a free media gun to our t.v. dot com. regards the live from moscow our top stories reports that syria's fragile cease fire is structured by further deadly clashes of the u.n. debates whether to send in more observers anti-government rallies have resumed across the country but there's concern they're being hijacked by rebels. come from more than a year of silence and suspicion world powers hold nuclear talks with iran in turkey iran and sisters atomic program is peaceful iraq obama called the talks the last

chance for diplomacy to work with israel threatening military action. and the people of new delhi are said to vote in regional elections but it could end up being a choice between alleged murder and fraudsters a fifth of the candidates are standing for office despite to be sometimes. up next maxon stacy expose the dark secrets of global finance in the kaiser of a poet. max kaiser this is the ca's the report we have fans all over the world they said let's get a look through their eyes because check out this photo of our number one fan jasmine. there are a ball that say because because we always talk about lloyd blankfein areas we were

we showed him and she apparently is providing some of his collateralized obligations he comes once a week or twice a week sometimes to fight for diapers and packages them on in the city of london jasmine's purpose collateralize ing almost the entire research is asian 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 again a re hypothecated it and they've done this over and over again and jasmine kept two part of nuff to create additional collateral so that lloyd blankfein and jamie diamond can float even more securitized debt based on 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 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 boy blankfein little lloyd blankfein here it is also a reflection of how their actual leaders think because we have a headline here trying to use 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. 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 where you can have a positive sum game of infinite growth with everyone becoming rabid leslie rich without any extra nellie's or risk whatsoever but as we go back to feudalism as we

go back to pre enlightenment pre neo liberalism pre monetarism creek aims in ism we're going back to 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 closing 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 their power shrunk it was a bridge too far it was a war too many 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 has not only occupied 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 and 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 suggests 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 if this is correct then when greenspan was encouraging people to take it's no small rate mortgages this was the complete abdication of the role that the fed should be playing in the economy as an independent 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 third 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 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 the quiddity 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 with the interest rate exploded after the first two years of some people's monthly mortgage payments were doubling or tripling well remember in an interview once he left office greenspan admitted that his entire philosophical approach is fine 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 and. too short sightedness and foolishness in washington and on watery 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 but getting back to what we said at the top of the show in two thousand and eight when a crisis blew up a sub prime client 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 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 of 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 inhibit 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 use it to go bankrupt but all american problem 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 adventure of 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. 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 in size 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 strips and straddles leap out at him from his trading monitor his feeble mind was overwhelmed by images of the slaughter house a four hundred lb south dip and blood from a conveyor belt dropping acid in trading off and stone banks was like a 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 is like the one armed bandits near the slot machines 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 of american you know creating enough access to the nonsensical paper to fund the food stamps all right so you never thanks so much for being on the kaiser report thank you max much more coming your way so stay right there. well into the. science technology and innovation all the developments from around russia we've got the future covered.

i am an x. prize for this is the kaiser report time not to go out of boulder colorado and talk with rick ackerman of rex pax newsletter her twelve year or three hours panel market was a market like on the floor of the pacific coast exchange and you can find 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 out run a global flash crash through the title of all one of your recent posts tell us about a summit in the swarm got me kind of riled up there not too many. risks to explore i had one guy saying geez you guys have been a lot of the mortgage so long and you're just making a big mistake reality says it's still a layer. and the sky seem to think that it's the market we're back to collapse or the warning signs that he's got past will civil but my point was the nature of

the day the chief thousand and seven flash crash really was the warning slowly stocks came down very horrid that day because of somebody wall switch and we're seeing a lot of things that happened was selected the market kicking back in about eleven minutes but i think that really was the warning sign and even if the problem even if it was six and a bit shaniqua larry that's a perfect plunging that day of the those things don't happen to begin with unless the psychological conditions are complex and. as i wrote in that commentary even abled machines to panic about and fail to students humans. you know it's possible. we'll see right now on this subject markets market integrity in how 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 locals these huge deep pocketed players who have a bias i mean in the case of the metals market and you track metals quite closely over there rex perks 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 regionally the trading. mainly by normal networks i work in the trading pit when i'm not trying mary hits on the city for involve equals trade votes and rahul's well and chamber hill came in and they would pick up sizemore it's a lot this is great you know you and i need to buy or sell some things change the chamber trade he forced market makers and not technically trade with each other.

