live here in moscow still to come this hour deadline in d.c. u.s. occupiers refuse to move despite threats of a victualling and arrest. the public the united in this case so if they want to arrest one of us they are to rest all of us visible message of opposition and defiance of protesters camped out in two national parks. still to come free but first here leaders at their first summit of twenty twelve were all smiles but the existing tensions were clear to see there was another war of words between the french president and u.k. prime minister over whose industry is larger and poland set to join the eurozone demanded a greater say in decision making it was at least one decision made however with twenty five of the twenty seven e.u. nations agreeing to a german fiscal rule that would limit the size of nation spending they also agreed to set up a permanent bailout fund for struggling members who have never felt before through the end of the euro says there's a lack of solidarity in the e.u. and some leaders are pursuing their own political interests within it slashing

deficits it's of course very big problem for the european union to keep up the unity it's always a question of national preference. coming into kalash or at least into some kind of coalition with each other and for example france it's obvious that for president sarkozy the upcoming presidential elections are quite important and he uses the european platform to a certain extent to try to get some score back on his opponent in that french presidential election race but there certainly is at the moment a lack of unity at the european union level but also at the level of the eurozone countries where of course the dominance of germany is something that most of the other countries are looking upon in a very. fearful way. and in about ten minutes from now max kaiser

and stacey herbert take a swipe at those they say orchestrated the e.u. financial mess. debt or be deader is a noun and indebted consumer who is only able to pay the debt interest each month so here you have the two pillars of society zombie debtors who never escape and clown bankers who never have to pay dead zombies and clowns yet wherever there is a zombie debt or you can be sure there's a zombie creditor and as zombie central bank are feeding them all. because a report just over ten minutes from now occupy protesters have stood up to the authorities in washington d.c. refusing to remove their comes from two parks despite threats of police action activists there were still preparing to resist with officers standing at the ready

nearby and as artie's liz was explains occupiers remain united in their beliefs. so we are here at macpherson square where protesters have been occupying the park since october throughout the demonstration about one hundred tents have been pitched here the national park service has repeatedly slapped these notices on tents here macpherson square informing protesters that they can no longer camp out here that means they have to get rid of sleeping bags and any other material which allows them to live here protesters are responding by painting that symbol on the notice which demonstrates the fact that they do not agree with this mandate there are tens can stay but their doors must remain open proving no one is living in it the notice warns protesters that violate the rule are subject to arrest and it's basically a symbol of opposition. to you know even what everything this moon is opposing right now and so i think the tents are really important part of occupy but police

presence was sparse with no reported arrests they stand mostly on the sidelines refusing to answer questions from the media or with what but occupiers made their message loud and clear they are not giving up the fight here as you can see protesters have erected a massive pad over the statue here at macpherson park it's all in demonstrations of the anticipated even action by park oh yes this is our tents of dreams we want to be able to sleep here so we can dream of a better world where everyone has access to health care education housing and where the rich from corporations and banks no longer have control over political system the federal government and the political leaders and wall street were all tone deaf they could not hear this so the occupy movement has offered them a hearing aid and they're getting our message loud and clear now the purpose of this was to unite us in this space so if they want to rest one of us after rest all

of us are not about us and washington. liz wall. to forget we've also got the world covered for you on our website dot com here's what's online right now you don't know why did the pentagon confirms all the money captain says that his sayings bank accounts stored in these baghdad vanished that's billion u.s. dollars just disappeared into thin air. springfield makes it to the small screen in the five hundredth episode of the simpsons when you catch it on air at our website dot com. but now at some other world news in brief in this hour's world update for you thousands of egyptians are flooding the streets in protest of the ongoing

parliamentary elections demanding faster reforms demonstrators want the immediate dissolution of the military council which inherited absolute power from the deposed president hosni mubarak isn't just parties are expected to win majority control of the upper house of parliament and already hold the majority of seats in the lower house. so for the remaining fifteen passengers still missing from the stricken costa concordia cruise ship has been called off italian officials say the effort was too dangerous for rescue workers to search it already been suspended several times due to poor weather and choppy water seventeen bodies have been recovered from the concordia since it ran aground off the island. earlier this month. about to bring us up to date for the moment with the some of our many stories about six minutes from now in the meantime the business news is next with dmitri. and welcome to business r.t.

