time for a look at the headlines now parallel to the flight recorders are examined to gain a crucial insight into the last minutes of the plane which crashed in western siberia it's going to feel the aircraft it wasn't just before takeoff. un peace envoy kofi annan convinces president assad to honor an april tenth cease fire starts growing from the rebels willingness to stick to their sort of. risking it all and losing everything a growing number of italians tens of gambling make their fortune in tough economic

times. next stacey on arrival the shady dealings behind the peak financial headlines kaiser. this is the kaiser report so is that in coincidence and there's still rupert murdoch up to say sick pervert ranks her he's up to no good rupert murdoch hits out enemies all tall son right wingers rupert murdoch's news corp stands accused of running a secret unit to sabotage competitors according to fourteen thousand e-mails released to the australian financial review the australian communications minister stephen conroy so the allegation should be referred to the australian federal police for investigation now in response to this max. this is what rupert murdoch tweeted

enemies many different agendas but worst all tall some right wingers who still want last century status quo with their of monopoly with. rupert murdoch. will do so. no. just look last it was. exactly does sound like he's a little bit senile because of course he is responsible more than anybody else of moving especially the american political scene very far well beyond right wing they've jumped the right wing shark he's out of mind blames the right wingers and he's like oh you created america's ultra right cycle path like fox news or sean

hannity nightmare or he's blaming the fairy thing he created to the mirror. clukey . what max recently he did receive american citizenship and we have always pointed out that america suffers from a norman bates syndrome you know norman bates himself was dressed as his mother murdering people and then claiming it was his mother doing it and here's rupert murdoch looking into the mirror. you know in his paranoid world he only sees right wing sort of crazies because his audience and his audience this is what is a right wing fox news watchers are calling old imbecile. i know. well i'm going to read some responses to him on twitter while you wash your face there and anarchist anarchist voice says rupert

murdoch what kind of b.s. are you spinning you're the head of a criminal syndicate and no one really cares who can win twitter account they must be ruing the day for good rupert murdoch is like norma desmond in sunset boulevard you know complaining about the news business then go away because smaller there is a little twitter account on his i phone book boom boom boom boom. well max let's look at other situations where the person is actually fighting themselves they the entity is actually fighting itself across the world we see guys dribbling their yogurt on their face and we see them chasing their tails so the next headline wall street journal fad buying sixty one percent of u.s. debt the federal reserve is propping up the entire us economy by buying sixty one percent of the government debt issued by the treasury department a trend that cannot last lawrence goodman a former treasury official said and the wall street journal he said this not only

creates a false appearance as a limitless demand for u.s. debt but also blunts any sense of urgency to reduce supersized budget deficit i want to coin a phrase right here right now go ahead max i want full credit for it but it's on my watch media page appraises bet's lation ok desolation this is an expansion of debt which is causing here and people who fear that the government's going to start monetizing the debt and kiss a patient they're buying gold silver other tangibles what you're describing is the u.s. government is now getting into the monetization of their own debt. good that's what people are fearing is combing through what they fear cold continues to go higher because of its low inflation or deflation those terms are antiquated they're not applicable anymore it's much kaiser's term place and i'm the author of those tour and when you use the term please send me five dollars each and every time you do the max if you read the financial news or watch any financial news in america they

say wow there's so much to demand for us yet we're moving people believe in our country but according to the article fed intervention of the government debt market makes demand for treasury bonds appear higher than it really is as foreign creditors and other investors have fled u.s. government debt instruments and are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficit goodman notes that foreign investors like japan and china that once scooped up u.s. debt are shunning it in two thousand and nine such foreign purchases of u.s. debt amounted to six percent of g.d.p. and has since fallen by over its eighty percent to a poultry point nine percent right on japan used to be america's little boy you know buying up all of america's debt but then the fukushima disaster they shut down all their new plants and now they've got a huge trade deficit because they have to import oil so japan actually could be the last straw to overly collapse the debt bubble and caused all the trouble but of

course china was buying actually more than japan was so why have they pulled back and why coincidentally is obama saying that the u.s. military is going to expand into east asia but let's look at more of this insanity in the global markets and especially coming from the global central banks max germany launch a strategy to counter the e.c.b. lars yes both course we all know the european central bank is essentially the buddhist bank and germany is preparing a raft of measures to safeguard its financial system and prevent access stimulus from the european central bank leaking into an inflationary credit boom. the e.c.v. is one trillion euro blitz of three year loans to banks has started to reignite monetary growth in germany even though the key aggregates are still collapsing in southern europe so they created all this money to help southern europe out all of that new created money went directly into germany house prices are up five point six percent because nobody wants to be in south europe but for all merkel has also

