nine thirty am in moscow these iraqi headlines u.s. teams up with its arab allies to pressure syria's government into submission despite ongoing u.n. efforts to mediate a diplomatic solution abroad u.s. led coalition is expected to provide more support to syrian rebels sunday. washington puts the squeeze on syria's ally iran pudge into sanction countries that don't reduce imports of oil from the islamic state of new measures come into full force at the end of june. reliving the past r.t.

visits the only remaining soviet forced labor or gulag camp and here is the hollering tales from its former detainees converted into a museum and so the site will act as a permanent historical memorial. has a report up next stay with us here on our. strasser this is the cause a record of tension and this is your. game stacy herbert max to humean this is your captain freaking. bongo news exclusive pirate goes berzerk watching jim cramer there and pressing the prince button is ben bernanke he of course and he is in charge of our global economy i thought it was a good analogy to compare this to the jet blue pilot when a little bit bizarre on the flight to las vegas what happened the first time in the

cockpit running down the aisle naked looking first peanuts well max passengers do screaming jet blue captain as midair rant diverts flight a jet blue flight captain had to be tackled by passengers today after you ran up and down a packed flight screaming about terrorism and al qaeda and a terrifying mid-air outburst he was shouting say your prayers but it is very similar to how the guy in charge of our global financial monetary system is doing the same thing and yet the passengers are not tackling the captain as it were but they're sitting there calmly as if the plane isn't out of control. is the pilot of the american economy event he's not reading the instruments very well that inform him about what the economy is doing the gauge there that says wages is crashing but he's not doing anything about it the gauge that shows inflation and stuff like energy and food is zooming up to danger right and bernanke he's

not doing the batteries blinded or ease with the stewardess or if you talk about cheap fares this guy's got cheek there and he's running around his butt cheeks saying i'm not looking for peanuts although you know exactly max because when the pilot in charge of the plane. when they're flying through a storm they're supposed to look just at the gauges and those are telling them the truth because their instinct is telling them something else and yet part of the problem is they keep tweaking the gauges to try to tell them the thing they want to hear but i've used in flying the economic plane of america and when the gauges are showing him what he should be doing making some adjustments of our flaps are doing something correct to actually sustain economic flight he just basically taking black pain and you know spraying it over that gauge and saying i don't see that gauge he goes in front of congress and say go look at. just leave words saying and of course it just is there to promote the agenda of the central banking authority

and the club talk arcee and as a result we got economic armageddon in response to this jet blue situation we have this headline jet blue's c.e.o. barger pilot is a consummate professional so course we talk about the pilots a consummate professional he shouldn't talk till we stop a strange thing. well where is he trying to make sure that the passengers continue to fly jet blue and the same thing you see with the financial sector or the mainstream media they keep on tell you oh it's all fine yes man ben bernanke you running up and down the aisle saying everything is ok you know in fact it is all ok look when bernanke is meds where are he's going to be like back tony guy call me twenty twelve guy running down the street but make it slapping the ground like a gorilla stomach or do the cookies with his ball that he looks like a gorilla in a way old you know

a little gorilla sitting back there you know farting. really that's all he does he goes in part of congress and he farts and he paid you know they're saying oh you're farting sounds like we're all in great shape thank you professor bernanke let's look at some of the headlines that betrayed the everything is ok earn anky is a consummate professional he's a hero sort of stuff shock slowdown in u.k. growth as g.d.p. contracts point three percent so great it's a commie contracted more than expected in the last three months of two thousand and eleven shrinking point three percent as a country is dominant services sector weakens and meanwhile household incomes fell one point two percent and the savings ratio eased to seven point seven percent right they've got all starting in the u.k. and as a result the economy is crashing and the g.d.p. is crashing and the people that live there are suffering financial repression are suffering horrible economic calamity and george osborne in learning things you

weren't kidding is ben bernanke is equivalent to the bank of england and he likes to sit back he doesn't have a flatulence problem he's got a gastrointestinal problem that's his contribution to monetary policy around the world and he glads if you think of some so i can but he's basically in the financial pressure game keep interest rates artificially low so that grannies you know the new george osborne budget it takes more money five billion pounds more from retirees and pensioners and puts it into the pockets of clip the krauts in the city that's on top of the forty five billion pounds that almost born in cameron engineer the theft from pensioners and grannies into the pockets of speculators who if you're a barclays h.s.b.c. or the old lehman brothers all they're doing is buying cocaine and shoving it up their nose that's all they do a friday or saturday night go to some people in the sea plenty bankers other back make good snorting cocaine well let's look at these facts here because the fact is here you have a pilot the economy of the financial sector in the united kingdom and they've

