this is r t the headlines point out a new massacre reported in syria whether estimates of casualties vary dramatically as the timing of the source or just ahead of kofi annan briefing you counsel raises suspicions. at the u.n. general assembly is meeting right now these are live pictures from new york and some strong statements have already been made as u.n. chief sin is present and it just a minute with the latest impeachment. global political focus shifts to the east this day as delicate rainy and afghan issues are discussed in beijing the value chain that met with the country's leaders. the increased pace of assaults on women

in egypt's tahrir square revealed apply to female protesters whose hopes for democratic changes are fading as islamists try to take. from the skies above the bashing the bankers with the super bowl that's all about in the kinds of reports. max guys are this is the kaiser report just hanging out in london doing my alive somebody was very kind to give me this one kilo of silver what the banks are skull crusher listen to this but a banker skullduggery here. ah that's gotta art if the global insurrection against

banker occupation continues as it is many of these will be in people's hands performing the ultimate skull crush say herbert. max well perhaps people are to start hitting themselves in the head with that because we as a population continue to fall over and over for these scam services banks are these fraudsters these ponzi scheme operators fully twice shame on me russians fall once again for a notorious ponzi scheme a huge financial pyramid is set to collapse in russia leaving thousands of families penniless this is no surprise the man running it is the russian bernie made off sergeyev move rudy an infamous criminal and a hero to his followers the demise of move ortiz company m m m twenty eleven was easy to predict after all the convicted fraudster ran a near identical con in the mid ninety's that duped perhaps as many as one in ten russians his latest thing max his website offers forty percent returns but he

openly advertises the website openly says that new members funds are used to pay dividends to those who put their money in earlier but it's a chain letter it's a ponzi scheme and surrogate has the honesty to call himself a ponzi scheme operator is not trying to sugarcoat that is anything but a ponzi scheme operator so there is some truth in advertising yes i am a ponzi scheme i am surrogate the ponzi scheme meister and this is yet another scheme the same scheme i only got trouble with again contrast this with other stories stacey but there were significant bonuses for any of the participants in the scheme so when you look around the schemes around us you have to say like where are the you know you have to bring in more of these ponds ease in order for the scheme to work so you look at the pension ponzi we're now having on average one child per couple that's not enough to pay for the fonzie's that's why that's

collapsing now look at the u.s. stock market morgan stanley c.e.o. some facebook investors were not. eve investors who expected a big opening day pop for facebook stock were naive and bought it for the wrong reasons says morgan stanley c.e.o. james gorman yes a couple of points there social security is by definition a ponzi scheme i believe usa today ran a story saying yes social security is a ponzi scheme but it's a good ponzi scheme well not really all ponzi schemes and in tears so security is running out of money and it will also collapse just like syrup days ponzi scheme and you mention the i.p.o. of facebook this is yet another version of a ponzi scheme called a pump and dump even the president of the united states was pumping shares all the insiders were dumping in this shameless version of who wants to be a millionaire after once being

a multimillionaire but there were many people telling the population it was a ponzi scheme don't buy it it's going to zero but they still bought it because you can advertise openly now as a ponzi scheme because people i think. not only have they just given up on ever working again but they think that there's always somebody to write to the rescue these ponzi schemes collapse but ben bernanke he'll lower interest rates to negative something or somebody will bail us out and it will be ok here's the c.e.o. of morgan stanley basically spitting in the face of the i.p.o. investors calling them naive for believing that this i.p.o. is anything but a ponzi scheme then you've got like charlie monger over there berkshire hathaway partner of warren buffett calling people who buy gold uncivilized meanwhile he supports wells fargo berkshire hathaway which supports this ponzi scheme that's the uncivilized aspect of this economy so it's on an unbelievable that these guys can get away with this type of rhetoric in the face of what is obviously fed enabled by

