three thirty am in moscow these here are the headlines u.n. security council voting unanimously to send monitors to syria to oversee the ceasefire after a vision if you original draft resolution following objections from russia this comes as reports of fresh clashes in the country severely testing the already fragile truce. back around the table iran and six world powers craze their resume talks over tehran's nuclear ambitions as constructive and useful talks come after a fifteen month break and increased tensions but want to go she should plan to sue

. and sunday marks the most important holiday in the year for millions of the orthodox christians around the world in moscow about six thousand gathered for the easter service in the city's main cathedral including russia's president and prime minister. has a report out next stay with us. max kaiser this is the ca's the report we have fans all over the world stacy 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 areas where we showed him and she apparently is providing some of his collateralized obligations he comes once a week or twice

a week sometimes to correct her diapers and packages them on in the city of london jasmine's purpose collateralize ing almost the entire reason curators 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 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 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 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 mark until islam 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 crowded lessly rich without any extra analogies or risks whatsoever but as we go back to feudalism as we go back to pre enlightenment pre neo liberalism pretty monetarism 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 know their power shrunk it was a bridge too far it was a war to money it was a military industrial complex run amok it was the end of america well this is how many empires end they end with imperial overreach and we see that we see the

military industrial complex 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 general's 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 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. oh this is correct and when brain span was encouraging people to take adjustable rate mortgages this was the complete abdication of the role that the fed should be playing in the economy as an independent fed it should as some have described it take away the punchbowl when the markets get too frothy when greenspan spoke 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 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 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 therefore his argument held that your interest payments should have fallen in fact what happened was the interest rate exploded after the first two years so some people's monthly mortgage payments were doubling or tripling but remember in an interview once he left office greenspan admitted that his entire philosophical approach is kind 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 balloon up the sub prime crisis blew up in the global economy wanted a crisis it became obvious that the collateral used for the subprime market the researchers 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 that in essence a member of the fed's balance sheet went from less than a trillion to over three trillion 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 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 families 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 it's a very active 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 introduced to lotteries across america because that 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 in size that presumably lay beyond the grasp of rational thinking chuck had insights all right but not the kind he'd expected instead of having potentially profitable spreads combo strips and straddles leap out at him from his trading monitor his feeble mind was overwhelmed by images of the slaughterhouse four hundred pounds out different blood from a conveyor belt dropping out of the trading oftens don't mix what is 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 is like the one armed bandits 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 in america and you know

creating enough excess nonsensical paper to fund the food stamps all right stacy never thanks so much for being on the kaiser report thank you don't go away much more coming away so stay right there. in the secret laboratory kirby was able to build the world's most sophisticated robot which doesn't give the door down anything. to teach creation why it should care about humans. this is why you should care what you're only on the orgy dot com.

i am not surprise or this is the kaiser report trying not to go out of boulder colorado on top of the wreck ackermann of rex pets newsletter her twelve year or three hours ban of market was a market wreck 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 a tax thanks neil all right rick ackerman will anyone be able to outrun a global flash crafter with a title or one of your recent posts house about a saloon in the sewer got a kind of riled up there not too many. weeks to explore had one guy saying he should last a day out of the mortgage so long and you're just making

a big mistake reality says liar but and this guy seemed to think that it's a market where ducks a collapse their big warning sign that he's got past the simple point was that the h.s. that made the two thousand and seven crash really was the morning selling stocks change aylesbury for that day because of somebody for wall switch and we see a lot of things that happened with selected the market came back in about eleven minutes but i think that really was the even if the problem even if it was a kind of mechanical error that sent the door plunging that day. the those things don't happen to begin with unless the psychological conditions are collects that leave as i wrote in that commentary we've enabled machines to panic at about ten veils and still insisted if humans. may not be possible to research the real say

right now on the subject the markets market integrity. if you know these markets become distorted and that are no longer supply and demand so much as they are being driven by algorithms for 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 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 bags the fed and the investment banks etc. you know imaging lead the trading. john daly binaural networks i work in the trading pit one of my primary hits in the pacific it's more involving

equals trade votes and rahul's well and sugar hill came in they would pick up sized markets and a glut this is great you know if they do what i need to buy or sense of the has turned looks into it will give the trade because of course the market makers and we trade with each other. but it sure is a symbol who was against me or step ahead of me. anything that i saw. was a buying opportunity thought in brazil they wore the moving the markets away from me. that's the case nail and when you need some of the options more it's you see some more it's an angel barely able to trade you know you go into some of these stocks although it's close relatively illiquid and you'll see that their side tells them options in the bid inside of the also and the thing may have traded fifty clone trucks in the latest week. there's more cuts and we did more it's need isn't there or players out there ready to do so. but only on the basis of some huge

