there watching are to recap of our top stories around america's armed involvement in syria is not off the table and players richer officials aren't doing their options in the face the diplomatic isolation ourselves which fails. russia criticizes nato the u.n. security council for refusing to admit civilian deaths during the largest air raids in libya last year expresses outrage over training camps for syrian which was discovered in britain. and iran and warns the resumption of nuclear talks which

have recently been agreed upon might approve a few top twelve powers can impose and pressure and sanctions on tehran. coming up next in stacey discuss her in unique style and latest economic headlines kaiser port is next on r.t. for. this is a cause or it or you know the global economy has been severed amid so racks of financial markets. no major organs remaining this is not a boat accident this is pulling a lot of girl. rags that sounds like jamie diamond

and blythe masters m.f. global what happened to the money well this is not a boat accident the facts suggest that the customer money at m.f. global stolen twice first by core sign next by j.p. morgan the system was twisted to hide the involvement of powerful figures with strong ties to the political system and multinational corporations operating out of new york and the city of london as richard dreyfus said in the movie jaws well this is not a boat accident now remember the response from richard dreyfus was to the corpse of the first victim of jaws and. to the public to the tourists coming to amity it was a boating accident that had killed this woman and one of course when he saw this the body he said this is not a boating accident and we see the same thing in the financial markets now is regulators and politicians seeking office to keep on telling us it was just

a boating accident was just a little accident a few divisions glue up accidentally there is no predator involved here there's no violence be equivalent as they keep saying it's a liquidity problem there's a problem of liquidity we need to keep stoking the banks with more liquidity they don't mention that it's not a liquidity issue it's an insolvency issue and as these banks go insolvent as they go bankrupt they go to zombification the event that is them to keep them alive is accompanied by austerity measures so the austerity measures are in direct proportion to the cash transfusions that are helping keep the zombie banks alive and no this is not a boating accident this is a outright predatory shark attack and people are dying out there they should be told specifically that this is what's going on but they're being held in the dark to try to get them to play along and to go to the beach and to swim in these shark

infested predatory waters so let's talk about two of these sharks in particular shark boy or girl and apparently these are the nicknames for example we've got a man and blythe masters of j.p. morgan in the commodity pits j.p. morgan's blith masters is the twenty eleven queen of commodities shark boy a lava girl there fierce performance in crushing goldman sachs in the commodity pits uncertainty me diamond of life monsters the fearsome nicknames shark boy and girl apparently shark boy and lava girl are celebrating the fact that they beat their. all goldman sachs' their earnings from j.p. morgan two point eight billion from the commodity pit and twenty eleven how much goldman sachs was one point six billion with the difference in the earnings how much more did the morgan earn one point two billion where do you know that number from the the m.f.

global scandal so one point two billion of course as we started this so is missing one point two billion that was transferred apparently to j.p. morgan yeah absolutely j.p. morgan stole one point two billion from the enough global clients and this is the exact amount that they are claiming that they've made a head of goldman sachs over on their desk of death apparently there's this real loss of a girl's life masters is competing against isabel the let's who is the goldman sachs head of commodities trading and isabel according to blith masters can't cope with our superior platform in industry connections a certain dark mistress of the universe has been heard to say if you are the queen you don't make markets you own the markets and everyone including goldman sachs pays exactly they own the market it's a rent seeking proposition they have a monopoly with awfully pricing there's no free market there's no competition they

simply bludgeon these markets you know most spectacularly in the silver markets you know they would for example last week there was eight hundred million ounces of silver traded in one single day this is more than all the silver that's mine during the course of the year this is directly out of blights corrupt lawyers in this sprawling this trading activity that smashed the price of server just to keep in good with her paper god masters who hate gold and silver because they pursued the god of paper well i thought with these two women love a girl i live masters and. isabel battling out in the commodity pits i thought i would jump in there with sweet sweet silver stacey you're coming out of a strong you know book log of girl and gold watch you know they've got a competition coming with silver surfer and stacy. well now we

