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max kaiser this is the cause the record we have fans all over the world station next we're going to look through their eyes because check out this photo of our number one fan jasmine is not a ball max i think it's because we always talk about lloyd blankfein here he is we were we showed him and she apparently is providing some of his collateralized publications he comes once a week or twice a week in sometimes if i trade diapers and passes them on in the city of london jasmine's purpose collateralize ing almost the entire research your position going on on wall street and in the city of london right now this is an era of peak collateral because the banks have collateral already everything that they could

collateralized and then recall lateralized and again a re hypothecated it and they've done this over and over again and jasmine kept to part of nothing to create the additional collateral so that lloyd blankfein and jamie diamond can float even more securitized debt based on poop collateral that is of course why we see countries like spain falling greece into the gutter because there's no more collateral worth to create more securitization to create more liquidity to keep these countries from going under so you say we need more quantitative easing in the diaper obligation market jasmine is easing quantities of collateral into the global securitization market. here's how china is looking at the world max currency war is a hot topic in china so these are photos from the china money report and if you

could look at the first photo it shows four different books on currency wars are the top sellers in this chinese bookshop the number two images dollar crash and number three is the american dream over so this is the view the perception the population of china the one that works to pay off the debts of lloyd blankfein little lloyd blankfein here it is also a reflection of how their actual leaders think because we have headline here china views us as a declining power says an insider the senior leadership of the chinese government increasingly views the competition between the united states and china as a zero sum game with china the likely long range winner if the american economy and domestic political system continue to stumble according to an influential chinese policy analyst the united states is no longer seen as that awesome nor is it trustworthy and its example to the world and admonitions to china should therefore be much discounted mr wang writes of the general view of china's leadership zero

sum game and of course there is a word for the one hundred years ago or two hundred years ago mark and solos on that all these countries were trying to eke out a growth based on the decline of another country it's only in modern times when we have this idea of central banking or you can have a positive song of infinite growth with everyone becoming fabulously rich without any extra analogies or risks whatsoever but as we go back to feudalism as we go back to pre enlightenment pre neo liberalism pretty monetarism creek keynesianism we're going back to mercantile ism well as i say they view america as not that awesome but most americans think of themselves as you know. hey you say we invade we invade and in fact the invasion of iraq is where the chinese leadership traced

the decline of america to in contrast china has mounting self-confidence in its own economic and military strides particularly the close in power gap since the start of the iraq war in two thousand and three he argues america's gross domestic product was eight times as large as china's but today it is less than three times larger than america china's just not that into you. but know their power shrunk it was a bridge too far it was a war to money it was a military industrial complex run amok it was the end of america well this is how many empires end they end with imperial overreach and we see that we see the military industrial complex the prison industrial complex as not only occupy populations around the world they occupy the domestic population across a lot of money fifty thousand dollars to lock somebody up in prison in america even more than that to kill somebody in an oil rich nation but the other thing i want to

point to is back in two thousand and four this is a headline from february twenty seventh two thousand and four alan greenspan armed and dangerous so to go with this notion of war this financial war of course one of the biggest generals most important generals and that was alan greenspan and the headline goes on the federal reserve chairman weird affection for adjustable rate mortgages so he went in front of the population of america he was speaking at some housing conference and he said americans should take out adjustable rate mortgages because recent research within the federal reserve suggest that many homeowners might have saved tens of thousands of dollars had they held adjustable rate mortgages rather than fixed rate mortgages during the past decade max do pass returns ever forecast what the future will hold. well this is correct and when brain span was encouraging people to take adjustable rate mortgages this was the complete abdication of the role that the fed should be playing in the economy as an

independent fed it should as some have described it take away the punchbowl when the markets get too frothy when greenspan spoke about irrational exuberance for example he did not act on his comments and he went even further by making that exuberance even more irrational as a result the fed clearly by these statements we can say without any reservation that the fed is really no longer an independent body it is completely been captured under the auspices of the club to maniacs on wall street i remember what happened with these adjustable rate mortgages that many americans went into it was something like forty fifty percent of all new mortgages after this were adjustable rates but this is where fraud entered because remember alan greenspan also encouraged fraud in the financial markets because he thought somehow