blacked out the key that. tells them that there is widespread fraud and money laundering and toxic derivatives that have destroyed their economy so because of that he doesn't see it in fact the solution offered is the figures could reignite expectations the bank of england may need to add additional stimulus to bolster growth now isn't this the same exact thing that actually has caused these problems yes it is it's more debt it's not cash it's debt because the bank of england has no cash all they do is they lower the reserve requirement for the entire system globally which means that they increase the debt load which means more repression which means more debt service which means more necessitate to move billions from the pockets of those who thought they were getting any kind of return in their pension account into the pockets of the speculators exactly so when the pilot does not know and understand and trust his gauges he often causes

a stall mid-air as that air france flight from brazil to paris that crashed it was caused by pilot error when they stole the plane by doing the exact opposite of what they were supposed to do they pulled up sharp when they should have dove into wherever they were going right and the people in the u.k. or the u.s. who are suffering as a result they need to understand that the suffering is being organized by urban king in the u k. breaking the u.s. mariel draggy and the e.c.b. . but then there are stand what's going on here the the enemy is not al qaida it's not. it's not anything except central bankers it's not an enemy it's what we're saying is these guys are to arranged they're going buzz or they are running up in down our financial economic and monetary

aisles they must be tackled and stopped we the passengers on this plane will not stop our central bankers from destroying our economy let's look at the result of us sitting there like toads you know with nothing to do and letting these guys run amok the rich get even richer new statistics show an ever more startling divergence between the fortunes of the wealthy and everybody else and the desperate need to address this wrenching problem even in a country that sometimes seems a nearer to income inequality these takeaways are truly stunning so remember just like above we saw stunning shocking all we keep on being shocked how surprised why because we've blacked out big gauges suggesting that the central bankers they need to be tackled they need to be stopped rising up because we can't just sit there like passive toads waiting for the plane to go down so when the it comes out of the metro system in washington almost all the way the office of the federal reserve bank with a little grease case you should just think somebody's compliment on the straight

jacket and call the market insane asylum this is an analogy and i think you know you strap on a parachute and get off that guy's plane and if it means buying silver or buying gold or doing something not to be subject to the mad zork pilots piloting are playing around with you. so in two thousand and ten as the united states continue to recover from the recession a dizzying ninety three percent of the additional income created in the country that year. compared to two thousand and nine a whole two hundred eighty eight billion went to the top one percent of taxpayers those with at least three hundred fifty two thousand in income so to compare this in the clinton era expansion forty five percent of the total income gains let's at the top one percent in the bush recovery the figure was sixty five percent and now it's ninety three percent so you see here is ben bernanke he he's in control of the system what do they do they put zero percent who does that go to the rich people because essentially you've got to think of it like this there are sophists there in

the lighter fluid business they burn down the house and the solution is to burn down ten times more that number of houses and by the way they got to buy a lot of fluid from the same people sold the lighter fluid to begin with that's wall street so of course going to make more money. and then finally max here's another example of how the government a guy some charge of flying our global economic plane how they help impoverished the bottom ninety nine percent f.h.a. to bail out risk looming larger after guaranteed binge mortgages so the federal housing administration won't be able to earn its way to financial health this year increasing the chance it will need a taxpayer bailout based on an updated forecast from moody's analytics which provides the agency's housing market analysis the us government mortgage insurance which guarantees one point one trillion in home loans had been counting on robust growth and home prices to help rebuild its insurance fund after paying out thirty

seven billion dollars to cover defaults the past three years according to an annual report to congress write well the thing is and he touched on it already is that if the entire globe is the leveraging of the entire globe is in recession its last depression then the f.h.a. would have talking about here they are going to be bailing out themselves or some ancillary institution based on the aggregation of more deaths you say they talk about reserves on the balance sheets they talk about assets on the balance sheet they're talking about debt and every time they talk about a restructuring or a bailout they're talking about increasing the debt over the assets which of course are completely impaired people of m.f. global realize this their assets were a pair they had no assets it was a joke and more of this is happening as you sink deeper down into the muck of realisation of its non existence you come to this do you hear that did you hear

that i did that's called gold at the very bottom of this entire posy scheme there are about thirty thousand tons of gold in the hands of central bankers and there's about one hundred sixty thousand tons of gold in the globe in toto that's where we're going and the rest of the world understands it that's why the central banks are buying it and that's why countries like iran china russia are trading it with each other to get out of the parties game that is the u.s. dollars. well max exactly and as this story shows the reason the rich got richer in a deflationary environment was because they were able to transform their bad assets to us the passenger sitting there like toads on the freaking economic bad well that they passed about assets to the banks of the banks passed to the central banks of the central banks are passed on to us through austerity measures and then those are working so they're passing it on back to the banks or then passed it on back to the

