pretty good evening for me kevin owen here in moscow tonight it's thirty pm moscow time drop top stories that are opting for the words and actions don't match top u.s. officials say the pentagon's considering military options on syria despite president obama's dismissal of unilateralist strikes. exporting revolutionaries libby is accused of running guerilla training camps for foreign militants as nato comes under fire at the un for refusing to investigate civilian deaths during its airbase against gadhafi. and nuclear talks with iran

a two to restart after year in limbo but warns they'll be futile unless world powers stop piling even more sanctions on its economy. next march and stacey take on the week's financial fallout including fears of a greek and the bank mia's to kill off their competition just fifteen seconds away . this is the kaiser boy you know the global economy has been sort of the mood for financial markets. no major organs remaining this is not a boat accident this is boy

a lot of girl. max that sounds like jamie diamond and life masters and that's global what happened to the money well this is not a boat accident the facts suggest that the customer money at m.f. global's stolen twice first by course signed 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 us all and one of course when he saw this 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 it was just a little accident a few derivatives blew up accidentally there is no predator involved here there's no violence right the equivalence as they keep saying it's a liquidity problem this is a problem of liquidity we need to keep stoking the banks which. more liquidity they don't mention that it's not a liquidity issue it's of insolvency issue and as these banks go insolvent as they go bankrupt as they go to zombification the mechanism 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 daily dime and by the masters of so you can work in the commodity pit 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 and jamie diamond implies monsters the fearsome nicknames shark boy and lava girl apparently shark boy and lava girl are celebrating the fact that they beat their arch rival goldman sachs the earnings from j.p. morgan two point eight billion from the commodity pits in twenty eleven guess how much goldman sachs was one point six billion what's the difference in the earnings how much more did morgan earn one point two billion where do you know that number

from the m.f. global scandal so long point two billion of course as we started this show is missing one point two billion that was transferred apparently to j.p. morgan absolutely j.p. morgan stole one point two billion from the m.f. global clients and this is the exact amount that they're. claiming that they've made a head of goldman sachs over on their desk of death apparently there's this real love of girl life masters is competing against isabelle he lets who is the goldman sachs head of commodities trading and isabel according to the life 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 but i believe 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 a year this is directly out of blights corrupt lawyers sprong this trading activity that smashed the price of silver just to keep in good with her paper god masters who hate gold and silver because they pursued the god of paper but i thought with these two women love a girl i live masters and is about battling out in the commodity pits i thought i would jump in there with silver space that you know you're coming on strong you know both love a girl and that's. a god you know they've got competition coming with silver surfing stacy. well now we established that the predator in this situation on the

banker is using these credit derivatives quote here goes on miss masters gained notoriety for pioneering credit default swaps blames by many for the financial crisis she acknowledged in a two thousand and eight speech. but he had been branded the woman who created weapons of mass destruction although she defends the products saying the people using them were at fault well no that's like saying that people who ate painted meat already fault for getting sick a critical fault swap 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 there are going to pay out of the credit of also if they can't pay out the growth of also because there's 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 a more phony fee out loans which of course would require more austerity but of course as we established in the previous episode of court t.v. morgan itself sits on the board of israel which determines whether or not there has been a credit of benz. blows mausers is creating austerity but putting into the marketplace fake unaccounted for nonexistent nonsensical credit default 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. looks 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 somebodies table 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 they prize that my account is them to somebody else as this fall excellent 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 goldman there is no accountability there is no tracking they can reach and grab one point two billion dollars unclaimed vaporised i mean that's that's absurd of course it isn't vaporized they stole it and the article then goes on to point out that most of them of global's customers have received seventy two percent of their money back executives at the chicago mercantile exchange in chicago board of trade like to

