mccurry was eighty two blues most sophisticated robots which on fortunately those interviews with jordan found anything changed mission to teach creation why you should care about humans in. this is why you should care only on the algae dot com. that it's our hair in moscow and there are the headlines for you syria's troubles troops and nationwide rallies flare up along with reports of ongoing conflict as a un brokered cease fire and this is the day the security council is set to decide which one of the sending observers and. hopes of a breakthrough by breaking the silence as well as into rather than the first time in fifteen months the u.s. and the e.u.

have been imposing sanctions on iran ever suspected nuclear weapons that turn around nice. supervillains indian election citizens through the murderers and through for instance the slaughter of candidates taking part in something only getting from the past. well up next max and stacey explains the dark secrets of finance. max kaiser this is there because the report we have fans all over the world stacy that's going to look through their eyes because check out this photo our number one fan jasmine. paul max i think it's because we always talk about lloyd blankfein

areas where we showed him and she apparently is providing some of his collateralized geishas he comes once a week or twice a week in sometimes deflector 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 as 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 can't do part of office 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 of 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 hyper 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 the. 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 a 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 two hundred years ago mark into lism but 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 sum game 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 via liberalism pretty monetarism creek keynesianism we're going back to the mercantile ism well as i say they view america as not that. but most americans think of themselves as you say 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 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 of 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 the most important generals and it was alan greenspan and the headline goes on the federal reserve chairman weird affection for adjustable rate mortgages so he might 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 greenspan 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 thread it should as some have described it take away the punchbowl when the markets get too frothy when greenspan spoke of 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 of 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 i mean rand 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 of. 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 the 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 the most toxic some prime products with high interest rates where banks ask 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 while getting back to what we said at the top of the show in two thousand and eight when the crisis blew up the sub prime crisis blew up in the global economy went into crisis it became obvious that the collateral used for the subprime market the research is asian 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 barack 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 recall lateralized that 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 other officially and this is

all because of the attempt to really lend again this same collateral that has been shown to be worthless to begin with well let's look at the state then 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 legal 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 you can't get out you can't afford to go bankrupt so isn't that the very definition of invention 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 gain 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. decided to end a promising career as a commodity trader he was buying and selling pork belly contacts 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 expected instead of having potentially profitable spreads combo's strips and straddles leap out at him from his trading monitor his people mind was overwhelmed by images of the slaughter house a four hundred pound south dripping blood from a conveyor belt dropping out of an trading options don't mix like the whole economy now everybody's dropping acid in these high frequency trading machines that don't make any sense either they're just as bizarre as like the one armed bandit they're the slot machines that they're 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 to fund the food stamps all right stacy everett thanks so much for being on the kaiser report thank you max much more coming your way so stay right there. you. 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 realized everything you thought you knew you don't i'm tom harpur welcome to the big picture.

i'm not surprised that this is the kaiser a part time now to be out of boulder colorado on top of the recommended rex pics 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 out more about him at rick ackerman dot com rick ackerman welcome back to the kaiser report effects thanks for having me on all right rick ackerman will anyone be able to outrun a global flash crash with a title of or one of your recent posts tells about someone in this forum got me kind of riled up there not too many of those and. i had one guy say geez you guy said that a lot of the more it's there so long and you're just making a big mistake reality says it's

a liar. and this guy seem to think that it's the market we're got to collapse or do warning sellers if he's got past the point was the h.n.c. they chew thousands and flash crash really was a warning some stocks came dale very horrid that day because of somebody switch and we're seeing a lot of things that happen with selected the market saying back in about a minutes but i think that really was the even is the problem even if it was six and a bit cynical larry that's the market plunge in that day of the those things don't happen to begin with unless the cycle. it's a mission to collect. that commentary even a machine. and fails if you say. they know it's possible to do research risky 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 these huge deep pocketed players who have a bias i mean in the case of the metals market and you track metals closely over their respects 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 bags the fed and the investment banks etc that's true. you know we generally the trading. john mainly by normal networks you know i work in the trading one of my primary hits in the pacific for involve vehicles trade boats and rahul's wall and chamber hill came in and they

would pick up size more kits and this is great you know if you want to lead a buyer since and that was. the trade because of course market makers could not typically trade with each other. but it. was a step against me or step ahead of me and anything that i saw the register was a dying opportunity in brazil they warty moved in the more kids away from me. that's the case now and when you look at some of the options more it's. more kits and things that barely have a trade you know you go into some of these stocks with the closing relatively a liquid and you'll see that there are side thousand them options in the bid on the altar and the same a traded fifty click tracks in the latest week what those markets and big markets mean isn't there or players out there ready to do so. but only on the basis of some

