dot com slash r t america you can also check out our live site it's artsy dot com slash usa you can also follow me on twitter at liz wall we'll see you right back here at seven. wealthy british style. writers. market why not. come to. find out what's really happening to the global economy with much stronger for a no holds barred look at the global financial headlines tune into cars report.

you know sometimes you see a story and it seems so you think you understand it and then he glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't i'm sorry welcome to the big picture. guys or this is the kaiser report so what is that in confidence and to sell rupert murdoch up to safety max keiser 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 emails released to the australian financial review the australian communications minister stephen conroy so the. allegations should be referred to the australian federal police for investigation now in response to the facts and this is what rupert murdoch tweeted and research many different agendas but worst all tall some right wingers who still want last century status quo with their of monopoly with. the. gay you. know this is the whole group. look. this is. who are. luckily asked to. 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 days he's on his mind playing with the right wingers and he's like oh you created america's cultural right psychopath and fox's sean hannity nightmare he's blaming the fairy thing he created he's looking in the mirror thing prudie. 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 the mirror. you know in his paranoid world he's only sees right wing sort of crazies because his audience is audience this is audience

a right wing hawks news watchers our current old imbecile. i know. but. 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 quarter account they must be ruining the day for good rupert murdoch is like norma desmond and sunset boulevard you know complaining about the news business then go away got smaller there is on this little twitter account on his i phone book boom boom boom boom. well max let's look at all there are 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 said 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 laurence 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 deficits i want to coin a phrase right here right now go ahead max i want full credit for it but to some i want to be a page the phrases desolation ok that's listen this is an expansion of debt which is causing here in people who fear that the government are 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 monetization of its own debt. and that's what

people are fearing is coming through what they fear gold continues to go higher because of exploitation inflation or deflation those terms are antiquated they're not applicable anymore it's. pleasure and 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 u.s. debt 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 are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficit between 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 fall and by over eighty percent to

a paltry point nine percent right all 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 cause gold to triple 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 to 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. large gas well of course we all know the european central bank is essentially the bank your money is preparing a raft of measures to safeguard its financial system and prevent access to melissa from the european central bank leaking into an inflationary credit boom. b.c.b.s.

one trillion year old 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. i was also going to say she's also norman bates she's also psycho she doesn't understand about the c.c.v. situation even though germany is the e.c. big and of course all the money printing of the monster's illusion 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 reading 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 there's a risk against doing business with goldman sachs the goal is to actually go to a country like greece they sell faulty bonds a host of books so they can get into the euro and they collapse then grace other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up but it's a virtuous cycle work on a drug so they've got these big 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 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 all 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 in municipalities all of america it didn't 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 going to america we have no idea what we're doing countrywide going to 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 spindle looking at them their old reflection in the mirror and saying well 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 not. prudential haircuts in the securities markets is so

they're making up all this new stuff when 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 well you know the old fashioned values their hands are sticking through we get our tomatoes and your stinky yogurt at them you know we don't need stocks and both of these stocks and tomatoes put their heads through the stocks improving commandoes of them max that you're not going to turn into a younger kamikaze or you are just might very well ok so we turning 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 is up one hundred forty two percent year to date in europe. all of the skills part more should be do 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 or 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 so huge 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 hi temper tantrums oh once again it's the norman

bates syndrome so these guys these days as they are allowed to break the law to pursue the bad guys that 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 are the psychos in the way it's acting themselves in the mirror because that's what we have a norman bates debt deflation because anime 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. are no.

more news today violence is once again flared up. these are the images the world and seeing from the streets of canada. trying to corporations rule the day.

three. three. three. three. three. three. three. videos for your media project. i welcome back to the kaiser report. time now to go to new york city and speak with reggie middleton boom bust blog dot com where you can subscribe 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. to myself. and i say this again for the demand for of course i think if you can manage five by . see what happens if you actually allow the market price that is able to get away with it and u.s. government can get away with it because. economic power in the world and that may still be 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. actually. policy that the fed has to do is represent restarting the banks and creating significant distortions and price discovery throughout several markets bond markets equity markets and all the related markets so it's a big mess and. i think in food medicine back in two thousand and seven two

