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russia's foreign minister says there's a risk of repeating a live in style scenario of the foreign intervention in syria last polson war starts the west is building a case against the assad regime that could be used to justify under the tree auction. the top of the euro prices as the euro zone chief says assurances are still awaited from greek political leaders and now they are to implement an austerity program in return for vice a one hundred billion euro bailout to save the country from default and that's needed raising his agency downgraded six states. and more speculation over iran as russia's military predicts the west might decide on a strike against the country before summer this follows tell a big sec you say shows that there's loving stable is behind monday's former times

targeting its embassies in india and georgia and last in bangkok to stay. up next. is a reveals the latest lows from the world of high finance that's in the cards a report coming out right next. i am max kaiser this is the kaiser report oh what a week according to a court of the u.k. you can now refer to nate rothschild as a puppet master and it's not libelous but let's talk about banks and sharks and all kinds of other flora and fauna of the global financial crack down stacey max well the banking terrorists have been causing tear gas and deja vu in my headlines. is foreclosure settlement deja vu all over again so this is isaac grad minute lawyer

who specializes in mortgage backed securities and he writes today the attorneys general of forty nine states with oklahoma being the load holdout announced a record twenty six billion dollars settlement with the nation's five largest servicers over false and fraudulent foreclosure practices like robo signing good news right max no no no he looks at the details only five billion dollars of the total consists of cash payments while another seventeen to twenty billion dollars consists of principal write downs and other aid to homeowners at risk of default what this means is that once again regulators have allowed banks to shift penalties based on their improper service and practices on to the bondholders that actually own the loans so for every dollar you make selling fraudulent mortgages you have to pay maybe one or two pennies to the to the folks who pretend to be in charge of some kind of legal oversight group yes and my recommendation to for

example the looters that we saw in the u.k. in london earlier this year just get your brokers license it's a series seven license it's easy to get i got mine in one nine hundred eighty two it qualifies you to steal and you have a legal license to steal money and this is what people should be doing there should be trying to reform the banking system they should get their brokers license and rape and pillage like the rest of everybody on wall street but again importantly here max the term is bond holder in this case in the united states case when the five big banks do not own the bonds in that situation the bond holders are shellacked in europe where all the sovereign bonds are held by the big banks bondholders will take no cut so this is what he is saying is that the deja vu in this case is a country. wide because when countrywide the biggest fraudulent purveyor of predatory fraudulent loans was caught committing fraud they signed

a huge hoopla deal with attorneys general at the same time with great fanfare the a.g.'s announced in october two thousand and eight that they had reached an eight point six billion dollars settlement with countrywide and which countrywide would modify four hundred thousand loans what i soon realised was that this would not be a cash payment of eight point six billion instead most of that figure consisted of you guessed it principal write downs and other loan modifications of the credits so what happened is that actually countrywide didn't even own eighty eight percent of the so called loans it was mostly hedge funds and pension funds owned the bonds the mortgage backed securities in that case and they were ones that were forced to write down these loans oh it's regulatory arbitrage global regulatory arbitrage so depending on the territory you cheat the markets based on how you're able to subvert the regulations or lack thereof in any of these territories so the bond market in the europe would require one set of criminal activities of the bond

market in the united states requires a different set of criminal activities that met all the money flows to the criminal syndicates the bond traders the money managers the rating agencies the accountants like k. p.m.g. or price waterhouse cooper and the regular people get their austerity measures stuffed up their spring training but as you had brought up max not rothschild was accused of being a puppet master and the courts found in fact that the daily mail had justification saying that in this case the puppet masters or whoever they get away with whatever these attorney generals or the law decides so in the countrywide and the attorney general's case with all the mortgage servicers in the united states right now because the big banks are not the bond holders the bond holders lose in the sovereign debt case because the big banks are. holders of those bonds the bond holders do not lose there are billions hundreds of billions and trillions of losses

generated by the shadow banking system in trading these bond markets in different territories around the world and it's on anybody who loses money they stuff it into a passive country like greece that's too weak to revolt or portugal and those people are stuck with the losses ultimately and we're going to find out what happens when you totally disenfranchise an entire country whether or not those people will take arms or not we'll find out now in the countrywide case so again why it's deja vu is that at the time politicians could argue well we had no idea about mortgage backed securities we had no idea that the banks actually didn't own it that in this case countrywide well there was a huge lobbying campaign all of the connecticut hedge funds were went to washington and said hey you can't force us to take a write down on these because we have a contract with countrywide that says they won't renegotiate it well the banks the big banks response to this hedge fund bondholder campaign was to begin

