video on demand. just feeds now with the palm of your. comb. your authority are top stories moscow is burning two dramatic fires in the city overnight one happening sixty six stories up a skyscraper the other killing seventeen people trapped in a burning market were house becoming the capital's deadliest place in five years. u.n. peace envoy kofi annan convinces president also to honor an april tenth cease fire as doubts grow over the arab funded rebels' willingness to stick to their side of the bargain. flight recorders are examined to gain

a curse all insight into the last minutes of a plane which crashed in western siberia it's been revealed the aircraft was empty iced before takeoff. up next max and stacey on gravel the shady dealings behind big financial hard lines in the latest kaiser report. this is the kaiser report so what is that in coincident and distil rupert murdoch up to sixty ranks keyser he's up to no good rupert murdoch hits out enemies all paulson 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 fax and this is what rupert murdoch tweeted and we need different agendas but worst all tall some right wingers who still won't last century status quo with their money not bully. and rupert murdoch. no this is the. look. so luckily i asked him. 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 beyond right wing they've jumped the right wing shark plays these are the five you saying it blames the right

wingers and he's like oh you created america's cultural right psychopath and fox's sean hannity nightmare or he's blaming the fairy thing he created he's looking in the mirror but. well 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 it and we are. you know in his paranoid world he's only sees right wing sort of crazies because they're his audience and his audience this is what is that the right wing hawks' news watchers are calling gold in brazil who. i was.

well i'm going to read some responses to him on twitter while you wash your face there an anarchist anarchist voice says rupert murdoch what kind of b.s. are you spitting you're the head of a criminal syndicate and no one really cares who gives a twitter account they must be ruining the day for good rupert murdoch is like norma desmond in sunset boulevard you know complaining about the news business then go away and pick up smaller there is on this little twitter account on his i phone book boom boom boom boom boom. well max let's look at other situations where the person is actually fighting themselves 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 is a limitless demand for u.s. debt but also blunt any sense of urgency to reduce supersized budget deficit so i want to coin a phrase right here right now go ahead max i want full credit for it because of my work at media page the phrases that place. that definition 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 in just a patient they're buying gold silver other tangibles what you're describing is the u.s. government is now getting into the mama station and selling debt. and that's what people are fearing is coming true they fear gold continues to go higher because of pleasure there's no inflation or deflation those terms are antiquated they're not applicable anymore it's rocks kaiser's term placement i'm the author of those terms

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 demand for us yet we're moving people believe in our country but according to the article fed intervention in 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 to pan in china that once scooped up u.s. debt or shamming it in two thousand and nine such foreign purchases of u.s. debt amounted to six percent of g.d.p. and has since fall and by over eighty percent to a paltry point nine percent great knowledge of pennies to be america's little boy you know buying up all of america's debt but then the fukushima disaster to 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 cause gold a terrible well of course china is buying actually more than japan was so they pulled back and why coincidentally is obama saying that the u.s. military is going to have to expand and 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 e.c.b. lars yes well of course we all know that european central bank is essentially the buddhist bank term and he is preparing a raft of measures to safeguard its financial system and prevent access to malisse from the european central bank leaking into an inflationary credit boom. the e.c.b. 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 euro pro merkel has also gone in saying she's also norman bates she's also psycho she doesn't understand about the c.c.p. situation even though her money is the e.c. big and of course all the money printing in the monsters ocean 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 euro's whatever you have you want to buy assets in germany which is perceived as the strongest of the european nations gold or silver 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 arriving in sydney 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 the hedge risk against doing business with goldman sachs and it goes to actually go to a country like greece they sell in faulty bonds they close the books so they can get into the euro then they collapse then greece other countries go to goldman sachs to help of cure the problem of having that dealt with goldman sachs of course the earnings are up and 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 keiser 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 hedge risk and in fact you're creating risk you're inviting risk that's a fantastic point 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 municipalities in america and they say we're going to sell you a hedging product to hedge you against risk volatility risk or market adverse conditions risk the sales of that product whether it's a 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 sold does not work so it didn't work in greece

it didn't work in europe it didn't work and it is about as all of america it did work at 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 tarp america's rank of america we have no idea what we're doing countrywide 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 catch spin the looking at their own reflection in the mirror and saying wow i could 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 is so they're making up all this new stuff on the same the story is the same exact cons going on and on you know the better thing to do would be the simple old saying of putting these bankers in the stocks and telling them you know the old fashioned. sticking

through a guitar and tomatoes and your stinky yogurt at them you know we do stocks in both of these stocks and tomatoes corporates through the stocks until point commandoes of them actually you're not going to turn into a yogurt kamikaze are you are just might very well ok so what are you turning to this goldman story max revenue out of goldman's investment bank in europe increased 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 should be due 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 trust them selling to these particular entities and it would be nice to see a breakdown on these good point friends don't let friends do business with goldman sachs 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 solutions 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. jekyll and hyde temper tantrums well once again it's the norman bates syndrome so these get these agents who 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 always do some gun running into mexico to go chase the bad guys and of course

they become the bad guys and they all of the psychos on the way attacking themselves in the mirror because that's what we have a norman bates debt deflation economy stacey herbert thanks so much for being on the kaiser report thank you max don't go away coming back with much more so stay there.

well. it's technology innovation all the developments around. the future. i welcome back to the kaiser report i'm nice keyser time now to go to do york city and speak with reggie middleton. blog dot com where you can subscribe to one of his forensic analysis of markets and companies exclusively. welcome back to the kaiser report thank you very much max good to be here all right reggie 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 your demand for it of course is to defeat the man if i buy it

