well strip searches was interesting you are not going to want to miss tomorrow's show will tell you all about the rising number of minors being tried as adults in the u.s. and about the deadly consequences of locking these kids up instead of trying to rehabilitate out are now up at night. going into a free. store charge. three. three. three. the old free blog live video for your media project a free meal gargi talk tom. it

is good. to.

oh my stars are this is the kaiser report so is that incontinent and distil rupert murdoch up to safety max keiser he's up to no good rupert murdoch hits out our 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 allegation should be referred to the australian federal police for investigation now in response to the facts and this is what rupert murdoch tweeted and we many different agendas but worst all tall some right wingers who still won't last century status quo with their money not fully with. rupert murdoch but. do you. know this is the whole group. no. we were. luckily lost in the. sack lee 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 planes the right wingers and he's like oh you created america's cultural right cycle catholic loses sean hannity nightmare or he's blaming the fairy thing he created he's looking in the mirror it's a proof. 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 his audience senses audience this is what is the right

way fox news watchers are tolerable in brazil. 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 to give a 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 smaller there is on this little twitter account on his i phone book boom boom boom boom boom. like it is a 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 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 appearances of limitless demand for u.s. debt but also blunt 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 to some i want to be a page of phrases that place ok that's pushing this is an expansion of debt which is causing here and 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 then getting into the monetization of zone debt. and that's what people

are fearing is combing through what they fear gold continues to go higher because of pleasure inflation or deflation those terms are antiquated they're not applicable anymore it's. place and i'm the author of this term 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 you 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 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 fall and by over eighty percent to

a poultry 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 trickle 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 launches strategy to counter the large yes well of course we all know that european central bank is essentially the bank germany is preparing a raft of measures to safeguard its financial system and prevent excess stimulus 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 and say she's also norman bates she's also psycho she doesn't understand about the c.c.p. situation even though germany is the e.c. big and of course all the money printing of the month desertion 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 two 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 groups 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 and it goes to actually go to a country like greece they sell in faulty bonds they cook the books so they can get into the euro then they collapse then greece other countries go to goldman sachs out of cure the problem of having dealt with goldman sachs of course the earnings are up and it's a virtuous cycle what kind of drugs are they 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 are 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 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 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 part the mariners rank of america we have no idea what we're doing countrywide growth of merrill lynch risk it never works but they keep going the same product over and over and over again because we're caught in this enormous caps when the looking at them they're all the flexible in your they're saying well i could trust that 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 cicle cold capital buffers on lenders and use macs. prudential haircuts in the securities

markets 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 you know the old fashioned sit down so they are sticking through we go towards tomatoes and you're stinky yogurt at them literally stocks and both of these stocks and tomatoes put their heads through the starch and threw me into metals and i'm actually you're not going to turn into a yogurt kamikaze are you are just like 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 is up one hundred forty two percent year to date in europe. all of this more of europe 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 trust them selling to these particular entities and it would be nice to see you break down 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 us 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 well once again it's the

norman bates syndrome so these guys 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 are the psychos of the 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 so stay there . sometimes you see the story and the six so you think you understand it and then something else you hear or see some other part of it and realize that everything you say you don't. charge is a big. i

welcome back to the kaiser report imax guys are time now to go to new york city and speak with reggie middleton of 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 cause report reggie oh thank you very much max 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. on the scheme circular argument. issue debt. to myself and i buy it up and i see it is