these game with those zero percent interest rates that you have just been articulating so now we're shamed were naive and we're also unsustainable eurozone is unsustainable horn's mario dragged the head of the european central bank hid out of the political paralysis gripping the region as he warned the euro zone's set up was unsustainable but we're going to keep on trying because the euro is a ponzi scheme another ponzi scheme they're trying to rectify this polities game by introducing new players to support the new layer of the ponzi scheme this would be the european wide bond market the euro bonds this would be like survey saying inviting another million russians to participate in his ponzi scheme to keep that floating for a little bit longer in euro zone or saying let's float euro bonds to keep the ponzi scheme going longer it's a ponzi scheme because there's no genuine growth or taxable income to support the

economy it is truly unsustainable and the only way they can pretend as if there is an economy is by floating all manner of fake euro bonds to support a fake economy that is run by plutocrats and. kleptocrats that are not even elected during a fake democratic process and yet just like ponzi scheme however everybody is aware now that it's a ponzi scheme falling apart but there are still new members wanting to sign up iceland for example once a join either the euro or the canadian loonie they want to join now but people will join. the entire industry of los vegas the town of las vegas is built on this dream people wake up of being buying a lottery ticket and being rich but unfortunately when you let the lottery mentality drive your entire economy whether it's in the u.s. or in the eurozone you end up with a society of the general losers like you have in the us and in the u.k.

and across the eurozone who want to wake up and buy winning lottery ticket instead of working for a living that applies to everyone working in washington who are trading on inside information who don't work for a living either they just hope by hitting the lottery speakin the degenerate losers we have some of those in the headlines here's the population at the head of the pyramid of the global pyramid scheme of currencies but all of these guys are the losers in that section americans are still swimming in debt they can't pay as shown in the graph below total household debt currently stands at eleven point four four trillion dollars more than a trillion dollars below its two thousand and eight peak unfortunately that only puts the country back where it was in the first quarter of two thousand and seven the same goes for per capita debt today the average american knows forty seven thousand five hundred dollars roughly the same as five years ago right and you have guys like paul krugman of the new york times in the u.k. recently us on the news night b.b.c.

pushing his keynesian model which is a fancy word to say ponzi scheme and all of the people who he was arguing against pointed out to krugman that he was a stark raving lunatic but importantly there max look at this story. now one of the things common among ponzi schemes as we saw in the first headline this guy sergey variety is a hero to many well that's because people get blinded they don't want to believe it's a ponzi scheme this forty seven thousand five hundred dollars per american that's them refusing to admit that they are the victims of a ponzi scheme they're still in gage they're still players they're still participants in the pyramid scheme the pyramid has collapsed there you know there's a semblance there's like a hole a gram of it still up and a rat but it's gone and due to the whole graphic enabling engineered by the federal reserve bank to keep interest rates near zero

percent so that forty seven thousand dollars in interest costs or debt is never realized because it never pays a significant amount of interest liability at the end of the month due to the quantitative easing the forest ratcheting down of interest rates and of course that is also unsustainable so when you have a slight uptick in rates and suddenly you have a wholesale default and bankruptcy in one day you will see much more in the area of news coverage of the zombie apocalypse i think those are people who just woke up from the pyramid they realize the scheme has collapsed others millions and millions and millions perhaps billions across the world are still engaged in hoping that this pyramid does not collapse but you know i would be packaging a zombie collateralized bond obligation and selling that in the market because the the mass awakening of those now understanding that they are forever on the hook for

debts that they did not really in core are going to give credence to the zombie apocalypse when you see face eating face ripping zombies now emerging around the globe and this is the result of. irresponsible economic model that tends to ignore liabilities and push the lottery as the ultimate way to run an economy so we were in the u.k. as well so i want to turn to what is being done about the operators of this ponzi scheme let's look at how the the police the commissioners the regulators the heads of state treat this collapse and ponzi scheme around the world illiterate school leavers a workless households or destabilizing u.k. economy says european commission yes it's the illiterate school leavers and work with households that are causing the long term damage to the british economy according to the european commission but it's a subtle form of inflation is that you let your education system collapse because