a massive lobbying effort that led to the passage of the service safe harbor in two thousand and nine a provision that in its original form said that banks could ignore its contract with investors in the interest of public policy that exact term did not pass in the final bill but this is what banks want so remember when they claim all the time that our contracts are sacrosanct they are actually lobbying politicians to say the contracts are not sacrosanct if we lose. as we've been explaining on this show any time a bank gets near having to pay off a bad bet that they may or gets caught breaking the law they try to get a new law passed this is what i was told when i was working on wall street break any law you want we got lawyers that was the monte. when you work at a firm like paine webber or oppenheimer or alex brown as i did for many years just

break any law you want we got lawyers and that's the montra and you see this all the time if that doesn't work then they put a gun to the market said they use high frequency trading and they crash the market as hank paulson did in two thousand and eight to weasel seven hundred fifty billion out of congress using financial terrorism well you're argument there that you're allowed to commit crimes and just do it we'll we'll deal with it the lawyers say that at these banks the top twelve reasons you should hate the mortgage settlement this is from the smith a naked capitalism and she says we've now set a price for forgeries and fabricating documents it's two thousand dollars per loan it is less than the price of the title insurance that banks fail to get when they transfer the loans for the trust it is a fraction of the cost of the legal expenses when foreclosures are challenged it's a great deal for the banks because no one is that any of the servicers going to jail for forgery and the banks have set the upper bound of the cost of riding roughshod over three hundred years of real estate law well let me tell you a little to give you some perspective on this back in the one nine hundred seventy

s. i was working as a magician in times square and i used to observe the three card monte dealers you know they have the three cards like this follow the red plays on the head cetera et cetera now the thing about the three card monte dealers is when they get some chump in there some tourist with a wad of cash and they take all of his money they always let him win the last hand like a couple hundred bucks after they fleeced him for a few thousand why because that mentality the psychology of the person the chump is that they quote unquote one so here you have the same situation they have to pay a few bucks to two to appease the the people who are on the brink of lighting them up and sticking a pitchfork in their skull but in the minds of these people they're thinking we won not taking on boy. or the fact that they are huge losers it's all very psychologically programmed and it works very it's the con game and the rules of the

con game are well known and established and this is a con game well exactly as i as a grad man and eve smith point out this twenty six billion dollars deal most americans are going to look at the t.v. and say well gee that's a huge amount god we really stuck it to those banks but they both point out that only five billion is coming from the banks the other twenty one billion is mostly coming from fannie mae and freddie mac. which you the taxpayer watching that own. this. austerity in the united states as we say austerity in europe austerity as it's playing out in europe is coming to the u.k. first the camerons u.k. is collapsing and then it'll move to the u.s. let's move on same as it ever was the federal reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the u.s. bailout of american international group so apparently a lot of guys are upset about this actual you know capitalists on wall street because they say quote the exclusivity by which the process has shut out smaller

dealers is a little un-american it seems odd that if you want to get the best possible price that it wouldn't be open to anyone who wants to be the most competitive better says david castillo head of sales and trading a broker further lane securities so as it is the new york fed chose goldman sachs credit suisse and barclays to be the only bitter is that a close deal for these a.i.g. bonds quote the central banks switched to a less open process after traders blamed the regular more public disposals for damaging prices and twenty eleven max you created the virtual specials technology what does transparency do to prices would make it impossible for goldman to play the role of the pope along with the federal reserve and allocate favored pricing to their bodies as a poor part of a people indulgence and we saw that in the middle ages so no fair competition real competition that's long gone but exactly but like we said contract law is

sacrosanct when applied to banks it is a terrorist act when applied to the population competition is bad for prices according to goldman sachs but as it's the only thing that you can live by but you know gold and duplicitous by definition they call market making their version of market making is heads we win. tails you lose. well speaking of deja vu here some images max from athens is that from two thousand and nine two thousand and ten two thousand and eleven or two thousand and twelve can you tell the tour gas by any other year is still a sweep again the deja vu greeks approved tombstone austerity deal with troika so we see over and over there's a great deal there is not a great deal there's a great deal there's not a great deal to do. on again off again there is a deal now there is word german. we're cruising we're trying to milk you dry and

