before source material is what he journalism on this week. we want to present. something else. for the world tonight this is our team from moscow it's a possum levanon kevin irwin and these are all top stories the un security council passed a resolution on syria which outlines the next observer mission in the country comes amid reports that syria's fragile ceasefire has been disrupted by further deadly clashes. after more than a year of silence and suspicion world powers hold nuclear talks with iran in turkey iran insists is atomic program is peaceful. and also headlining the

people of new delhi are said to vote in reaching the elections but it could end up being a choice between a legend and fraudsters a fifth of a kind of standing for office despite a dubious. live pictures you're looking at here millions of orthodox christians around the world are celebrating easter marking the resurrection of jesus christ these live shots you're seeing now as the scores of people attending the service is just about to start in moscow's main church christ the savior cathedral to mark the most important holiday in the religious calendar if you'll celebrate the great happy easter to you from all of us here take. a max max and stacy expose the dark secrets of global finance in the latest edition of the kaiser report.

max kaiser this is the ca's a report we have fans all over the world. next we're going to look through their eyes because check out this photo of our number one fan jasmine. 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 geisha as he comes once a week or twice a week in sometimes to fight for diapers and passes them on in the city of london jasmine's purpose collateralize ing almost the entire research is ation going on on wall street and in the city of london right now this is an era of pique collateral because the banks have collateral as 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 can't do

part of nothing to create the 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 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 wars 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 had buy in 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 was a word for the one hundred years ago two hundred years ago mark and solace 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 sum game of infinite growth with everyone becoming fabulously rich without any extra nellie's or risks whatsoever but as we go back to feudalism as we go back to pre enlightenment pre neo liberalism pre monetarism critique 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 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 of its own. economic and military strides particularly the close and 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 to money it was the 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 it costs 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 of 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 it just more 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 this 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 liquid any 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 would doubling or tripling the number in an interview once he left office greenspan admitted that his entire philosophical approach is gone 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 tested. 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 greece 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 sub 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 what getting back to what we said to the top of the show in two thousand and eight when the crisis blew up the subprime crisis blew up and the global economy went into crisis it became obvious that the collateral used for the subprime market the recent purchase 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 the 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 use it to go bankrupt first of all american income has 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 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 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 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 combos strips and 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 gippsland blood from a conveyor belt dropping acid in trading off its don't mix well i didn't like the hole and prodding 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 bandit where 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 of american you know creating enough excess nonsensical paper to fund the food stamps all right stacy ever thanks so much for being on the kaiser report thank you max way much more coming away so stay right there. well. technology innovation. developments

around russia we've got the future covered. secret laboratory. was to build the world's most sophisticated robot which doesn't give a darn about anything to its mission to teach creation why it should care about humans. this is why you should care what you're only on the r.-g. dot com. cars or this is the kaiser reports on. not a lot of boulder colorado on top of the retirement of rex picks newsletter her twelve year thread has been a market was a market like on the floor of the pacific coast exchange and you can find more about rick ackerman dot com rick ackerman walk on back to the kaiser report effects thanks to a meal all right rick ackerman will anyone be able to out run

a global flash craft with the title of one of your recent posts house about a saloon in the swarm got me kind of riled up and you know they're not nearly. had one guy saying geez you got a sick day out of the mork it's the civil war and you're just making a big mistake reality says liar but. the sky seemed to think that if it market were death to collapse there'd be willing sellers that he's got the past with the fleet wasn't the h.n.c. they'd cheat there wasn't senseless crash really was the warning sign stock exchange or dead because of somebody threw a switch and there's a lot of things that happened with corrected them or came back in about a minutes and that guy i think that really was in even if the problem even if it was a kind of mechanical error that's a plunging that day. those things don't happen to begin with and as the

psychological conditions of collection we've as i wrote in that commentary we've enabled machines to panic at about ten thousand insisted humans. may not be possible to do research the real thing right now on the subject markets market integrity in all these markets economic distorted and that are no longer supply and demand so much as they are being driven by algorithm algorithmic trading algorithms and these huge local the future deep pocketed players who have a big. i mean in the case of the metals market and you track metals by 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 gods the fed and the investment banks etc that's true. you know regionally

