everything on there it's youtube dot com slash r t america and to find out what i'm doing what i'm not reporting the news you can also follow me on twitter at liz while the big picture is coming up at the top of the hour for now have a great night. wealthy british sign. the time to. market. find out what's really happening to the global economy with much stronger no holds barred look at the global financial headlines tune into cars report on our. world with.

technology innovation and all the developments around russia we've got the future earth covered. mass transit this is the kaiser report 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 buoyant love a 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 was stolen twice first by course i next by j.p. morgan this was twisted to hide the involvement of powerful figures the 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 top. and to the public to the tourists coming to amity it was a boating accident that had killed this woman and will 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 dreamed that it was blew up accidentally there is no predator involved here there's no violence the equivalent is 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 of insolvency issue and as these banks go insolvent as they

go bankrupt they go to zombification the regulators 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 proto tori's shark attack and people are dying out there and 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 blythe masters of keeping working in the commodity pits j.p. morgan's blith masters is the twenty eleven queen of commodities shark boy girl

there fierce performance in crushing goldman sachs in the commodity pits uncertainty me diamond of life masters 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 it's in twenty eleven guess how much goldman sachs was one point six billion what's the difference in the earnings how much more did david morgan earn one point two billion where do you know that number from the 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 yeah absolutely j.p. morgan stole one point two billion from the m.f. 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 really

lovely girl life masters is competing against isabel he let 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 pricing there's no free market there's no competition they simply bludgeon these markets you know most spectacularly in the 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 lawyer in this sprawling 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 well i thought with these two women love a girl i. blythe masters and isabelle battling out in the commodity pits i thought i would jump in there with sweet sweet silver stacey while you're killing only the strong you know book log of girl and the golden wad you know they've got competition coming with silver surfer and stacey. well now we established that the predator in this situation on the bankers 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 no it's like saying that people who painted meat already fault for getting sick according to a false 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 they're not going to pay out over quota falls off they can't pay out the growth of also because there's no there's also they don't exist there's no money to back them up unless they go back into the wholesale market king cancer they more or phony loans which of course would require more austerity but of course as we established in the previous episode of kaiser report j.p. morgan itself sits on the board and is determines whether or not there has been a credit events. blows mausers is creating austerity. putting into the marketplace fake unaccounted for nonexistent nonsensical credit default

swaps that 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 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 they price of my account is empty somebody else's fault 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 in grab one point two billion dollars and claim it vaporized 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 customers have received seventy two percent of their money back executives at the chicago mercantile exchange and 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 form they might just get punched in the jaw tossed in a still out seventy thousand dollars and the other important point here max as i said 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 any sort of thing well the article points out that this guy hoffman he's just has zero hat 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 monsters i mean this farmer should be able to buy blith masters futures contracts in the open market the hedging self against this part of tory nightmare blight masters and our 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 features 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 wrist very farmers for whom these futures are created for to begin with so now

you've got futures risk so you've got tornado risk hurricane risk flooding risk drought risk and blight masters risk so they need to be a futures contract for farmers to protect themselves against blight masters. who exactly they treat it like it's a game it's a competition between lava girl and it is the. 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 faith in the system that has been most raddled 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 its 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 risp. and the point is well taken that 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 and 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 imposes starting measures well speaking of advisors and where is the national outrage there are some nations that have national outrage and express it 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 a car 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 junta to the troika and back to the junta were they going to have democracy bush actually 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 blythe masters and izzy he let from goldman sachs stole all their money

i mean there's already a melt martial law in the us you already can't speak up for 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 a know it all along. thanks so much for being on the kaiser report thank you max don't go away much more coming why so stay right there. you know sometimes you see a story and it seems so you think you understand it and then he lives something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture. mission. critique

a good free lunch for charges free. arrangement free. three stooges free. download free blog just loaded video for your media project a free media gone to our t.v. dot com. but going back to the kaiser report imax kaiser time not going to new york as maybe

the coniston professor dr michael has to dichotomize them back to the kaiser report thank you very much max all right back to michael hudson you were in italy where you were treated like a rock star why are you there what happened well the italian journalist pile of barnard bited up four of 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 an end to this list to the university of chicago and our job was to explain to the year or two of your peons in general and the italians in particular that 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 that's 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 but it needs to grow basic keynesian policy we also pointed out that one of

