market manipulation another terrorist christine legarde son of all they hang them all states you never don't go away stay right there all going to talk about more stuff you to stay there. true is that so much to believe that you should be sitting on the mark with egypt's unfinished business a year on the revolution that used to be a spirit it appears to have stalled the military rulers who replaced me.

welcome back to the kaiser report i merely stated herbert we're talking about the global preeminent. for financial terroristic gather and swap ideas about financial weapons of mass destruction out of blow up countries make money so what else you got for me their states arab or well max we've already established that the regulators bankers economists and all are all about crazy or they are stowed in their own money supply i think we've shown a pretty convincingly. and they're all meeting in davus now here's robert johnson an economist and a former currency trader for soros and. other big name always appearing at davos and he says economy as a profession see how to keep economists from missing the next financial crisis notice that he says financial crisis is not a financial crime wave and i think that's an important thing to think about here he says that it's all about the mathematical models in particular that we need to

really look at these financial market models for instance he says tend to be constructed was building blocks that assume stable and anchored expectations but as far back as one nine hundred twenty one frank knight of the university of chicago made the useful distinction between measurable risk and unknown unknowns which he called radical uncertainty nice point was that in a period of radical uncertainty expectations couldn't be anchored because they have nothing to latch on to well this is an ongoing debate in economics and finance and what people fail to understand is that the liquidity the capital that's used to fuel capitalism coma's overwhelmingly 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 to 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 c. speculative 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 that's not necessarily true because piracy as

a concept as 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 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 you. 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 and 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 and 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 treated 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 recy available only to the top one percent. if you can have a club talk received let everyone enjoy the kleptocracy 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 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 opera treasurer 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 the 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 no profitable to really go in there and. spoilt 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 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 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 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 right 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 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 and max the m.f. global. well debacle and the price action in 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 overnight 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 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 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 analogous to guy here you just have a simple numb nuts strategy of 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 going to get all of this right a word 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 weekend. 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 so at kaiser report at r t t v are you follow me on twitter max kaiser twitter account the next time backscatter saying bio.

lists of the late need to be abolished already and the town of bani walid is saying that the administration of the area is now in their hands this comes just a day after a bloody battle between transitional council forces and local militias claimed that the spotlight's. damascus green line it's an extension to the arab league mission in syria this comes a six gulf states withdraw their support questioning the regime's commitment to the peace plan meanwhile the e.u. has extended its economic and travel sanctions as well as targeting twenty two individuals connected to the government. and that will do nicely reports emerge that iran is accepting gold as payment for its oil exports effectively bypassing

the latest round of sanctions imposed by the u.s. and europe china could be the next country to follow in india's footsteps. and in the u.s. taking a look right now at live pictures of president obama's giving his annual state of the union address to congress so far the president is focusing on the economy talking about his efforts to double exports and the resurgence of the car industry . up next let's head to washington where all eyes are on the state of the union address hartman brings you the big picture. a lot of job market in washington d.c. and here's what's coming up tonight on the big picture and i think the president is giving his state of the union address.