six thirty am in moscow are these iraqi headlight u.n. security council votes unanimously to send monitors to syria to oversee the cease fire after a visions for the original draft resolution calling objections from russia this comes as reports of fresh clashes in the country severely testing the already fragile truce. back to the table iran and six world powers praised their resume talks over to iran's nuclear ambitions as constructive and useful talks come after a fifteen month break and increased tensions flood warning though she asians plan

soon. and sunday marks the holiest day in the year for millions of orthodox christians in moscow about six thousand gathered for the easter service at the city's main cathedral including russia's president and prime minister. has a report up next stay with us. i'm max kaiser this is the cuz the record we have fans all over the world placing bets we're going to look through their eyes because check out this photo 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 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 your position going on on wall street and in the city of london right now this is an era of peak collateral because the banks have collateral already everything that they could collateralized and then recall a lot of allies and again a re hypothecated it and they've done this over and over again and jasmine can't do part of office to create the additional collateral so that lloyd blankfein and jamie diamond can float even more securitized debt based on two 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 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 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 a headline here trying to use us as a decline in 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 told 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 a fabulous leader 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 pretty monetarism pretty keynesianism we're going back to the 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 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 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 across a lot of money fifty thousand dollars to lock somebody up in prison in america even more than that to kill somebody in an oil rich nation but the other thing i want to point to is back in two thousand and four this is a headline from february twenty seventh two thousand and four alan greenspan armed and dangerous so to go with this notion of war this financial war of course one of the biggest generals the most important generals and 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 have 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 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 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 and remember what happened with these adjustable rate mortgages that many americans

went into it was something like forty fifty percent of all new mortgages after this were adjustable rates but this is where fraud entered because remember alan greenspan also encouraged fraud in the financial markets because he thought somehow it added to liquidity so that's when we came upon the term of exploding arms because remember even though interest rates continue to fall and alan greenspan there for his argument held that your interest payments should have fallen in fact what happened was the interest rate exploded after the first two years simpson 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 i mean rand objective is to produce 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 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 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 while getting back to what we said of the top of the show in two

thousand and eight when the crisis blew up the sub prime crisis blew up and the global economy wanted a crisis it became obvious that the collateral used for the so crime market every securitization 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 barrack 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 and the tarp funds originally seven seven hundred fifty billion under hank paulson's extortion ery congress and the speech is that well over seven trillion officially twenty trillion artificially 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 used it to go bankrupt from

all american companies 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 inventors 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 while under the influence of l.s.d.

that a childhood friend of rick ackerman's 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 combo strips and straddles leap out at him from his trading monitor his people guy was overwhelmed by images of the slaughter house a four hundred pound dripping blood from a conveyor belt dropping out of a trade off in stone banks what it's like to hold chrono me 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 near the slot machines that they're just multi-trillion dollar slot machines and gambling is becoming the biggest industry in america as well as the prison industry so you end up with what i call the casino gulag model of an american you know creating enough excess

nonsensical paper to fund the food stamps all right so it's never thanks so much for being on the kaiser report thank you so much more coming your way so stay right there. sigrid laboratory service was able to build the world's most sophisticated robot which on doesn't do the door down anything. mission to teach me.

i am not surprise or this is the cry of the record time not to go out of boulder colorado and talk with rick ackerman of rex pix newsletter for twelve years rick has been a market was a market maker on the floor of the pacific coast exchange and you can find more about him at rick ackerman dot com rick ackerman welcome back to the kaiser report he backs the meal all right rick ackerman will anyone be able to out run a global flash crash through the title of our one of your recent posts how's about a saloon in the swarm got me kind of riled up there not too many days and weeks to explore i had one guy saying geez you guys today are the more it's a warning and you're just making a big mistake reality says liar. and the sky seem to think that it's the market we've got to collapse or be winning so that he's got passed into the whole point was the h.n.c.