emerging market currencies are seeing the best start of the year since the turn of the century the russian ruble along with the mexican brazilian reale have are performed currencies from major. sentiment is supported by rising risk appetite of the e.u. leaders signed up for a strict budget discipline at monday's summit however stephen jacobson from saxo bank believes the positive mood will not last long. the central banks continue to print money so much that they are actually running out of paper to printed on if you look at the easy be they have been expanding their balance sheet since july first by thirty eight percent in terms of currency strength and risk appetite has become a game of continuing to for all the credit she added what is extensively a solvency issue these little bit like pretending that you can treat a patient who is ill by giving them more fear and they did create a diagnosis of why the patient is sick but of course a patient will improve short term and this is what's going on with the risk

appetite and that's what's going on with the currency market. the chief said knocked back warnings from iran that the e.u.'s decision to impose an embargo will lead to skyrocketing oil prices the organization thinks a fair price for a barrel of bread should be about one hundred dollars david global director of oil industry research as plots says the worry is not so much crude prices will hit one hundred fifty dollars a barrel but that they'll actually for. most of the people we talked to in the market don't expect oil to get anywhere near hundred fifty anytime soon in fact the concern is really rather that oil will fall below that saudi arabia which of course has the greatest reserves of oil it can bring to market in the event of a disruption has made constant assurances that it's going to be able to fill any gap left by the iranians even if they attempt to close down the strait of hormuz which looks increasingly unlikely as the weeks go by right now there appears to be plenty of supply available in the event of a disruption and of course there's a lot of stock to hand as well

a lot of countries have been busily stockpiling crude oil and they've been well aware of tensions rupture for the better part of the ear now so the market is positioning itself to withstand the supply shock so much so it might be oversupply the short term a lot of watchers are concerned that the price of oil my fall rather than rise it may be a case of being a little bit over prepared here for what might come to pass. russia's markets and they choose day session and it was on a positive note with the office creating more than two percent of my section one point two percent secular the main movers on the my six those were financial shares was back in one point four percent last nafta was up point four percent of the close despite high oil prices weaker than the market and russia's biggest a drugstore chain thirty six point six in the money. that's on news accounts to open a truck discount chain to boost sales. rather nice and will soon become the controlling shareholder of russia's biggest carmaker the coronas have agreed to buy the twenty

five percent stake currently held by investment bank troika dialog the cost of the deal which is expected to be completed next month has not been revealed and the estimated to be worth one billion dollars this will give reminiscent fifty percent of the group the other major shareholder is the russian state which owns twenty five percent through holding company of course to tell them. all right i have next on i'd say the headlines stay with us.

the but. it is easy.

to. see. a lot from most of the salty top stories this hour. formants towards the u.n. security council never approved for military intervention in syria but says moscow has never insisted retaining the assad regime was a condition for peace since the syrian opposition rejects a chance for talks with the country's president instead threatening the public with the brutal and bloody end. plans to expand the u.s. military presence in the asia pacific region it's about following the philippines which is offered to host more american troops and shaun of the state run for sanctions against the nation for creating tensions in the region. and this is first

e.u. summit exposes deep divisions within the union with predictions that growth even deeper despite most members agreeing to fiscal descriptions that critics say is an affront to sovereignty and democracy. or news in less than half an hour from the cause of puts the eurozone in his crosshairs the report isn't fixed on l.t. . ties or this is the kaiser report. in the new. mag that's right from barry ritholtz in the word of the day the debt or a zombie debtor is a noun and indebted consumer who is only able to pay the debt interest each month.

the debts never go away they only pay the interest they're always in debt and this applies throughout the entire economy not just on credit card debt but mortgage debt i think a touch of the consumer now if you look at the bankers of course they're involved in a very interesting situation in that they never pay interest on phantom debts. they loan into existence phantom debts that are on collateralized that they themselves only understand the configuration thereof but they never have to pay interest i were ever to get awarded norma's fees so here you have the two pillars of society zombie debtors who never escaped and clown bankers who never have to pay debt so the zombies and clones yet wherever there is a zombie debt are you can be sure there's a zombie creditor and as zombie central banker feeding the mom the fed is starving

economy of interest income so warren most layer of former broker manufacturer and co-founder and distinguished research associate of the center for full employment and price stability says the fed is part of the problem rather than part of the answer this is why we have so many zombie debtors he said it would serve public purpose if the fed made it clear that in today's rate environment what's called quantitative easing in fact removes interest income from the private sector thereby functioning much like a tax and a source of what's called fiscal drag as it takes net dollars out of the economy as it reduces the federal deficit well you're right if there were not this is on be better effect you would have a creation of interest income which would form the basis of the capitalism