significant a man for of course a significant man if i buy it. and see what happens if you actually allow the market to set the price the fed is able to get away with it he was going to get away with it because the preeminent economic power in the world and that may still be the case in the coming years and quarters but it does bring out when you have to purchase your own debt in such large amounts in order to. bring about high bond prices the low yields. go yields actually. policy that the fed has to do is represent the starving the banks and creating significant distortions and crisis coverage throughout several markets bond markets equity markets and all the related markets so it's a big mess and. i think if we were to swallow that medicine back in two thousand and seven two thousand and eight we could have avoided this think that's a good 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 here you know the price of oil is going up without a parent can measure an increase in demand every have an increase in prices that increase demand is something they skew. oil is going to put gas in my car last night four dollars to seventy five cents a gallon you know. that's excessive it makes me want to walk right by reggie where how people are blaming a barack obama for the price of gas there why aren't they pointing a finger at the federal reserve the federal reserve the treasury are printing money that's basing the value of the currency that's why the price of gas is going up now will be released on. any oil from mr teacher can reserve 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 it just isn't this but i am very good at the common sense and evaluation of use of oil reserves will cause 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 and if you can spike in oil is what many put it. as a straw that broke the camel's back because the market to equity markets are correct in general i think 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 at the numbers and it's just rich about the just bits you have missed you

have roughly fifty seventy sixty 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 writing going back to that two thousand or a period when oil was at one forty seven or south course 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 fitch and yet more than twenty five percent of student loans are delinquent is this the next sub prime disaster. what is the next miss price 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 i mean the mortgage market. collapse they had nothing to do with

subprime lending subprime and it 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 one the rapid inflation and education prices ok american inflation there's no reason for the cost of war and the size of going it's not as if the quality of. education has risen to commiserate basis with the cost of tuition so you have the inflation combined with the fact that you have i mean it's higher industry based lending towards those who are chasing inflated inflation combined with the fact that underwriting is a joke to begin with and basically everybody wants to know it's a lot combined with the fact that you have granted unemployment among the youth so you could you could buy rampant unemployment. with with a very very slack underwriting with the pricing of the products we. want to be

purchased shooting up like you know five crackers and that's a recipe for disaster so we're going to be stuck of course i'm still saying so prime let's say. that credit underwriting. bubble. and bust rice cereal bubble blowing what the whole market. greenspan era now we recently discussed at like j.p. morgan claims number one for government debt after jefferson county the article notes that despite the role into 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. most have 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 thinks he's going fast but you have a market 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 the research in my book i read circles around all the big bets for five years running janitorial expenses the logic of my research staff budget so how is it i may be about 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 an employee you know make clear as i did make it clear for a while so you have. the consumers of the product thinking that if you causing a white shoe big name investment banks we're going to put a deal combined with the fact that these banks have to over almost all of the 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 quote about a 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 a medium to long term but outperform quarter by quarter i'd bet 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 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 because it is your client. your client in a way that might facilitate the best possible outcome. transaction 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. happen you know potential clients

such as the jefferson county jail 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 then i thought only ones that entry take a look at the performance of investment banks from thousand and seven presidents it seems. possible to be the only ones i cannot you know that's not the case and exaggeration but hopefully i get the point across you know that these are the more diversification of government and it needs to be. acceptance of its official capacity from outside of the banking industry to take this is the government purchased so much in terms of services for 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. voting shares unprecedented your thoughts on this i.p.l. . the smart man i was the very persuasive boy 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 much the company does over fifty percent ownership of the voting shares he controls the company he is a very intelligent guy i have nothing against something that if i think i was him i'd love to have control of a multibillion dollar social networking company as well but if you look take a look at 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 signal. competition you know is

a matter for some of the most powerful internet and media companies and wrote accounting for ok if you combine all that is it unassisted the rest concentrate so much power to one person without a successful track record and i think you need a success exactly to succeed but it definitely helps to combine that with the fact that the pricing facebook is overvalued outrageously best case scenario the best case scenario possible this to overvalue but many billions of dollars and that's the best case scenario is the last time the absolute worst case scenario came to play for does come into play when 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 et al and investors still say i was a to go 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 to get a stock but all you get is the financial returns 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 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 out. on the set of a marketing stock they've created such a buzz that fundamental is a common sense of luxury. 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 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 back again. thanks and that's going to do it for this edition of the kaiser report with me nice kaiser and stacey herbert and i thank my guests reggie middleton. oh the infamous boom bust blog dot com as well as i mean you know please

do so as a reported r t t v dot are you. saying. you know how sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm sorry welcome to the big picture. he.