established that the predator in this situation on the banker is using these credit derivatives to quote here goes on ms masters gained notoriety for pioneering credit default swaps blamed by many for the financial crisis she acknowledged in a two thousand and eight speech that she had been branded the woman who created weapons of mass destruction although she defends the products saying the people using them were at fault hello it's like saying that people who ate tainted meat already fault for getting sick according to false law is an illegitimate security because it masquerades as an insurance product but there's no collateral there's no way to pay out if in fact it's needed as we're seeing in europe now there's a default in greece but apparently that i could have paid out all the credit of falls off they can't pay out of the court of false officers but there's also thing they don't exist there's no money to back them up and listening go back into the wholesale market can cancel the more phony loans which of course would require more

all serving but of course as we established in the previous episode of kaiser report taping morgan itself sits on the board and is that which determines whether or not there has been a credit events. blows mausers is creating austerity. purging into the marketplace fake unaccounted for nonexistent nonsensical credit for false swaps are ridiculous and do nothing except create austerity for these poor people so we've established in the commodity pits j.p. morgan came out on top by one point two billion which happens to be the magical number of the m.f. global missing funds the futures market was created really for farmers so let's look at some of the victims the farming victims of m.f. global farmer faces planting season with seeds of distrust so first the article from c.n.n. books that dean tossed in

a minnesota farmer who had two hundred fifty three thousand dollars with m.f. global he notes that he can track a hog from his farm to somebody stable yet somehow he ponders authorities haven't fully tracked the missing one point two billion or who was behind it he said money doesn't vaporize if my account is empty somebody else is full actual in point of course you can track through the real economy how goods and services flow but in the shadow banking system in the dark exchange world of blith and gold live there is no accountability there is no tracking they can reach and grab one point two billion dollars and claim it vaporized i mean that's that's absurd of course and in vaporized they stole it. and the article then goes on to point out that most of them of global customers have received seventy two percent of their money back executives at the chicago mercantile exchange of chicago board of trade like to tout the fact as a great feat but they'd better duck if they ever step foot on

a farm they might just get punched in the jaw proselyte is still out seventy thousand dollars and the other important point here max as i said futures markets were originally established to protect from the you know the wild nature of nature so the these farmers invest a lot to plant and then it's not for a very long time afterwards that they can harvest. and in that time drought can happen severe storms and he sort of thing well the article points out that this guy hoffman he just has zero heads he's now not hedged he's just planting so this is creating another too big to fail system because if you think the quiddity in financial markets is too big to fail we need this what about food on your table right there's no hedge against blight monsters i mean this farmer should be able to buy blith masters futures contracts on the open market the head himself against this part of the story nightmare blight masters and then it's our futures markets

has come full circle as you point out they were invented originally to get farmers away to get some price stability but they were hijacked by the financial futures markets in the seventy's and eighty's so you have currency features and treasury bill futures and all kinds of security features that are outside of the agricultural sector now they themselves have morphed into those colossus is putting to rest the very farmers for whom these regions were created for to begin with so now you've got futures risk so you've got tornado rist hurricane risk flooding risk drought risk and blight masters risk so they need to be a futures contract for farmers to protect themselves against life masters. who exactly they treat it like it's a game it's a competition between lava girl and it is the get out and pit one is supposed to be about protecting agricultural industry so they say for an industry that relies on the futures market it is faith in the system that has been most rattled they speak to brad mu moves feeding grain in his or his brother's view that m.f.

global scandal amounts to the largest bank heist in u.s. history so where is the national outrage they ask where's the all points bulletin for those responsible and why have the occupy wall street protesters remain silent about the scandal and the eighth largest bankruptcy in u.s. history while the occupy wall street folks don't have the financial literacy to dig down into the machinations of these markets to really put up a cogent risk. and the point is well taken though the futures markets have been securitized a lot of financial eyes and grown into many many many times greater than their usefulness so i mean in the oil market for example for every one barrel of oil that's traded amongst nations there are sixty four thousand barrels traded in the paper market in the futures market that doesn't do anyone any good except the people who are involved in the corruption of those markets and whenever they make a mistake they get bailed out and to pay for the bell the governments of those are

starting measures well speaking of the masters and where is the national outrage there are some nations that have national outrage and express that and we see that in greece responding to blith masters austerity measures and here's how the political elite think once you respond to their crimes former friends pm greece could face a military coup in an interview in a leading french newspaper former french prime minister michel or a car figure that increased austerity measures such as those imposed on greece by its lenders could well see the country having to deal with an explosive social upheaval sooner rather than later he said nobody seems to be saying it but the only way out for greece could well be a military coup he said while also expressing his belief that no nation can be democratically governed when you cut back twenty five percent of its earnings. right so they want to go back to the junta. so they went from the to the troika and back to the hunt one of the every going to have democracy well exactly but he

