the no holds barred look at the global financial headlines tune in to cause a report. will do the trick please technology innovation all the least of elements from around russia. the future coverage. a liberal costing around the world from central moscow this is t. in the top story tonight the u.n. security council passed a resolution on syria which outlines the next observer mission in the country that's 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 continues to insist its atomic program is peaceful. and

a live event to millions of all thoughts christians around the world celebrating easter marking the resurrection of jesus christ these live pictures of the service in moscow's main church christ to save cathedral to mark the most important holiday in the religious column that you can watch the full ceremony but considering the stream of pictures the next few hours as the service continues online to go. back here up next mike streisand stays here to discuss whether americans are already too broke to actually go broke so in the report now. max kaiser this is the ca's the report we have fans all over the world. that's 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 areas

where we showed him and she apparently is providing some of his collateralized poop 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 reason churches 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 and again a re hypothecated it and they've done this over and over again and jasmine kept to part of nuff 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 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 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 or two hundred years ago american solos on 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 rabid leslie rich without any extra melodies or risks whatsoever but as we go back to feudalism as we

go back to pre enlightenment pre neo liberalism pretty monetarism pretty keynesianism we're going back to the mercantile ism well as they 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 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 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 and 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 and most important generals an of it 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 to prosper turns 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 fed it should as some of describe 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 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 rate 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 thought softball approach is rand object of his to croce 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. to 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 through the early years of the housing crisis which was dominated by american saddled with the 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 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 crisis blew up in 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 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 in all speech is now 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.b.e. our working paper they found the legal and 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 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 indentured 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 slaughterhouse a four hundred pound south dipped in blood from a conveyor belt and dropping out of in trading off and that was like a whole economy now everybody's dropping out 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 snot

machines and gambling is becoming the biggest industry in america as well as the prison industry so you end up with what i call that is see no gulag model in american you know creating enough access to nonsensical paper to fund the food stamps all right stacy never thanks so much for being on the kaiser report thank you max though a much more coming away so stay right there. secret lover jury mukherji was able to build the world's most sophisticated robot which

doesn't use a. transmission 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. i am not surprise there this is the kaiser report time not to go to boulder colorado and talk with ricardo minarets pecks newsletter her twelve year three hours plan of market was a market right on the floor of the pacific coast exchange and you can find more about him rick ackerman dot com rick ackerman welcome back to the kaiser report it backs thanks neal all right rick ackerman will anyone be able to outrun a global flash crash with the title of or one of your recent posts tell us about a summit in the forum got me kind of riled up there not too many of those and. i

had one guy saying geez you guys did a lot of the more it's so warming and you're just making a big mistake reality says it'll layer but and this guy seem to think that it's the market we're got to collapse or be willing sellers that he's got the past before that pleat was the a chance that they chew thousands and flash crash really was a warning sign stocks chamberlain record that day because of somebody to switch and we see a lot of things that happened with selected the markets and back in about eleven minutes. i think that really was the even is the problem even if it was six and a bit cynical larry that's plunging a day of the those things don't happen to begin with unless the psychological conditions are complex and leave as i wrote in that commentary we've been able machines to panic about in fails and the student humans. may not be possible to do

research real say things right now on the subject of markets market integrity in how these markets become distorted and that they're no longer supply and demand so much as they are being driven by algorithm. are the 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 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 bugs the fed and the investment banks etc that's true. you know in the region leave the trading. john mainly by normal networks you know i work in the trading pit one of my primary hits on the pacific floor

involve utils 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 what i need a buyer since and they can get the trade because of course market makers not typically x. rayed with each other. but it turns out the chamber who was against me or step ahead of me. anything that i saw it registered was a buying opportunity in brazil with a warty move in the more kids away from me. that's the case and alan when you look at some of the options more it's. more kits and things that there lee you have a trade you know you go into some of these stocks with the pits and close role of liquid and you'll see that their side there isn't them options in the big on the answer and it's a made traded fifty clone trucks in the latest week what there's more it's a big more mean is that there are players out there ready to do so and so is but

only on the basis of some here in that there has to be an other side to the trade that 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 that only a neural network sees all of them orchids in 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 on either side of the price you would see these monster on earth that 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 if there isn't a way 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 it's looking at the high speed traders the of the traders. one example the use of the very esoteric trading in slidell and since it would have allowed for. a market maker or an algo trader to put bids in also is there the sense of its own chin is it's an offer was there just a shallow. if you treat it as a retail customer sickly you have to buy the offer and so with the

bid but the whole point of algo trading is to get a real their bids and also there's no one else if they if they even if they see them they quickly they don't see the algo traders breach of the more console or it's like sceptically where the regulators get interested is when whatever method of trading cheesed is giving the trader a significant advantage over the public. were just algal traders near each other off the regulators would steer the algo traders seem to have a leg up with retail traders and so the becomes a public concern i reckon i wanted 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 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 picture is 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 with mobius loop this circle the speed back mechanism would be a place so you know manipulating not only the prices revive perpetrating but there's a potential here to manipulate prices by putting out a wall of printed books called price propaganda because using search engines exciter or have you looked at this has been covered within the last thirteen months it seems to be gaining some currency your thoughts i know guys to work even. though there's these new d ways and searching billions ages chat rooms slain snippets of discussion that would supposedly have some impact on the star

although i'm sure there are probably some good noise was out there. it's being done i think mainly a small way. for the big goal of a day of ways of each to. see whether the station will give them some. small taste of what's going to have the start to in some cases you're suggesting there might be more ways out there it is likely to move the stock 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 so i doubt he's talking about it because amid the talk is to put out there with each disk this is moving the more i think the regulators to most of the decisions are 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 it seems that the going for. well word here there's going to be some call it a currency war and the euro or the dollar and a chinese run. based on what you see in the markets how do you see that playing out . well the interbank market even relative to the exchange traded forex that it's really hard to. there seemed to mean business. recently was simply on the phone you get the buyer on one side the seller on the other. you know the whole of the biggest market that since was not as highly automated this is a change markets but i think the flash crash the conditions are there simply because everything is to have tied together you know all the markets and together. they just of them all of course is the dollar well we've had recently control of

the dollar i see we meaning they. you know the whole the financial markets are so that they're wired in the literal sense in the psychological sense and only have one market on the raveling without bringing all the others with it and nail it in. what you call slade a safe safety woodstoves the dollar and treasuries they are anything but but it's really perceptions that i think. in that way goal will continue to kind of languish hold the slate save them because one integral it's a nail the dollars and we proceed to school on the sale of the euro and so the slow money keeps flowing euro dollar euro dollar euro dollar. we don't have perception jet is where the real safety is that's why it's just developing

a base somewhere. so rick ackerman to talk about filtering out the noise you 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 divorce one saw from any kind of psychological bias now given all the changes with the last crashes and what we've just been talking about here with algorithmic trading and news reading etc as this impractical analysis 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 to one. mainly because it's just too hard to see without all the origin shield when you get into why i think the more variables you can keep track of so i depended on.

purely technical readings of the markets to keep the on a stick to could be a good idea of where things are going to. and i have to say gold and silver over let's say the last sixty sixty million months and become increasingly again it's the kind of the special that sears technicians and i keep to sure those. morning that make money selling to trend history misses and bet against it so if you're betting against old you betting against the idea that the central banks namely will. the minute we stop. subject the all of the more it's still real and staged 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 kaiser and stacy herbert and i thank my guest rick ackerman from rick's pics if you want to send me an email please is the eyes are reported r t t v are you guys are saying via.