it added to liquidity so that's when we came upon the term of exploding arms because remember even though interest rates continue to fall and alan greenspan there for his argument held that your interest payments should have fallen in fact what happened was the interest rate exploded after the first two years so some people's monthly mortgage payments were doubling or tripling the number in an interview once he left office greenspan admitted that his entire philosophical approach is iran and objectivist approach to managing the economy he said in his own words was grossly inadequate he actually said that in congress in testimony and so why we are still preaching his methodology at this point is a test. too short sightedness and foolishness in washington and on wall street so again we see a declining power this is how china sees it this is how little baby jasmine with

sees lloyd blankfein riding the wave and tsunami wave down in of america and let's follow on this mortgage market there americans brace for next foreclosure wave mortgage servicing provider lender processing services reported in early march that u.s. foreclosure starts jumped twenty eight percent in january one big difference to the early years of the housing crisis which was dominated by american saddled with most toxic some prime products with high interest rates where banks asked for no money down or no proof of income is that today it's mostly americans with ordinary mortgages whose ability to meet payment have been hit by the hard economic times thank you alan greenspan what getting back to what we said at the top of the show in two thousand and eight when the crisis blew up the subprime client crisis blew up in the global economy went into crisis it became obvious that the collateral used for the subprime market the recent your decision market was faulty it wasn't worth even two cents on the dollar the response of wall street the response of hank

paulson the response of pericope obama the response of all the bankers around the world was to essentially double down they took all that collateral that was shown to be worthless and they re collateralized it in essence a member of the fed's balance sheet went from less than a trillion to over three trillion and the tarp funds originally seven seven hundred fifty billion under hank paulson's extortion ery congress and all speech is that well over seven trillion officially twenty trillion and officially and this is all because of the attempt to really lend again the same collateral that has been shown to be worthless to begin with well let's look at the state of those people who are on. able to afford their mortgages so this next wave of foreclosure crisis is upon america bankruptcy costs and america's household debt crisis yes max americans are

too broke to go broke a new study finds in a recent m.p.e. are working paper they found that illegal in administrative costs and hit a significant number of households from filing for bankruptcy moreover the number of households facing these barriers has doubled during this decade in the paper they examine how household bankruptcy rates responded to the two thousand and one and two thousand and eight income tax rebates using the fact that the rebate payments were distributed randomly based on file or social security numbers we find that after receiving tax rebates ranging from three hundred to twelve hundred households were more likely to file for bankruptcy so that means they didn't have any money until this free check came in the mail they used it to go bankrupt first of all american income is become a roach motel and what you just described there the cost of going bankrupt. in excess of the cost of borrowing a bunch of money and setting up a corporation and going in business to begin with so that shows you the entrapment

that goes on with the banks it's easy to get into the roach motel of the american economy but you can't get out and you can't get out you can't afford to go bankrupt so isn't that the very definition of adventure and servitude. but look these people aren't able to escape their debt servitude unless a lucky windfall of money so look at the fact that it's casinos that are being opened and introduce the lotteries across america because the casino is the only way out you have to have a sudden random game of money that has nothing to do with you working it just has to be out of the blue fall from the heavens think you can outrun a global flash crash well it was well under the influence of l.s.d. that a childhood friend of rick ackerman's decided to end a promising career as a commodity trader he was buying and selling pork belly contracts at the time but dropped acid one day hoping to gain valuable insights into the markets insights that presumably lay beyond the grasp of rational thinking chuck had insights all

right but not the kind he'd expected instead of having potentially profitable spreads combo strips that straddles leap out at him from his trading monitor his people know i was overwhelmed by images of the slaughter house a four hundred pound south dripping blood from a conveyor belt it dropping out of an trading options don't mix but it is like a whole a problem to me now everybody's dropping acid in these high frequency trading machines that don't make any sense either they're just as bizarre is like the one armed bandits now the slot machines that are just multi-trillion dollar slot machines and gambling is becoming the biggest industry in america as well as the prison industry so you end up with what i call the casino gulag model in america and you know creating enough excess nonsensical paper just on the food stamps all right stacy never thanks so much for being on the kaiser report thank you don't go away much more coming away so stay right there.