the trading. mainly by normal networks i work in the trading one of my primary it's in the city or involve equals trade center who as well and chamber hill came in and they would pick up size more kits and look this is great you know to do what i need to buy or sell something has changed each and trade because of course market acres and not trade with each other . but it. was a step against me or a step ahead of me and anything that i sure would registered as a buying opportunity thought they were already moving the more cuts away sadly. that's the case now and when you look at some of the options markets you see some more kits and things that barely have a trade you know you go into some of these stocks with those relatively liquid and

you see that there are five tales in them auctions in the bid inside they'll sit on the also and the thing may have traded fifty contracts in the latest week what those markets they did more it's mean is that there or players out there ready to do so. but only on the basis of some hitch coming in that there has to be the end of their side of the trade and 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 orchids at the same time can understand ok some are describing their name the price the current price they might be trading a relatively low volume but on either side of the price you might see these monster on earth triggered with a price direction either on 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 or

earth in their favor and intentionally 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 a 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 in the last couple of weeks the regulators. not only take a look at it they've made it public that they're looking at the high speed trade was the traders. one example they used in the very esoteric trading insulated and essentially what it allowed was for. a market maker or they'll go trader to put bids in also is there that sense of it is

it sort of was the just shouted. if you trade is a retail customer. typically you have to buy the author and sell the bid the whole point of algo trading is to get a real their bids in if there's no one else they even if they see them they have. the algal traders which of the actually more console or the chilling. where the regulators get interested is when whatever method of trading cheesed is giving the trader a significant advantage of the public. if it were just algate traders knew each other well the regulators wouldn't care if the algo traders seem to have a leg up or retail traders in the because of the victims i reckon i want to ask you something else that sensor your 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 the 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 trader and you have this this daisy chain as mobius loop this circle the speed back mechanism would be in place so you're not manipulating not only the prices with high frequency trading but there's a potential here to manipulate prices by putting out a wall of printed let's call price propaganda because using search engines exciter or have a look at this has been covered within the last six months it seems to be gaining some currency your thoughts i know guys to work.

these would be wasted searching billions ages. slane 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 where. it's being done i think mainly a small way would be surprised with a bit. of ways to eavesdrop and see whether the discussion will give them some. small change that will slow the health of the stall or in some cases you're suggesting it might be more 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 the wealthier side out he's talking about what the clubs illegitimate in the uk is put out there each this is

moving the markets and 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 of many trillions of forex trader on a daily basis it seems that the going to. already here there's going to be some call it a currency war and the euro the dollar and a chinese run. based on what you see in the markets how do you see that playing out right back around well the inner bank markets are safe even real what's a good the exchange traded forex that it's really hard to. there they're saying chill i mean business. it was done simply on the phone you get the bar on one side so on the other and you know the whole of the biggest market in that sense was not as 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 all of the markets are together and the biggest of them all of course is the dollar so now we've had recently good control of the dollar i say we need they. you know the whole the financial markets and so they're wired in the literal sense to the psychological says only have one market on reveling without bringing all the others with it and up till now. you've had what you call slate a safe safety which goes to the dollar and treasuries they are anything but but it's really perceptions that they had and i think they in that way goal will continue and of languish. safety becomes one integral it's a nail in the dollars and perceived as strong as sales of the euro and so the slow

money keeps going euro dollar euro dollar euro dollar. we don't have a sex object the globe is where the real safety lies that's why it's just developing a base and we're. so rick ackerman you talk about filtering out the noise you talk about technical analysis and 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 divorce oneself from any kind of psychological bias now given all that changes with class crashes and what we've just been talking about here with algorithmic trading and news reading etc has this impacted practical analysis 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 quite a number of years but that's a very interesting question because. stretch goal very closely for one. mainly

because just to sort out all the or you know when you get into why things are more variables you can keep track of so i just tend on. purely technical readings more it's to keep still to give me a good idea of where things individually and i have to say get gold and silver over let's say the last sixty sixty million once it become increasingly a gaps it's being the the kind of the threshold that circe and technicians and cheap desir as. morally that should make money selling to change history misses for us and bet against it so if you're betting against gold you being against the idea that the central banks nearly. a minute we stop using the subject the all of the more it's just real interest leads to more exposure 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 kaiser report with me max riser and stacey herbert and i thank my guest rick ackerman from rick's pics if you want to send me an email please is the archives are reporting our t.v. are you until next time x. guys are saying right yeah. home. from.

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