still the elegant marbles but the u.k. already stole them but of course this is they already know the foregone conclusion whatever it is the banks the same ones that won in the attorney general case in america the same ones that won and the countrywide case the same ones that win every single time will win this time here's a headline from stock com i thought greek drama concluded at some stage well i responded to that in a tweet i said i'm pretty sure the greek drama doesn't end until papademos has sex with his mother or in this case his much. very clever max you study greek tragedy at university i did i played the dead guy and production of stuff in is the dead bankers. well i have a final poster here max debt wish he's back in new york bringing justice to the bankers that looks like you well this is

a fantastic project pirate my film dot com legal piracy site that's me playing reprisals are all made famous by charles bronson in death wish a famous movie from the seventy's where he goes around and kills criminals vigilante style here i'm going to go after this film of course bankers in new york vigilante style and cut them down shoot them down in cold blood in broad daylight so that's the theme of the movie and you can support it by going to pirate my film dot com and reserve shares today say sarah thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there. was that some of you argue that he was the muscle because we're going to take your big wins for the movie in britain and argentina riggin sparring over the legal status future. is this. disputed. the

official allocation. i pod touch from the top still. lights on the. video on demand on teens money bills council. or a sense feed now in the palm of your. pushing on the dot com. i maxed out your welcome back to the kaiser a part time now to go to upstate new york and speak with james howard kunstler of consular dot com james as an author a blogger and an urban architect james welcome to the kaiser report nice to be here max all right james councilor a crony capitalist mortgage settlement deal has been reached to bail out the banks via the back door yet again your thoughts it is just amazing how they not only

never run out of tricks but how the american people never seem to tire of being snookered among other things they've snookered the new york state attorney general into leading a task force for. in his state of the union message president obama announced he was forming a task force to look into mortgage fraud and he appointed the new york state attorney general eric schneiderman and the fact is we have a department of justice and a united states attorney general who he may be leaking sawdust as he walks down the halls of justice i'm we're not really sure he's a real human being because he hasn't done anything in three years but the fact is they have a criminal division and they have done nothing to investigate mortgage fraud or any of the associated shenanigans for the entire obama term so you know this is just

really a new set of smoke screens to perpetuate what is coming to be a a just. tremendous control for odd but what is it in the american character that makes them feel good about getting screwed my own theory is that american life is just so frantic you know with people struggling very hard to make a living and being distracted by every kind of you know electronic message and show in program and entertainment conceivable that they're just you know the cognitive dissonance the collective noise in our brains is so immense that we can't really reflect on anything that's happening to us however of going back to some previous conversations we had where i scolded you for making revolutionary remarks i'm beginning to wonder whether we're going to get what i would call a john brown moment and john brown for those of you who might have a fragmentary memory of american history was that fellow who in the late eighteenth

fifty's mounted an insurrection at harper's ferry and really changed the tone and tenor of the national debate about what we were going to do about that big problem of the time which was were we going to continue to be slave holders or not and he galvanized the attention of the nation and about two years later we were in the civil war the greatest convulsion that the united states ever went through and so i'm wondering now you know when will the john brown moment come for financial misbehavior that you know is not only unseemly unethical criminal and bad but is really hurting this nation terribly the revolution in tunisia started with one fruit seller the french revolution started with one girl talking you know the price of bread going up and talk about john brown one individual starting the the revolution back in the u.s.

and that time you know you talk about the financial crimes you know to contrast let's say and that middle east arthur. africa the more information they got the more upset they became you know the satellite photos and to nancy of how the top one percent was living got everyone upset in the us however the more information they get the more they become you know julian assange or wiki leaks giving information makes people want to just lie down and cuddle up into a fetal position and hope it all goes away isn't there dan is it drugs in the water is it obesity is it too much football what's is it d.m. pollution are americans doubt i know a lot of republicans don't believe in evolution but do they believe india evolution because it appears as though the mindset of the average american is devolving there are a number of things going on that revolve around the question of authority and legitimacy and especially the news media and you know i it personally i

consider myself allergic to conspiracy theories and i don't think that there is a media conspiracy to keep the american people ignore it but they're certainly doing a terrible job of reporting you wonder why the call thought leaders in places like the wall street journal and the new york times have they haven't reacted at all to the shenanigans going on with the new york state attorney general and the taskforce for mortgage fraud and the smokescreen at the department of justice they're just not paying attention so you know we're seeing some kind of. an epoch a failure of people in charge if it's like you know control fraud itself which is using accounting. by people who run things namely people who run banks and the people who regulate them and the whole idea that you are