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 more it's moved around a lot but they are opportunistic in the way that only a neural network sees all of them or it's the same. understating ok if i were describing their name the price the current price they might be trading a relatively low volume but on either side of the price you would see these monster on earth but at 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 auteurs in their favor and additionally can. back to the subject of class crashes and algorithmic trading and high frequency trading i what we're saying 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 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 what they needed to get the high speed traders the traders. one example they used in the very essence here with the trading is called the hide in slidell and essentially would have allowed sewer. market maker or l. go trade to put bids in also is there the sense of its own chin is was there just shouted. it's you treat it as a retail customer. really you have to buy the author and sell the bid hope the whole point of algo trading is to get

a real that. is that no one else if they even if they see them they. will they don't it's the algo traders or between work it's all or it's like sickly where the regulators get interested is when whatever method of trading and she is giving the trader a significant advantage of the public. is that we're just algates traders near each other off the regulators would cheer with the algo traders seem to have a leg up on retail traders that's in the becomes of the concern i reckon i wanted to ask something else that. 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 a crass 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 out by the same out or the traders and you'd have this this daisy chain as mobius loop a circle this feedback mechanism would be in place so you're not going to be letting not only the prices with the high frequency trading but there's a potential here to manipulate prices by putting out a wall of printed what's called price propaganda because using search engines exciter have you looked at this it's been covered within the last six months it seems we're getting some currency your thoughts i know guys that work. as these would be wasted searching billions billions of wages. just plain snippets of discussion that would supposedly have some impact on the stock and although i'm

sure there are probably some noise steve israel where. it's done i think mainly a small way would be for the big. boys of ways of each to. see whether the discussion would give them some. small taste of what's going to happen in the stall or in some cases you're suggesting there might be noise out there it is likely to move the stuff so that i don't think it's a big thing and i think whoever is i think is probably the boy so i doubt he's talking about. it in the talk is to put out there the explicit purpose of moving the morcha so i think the regulators can sell the jasons our 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 for. right here there's going to be 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. well the interbank markets are so deep even real what's the exchange traded or acts that it's really hard to. they're slow chillum in business. recently was done simply on the bar on one side the seller on the other. you know the whole the biggest market that sense was not as automated as 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 them or it's all together. the biggest of them all of course is the dollar so now we've had recently the dollar i say we need

a. you know the whole the financial markets are so they're wired in the literal sense but also in the psychological sense you know you can't really have one more readily without bringing all the others with it and actually nail and saying you know you had what you call slate is safe the safety of the dollar and treasury say are anything but but it's nearly perceptions that matter and i think that in that way continue to kind of languish. to save becomes one integral nail in the dollar's only perceived as strong as the euro and so the slow money keeps flowing euro dollar euro dollar euro dollar. we don't have. is where the real safety is that's why it's

just developing a base and we're. so rick ackerman it's not about filtering out the noise to talk about technical analysis it's true right that technical analysis the times to remove a lot of the psychological elements to this today's market paint a picture that one can trade around the worst oneself from any kind of psychological bias now given all the changes with last crashes and what we've just been talking about here with algorithmic trading and news reading etc has this impact of 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 years that's a very interesting question because. gold very closely for one. mainly because it's just disappeared out of the or you see a when you get into why things are more variables and you can keep track of so i get into a. purely technical readings of the markets to not only keep dealers if you could

be a good idea of where things are going. and i have to say gold and silver over let's say the last sixty sixty million months become increasingly again it's showing the the kind of the threshold that circe and technicians and cheap disinterest. moyen that to make money selling to change instruments is force and bet against you so if you're betting against old you betting against the idea that the central banks nearly eight million we stop you should. we subject the all of the more constrained real interstates to more exposure and the whole game will be over all right rick ackerman rather time but thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max foster and stacey harbor or thank my guest. rick

ackerman from rick's picks it was that meeting our place is like as reported r t t v dot are you guys are saying. cut. back. the old. science technology innovation all the elements from around russia we've got the future covered.