points out when you have to cut back twenty five percent of its earnings as we just pointed out those farmers in america have lost twenty eight percent of their earnings so do they need a military rule over them because they might get to one really because they're upset that belies masters and izzy he let from goldman sachs so all their money i mean that's already milled martial law in the u.s. you already can't speak up and offer any dissent you're already surveilled twenty four seven it's already a military coup it's shark boy it's a lot of girl it's going to hold a lot of money in big there's a place there but thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there.

but i'm back to the kaiser report imax guys are trying not to go to new york and speak with economist and professor dr michael hudson back to us and welcome back to the kaiser report thank you very much max all right back to michael hansen you were in an alley where you were treated like a rock star why were you there what happened well to be italian journalist followed barnard lighted up for my colleagues and myself from the university of missouri

kansas city to explain the principles of modern monetary theory which is what our university is known for or sort of thing and so that's just to the university of chicago and our job was to explain to the year or two of the year europeans in general and the italians in particular the austerity is not necessary there is no need at all for the government develops budgets in fact governments are supposed to run a budget deficit that's so they provide the private sector the production in a cut consumption economy with the money and the credit that it needs and the income that it needs to grow basic guide keynesian policy we also pointed out that when the central bank creates credit runs a deficit it's not hyper inflationary what isn't place is the commercial banking systems flooding the economy with credit so the last thirty years did it up real estate prices stock and bond prices and it provided

a credit for corporate rates takeovers and what is basically loading down the economy with debt and does lead to. he's lation today all right so it's a variation on keynesianism are updated version of keynesianism so how is it different than dr oz and then one is already one already exists well keynes was hoping that new credit would do what a government deficit would do that new credit would be used to work on new investment. but our investment in motion but today's new credit doesn't do their credit is extended to date to take over a company and buy property and real estate was already in place but almost all the new capital investment in the american economy is funded by the retained earnings of corporations not credit so the financial sector has spent decouple from the production sectors and i what we want to do it missouri is reunite the sectors and

modernize an industrialized credit for what people expected the banking system to be a century ago openly industrial revolution was still gaining power prices and they pass a city university santa city gang hangout is the antithesis of what's happening at the chicago school of economics. we know that there's a heavily influenced cell like component from the congo school that informs people like christine legarde is narrowing the i.m.f. that informs the obama administration and its most identified with milton friedman and neo liberalism so this is the dynamic between the the free marketers believe that you can't have a free market unless you bay on guard and ignore and censor all this stuff and have any alternative so there's no interaction at all by the chicago school of entity we're actually we're the university of missouri at kansas city u m k c and there is

a blog if you were to google your own case the economics the og you get the blog no economic perspectives but better. by stephanie colton was the incoming department chairman of the economics department and you'll see we have a regular commentary on what's happening in the economy and an alternative to the austerity and the pro financial lobbying the chicago art school doubts we have said so along with me in italy we're stuck in a calton build lack was talking about well and another blogger marshall auerbach. the four of us were basically there explaining sort of three solid days it's all about monetary theory and it's amazing there were over twenty one hundred people in a stadium it was a sports stadium and when we walked in on a friday night two weeks ago we couldn't believe that we walk down the aisle and walk and walk and walk you know none of us have ever had such

a gigantic audience and they were all there early stage to the end they really wanted to hear a modern monetary their eight and how central banks were supposed to run deficit not surpluses in order to reflate the economy our university of missouri add fans a city with modern modern terry theory received like rock stars and only of course you're saying that the right the other side the to coddle school all doesn't allow for any kind of debate going on but it does have one apostle with a big platform in paul krugman at the new york times correct i he's more of a neo classical sort of liberal but he doesn't focus on bit debt issue or debt deflation other we do and he believes that the government should balance the budget pretty much he doesn't follow modern monetary barriers to anywhere and here he tries to be sort of the voice in the middle and he doesn't really discuss our