but it turns out the chamber who was against me or step ahead of me. anything that i saw would register was a buying opportunity for them to heal they warty move in the more kids away sadly. that's the case now and we need some of the options more like it's. markets and things that barely ever trade you know you go into some of these stocks will do it's enclosed relatively illiquid and you'll see that there are five thousand them options in the bid in five thousand on the altar and the thing may have traded fifty clone tracks in the latest week what those markets as big markets mean isn't there or players out there ready to do some but only on the basis of some here coming in the there has to be the end of their side of the trade gives them an advantage to do that size so the size markets move around a lot but they are opportunistic in the way that only

a neural network sees all of them or gets the same. can understand ok so we're describing there is the the price the current price and might be trading a relatively low volume but on either side of the price you can see the monster on earth triggered with a price direction either an 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 orders in their favor and intentionally to. 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 of anyone's definition of what an economic

function of these markets should be your thoughts well you know just within the last couple of weeks the regulators. not only taken a look at it they made it public with the looking at the high speed of the traders . one example the use of the various and. trading in slidell and since it would have allowed for. a market maker or trader to put bids in all since they are the sensibly in his bids and offers the just say. if you trade is a retail customer sickly and you have a bar you have to pay at the office and so did well the whole point of algo trading is to get a real bad business is that no one else if they if they even if they see the name. of. the algo traders which are between work and school or the children and sickly

where the regulators get interested is when whatever method of trading it she is giving the trader a significant advantage of the public. were just algal traders near each other all the regulators would clear the algo traders seem to have a leg or a reach of traders that's now becomes a public concern i reckon i want to ask 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 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 picked up by the same algorithmic traders and you have this this daisy chain is mobius loop this circle the speed back mechanism would be in place so you're never going to be learning not only the price is what high frequency trading but there's a potential here to manipulate prices by putting out a wall of printed let's call it price propaganda because using search engines exciter or have you looked at this has been covered within the last six months it seems to be gaining some currency and your thoughts i know guys that work. orders these would be wasted searching billions do ages and just plain snippets of discussion that would supposedly have some impact on the stock and although i'm sure there are probably some good noise steve israel here. it's being done i think mainly a small way i wouldn't be surprised with a big golden age of ways of each truck and see whether the

discussion will get some. smaller taste which they have to start to in some cases you're suggesting there might be more ways 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 due to go out there so i doubt he's talking about what the club's illegitimate works or is put out there with the explicit since moving the more i think the regulators to most of the decisions are a lot 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. rated on a daily basis it seems that the going for. well word here there's going to be some call it a currency war between the euro the dollar and the chinese round. based on what

you see in the markets how do you see that playing out retirement well the interbank markets are simply even relics of the exchange traded or x. that it's really hard to. their slow chill i mean business. recently was done simply on the you get the bar on one side the seller on the other and you know the whole with the biggest market that since was not as highly automated is exchange markets but i think the flash crash the conditions are there simply because everything is kind of tied together you know all of the markets and together. the biggest of them all of course is the dollar bill now we've had recently good control of the dollar i see we needing a. you know the whole the financial markets are so that they're wired in the literal sense to the psychological sense and you can't

really have one market on readily without bringing all the others with it and actual nail it's. what you call slate is safe the safety woodstoves the dollar and treasuries they are anything but but it's really perceptions that they had and i think that in that way goal will continue to kind of languish and so the slope to safety becomes more an integral nail the dollars and we proceed to store on his sales relics of the euro and so the slow money keeps flowing euro dollar euro dollar euro dollar. we don't have a perception jeff is where the real safety law is that's why it's just developing a base somewhere. so rick ackerman talked about filtering out the noise to talk about technical analysis it's true right that technical analysis attempts to

remove a lot of the psychological elements to these to these markets paint a picture that one can trade around and divorce oneself from any kind of psychological bias now given all the changes with class crashes and what we've just been talking about here with algorithmic trading and news reading etc has this impacted on elsa's if you had a modifier work or is it still consistent throughout the still work says you've been working on it now for quite a number of years that's a very interesting question because extracts gold very closely for one. mainly because it's just too hard to sort out all the or you see a when you get into why i think the more variables you can keep track of so i just tend to a. purely technical readings of the markets to keep the on a stick to give me a good idea of where things are going. and i have to say that gold and silver over

let's say the last sixty sixty million become increasingly adept at sliding the it kind of the threshold is serious and technicians and she sure has. more in there to make money selling to trend history misses fools and bet against it so if you're betting against gold you betting against the idea that the banks nearly eight minute we stop listening to subject the all of the more it's just real staged more asia and the whole game will be over all right rick ackerman arad of 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 cries the report with me max kaiser and stacy herbert our thank my guest rick ackerman from rick's pics if you want to send me an email please is the eyes are reporting our t.v. are you the next time max keiser saying via.