something called happy tall. without the capital all there is no capital losses i'm . getting them the hood disease of the capital you should have taken that conversation today max the whole world would be devoid of the zombie banker is not i want to make a protest igloo in davos that looks like fun rub noses with some of the locals or most of them. as onto a second point he said this brings up my second criticism with regards to the interest income channel lowering rates in general in the first instance merely shifts interest income from savers to borrowers but he then goes on to say that while income for savers drop by nearly the full amount of the rate cuts costs for borrowers haven't fallen that much with the difference going to net interest margin of lenders thus you're enabling and feeding and empowering the zombie bankers and you know think of those with a capital is flowing through the economy as

a pipeline of capital if you will and the lower interest rates have the effect of the shutting down the pipeline of capital and causing deflation the central bankers are saying well we need lower interest rates to increase liquidity in the system that's patently false it shows that they have absolutely no idea how this economy works so unlike a chris whalen for example is a true banking analyst will tell you in order to get the cash flowing again you need to start to raise rates and then some devise banks to lend to each other or those creating the basis of an inflationary scenario that would create the jobs and the growth that some people say is their objective but clearly it is not but let's talk about this point here max because you've often talked about raising rates and all the time you hear such creatures of horror that this cannot possibly happen because when the fed cuts rates by five percent as it has done over the past two years we get point zero five percent taken off our interest rate so we have to

pay for mortgages all the rest goes to the bankers all the rest is taken from savers and shifted to bankers so there is a vocal portion of the population who screeches and horror and pain and their voices get heard out over the people who are savers and who could possibly provide the capital from which capitalism can once again return to the american economy. in the currency wars asymmetric they lower rates but the benefits accrue ninety nine point nine percent to the lenders the financial establishment on wall street very little of the benefits go toward people who are in the consumer economy who are the basis of the economy toward lowering their rates so there is no no of no benefit on the consumer side on the banking side it stifles lending within banks

and creates a illiquidity which is of course contributing to the deflation and then the central banks say we don't know why there is deflation because we keep shutting off the liquidity don't understand why the taps of liquidity are drying up it shows a pattern of psychosis which i think most people now understand i think most people understand that in fact the intent is not for no money to go to the zombies because those are zombies why would you ever want those peasant zombies to ever have any money again to pay off their debts you want them just eking eking eking out a lie a tiny tiny sort of subsistence level what you want those zombie shrieking to empower and to enable a vastly growing sector the finance sector lloyd blankfein gets more powerful jamie diamond gets more powerful the banking sector gets more powerful exactly because of this squealing desperate zombie debtors look at all these pension accounts like cal

pers for example the biggest in california one of the biggest in the world there they assume seven percent return on investments which assume interest rates of four or five or six percent interest rates for them because in less than one percent or close to zero their return last year was one percent and they're just being a sensually discarded by this form of economic or financial pressure and as it's called there's a technical term for financial repression so former chief. columnist from morgan stanley asia was interviewed at dow voce along a similar theme as well stephen roach explains how the fed is pulling the wool over our eyes so we have a lot of squealing zombie debtors in america and the u.k. and other debt debtor nations australia canada anytime the notion that rates should be raised they shriek and it never happens well stephen roach talks to bloomberg and he talks about the fact that china is actually doing a lot better because they've introduced over a dozen marching requirement rate hikes and they've also raised rates so that real

interest rates are actually in real terms positive and then he goes on to say this when he's asked whether or not this would be possible in a democracy in a democracy do those actions do there you know we truly were met paul volcker well you know what are you supposed. to excell question tom i mean yours told us paul but we need we need a central banker who can really deliver. the goods and we've got central bankers right now who are i think trying to pull a war as was zero interest rates in this magic called quantitative easing yes well the paul volcker example is a good example they had the inflation they came after nixon closed the gold went and you had gold spiking in price and you had massive inflation stagflation and came in raise interest rates and set the stage for reagan