central banks and that every time you go around the circle you make a fee so that money goes up to the banker the terrorist at the top like jamie diamond terrorist. and the cycle continues until you get to a little gold and this is an inevitable as night follows day states are with thanks much freedom fries repaint humax don't go away but we're coming right to say whether. something good what is happening with snow is that you know the two parties very wild parts of the south however i totally disagree i don't think the ports are begun. we are still waiting for the actual resolution. mission. critical three. three.

three. three. three. three brokers for your media project a free media don carty dot com. yes welcome back max kaiser is me this is the kaiser report let's go to las vegas and talk with arian the crown of n l hyphen employer. where there have bed three hundred eighty eight implosions since two thousand and six aaron welcome back to the kaiser report a max good to be back all right aaron in the first half the show we cover the story of f h a housing bailout facing a bailout risk after guarantee binge tell us about the f.h.a. and its role in facilitating fraud in the transfer of the costs that the fraud is

to the taxpayer. you know f.h.a. was founded in the absolute oppressions basically provide support to nailing housing market and like so many well meaning programs you know maybe medicine initial goals but stuck around and basically turned into a gigantic venue for private actors to to raid the government coffers and indirectly raid the taxpayers and the problem being that a sensibly f.h.a. self-supporting has its own insurance fund socially kind of deal like f t i see the problem being and be actuarial assumptions and the underwriting so the question is you know what happened to this thing and the housing boom you know and potentially other periods like it where under. adding standards became shoddy if not criminal and these things go into a program like f.h.a.

and begin to violate the actuarial some sions and therefore the solvency of this thing so people are starting to catch on that there's a big problem with f.h.a. in the way could be the latest housing bubble and me you know mortgage free for all and the housing market crash and i would i would certainly agree with that it's it's in big trouble and we're starting to see mainstream reports catching on to this in a potential need for a bailout there were two reports i believe just in the last six months alone one was from wharton and one was from george washington university and with these reports found as basically if you do any sort of legitimate fundamental analysis of what's in i think she's portfolio it is way worse then their official assumptions and projections of their own solvency to the tune of fifty

fifty billion plus ok so f.h.a. it's part of the securitization financialization of the economy of the banking sector which is now the mid biggest piece of a economy and it's been going on for decades and it's about taking the mortgages and re offering them and slicing them and dicing repackaging them and it becomes as bloated middle of the american global economy what supposedly is backed up by assets these assets are the houses themselves or the mortgages or just a derivative of the house the house themselves both be at the bedrock of this thing but the house prices seem to be continuing to fall now you're las vegas which is one of the biggest trouble spots in america house prices in las vegas are doing what now well they're continuing to decline and that's that's the case certainly in . the worst bubble spots in the country and overall we're still seeing home price

declines and you see you're seeing some of these reports starting to realize you can't pretend like f.h.a. didn't it's projections that you're going to get home phrase increases basically saving them and saving if it changed and if you've got the opposite in reality which is continued declines so you know this is this is obviously reality coming in you know the read reality train crashing through. let me add one thing to what you just said so every she's a little different than most secure dies mortgages and that goes into a special securitization called ginnie mae which is explicitly government backed so if you can if you're a mortgage originator and you can manage to get an f.h.a. loan underwritten by f.h.a. . which could be a shoddy loan of some sort and it passes muster for at least an initial period of up to two years he goes into one of these ginnie mae securities and it becomes government backed explicitly so basically when she get in the gate with

a potentially. poorly written possibly fraudulently limply underwritten loan into f.h.a. you're basically home free unless the government gets its act together to come and see you for organized fraud which is starting to happen now right so as you point out once you get into the gates or in other words once you enter the ponzi scheme like a bernie made up of these game it requires more people to go into what they call feeder funds to feed the ponzi scheme f.h.a. guinea made a fanny back freddie mac. anyway they're all best bundled together in this huge parties where the at all i doubt that it's houses but the house prices are going to go back down and if you can make it good it's right that as tax revenues continue to collapse because everyone is continuing to pick up part time jobs at least out full time jobs then the bailouts continue but it belts a baby. but more part money which means that the whole system becomes more unstable but hey the top one percent it gets richer in providing the arson that is the