a legitimate vested authority and people expect you to be discharging your duties and doing things properly but yet you're not. doing it and you know there's kind of an equivalent to that in the news media. so we're getting kind of a control fraught of news too but you know it seems to me to be more a matter of incompetence malice in the case of the news media akkad don't buy into the conspiracy theories that are out there however a cording to a recent survey people who watch fox news are less informed than people who watch no news so clearly the fox people all know that if you have a population that is being dumbed down by purposefully inflating the debate with lies deception and fraud that's a that's a population that you can steer by the nose in any direction you want to go ok now chris hedges believes that part of the reason for the national defense

authorization act is that the banks are going to collapse and that bankers don't trust the police to maintain order so they want to give the military some boosted powers in the united states because they see this thing collapsing and they want protection from the mob your thoughts chris is a very intelligent guy very experienced as a war correspondent and you know i think that he's a voice that we ought to pay attention to i would imagine the problem a little differently i you know i think that there's just kind of a general level of nervousness throughout the whole culture that it's not just the bankers but it's really everybody in any kind of authority is so nervous about about the failures that they brought about that you know they they really no longer trust the system to keep on running it and you know they're taking extraordinary measures in regard to your previous statement about fox news when i was

a young newspaper reporter investigated religious cults and pull. little cults and one of the things that impressed me tremendously was how a group of people could simply subscribe to a bundle of ideas or shall we say programming and then you know there are a whole mental programme was then set and they didn't really have to review any of their beliefs and i think that that's happened to a tremendous extent now and you know our culture right so you've got bill o'reilly is more like charles manson than edward r. murrow now let's talk about something you're very keen to write about and talk about over the years peak resources and i want to ask you is there any connection between the curtailment of civil liberties in the u.s. and this peak resource the peak oil peak every water etc well there's certainly a connection between all of these enormous looming issues the failure of capital

finance the failure of civil order and the faith that we can run a civil society and the availability of the vital resources that we need to have an economy that continues to grow and produce the ability to do things like service debt so yes that you know these things are all intimately connected and they all end up read down being into the question of whether or not this is a society that has enough confidence that it will be able to keep going carrying this project of civilization into the future right now we're not too sure about that james council has another curious thing there's a washington post show that with a democrat novice the anti-war movement made up mostly of democrats has declined drastically they are apparently fine with the wars while they team up while their

team is en so to speak how what's that all about it probably again a question of authority you know if you identifiers. if as a democrat or a progressive and your party is carrying out orders and doing it in a way that you know there's no draft so people aren't being dragged off to you know against their will they're volunteering and in fact it's really kind of a job center for that disappearing cohort of young men especially you know who who need to work with their hands and kids go to work in a factory or do some cardio you know or or any longer you know build houses or do other construction jobs so you know they work with their hands killing people in other lands so you know probably it's regarded as a kind of a jobs program right well and of course when they go to these wars they often lose their hands and then goldman sachs creates hand come out of times and collateralized futures contracts they trade with other banks and they profit in another way on the death and misery of poor u.s.

servicemen sent to do goldman sachs dirty work ok there's another war the ongoing financial war and then once again frankly the democratic voters don't mind financial crimes because their guy obama is in office so somehow like i listen to bill maher on h.b.o. no matter what finance a crime is committed he repairs the same stupidity that comes out of white house about how the bailouts are profitable how the auto companies are doing fantastically well and so these liberal so-called just because they have their guy in office they don't seem better still to finance a crime is what is it just financial illiteracy and that huffington post side of the aisle i don't think so and i think it is certainly all parts of the political spectrum thomas frank wrote a book a few years ago called what's the matter with kansas and the basic point of his book was why do voters get snookered by political parties into voting against their own interests but the situation has changed now

a few years later and what we're seeing is something a lot worse than that what we're seeing. is now a comprehensive failure of leadership and not just in politics which is the most visible kind of leadership but comprehensively through american life and to some extent western life you know a failure of leadership in politics business in the media you know in the clergy. in education at every level and that makes for a very. nervous society all right james howard kunstler we're out of time thanks so much for being on the kaiser report quite welcome that's always a pleasure all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our time my guest james howard kunstler you can find our counsellor at consular dot com if you like to send me an e-mail please do so at kaiser reported r t t v dot r u r e can follow me on twitter.