. see what happens if you actually did allow the market price if it is able to get away with it he was going to get away with it because the economic power in the world and that made case in the coming 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 so low yields and though yields actually desert policy that the fed has to do is represent starving the banks and creating a signal. distortions and price discovery throughout several markets bond markets equity markets and all the labor markets so it's a big mess and so mess that i think if we were to swallow the medicine back to 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 the world is going up without a parent to measure an increase in demand and when you have the increase in prices that increase demand there's something askew. or was going to put gas in my car last night four dollars to seventy five cents a gallon you know. that's excessive and makes me want to walk right by reggie where people are blaming a barack obama for the price of gas there why aren't they pointing the finger at the federal reserve the federal reserve the treasury are printing money that's debasing 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 that it was 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 expert you know just as a disclaimer but i am very good at common sense and valuation the release of oil reserves calls a trading. drop in prices temporarily but the factors in play may cause oil prices to rise again we've been through this scenario before in two thousand and eight and remember the six new figures back in the oil is what many. as a straw that broke the camel's back because the market the equity markets in general and then consequently 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 see are going up but if you take a look at the numbers and it just before richard about that would you have missed this you have a roughly fifty seven to sixty percent

a miss is of the economic numbers that we released yesterday throughout the last week you know that's not a recovery that's actually the opposite right in going back to that two thousand or a period when oil was at one forty seven herself chorused was a instigating economic factor that caused the revolution and egypt and across the entire region so high prices. revolution whether it's the french revolution the egyptian revolution or those 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 fitch and yet more than twenty five percent of student loans are delinquent is this the next sub prime disaster regimental to. miss price credit disaster again the term so prime is the 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 and they subprime lending was the first to go because the subprime borrows 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 just basically the same thing no wonder you have inflation and education pricing ok manfred inflation there's no reason for tuition costs to go up as foreign assayas have going it's not as if the quality of education has risen in the commision to pieces because the commission so you have the information combined with the fact that you have an entire industry base of one lending towards those who write. and food inflation combined with the fact that underwriting is a joke and begin with basically everybody wants to go gets a lot combined with the fact that you have grafted on the climate and money you so you can go buy rampant unemployment. would be very very underwriting with the pricing of the product being. sold for to be purchased shooting up like you

know five crackers there it's a recipe for disaster so i'm going to respect of course with those things so private let's say. credit underwriting. bubble. and bust right serial bubble blowing let the whole market. greenspan era now we recently discussed i'd like j.p. morgan claims number one for government that after jefferson county the article notes that despite the 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 of continue to operate in such a capacity. but. for there's not a single reason so i'll give you my opinion which i'm going to fact but this is my pin in case somebody disagrees with me a fact but you have a marketing for some reason a lot of the consumers of the services of the big banks. can and they should

be 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 in my book i read circles around all the pics for five years running gena tauriel expenses the logic of my research staff budget so how is it i mean what circles around is a conflict of interest that drives them which prevents them from performing such as the most recent new york times editorial from goldman a ploy you know make clear as i make you come out well for a while so you have. to because the. is that a product of thinking that if you called it a white shoe investment banks would get a better deal combined with the fact that these banks have to over most 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 clients it's a must if you don't take advantage of clients the only way to outperform is over the medium to long term but outperform quarter by quarter that money that has to be extracted from somewhere and if you extract it from the clients the same clients are you supposed to be serving ok in addition you have entities that keep him all going to a much greater extent who have in total put say at least billions of dollars of capital into lobbying you know you lobby the government the government is your client you know. your client in a way that might not facilitate the best possible outcome of cap or 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 rating of the client such as the jefferson county jail or such as many of goldman

sachs clients and j.p. morgan clients have found out time and time 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 count and should take a look at the performance of investment banks from two thousand and seven to present it seems like they possibly could be the only ones that cannot go out you know that's not really a case of exaggeration but hopefully i get the point across you know there needs to be more diversification of government and it needs to be a great up. acceptance. in such a capacity from outside of attacking history particularly since the government purchased so much in terms of services for the banking industry that's right all the 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 boeing 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. but what's good for him is not good for the shareholders i can't see myself really giving money. a company in exchange for stop where i have no say so in what the company does with over fifty six percent ownership of the voting shares he could chose a company he is a very intelligent guy i have nothing against a matter of fact if i was him i love to have control of a multibillion dollar social networking company as well but if you go look take. ok has he ever ran a public company before no he ever ran a company at this size 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 of some of the most powerful internet and media companies and wrote accounting for ok if you

combine all of that is it unassisted to concentrate so much when one person without a successful track record now that's then you need a successor to succeed but it definitely helps combine that with the fact that the pricing facebook is overvalued outrageously best case scenario the best case scenario possible there's to overvalue but many billions of dollars and that's the best case scenario goes the last time the absolute worst case scenario came to play for does come into play and something goes wrong he has say so he's the c.e.o. period he's also the owner of the vast majority of the. so if you didn't have the grammar a marketing machine otherwise known as goldman sachs and the rest of that wall 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 i'll save you the stock but you could as the financial terms have no say so what happens i'm competing against

the most powerful companies in the world and i don't have much experience of this but you know i've gone very fast you know my growth has slowed significantly and i may have one hundred billion dollars no problem here it goes right unlikely but you know with the again you know the grammar of bigger is better goldman et al. if you will consider a marketing stock they've created such a buzz that fundamental is the 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 of change of the past twenty years for something as blatantly illegal as this terms of corporate governance to go to go ahead all right reggie miller thanks so much for being on the kaiser report ok you're very very welcome i look forward to going to actually get all right thanks and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i thank my guests reggie middleton oh the interim is boom bust blog dot com want to send an e-mail pleased to report it r t t v are you. saying.

all.