gone and say he's also norman bates he's also psycho she doesn't understand about the c.c.p. situation even though germany is the big and of course all the money printing of the monsters asian is causing inflation yes and also all that money printing causes any investor to say wow this system has cracked this thing has gone psycho the european monetary union is going to fall apart and in which case where do you want to be where do you want to hide all your uro's whatever you have you want to buy assets in germany which is perceived as the strongest of the european nations gold and so are up against every single currency last year and speaking of europe max we have some more insanity in the news exclusive goldman's european derivatives revenue soars yes you would have thought the last few years would have told you the best thing to do is run away from goldman sachs's derivatives but no apparently the

europeans are running into the arms of goldman sachs goldman sachs group's first quarter earnings are expected to benefit from the increased use of derivatives by european clients seeking ways to hedge risk according to an internal report seen by reuters they have a risk against doing business with goldman sachs. especially going to a country like greece based on faulty bonds a cost of books so they can get into the euro and they collapse then great other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up it's a virtuous cycle what kind of drugs are they got these great people taking well they're saying they're going there to. hedge risk time after time on the crisis report our articles have shown if you purchased some credit derivatives from goldman sachs from j.p. morgan look at the entirety of italy municipalities going broke all across italy why because they bought credit derivatives from j.p. morgan those exploded they cost ten twenty thirty times more than they ever

expected far more than those municipalities can ever earn in revenue and here they're going we're going to head to risk and in fact you're creating risk you're inviting risk it's a fantastic ploy i mean because i mean this happens over and over again the banks j.p. morgan goldman sachs wall street banks they go to greece they go to europe they go to misspell these in america and they say we're going to sell you a paging product to hedge you against risk volatility risk or market adverse conditions risk the sales of that product whether it's a rather classic example are sold to a thousand times greater than the underlying component of risk that they say they're protecting against to the point where they create the instability they create the collapse and of course they've done so in a way where the insurance that they've sold does not work so it didn't work in greece it didn't work in europe it didn't work in municipalities all of america it didn't work in a i.g.

it didn't work in portfolio insurance in one thousand nine hundred seven it didn't work in the mexican peso crisis the asian financial crisis the dot com collapse the housing mortgage for part the mayor's rank of america we have no idea what we're doing countrywide right of merrill lynch risk it never works but they keep buying the same product over and over and over again because we're caught in this enormous cap spin room looking at them they're all the flux in the mirror and saying look i'm trust that guy well exactly so you know going back to the previous bit where we're saying that the buddhist bank will be able to impose counter cyclical capital buffers on lenders and use macs. prudential haircuts in the securities markets so they're making up all this new stuff on the same the story is these same exact cons going on and on you know the better thing to do would be the simple old thing of putting these bankers in the stocks and telling them to stop you know the old fashioned so they are sticking through we can throw tomatoes and your stinky yogurt

at them so we do stocks in both of these stocks and tomatoes put their heads through the stock since we're going to lose and i'm actually you're not going to turn into a yogurt kamikaze are you are just might very well ok so returning to this goldman story max revenue out goldman's investment bank in europe increased by eight percent from a year ago to four hundred seventy six million overall client driven derivatives revenue was up one hundred forty two percent year to date in europe. all of the skills part more of your should be deals but max you can say all you want about goldman but everybody out there every single person in europe knows for a fact now who goldman sachs is and what they do i mean perhaps the only reason why there is this increase is that a former goldman sachs guy is the head of italy a former goldman sachs guy is the head of greece a former goldman sachs guy is the head of the e.c.b. maybe as you press them selling to these particular and cities and it would be nice

to see a breakdown on these good point friends don't let friends do business with gold reserves and then finally max f.b.i. taught agents they could bend over suspend the law so here's this trickle down this is a something that you see over and over in the wall street markets where they believe that they can bend or suspend the law but here's the f.b.i. they taught it sieges that they could sometimes bend or suspend the law in their hunt for terrorists and criminals other f.b.i. instructional material discovered during a month long investigation of the f.b.i. counterterrorism training warned agents against shaking hands with asians and said arabs were prone to. jacqueline hyde temper tantrums oh once again it's the norm of a syndrome so these get these days as they are allowed to break the law to pursue the bad guys and oh let's get some opium afghanistan to go chase the bad guys almost to some gun running into mexico to go chase the bad guys and of course they become the bad guys and they are the psychos in a way attacking themselves in the mirror because that's what we have

a norman bates debt deflation economy stacy herbert thanks so much for being on the kaiser report thank you max don't go away coming back with much more still staying there. bright. sun from suns to. start time t. . hasn't been a theme here on t.v. . used to get the maximum political impact of. the source material because for. sure it was an honest.