made the change there was an senseless crash really was a warning sign stocks chamberlin very horrid that day because of somebody to switch and we see a lot of things that happened with corrected the market going back in about eleven minutes but i think that really was the worrying side and even if the problem even if it was a kind of mechanical error that sent the market plunge in that day of the those things don't happen to begin with there is a psychological conditions and alexa leaves as i wrote in that commentary we've been able machines to panic at about ten thousand students humans. may not be possible to do research the real thing right now on the subject the markets market integrity in how these markets economic distorted and that are no longer supply and demand so much as they are being. 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 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 paperbarks the fed and the investment banks etc that's true. you know regionally the trading. mainly by normal networks you know i work in the trading pit when i'm a primary hits in the city or involve equals trade butts in rahul's wall and chamber hill came in and they would get up sized markets and a glut this is great you know if you do want to lead a buyer system that was simple give the trade because of course market makers and not technically trade with each other. but it sure is

a sin. against me or a step ahead of me. anything that i saw the register was a buying opportunity in brazil they were already moving the markets away slowly. that's the case now and when you need some of the options markets you see some more crates and things that barely have a trade you know you go into some of these stocks with its enclosed relatively liquid and you'll see that there are five thousand them options in the bid on the altar and the thing may have cheated fifty clone trucks in the latest meek what those more could see big mortgages mean isn't there or players out there ready to do so. but only on the basis of some huge killing in that there has to be the end of their side of the trade gives them an advantage to do that size so the sizemore gets moved around a lot but they are approaching escape in the way that only it will net worth and sees only the more it's the same. can understating ok so are describing their thing

the price the current price might be trading a relatively low volume but on either side of the price you can see these monster on earth they can trigger with 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 at this in a way to go. 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 way that are completely outside 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. can look at what they needed to looking at the high speed traders the traders. one example the. very essence of trading. and since it would have allowed was for. a market maker or an elbow trader to put bids in also is there the sense of its own chin is it's an offer was there just say. if you trade is a retail customer typically you have a body have to take the offer and so with the bid with the whole point of balgo trading is to get a real their bids and losses that no one else if they if they even if they see them a. little. at the algo traders be more console or the choice and cynically 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 algal traders know each other off the regulators wouldn't care if the algo traders seem to have a leg or a reach of traders it's not because of the victims i reckon i want to ask something else that sense your 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 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 will be picked up by the same out or the 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 going to be learning 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 except for a 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 working. towards these would be wasted searching billions billions of web pages jack and slade snippets of discussion that would supposedly have some impact on the stock and although i'm sure there are probably some good noise save israel there. it's being done i think mainly a small way would be sitting before the big old military of ways of eavesdropping to see whether the station would give them some. small change which for the half of

the stuff in some cases as you suggest they. 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 needed to go out the side out he's talking about what the club's illegitimate in the torque is put out there with each disapprove since moving the more i think the regular distance of the distance our last talk 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. there there's going to be a currency war and the euro the dollar and the chinese round. based on what you see in the markets how do you see that clangor. well the interbank markets are

so deep even really it's a good the exchange traded or x. that it's really hard to. they're saying to the business. recently it was done simply on the you get the borrower the seller on the other. you know the whole of the biggest market in that sense was not highly automated in this exchange markets but i think the flash crash and the conditions are there simply because everything has kind of tied together you know all of the markets and together. biggest of them all of course is the dollar bill now we've had recently with seaweed needing a. you know the whole the financial markets are so they're wired in the literal sense in the psychological sense and you can't really have one market on readily without bringing all the others with it and

nail it's in cheating you know what you call slate is safe the safety of the dollar and treasuries they are anything but what it's really perceptions that i think. in that way goal will continue to kind of languish. safety becomes more an integral it's an l. the dollars only proceed to stronger sales of the euro and so the slow money keeps flowing euro dollar euro dollar euro dollar. we don't have perception. is where the real safety law is. it's just developing a base somewhere. so rick after many thought about filtering out the noise you talk about technical analysis it's true right that technical analysis the times to remove a lot of the psychological elements to this to these markets paint

a picture that one can train around divorce 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 as this impact of technical 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 the earth that's a very interesting question because. stretch goal very closely for one. mainly because just to see without all the arguments you know when you get into why things move their morse variables and you compute track of so i just tend on. purely technical readings of the markets to not only keep being honest if you could be a good idea where things you believe. and i have to say gold and silver over the last sixty six to nine months and become increasingly adept at showing the

kind of the special that sears technicians and cirrus. moyen that make money and sign the trend whose term misses force and bet against it so if you're betting against gold. being against the idea that the since the banks nearly eight minute we stop you sitting we subject the all of the more against real interest rates to more exposure and the whole game will be over all right rick ackerman rata time but thanks so much for being on the kaiser report thanks max all right that's going to be out for this edition of the kaiser record with me max kaiser and stacy herbert and i thank my guests. rick ackerman from rick's pics if you want to send me an e-mail please do so i can as a reported r t t v dot are you guys are saying by our.