more news today violence has once again flared up. these are the images cobol has been seeing from the streets of canada. giant corporations are all today. you know sometimes you see a story and it seems so you think you understand it and then you blame something

else you hear or see some other part of it and realize everything you thought you knew you don't i'm tom harpur welcome to the big picture. mission creep couldn't take the free. for chargers three. months three. three. three. old free broken video for your media projects a free media john darche dot com. i am not surprised or this is the kaiser reports i know you go to boulder colorado and talk with rick ackerman of rex pix newsletter for twelve years rick has been a market was

a market maker on the floor of the pacific coast exchange and you can find more about rick ackerman dot com rick ackerman welcome back to the kaiser report effects thanks neil all right rick ackerman will anyone be able to out run a global flash crash with the title of one of your recent posts fouls about someone in the forum got the kind of riled up they're not only. had one guy saying geez you basically nailed to the mortgage the same wall and you're just making a big mistake reality says they are. and this guy seemed to think that if it were dealt six latch their big warning sign that he's got the civil war but it was the a chance they'd change the house and senseless crash really was the warning sign. stocks change aylesbury for that day because of somebody to switch and we see a lot of things that happened with selected them or came back in about the way

minutes but i think that really wasn't even is the problem even if it was a kind of back channel larry that's at the plunging edge a very those things don't happen to begin with unless the psychological conditions of lexan leaves as i wrote in that commentary we've enabled machines to panic and fails and if you just. may not be possible to do research the real thing right now on the subject markets market integrity in all these markets become distorted in that they're no longer supply and demand so much as they are being driven by algorithm algorithmic trading algorithms and these huge local this huge. deep pocketed players who have a bias i mean in the case of the metals market and you track metals by closely over their respect there seems to be a definite. ceiling put into gold and silver for example from

those who are you know they're really doing the bidding of what i call the paper box the fed and the investment banks etc that's true max you know regionally the trading was. john mainly by normal networks you know i i work in the trading it one of my primary hits in the city it's more in well vehicles trade boats in brazil as well and chamber hill came in and they would pick up size more kits and this is great you know i have to do it i need a buyer since and they. give the trade because of course the market makers and not trade with each other. but it turns out that somebody who was stacked against me or step ahead of me. anything that i saw it registered was a buying opportunity thanks to who they were already moving the markets away slowly

. that's the case now and when you need some of the options more cuts you'll see some more kits and things that barely have a trade you know you go into some of these stocks will do it's close relatively illiquid and you'll see that there are five thousand room options in the bid inside thousand on the altar and the thing may have cheated fifty clone tracks in the latest week what there's more if they did more it's need is that there are players out there ready to give. but only on the basis of some hitch calling in there there has to be the end of their side to the trade and gives them an advantage to do that size so the sizemore gets moved around a lot but they are opportunistic of the way that only a war network sees all of them or it's the same. can understand ok sir you're describing their name the price the current price might be trading a relatively low volume on either side of the price you might see these monster on

earth but at triggered with a price direction either in either direction but the transparency of these markets is such that really the there's only an insider group that knows where these roster orders are setting and they also have the wherewithal to trigger these monsters in their favor and additionally the care. back to the subject of class crafters algorithmic trading and high frequency trading and we're seeing is a lot of these spoof orders these fake orders that are thrown in there by the hundreds of thousands at a time to simply. cause a directional moves in ways that are completely outside of anyone's definition of what an economic function of these markets should be your thoughts well you know just in the last couple of weeks the regulators. not only taken a look at it they made it public but the looking at the high speed trade was the traders. one example they used in the various and. trading is called the

hide and slide order and essentially would have allowed for. a market maker or an elbow trader to put bids in all since their sense of sumption is was there just shouted. if you trade is a retail customer. typically you have to buy it on the offer and sell the bid with the whole point of algo trading is to get a real there is that no one else if they if they even if they see them they will see the algo traders beach between work it's all over the channel. where the regulators get interested is when whatever method of trading that she is giving the trader a significant advantage over the public. if it were just algate traders near each other wall the regulators wouldn't care but if the algal traders seem to have