we want to position. something. i welcome back to the kaiser report imax guys are time now to go to do york city and speak with reggie middleton boom bust blog dot com where you can subscribe to one of his forensic analysis of markets and companies exclusively on reggie's blog welcome back to the cars reporter reggi thank you very much for. good to be here all right reggie middleton first last year the fed purchased sixty one percent of the total net treasury issuance your thoughts. circular argument. i issued it to myself and i buy it up and i say this

if you get demand for it of course it's significant to man if i buy it because you see what happens if you actually allow the market to set the price the fed is able to get away with it he was talking to get away with it because the economic power in the world that may still be the case in the coming years and quarters but it does bring doubt when you have to purchase your own debt in such large amounts in order to. bring about high bond prices are low yields and low yields actually through sort of policy that the fed has instituted is actually starving the banks and creating significant distortions and prices go throughout several markets bond markets equity markets and really the markets so it's a big mess and so a mess that i think if we were to swallow that medicine back in two thousand and seven two thousand and eight we could have avoided this significant price distortion which will not happen so yes one of the markets is being distorted of

course is the price of oil right because as the fed is monetizing its own debt buying its own debt this is frightening people to run into places like oil because they realize that the fed is playing an incredibly risky game correct it appears you know the price that was going up without a parent can measure an increase in demand ever and you have an increase in prices that increased demand there's something askew. oil is going to put gas in my car last night four dollars to seventy five cents a gallon you know. that's excessive you know if you want to walk right by reggie. where people are blaming a barack obama for the price of gas there why aren't they point a finger at the federal reserve the federal reserve the treasury are printing money that's the basing the value of the currency that's why the price of gas is going up now will the release of any oil from mr teacher reserve have any effect on the

money printing that's going on why that is going to have an effect on the money printing i think the other way around as you said the money printing most likely has an effect on prices the release of the reserve and i'm not all the expert you know just as a disclaimer but i am very good at common sense valuation the release of oil reserves will cause a trading drop in prices temporarily but the of the factors in play may cause our prices to rise again we've been through this scenario before in two thousand and eight and remember the six and if you can spike in oil is what many people. as a straw that broke the camel's back because the market the equity markets are correct in general i think the credit markets it's quite possible because i believe the recovery that you see in the mainstream media is a full recovery the numbers they say are going up but if you take a look at the numbers and he's just written about them just minutes you have missed this you know roughly fifty seven to sixty percent misses of the economic numbers

that we released yesterday throughout the last week you know that's not a recovery that's actually the opposite writing going back to that two thousand and eight period when oil was at one forty seven herself chorused was a instigating economic factor that caused the revolution in egypt and across the entire region so high prices tend to stoke revolution whether it's the french revolution the egyptian revolution or most of the revolutions throughout history now the u.s. federal government has recently taken over much of the student loan market that market now is passed a trillion dollars according to pitch and yet more than twenty five percent of student loans are. the link went is this the next sub prime disaster. what is the next miss pryse credit disaster again the term subprime is a term that the mainstream media latched onto because it was easy it was convenient but you know when the mortgage market collapsed they had nothing to do with subprime lending so problem it was the first to go because the subprime borrowers

had to because finances but the reason why the market collapsed was a lack of proven underwriting so it was basically giving money for free the student loan market is basically the same thing i want to have information and education pricing ok rampant inflation there's no reason for the cost to go up for the size they have going it's not as if the quality of the quantity of education has risen to commensurate basis with the cost of tuition so you have the information combined with the fact that you have an entire industry base of one lending towards those who are tasting food inflation combined with the fact that underwriting is a joke to begin with and basically everybody wants to go get so low combined with the fact that you have record unemployment among youth so you could you could buy a map and unemployment. with with a very very slack underwriting with the pricing of the product being. sold for to

be purchased shooting up like a firecracker then it's a recipe for disaster so we're going to be stuck of course with those things so private let's say. that credit underwriting. bubble. and bust rice cereal bubble blowing what the whole market. greenspan era now we recently discussed ad like j.p. morgan claims number one for government debt after jefferson county the article notes that despite their role in two of the biggest scandals in the history of u.s. public finance the company is still the biggest player in municipal finance why are glorified bucket shops like j.p. morgan bank of america goldman sachs a lot. continue to operate in such a capacity. for there's not a single reason so i'll give you my opinion which i'm going to call just fact but this is my pin in case somebody disagrees with me fact but you have a marketing for some reason a lot of the consumers of the services of the big banks. and you are in my opinion