tout the fact as a great feat but they'd better duck and say ever step foot on a farm they might just get punched in the jaw kosslyn is still out seventy thousand dollars and the other important point here max as i said futures markets were originally established to protect from. 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 think well there are points out that this guy hoffman he's just has zero heads he's now not head 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 masters i mean this farmer should be able to buy life masters futures contracts on the open market to hedge and self against as part of the story nightmare blight masters and the entire futures markets has come

full circle as you point out they were invented originally to give farmers a way 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 futures and treasury bill futures and all kinds of security features that are outside of the agricultural sector now they themselves have morphed into the colossus that's putting a risk the very farmers for whom these futures are created for to begin with so now you've got futures risk so you've got tornado rist hurricane risk flooding rest drought risk and blith masters risk so they need to be a futures contract for farmers to put themselves against life masters. exactly they treat it like it's a game it's a competition between lava girl and it is to get out of the pits what is supposed to be about protecting agricultural industry so they say for an industry that relies on the futures market it is based on the system that has been most raddled they speak to brad moo moo seeding grain in his or his brother's view the 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 coins bulletin for those responsible and why have the occupy wall street protesters remain silent about the scandal and the 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 that the futures markets have been secured a modified financial aizen 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 among stations 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 government imposed

austerity measures well speaking of us parity measures and where it's the national outrage there are some nations that have national outrage and express that and we see that in greece responding to blythe's masters austerity measures and here is how the political elite think once you respond to their crimes former french pm greece could face a military coup in an interview in a leading french newspaper a former french prime minister in the shell or a car seat of that increased austerity measures such as those imposed on greece by a slanderous 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. so they want to go back to the junta so they want for the junta to the troika and back

to the junta. going to have democracy what exactly what 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. you light from goldman sachs so all their money i mean that's already mailed martial law in the us you already can't speak up and offer any dissent you're already surveilled twenty four seven it's already a military coup and it's shark boy it's law girl it's an old holy alliance of money and big business stacy herbert thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there.

welcome back to the kaiser report i'm max kaiser timeouts cutes in new york and speak with economist and professor dr michael hudson dr oz and welcome back to the kaiser report thank you very much max all right dr michael hudson you were in an alley where you were treated like a rock star are you there what happened well to be italian journalist oh my renard

by the order of my colleagues and myself from the university of missouri kansas city to explain the principles of modern monetary area which is what our university is known for or sort of end to the first to the university of chicago and our job is to explain that a year or two if you're in general in the italian. in particular if the austerity is not necessary there is no need at all for the government to balance budgets in fact governments are supposed to run a budget deficit best so they provide the private sector to production in a cut consumption economy with the money and the credit that it needs and the income that it needs to grow basic keynesian policy we also pointed out that when a central bank creates credit runs it out so it is not hyper inflationary what is inflationary is the commercial banking systems so lighting the economy with credit

for the last thirty years to get up real estate prices start and bond prices and to provide a credit for corporate raged takeovers and what is basically loading down the economy with debt and it is loaded up inflation today all right so it's a variation i keynesianism our updated version of keynesianism so how is it different and then one is already what already exists book angels hoping that no credit would do what a government deficit would do that new credit would be used to up front new investment and would put our investment in motion but today's new credit doesn't do that credit is extended today to take over a company and buy a 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 is spent decouple from the

production sector and i what we want to do it missouri is i would like the sectors and modernize an industrialized credit for what people expected american system to be a century a god openly industrial revolution was still are gaining power is a sign of class a city universities and the city really here gang hangout is the antithesis of. what's happening at the socog oh a school of economics. we know that there's a heavily employing cell component from this a cargo school that informs people like christine lagarde is now running the i.m.f. and i thought the obama administration and most identified with milton friedman and neo liberalism so this is the dynamic between the step of the free marketers believe that you can't have a free market unless you pay on top and ignore in fencer all the slushing of any alternatives so there's no interaction at all by the chicago school of antitheses