theory or discuss up by us by name for the unspeakable crimes word of people that liberal. well talk about where the people at the university of chicago in the magazines that it's put its editor is and it will not permit discussion so basically the free marketers are fed thursday they don't believe in a free market of ideas they believe in but they didn't show it remember the first thing the chicago boys didn't show it was closed down every economics department in a country if not the one they controlled one of their professors told her it or was accused of us sitting as our teller on figuring what economists should be excluded and he said he had no idea that they were going to have their stomachs cut open and no adopters and thrown out over the ocean just yet no idea there are families would all be killed he had no idea that the people he was fighting were going to be. the operation condor that killed up i wasn't so labor leaders and

economists but he had no idea when i he and the other people were closing down all the departments as they were to be herded into stadiums and machine gun kelly tortured shot but that's the effect of chicago school and certainly he had he had no intention of ever acknowledged that there was any idea except for his own sense oriel people that's why he tried to take over harvard into the harvard institute of international economics for the students all protested and said we will not have men with blood on our hands coming here and degrading our university with their intellectual intolerance backgrounds and now they are the other side the right side of sky the chicago scar they claim that the free markets on their side we know that their their school is dominant in the current pecan amee and the

current economy is generating the biggest wealth and income gaps in the history of the united states and is clearly failing as in many countries around the world. so where do they were does this term free market get lost because it's not a free market the chicago school of inverted what the classical economists meant by free market when adam smith and john stuart mill and the nineteenth century progresses the era spoke about free markets they wanted to free markets from their own th they wanted to get the markets free of landlords free of the bankers and free of the monopoly is the idea of free market to classical economics was to bring prices in line with the actual technologically necessary costs of production so that it wouldn't include land rent when rent would be tech it would be the tax base it wouldn't include interest charges it wouldn't include predatory banking charges and monopolies were eager to be regulated to keep their prices in line with the

actual costs like america regulates a lot of the bill that will likely tell it's contrary to what the most monopolies would be as in europe kept in the public domain and operated as public utilities and if there was something basic like education or roadside these would be provided freely in order to minimize the the economy starts to production and make it more competitive this was the whole philosophy european real revolution and it was the free market idea the classical economists say at. the wrong th front back around world war one they began it inverted and their idea of a free market was free for predators preferred monopoly three for our web lords to go to whatever else they could get and to free themselves from text lation so that the government head to tax the labor and tax industry and the result is that the american economy today under the so-called free markets has such

a high cost of living and the high cost of production that our labor can't compete internationally that's why america's balance of. traders moved so far into deficit if an american worker has put a forty percent of his income on housing if yesterday fifteen percent for health care and social security ever i see a wage withholding if you yesterday another fifteen percent in excise taxes sales taxes and income taxes and other taxes and if yes the pay other debts for a credit card debt education debt then obviously even before he spends about one third of the salary on bills and services his monthly nut is so high that he's priced out of the market and that's why american can't compete in exports except for agriculture which is heavily subsidized by the government and of course the military industrial complex like so exports the other day and it will magically

through international will she isn't so free market is what is killing the american economy and it's not free at all it is free for predators not free for labor not free for industry not the kind of free market of snow stopped about. what you're describing there is in a lot of ways you could say that the occupy wall street movement is simply a replay of what the original american colonies were feeling when they before they wrote the declaration of independence they wanted to be free from the rent seeking occupying force of the british now the occupy wall street is saying we want to be free from the rent seeking occupation of wall street bankers and they so therefore and my question is where did the occupy people do themselves a service by maybe taking some classes at university of missouri kansas city and brushing up on what you're talking about there to give them some intellectual

firepower all the occupy wall street people do have on sunday here in new york a regular. meeting with a financial advisory committee kathy only all runs that and there are people like me just minutes from make it capitalism is there i'm usually there dave kelly who's been a senator's economic advisers there are a lot of well three the insiders are there with a look we're money many sure is that we're as fund managers but this is like hell of a way to make money but we look rather make money in a way that helps the economy he productive not in a predatory way so you can be sure that there are some pretty smart people and by saying be occupy wall street movement for what's going to happen this summer when school lets out that's asacol right well we're out of time but thanks so much for being on the cars report dr michael hansen thank you very much nic and that's going to do it for this edition of the kaiser report with me max kaiser as news they harbor cowards like my guest dr michael hudson really just i mean email please do

so at kaiser reporting r t t v are you until next next how you're saying. the world. needs technology innovation all the lives developments around russia we've got the future covered. home. mom.