here coming in that there has to be the other side to the trade gives them an advantage to do that size so the size more it's moved around a lot but they are opportunistic in the way the only a neural network sees all of them orchids the same. can understand ok so we're describing there the the price the current price and might be trading a relatively low volume on either side of the price indices monster on earth they get triggered when 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 monster orders are setting and they also have the wherewithal to trigger these monsters on earth in their favor and it personally to get. back to the subject of class crashes and algorithmic trading and high frequency trading and what 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 direction all moves in

a ways that are completely outside 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 at the looking at the high speed of the traders. one example the use of the very essence of trading in slidell and since it would have allowed for. a market maker or an elbow trader which gives an officer is there the sense of it's own chickens pigs and of was there just a shadow. if you trade is a retail customer typically you have a body have to take the offer and sell with a bid but the whole point of balgo trading is to get a real their business there's no one else if they if they even if they see them

they have to quickly they don't see the algo trader's beach or beach league more console or the. lee where the regulators get interested is when whatever method of trading cheesed is giving the trader a significant advantage over the public. if it were just algal traders knew each other off the regulators would be clear that if the aga traders seem to have a leg up on retail traders it's in the because of public concern i reckon i wanted to ask something else that sensor your experience as a market maker and trader appreciate our opinion on this now it's come out recently that more and more the 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 the put trades 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 will be cut out by the same algorithmic traders and you have this this daisy chain this mobius loop this circle to speak back mechanism would be in place so you're not manipulating 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 that's called price propaganda because using search engines accent or have a look at this has been covered within the last six months it seems we're gaining some currency your thoughts i know guys still working on. these would be nice and searching billions of web pages jack sloan snippets of discussion that would supposedly have some impact on the star and although i'm sure there probably should be more

a state of israel there. it's done i think mainly a small way wouldn't be surprised if all the big globally of ways to eavesdrop and see whether the station would get them some. of which or the half of the star or in some cases you suggesting there might be noise out there 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 just in the to go out there and so i doubt he's talking about. image in the talk is put out there each this is . moving the mortgage i think regulate instance of the distance our last thought about class crashes as they relate to currencies. obviously the currency markets the biggest currency is the biggest market the world many trillions of four x. traded on a daily basis and it seems that the going for. already here there's going to be

some call it a currency war and the euro dollar and attorneys round. based on what you see in the markets how do you see that playing out right back around well the interbank market even real it's a did the exchange traded forex that it's really hard to. they're saying chill i mean business so recently it was simply on the. one side the sell on the other. you know the whole the biggest market that sense was not automated this is the exchange markets but i think the flash crash the conditions are there simply because everything is tell of tied together you know all of the markets all together and the biggest of them all of course is the dollar now we've had recently control of the dollar i see we need a they. you know the whole the financial markets are so

they're wired in the literal sense in the psychological sense and really have one market on readily without bringing all the others with it and nail. each had what you call slated safe to safety woodstoves the dollar and treasuries they are anything but but it's only perceptions that i think. in that way goal will continue to kind of languish and hold the slate safe because one inch of nail dollars and we perceived a strong his sale of the euro and so the slow money keeps going euro dollar euro dollar euro dollar. we don't have perception jeff gold is where the real safety is. it's just developing.

so rick ackerman to talk about filtering out the noise to talk about technical analysis it's true right that technical analysis of times to remove a lot of the psychological elements to this to these markets paint a picture that one can trade around and divorce one saw 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 technical analysis if you had a modifier work or is it still consistent throughout the still works as you've been working out now for quite a number of the earth that's a very interesting question because. gold very closely it's a one. mainly because it's just too hard to sort out all the origin shield when you get into why i think there are more variables you can keep track of so i do tend to a. purely technical readings of the more kids to be honest to be

a good idea of where things are going. and i have to say gold and silver over let's say the last six six to nine months and become increasingly adept at the because of the special that circe technicians and sure as. the. friend mr and mrs fools and bet against it so if you're betting against gold you're getting against the idea that the central banks namely will. the minute we stop. it will subject the all of the markets to the real estate still more exposure and the whole game will be over all right rick ackerman rata time but thanks so much for being on the kaiser report expects all right that's going to go out for this edition of the kaiser report with me max kaiser and stacy herbert and i thank my guests rick ackerman from rick's pics if you want to send me an email

please is the eyes are reported r t t v dot ru until next time x. guys are saying.