thousand and eight we could have avoided the 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 of world's going up without a parent can measure an increase in demand every new habit increase in prices that increase demand there's something askew. oil is going to put gas in my car last night four dollars 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 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 expert you know just it's criminal but i am very good at the common sense and valuation of oil reserves because the trading. drop in prices temporarily but the other factors in play may cause oil prices to rise and we've been through this scenario before in two thousand and eight and remember the system if you get a spike in oil is what many put it. as a straw that broke the camel's back because the market the equity markets are correct 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 say are going up but if you take a look up in numbers and it just ritual can be just you have misses you have roughly fifty seventy three percent of this is over 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 or south chorused was a instigating economic factor that caused the revolution and egypt and across the entire region so high prices dance 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 delinquent is this the next prime disaster. what is the next miss pryse credit disaster again the term so prime 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 and 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 i want to have rapid inflation and education pricing ok rampant inflation there's no reason for the cost to go up for and as high as they have going is not as if the quality of the quantity of education has risen in the commensurate basis with because it's richer so you have the inflation combined with the fact that you have higher industry lending towards those who are chasing inflated creation combined with the fact that underwriting is a joke to begin with and basically everybody who wants to go gets a low combined with the fact that you have rampant unemployment immobile. so you

could you go buy a map and unemployment. would be very very 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 you all do respect of course with those things so prime let's say. credit underwriting. and bust price 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 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 give you my opinion which is fact but this is my pin in case

somebody disagrees with me fact but you have the marketing for some reason a lot of the consumers of the services of the big banks. 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 research for my blog i ran circles around all the big banks for five years running their janitorial expenses the logic of my research staff budget so how is it i mean to run circles around them is a conflict of interest that drives them which prevents them from performing such as the most recent new york times editorial from the ex called an employee you know make clear as i've been making clear for a while so you have. the consumer product thinking that if you go through the white shoe big name investment banks will get a better deal combined with the fact that these banks have to perform almost all of them. public companies now they're no longer private partnerships so they have to

go quarter by quarter they can plan years ahead of their private partnerships they have to impress court about quarter in order to outperform everybody else quarter by quarter you have to take advantage it's a must if you don't take advantage of clients the only way to outperform is over a medium to long term but outperform quarter by quarter that money that performance has to be extracted from somewhere and if you do extract it from the clients the same clients are you supposed to be serving ok in addition you have entities like j.p. morgan but 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 the government is your client you're not bonded with your client in a way that might facilitate the best possible outcome of capital transaction you know i'll go and buy something from you but i love your bosses to give you a better deal so i get you to pay more for the services that catch twenty two

allows for all types of financial shenanigans to happen and you know potential clients such as the jefferson county deal such as many of goldman sachs clients and . 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 expanders interests within government then i thought only ones i can count and for 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 i cannot count you know that's not being the case and exaggeration but hopefully i get the point across you know there needs to be more diversification of government and there needs to be a greater. acceptance of intellectual capacity from outside of the banking industry particular since the government purchased so much in terms of services for the banking industry that's right all the time 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 ting shares unprecedented your thoughts on this i.p.l. . from our man was the very persuasive has a very large crowd and one of the but you know good for him kudos. but what's good for him is not good for the shareholders i can't see myself on telly giving money. a company. where i have no say so in what the company does because over fifty six percent ownership of the voting shares he controls the company he seems like a very intelligent guy i've nothing against him so matter of fact if i was some i'd love to have control of a multibillion dollar social networking company as well but if you go look take a look as track record ok has you ever ran a public company before you know i see every brand 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 a focus on the most powerful internet and media companies and wrote accounting for ok if you combine all of that is it underscores that we concentrate so much one of a person without us and that's what's happening now i'm not saying you need a successor to succeed but it definitely helps to combine that with the fact that the pricing facebook is. 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 and the last time the absolute worst case scenario came to play for does come to play and something goes wrong he has he's the c.e.o. period he's also the owner of the vast majority voting shop so if you didn't have the grammar and marketing machine otherwise known as. i was three he took a look at this as a simple. a friend of yours came up and said what i want you to invest in my

business but i'm going to have total say so what happens in the business. but all you get is a financial return and what happens. when the most powerful companies in the world and i don't have much experience with this but you know i was going very fast. 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 now more. market they've created such a buzz that fundamental is a common sense of. right well you know corporate governance suggests 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 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 welcome i look forward to come back again 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 of the engine is boom bust blog dot com as well as i mean he. has a reported r t t v are you. saying. sometimes you see a story and it seems. you think you understand it and then something else you hear or see some other part of it and realize everything. is a big.