we're actually where the university of missouri had kansas city u m k fate and there's a blog if you were to google you in case the economics blog you get the blog no economic perspectives edited by stephanie kelton who's 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 does we have said so along with me in italy where stephanie calton build black was talking about well and another blogger marshall auerbach. of florida sort of basically there explaining for three solid days it's all about monetary theory and it's amazing there were over twenty one hundred people in the 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 had ever had such a gigantic audience and they were all there early stage to the end they really wanted to hear modern monetary their eight and out central banks were supposed to run deficit not surpluses in order to reflate the economy are you. or is it ever very advantage the city with modern monetary theory receive like rock stars and only of course you're saying that the right the other side the three congress call 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 but he's more of a neo classical sort of liberal but he doesn't focus on the debt issue or death he plays another we do and i he believes that the government should balance the budget

pretty much he doesn't follow modern monetary perry to anywhere near it he tries to be sort of a voice in the middle and he doesn't really discuss our theories are discussed up by us by name for the unspeakable crimes for the people that liberals like krugman well talk about where the people at the university of chicago in the magazines that it's put it senator isn't it will not permit discussion so basically the free marketers are so thirsty 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 they thought that one may control one of their professors told harburg or was accused of us setting as our teller on figuring out what economists should be excluded and he said he had no idea that they were going to have their stomachs cut open shit oh i got yours and thrown over the oceans to you have no idea there are

families that all be killed he had no idea that the people he was fighting were going to be but to be operation condor that killed up i wasn't so labor leaders and economists he had no idea that he and the other people were closing down all the departments so they were to be herded into stadiums and machine gun killed tortured shot up at best the effect of chicago school and third. leahy had he had no intention of ever acknowledging that there was any idea except for his own son tauriel people that's why when he tried to take over harvard's institute his harvard institute of international economics for the students all protested and so we will not have men with blood on our hands coming here and degrading our university with their intellectual intolerance pachter as of now they are the other side the right side of sky there's a congress call they claim that the free markets on their side we know that

their their school is dominant in the current economy and the current economy is generating the biggest wealth in 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 last 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 and a progressive era spoke about free markets they wanted to free markets from the ron th they wanted to get the markets free of landlords free of the bankers and free the monopoly used 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 land rent would be fair 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 regulate a lot of the bill that will likely futility it's going to charge or the most monopolies will 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's cost of production and make it more competitive this was the whole philosophy of the industrial revolution and it was the free market idea that other classical economists say adams but at the wrong th far back around world war one they began to invert it and their idea of a free market was free for predator freeform monopolist free for our own words to gouge whatever rights they could get and to free themselves from taxation so that the government had a tax a labor and tax industry and the result is that the american economy today under

the so-called free market has such a high cost of living and the high cost of production that our labor can't compete internationally that's why america is the balance of trade has moved so far it does that if an american worker has to pay forty percent oppose income on housing if he have to pay fifteen percent for health care and social security f. i see a wage withholding if he has to pay another fifteen percent in excise taxes and sales taxes and income taxes and other taxes and if he has the pay other debts for a credit card debt education debt then obviously the even before he spends about one third of the salary on both and services his monthly not 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 that's up exports other diplomatically through international goshi asian so free market is what is telling the american economy and it's not free at all it's free for predators not free for labor not free for industry not a kind of free. mark let's talk about well a sound 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 and 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 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 the financial advisory committee kathy only all runs it and there are people like eve summit from macon capitalism is there i mean usually there kelly senators economic advisors there are a lot of well street insiders are there was a look at where money managers were as fund managers but this is a hell of a way to make money look rather make money in a way that helps the economy productive not in a predatory way so you can be sure that there are some pretty smart people by saying the occupy wall street movement for what's going to happen this summer when school ups ups antacid garrett well are out of time but thanks so much for being on the cause report dr michael hudson thank you very much mick and that's going to do

it for this edition of the kaiser report with me max kaiser and stacey herbert i was like my guest dr michael eisen we like to send me an e-mail please do so at kaiser reported r t t v are you until next time exercise or saying.