reaganomics reagan just inherited everything the volcker position the head of that economy raising rates increases competition because it forces out the speculators who are merely parasitical in their behavior the bankers are just being parasites they want to lower rates higher rates would force those guys out and bring in entrepreneurs who are doing something other than just financial speculation it would be the best possible thing you could do for the u.s. and global economies to start. raising interest rates forcing out the speculator parasites and giving people what savings the return on their investments the pensions and also the effect of raising real wages so let's go on to more of this magical thinking economist versus americans a new survey finds that just twenty three percent of americans say they trust u.s. financial system that is that as low as the earliest months of the economic crisis and sixty two percent describe themselves as angry or very angry about the nation's economic situation the highest level since march of two thousand and nine now this

is a study done by the university of chicago and northwestern university they also have a specific question they asked those they surveyed and they said predicting the stock market very few investors if any can consistently make accurate predictions about whether the price of an individual stock will rise or fall on a given day economist sixty four percent strongly agreed that you can't predict markets where americans overall fifty four percent agreed that you can't predict markets that means forty six percent of americans believe that you can magically perfect where markets will go and so max does that explain to you why they might be losing money to brokers them and bankers well there's two points there the first point is one of the financial illiteracy now the fact is that rising interest rates would benefit consumers benefit the economy benefit wage earners benefit retirees benefit competition look at the comments underneath this video as it's playing on the internet right now read the comments below this video that you're watching

right now look at all the comments from the financial illiterates who don't understand this basic financial concept and that is the part of the big problem the second problem is in terms of predicting stock market results and prices only broken markets are predictable markets that are functioning are unpredictable that's what makes markets the supplier of cheap capital are all the losers who can't predict out. coms provide cheap capital for their winners if it were predictable you'd have price fixing and then you'd have more of a state can purely black heavy hand of the state controlling the entire market that's not that's not the what the market's all about the sole moniker of prediction markets is completely false that there is no such thing markets and cannot predict and let's talk about beyond prediction markets the actual financial markets that we exist in live in today in our economy because this is bizarre that

that's what thirty six percent of a condom is believe you can predict outcomes and it is the maestro alan greenspan i think that helped brainwash the economy into believing that you can create outcomes with this magical wand and magical thinking but that's exactly what stephen king says indeed bunking economics is that the number one chief. is ill conceived notion of economists is that you can predict economic outcomes or market outcomes and it's hard coded into the basic textbooks of economics that somehow economics is a science like chemistry where the outcome can be predicted that's false economics is like a social science where the outcome is completely unpredictable and the second you understand that the second you understand why ben bernanke and his crew are complete charlatans by putting forward some other theory it's simply not true look at the track record over the past ten fifteen fifty one hundred years based on the central banking theory it's been

a catastrophe so as ever thanks so much for being on the kaiser report thank you matt. and will be why our shirts match. it's not a tick the go i am much more coming away stay right there. three. or. three. or.

four year media. revealed on current t.v. dot com. or. fans are welcome back to the kaiser report time now to go to london to speak of that there are leyland asked a man has read that welcome back to the kaiser report thank you max summering a special still with i just you know actually now they're sober is well over twenty percent of the air twenty twelve and it's in backwardation so first tell us what is backwardation what backwardation is the opposite of can time go normally in the precious metals market you'll find that the futures couple show you effectively the contrast trading higher than spot rather than lower backwardation effectively shows that there is. extreme tightness in the silver market at the mo withing the spot contract trade daily it's just a smidgen higher than the front lunch month which is march and this is very very

bullish and particularly in precious metals one wouldn't expect to see that and it does appear to be. being created by the problems with m.f. global bear in mind precious metals and better than most sensitive investors an overall counterparty risk and of course what happened with m.f. global was an extreme counterparty event and that leads many people to leave the futures market in the pressure is going to the spot market which is very bullish for twenty twelve an hour and i see this is being a major change ok last year the powers that be the central planners of the central bankers heard. don't like precious metals because it makes them look stupid when they prices go up they were raising margin acquirements and trying to get people out of this market but at the same time m.f. global and j.p. morgan stole people's account money right out of their account so all of that work for nothing because now people are dumping their rig market j.p. morgan m.f.

global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is clear indication of the silverball market is well in place and going much higher i would imagine men yeah absolutely and bear in mind as well we have the the second element of this which is the fact they're exposed back in the market for three hundred million dollars where the physical of course when he announced his first purchase of physical in think it was oktober of twenty ten the price was around the sort of eighteen dollars twenty dollars level and when you consider when you think about a market this stream physical tightness like silver does and someone comes in in their moans delivery of physical and saw it was no surprise to see that as a major catalyst for the run up to a new fifty dollars to place over a period of about six months.