they should be less knowledgeable they believe that you have to be bigger to be better and that's just not the case you know if you take a look at the research i ran circles around all the big banks for five years running their gena tauriel expenses the logic of my research staff budget so how is it i may be about circles around them a conflict of interest that drives them which prevents them from performing such as the most recent new york times editorial from the x. going to ploy you know make clear as i do make it clear for a while so you have. the consumers of the product thinking that if you go to white shoe print name investment banks will get a better deal combined with the fact that these banks have to over perform almost all of the public companies now they're no longer private partnerships so they have to go quarter by quarter they can't plan years ahead of their private partnerships they have to impress quarter by quarter in order to outperform everybody else

quarter by quarter you have to take advantage of it's a must if you don't take advantage of clients only way to outperform. but outperform quarter by quarter that money that performance has to be extracted from somewhere and is usually extracted from the clients the same clients we're supposed to be serving ok in addition you have if you log in to a much greater extent goldman sachs who have in total put say at least billions of dollars of capital into lobbying you know you lobby the government because i mean does your client you're now bonded with your client in a way that might not facilitate the best plus. transaction you know i'll go and buy something from you or your bosses to give me a better deal so i get you to pay more for less services that catch twenty two allows for all types of financial shenanigans to happen and you know potential clients such as a different kind of deal such as maybe

a goldman sachs clients and j.p. morgan have found out something so i mean again the way to break that is to limit the effect of lobbying and limit the network effect of having so many expand interest within government but they're not the only ones that can come out and to take a look at the performance of investment banks from two thousand and seven president and his team. possibly to be the only ones i cannot you know that's not been the case and exaggeration but hopefully i get the point across you know that needs to be more diversification of government and it needs to be. acceptance of its official capacity from outside of the banking industry particularly since the government purchased so much in terms of services from the banking industry that's right goldman sachs clients are just collateral damage while the firm is busy blowing up the economy talking about mark zuckerberg c.e.o. of facebook the company's going public hundred billion dollars or so he maintains fifty six point nine percent of the post i p o o o t and shares unprecedented your

thoughts on this i.p.l. . a smart man obviously very persuasive or has a very large one of the two but you know good for him kudos. but what's good for him is not good for the shareholders i can't see myself giving money. to a company. where i have no say so what the company does over fifty percent ownership of the voting shares he controls the company he is a very intelligent guy i've nothing against him it's a matter of fact if i was him i'd love to have control of a multibillion dollar. ok companies well what if you look take a test track record ok has he ever ran a public company before know as he ever ran a company had this before with a proven track record of success some would say yes but how does facebook does he have any competition significant competition you know it's about a focus some of the most powerful internet and media companies and wrote accounting

for ok if you combine all that is it understood so we rest concentrates so much when one person without a successful track record and i'm not saying you need a success exactly to succeed but it definitely helps to combine that with the fact that the pricing facebook is just. outrageously best case scenario the best case scenario possible their stores are valued by many billions of dollars and that's the best case scenario and the last time the absolute worst case scenario it came to play because in the play something goes wrong he has say so he's the c.e.o. period he's also the owner of the best majority voting shop so if you didn't have the grammar and marketing machine otherwise known as goldman sachs and the rest of those i was street he took a look at this as a simple business like a friend of yours came up and said well i want you to invest in my business but i'm going to have total say so what happens in the business or the stock but oh you get is a financial return you have no say so what happens i'm competing against the most powerful

companies in the world and i don't have much experience at this but you know i've grown very fast you know my growth has slowed significantly up to now and i may have one hundred billion dollars no problem here it goes right unlikely but you know with the again you know. bigger is better go in and out. j.p. morgan etc marking the stock they've created such a buzz that fundamental is a common sense of actually going by the wayside right well you know corporate governance suggest that this would be illegal as recently as twenty years ago so it shows you how the laws are changed in the past twenty years or something as blatantly. legal as this is terms of corporate governance to go to go ahead all right reggie melton thanks so much for being on burqas the report ok you're very very welcome to look for to come back again all right thanks and that's going to do for this edition of the kaiser report with me max kaiser and stacy herbert i was like my guest reggie middleton oh the infamous boom bust blog dot com is going to send an email please to the recorded r t t v are you until next time x.

guys are saying bio.