a leg up on the regional traders it's in the because of the victims i reckon i want to ask you something else that sense here experience as a market maker and trader i'm pretty sure you have an opinion on this now it's come out recently that more and more traders are using computers to read material actually read the printed material that comes out of the press and then to construct algorithms based on what they're reading. and have put trays on the floor based on what they've read and of course this will impact the prices one way or another which will have the effect of generating more printed material which would be picked up by the same algorithmic traders and you'd have this this daisy chain as mobius loop this circle this feedback mechanism would be in place so you're not in it relating not only the prices with the high frequency trading but there's a potential here to manipulate prices by putting out

a wall of printed what's called price propaganda because using search engines exciter have you looked at this it's been covered within the last six months it seems to be gaining some currency your thoughts i know guys to work. these would be nice and searching billions billions of web pages jack slane snippets of discussion that would supposedly have some impact on the start although i'm sure there probably should get. there. it's done i think mainly a small way would be for the big day of ways to eavesdrop and see whether the station would give them some. small change which they have to start with and some cases you're suggesting there might be ways out there it is

likely to move the stuff so but i don't think it's a big thing and i think whoever is i think is probably getting the go out the side out he's talking about the clubs illegitimate and the split out there explicit since moving the markets i think the regulators terms of the distance are last thought about class crashes as they relate to currencies. obviously the currency markets the biggest currency is the biggest market overall many trillions of four x. rated on a daily basis it seems that the going for. already here there's going to be a currency war and the euro dollar and the chinese run. based on what you see in the markets how do you see that playing out. now the interbank markets are so deep even real what's the deal the exchange traded or acts that it's really hard to. they're slow to i mean business. recently was

simply on the. one side the seller on the other and you know the whole the biggest market that sense was not as highly automated this is the exchange markets but i think the flash crash the conditions are there simply because everything is kind of tied together you know the more kids are together. the biggest of them all of course is the dollar so now we've had recently control of the dollar i see we needing they. you know the home of the financial markets and so they're wired in the literal sense but also in the psychological sense and you can't really have one market unraveling without bringing all the others with it and actual nail it's in chichen you know you've had what you call slide safe to say for instance to the dollar and treasuries they are anything but that it's really

perceptions that i think. in that way gold will continue and of languish and safety becomes one integral it's a nail in the dollars and we will see just for. the euro and so the slow money keeps going euro dollar euro dollar euro dollar. we don't have a sex object is where the real safety is that's why it's just developed a base somewhere. so rick ackerman you talk about filtering out the noise you talk about technical analysis and it's true right that technical analysis the times to remove a lot of the psychological elements to this market paint a picture that one can trade around and divorce oneself from any kind of psychological bias now given all the changes with last crashes and what we've just been talking about here with algorithmic trading and news reading etc has this

impacted critical analysis and if you had a modifier work or is it still consistent throughout as a still works as you've been working on it now for a crime number of the earth that's a very interesting question because mixed extracts gold very closely for one. mainly because just to sort out all the or you can see when you get into why i think the more variables you can keep track of so i just tend to a. purely technical relives of the markets to keep dealers think you could be a good idea with the engine. and i'd have to say that gold and silver over let's say the last sixty sixty million months it become increasingly a gap it's finding the the kind of the special that sears technicians and i keep to cirrus johnson astute morley that should make money slane the trend

history misses force and bet against it so if you belly against overweight you're getting against the idea that the central banks nearly eight million we stop listening to subject the all of the more questions real interest rates to market exposure and the whole game would be over all right rick ackerman rather time but thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me not riser and stacy herbert and i thank my guest rick ack. oh man from wrecked thanks if you lost i mean email please is like eyes are reported r t t v dot are you guys are saying. the only. good are sometimes you see a story and it seems so for life you think you understand it and then you've lived

something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm sorry welcome to the big picture. of. me he. gave. it to me. to. tell me the official altie allocation giong phone called touch from the top still.