economy now you are the victim of a slap suit as a p.p. as a result of your reporting on a case of mortgage lending fraud related f.h.a. loans tell us about yeah this was related to one of the most egregious scams of as i mentioned there are people who had various ways or fraudulently getting these mortgages underwritten by f.h.a. and backed by the government and one of the most egregious scams was what is called seller funded down payment assistance and these operations are more than one of them would arrange to get the meager three percent down payment required by if h.s.a. just so the borrower had some skin in the game but they figure out how to get around that by basically having the seller mark up the home typically as a home builder trying to move in tory have the mark up the price take the difference and donate it to a nonprofit set up by these operations and then use that money to cover the

downpayment so essentially you end up with an inflated home loan backed by the government owner who never brought anything to the table and was probably recruited off the street and didn't know what the heck they were doing was not really educated as to what was going on usually deceived as to whether this so-called donation for the downpayment was charitable so in effect you have a one hundred percent government backed home loan without the government being aware that this is a situation on my own basis probably without the borrower being aware and with be the lender the private lender the builder or other seller and the broker and possibly a realtor making out like bandits through this transaction so there were a number of operations that did this the first was nehemiah corporation. out of california and they have pretty brady started in early ninety's and then

a fellow named christopher russell out of gaithersburg maryland saw what they're doing and thought hey you know this is great i mean we can really make out like gangbusters here and his innovation was to market the scheme aggressively to the sell side so that simply you could have a builder that's sitting there has all this inventory they can move probably you know in late two thousand sixty thousand seven and attach one of these down payment schemes to it to basically move the inventory at any price and chuck chuck it as future toxic waste onto the books of f.h.a. so we wrote about one of these schemes russell's latest company was operations called the great america program and this is after an i.r.s. crackdown on the scheme and so take it around that he started laundering the money through an indian tribe so that it would be you'd be basically be presented as

government funds so you could still see squeak in and pass muster. so you know it's we're still wasn't legitimate it was just a dodge but finally in two thousand and eight the housing bill congress itself woke up at the behest of hud and explicitly outlawed these schemes they basically put a provision in that said you can't launder money to get around the f.h.a. downpayment requirement so they had to shut down but it was until we wrote about that on our site and said hey this is what was going on could it government reports in the i.r.s. ruling when they cracked down on it and say this is completely ridiculous that this was going on and there was only at that point that they sued us. so they tried to shut us down to get us to take the article down basically for for bringing visibility to the whole scheme and now this scheme is starting to be understood as a major problem with f.h.a. and if you look at the quantity of loans that went through these solar fund

a down payment schemes. you get a number like a one hundred billion dollars or so of these assessed as a p.p.a. linked loons that are defaulting at rates i believe it's something around thirty percent also talk about this lapses for a second so to speak are broadly in terms of who uses the slapp suit it seems more like a fly by night sole operator than let's say a j.p. morgan or a goldman sachs trying to silence people yeah i tend to find this is the third shrivels libel suit that m.l. employed has been hit with and i tend to find that it's the mid-level companies like such as predatory mortgage operations that in most cases have had to shut down but in some cases continued to try to push these lawsuits to try to save face but generally they are vulnerable to their wrongdoing coming out and becoming known when in the past and often cases they've had run ins with the regulators and have have paid paid their protection fenians you know they paid little risk less

settlements or they've pushed back on technicalities and lawsuits and things like that and socially been allowed to keep keep trucking so they don't like it when some you know snotty nosed blogger or independent online reporter uncovers that there's actually something much more widespread and organized going on and it is you know the government's not going to run into help such people because typically the regulators have failed in these cases and there's going to be generally little sympathy from anyone else because you get allegations of oh it's just someone who's disgruntled or just picking on this upstanding company that's that's paid its dues . so that's that's the kind of situation it's generally a mid-sized financial company against an independent journalist or blogger someone who basically doesn't have their own in-house legal counsel or legal team that they know they can intimidate them with

a lawsuit and possibly just just bankrupt them or get them shut down by force all right so now finally you keep an eye also on the mortgage lenders that's the next fraudulent practice we should look out for the big thing out there is people who are looking for help with a loan. so there are a lot of scams out there with people who purporting to do forensic analysis or get your loan modified so. be careful about that generally you want to get a lawyer on your side when you're facing foreclosure and looking to get a loan not so that's that's the hot area for for fraud basically right now oh right well maybe it'll be offered as a close then try starting to get on the york stock exchange a new way for people to buy into fraud that is america dot com all right aaron crow thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guest aaron crowne from an al hyphen implode dot com bust i mean now

please do so at kaiser reported r.t. t.v. dot are you it's like imax guys are saying well ya. know.