the central bank creates credit runs a deficit is not hyper inflationary what is inflationary is the commercial banking systems flooding the economy with credit for the last thirty years to build up real estate prices stock and bond prices and provide credit for corporate raged takeovers and basically loading down the economy with debt and it is led to inflation today all right so it's a variation i can see as a marker updated version of keynesianism so how is it different and then what is already what already exists well keynes was hoping that new credit would do what a government deficit would go that new credit would be used to up fund new investment and would put out investment. playground motion but today's new credit doesn't do that credit is extended today to take over a company just ended by 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 sector and i what we want to do it missouri is be unite the sectors and modernize an industrialized credit for what people expected the banking system to be a century it got openly industrial revolution was still gaining power paris is trying to pass a city universities and the city where you hear gang hangout is the antithesis of what's happening at the cargo school of economics. we know that there's a heavily employ until i can pound it from mr cargo school that informs people like christine lagarde is now running the i.m.f. and informs the obama administration and most identified with milton friedman and neo liberalism so this is a dynamic between east and the free marketers believe that you can't have

a free market unless you ban art and ignore unfenced they're all especially of any alternatives so there's no interaction that are by the chicago school of entity we're actually where the university of missouri at kansas city u m k c and there is a blog if you were to google you in case the economics blog you get the blog you know economic perspectives edited by stephanie calton 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 profane anshul lobby here in the chicago art school doubts we have said so on with me in italy where stepanek. bild black was talking about well and another blogger marshall our bach so the four of us were basically there explaining for three solid days it's all about monetary therapy 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 it 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 a stage to the end they really wanted to hear modern monetary theory and how central banks were supposed to run deficit not surpluses in order to reflate the economy our university of missouri add the city with modern lot of terry theory receive like rock stars and only of course you're saying that the right the other side the to 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. he's more of

a neo classical sort of liberal but he doesn't focus on the debt issue or debt it's lation other we do and he believes that the government should balance the budget pretty much he doesn't follow modern monetary theory to anywhere near it he tries to be sort of a voice in the middle and he doesn't really discuss our theory or discuss up a spine a fix for the unspeakable crimes where the people that liberals like krugman won't 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 our discussion so basically the free marketers are said 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 clear was. goes down every economics that apartment in a country except the one they control one of their professors paul or harvard or rose accused of are sitting as are tolerant slavering but economists should be

excluded and he said he had no idea that they were going to air their stomachs cut open shit like uppers 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 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 where they were to be herded into stadiums and machine gun killed tortured shot but that's the aspect of chicago still up and certainly he 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 instead he harvard institute of international economics 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 the sky the chicago scar 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 waffen income gaps in the history of the united states and is clearly failing and in many countries around the world so where do they were does this term free market dead last because it's not a free market this week august they will have inverted what the classical economists meant by free market when adam smith and john stuart mill and the nineteenth century progressive era spoke about free markets they wanted a free markets from the rocky. they wanted to get the markets free of landlords free of the bankers and freedom monopolies 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 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 regulate a lot of the bill that will likely futility it's going to church 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 economist tossed in production and make it more competitive this was the whole philosophy of the industrial revolution and it was the free market idea that the classical economists say that but the wrong th fought back around the world war one they began to inverted and their idea of a free market was free for

a predator free form an upper three for our edwardes to coach whatever rights they could get and to free themselves from taxation so that the government had a tax 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's balance of trade has moved so far into deficit if an american worker have to pay forty percent i was then come on housing if yes that 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 i. there are taxes and if yes the pay other debts for a credit card debt education debt then obviously b. even before he spends about one third of the salary on goods and services his

monthly is so high that he's priced out of the market and that's why american can't compete in exports which suck for agriculture which is heavily subsidized by the government and of course the military industrial complex that's our exports to other diplomatically through international goshi asian so free market is what is kelly and you merican 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 market just talked about cross out 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 my question is where did the occupy people do themselves a service by maybe taking some classes at the university of missouri i can see the 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 it and there are people like me just minutes from making capitalism is there i'm usually there david kelly who's been a senator's economic advisors there a lot of wealth reid insiders are there with a look at where money managers were hedge fund managers so this is like hell of a way to make. money but we 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 using

the occupy wall street movement for what's going to happen this summer when the phillips up there to ask the guy right well we're out of time but thanks so much for being on the kaiser report dr michael hansen thank you very much max and that's going to do it for this edition report with me max kaiser and i was like my guest dr michael hudson and i guess i mean he now plays this out of kaiser reported r t t v are you until next year saying. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture.

down to your social antti hopefully cation your own phone only pulled touch from the top still. life on the go. video on demand on t.v.'s my old posts and all recessed feeds now in the palm of your. christian. elite limitless .