you are unwilling to spend a penny on it and as a result your economy can't grow either you're not going to get productive citizens paying taxes if they all join the zombie apocalypse because an educated adults. yeah but let's look at it the other way max the report does not once mention the zombie banks the report does not once mention the fraud pushing banks toure's it's the poor the stupid the illiterate you know that's who they blame stacey you bring up an excellent point you know it was a few years ago when people first started to talk about the zombie banks in japan and much was written about the zombie banks about how the this this was going to become a zombie plague around the world and people poop to this and said no no it couldn't possibly happen now the zombie bankers turn into zombies on bees and they're out there exhibiting tendencies of the zombie the zombie apocalypse but you're right these too big to fail is what they call that now but up until just a few months ago they were calling them the zombie banks then they got frightened

they call them too big to fail banks but they're actually part of the zombie apocalypse. because guys ripping off people's faces and decapitating people are just like maybe rogue zombie bankers those are wrong bankers with the fat fingers and then the fat finger falls off and then they become a zombie and then finally here max met police launch war on economic crime so finally max they're launching a war on economic crime all those central bankers with their money printing and their quantitative easing and their low interest rates all those banks are destroying our economy the metropolitan police in the u.k. are going to go after them. well max and i were there to witness some of the buildings they raided they all looked suspiciously like council flats over nine hundred police officers are busy working across london tackling financial crime against businesses and the public as part of the latest operation in the m.p.'s is

total war on crime in the last twelve months the police have seized over fifteen million pounds in cash from the small time economic fraudsters while they got it backwards as the federal boss yet said a couple of centuries ago looting at the top began saluting at the bottom if you want to get a living at the bottom giver alluding at the top which means get rid of cameron get rid of born get rid of mervyn king until that happens expect more looting at the bottom and more on the zombie apocalypse herbert thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there .

sigrid lumbered sure to mccurry was able to build the world's most sophisticated group will join forces leave those into cuba doing about anything tunes mission to teach creation why it should care about humans. this is why you should care only on the o.t. don't come. max kaiser welcome back to the kaiser report here is the book that's flying off the shelves ponzi planet planet ponzi no matter how you say it it's all great now we've got the author here misfires stein welcome to the kaiser report how are you thanks for having me well i noticed that you brought one hundred joins them by way dollars do we didn't have to do that we were going to have on the show anyway mitch thanks so much i didn't know perhaps if ben bernanke picture should be featured on that because i think that's the way the fed may be headed i think that you know the book

that i've come out with actually tells the story about playing uncertain terms basically what's going to happen with the economy if you keep printing money ok so that's my first question who is operating plan a ponzi scheme named the players bernanke yeah basically sony already made how do they suck people into this what is there an ideology is it just bad economics is a cult how does that the way i think it happens is the if you go back twenty years i think there are a lot of graphs and charts in the book that demonstrate in twenty years how much debt has escalated and there's been no accountability no transparency whatsoever throughout the world and you have the countries like italy spain portugal ireland and greece they can never possibly repay the money that they owe so you get into a situation where you have a default and you get technocrats non-elected officials such as mario draggy who runs the e.c.b. ex goldman and people like mario monti who's now running italy who is another not. elected official in

a position where they just kick the can down the road but eventually you can kick the can down the road for a long time but you're going to hit a wall and i think we've reached the point or the wall is right in front of us right now for our stunt the book is planet ponzi but let me ask you this question what in the economy is not a ponzi scheme or ponzi the pension systems are a ponzi scheme the entire notion you know focusing g.d.p. growth on these underlying fraudulent ponzi schemes is a ponzi scheme what is not a ponzi were it where is there any sea of tranquility and this chaos well it's interesting that you should say that. probably not right now but i think that we're reaching a point that there's no more elasticities so i think basically the rubber bands about to snap and i think that people are going to have to do something i read in the papers this weekend that president obama who's on the campaign trail now i'm not political i don't care if a democrat gets elected or republican i vote my conscience and i vote the right thing and i think that's what people in america and that's what people all over the world should do they should get issues that they understand and actually get real

answers from the politicians for a change and make them commit to things i mean discussing things that will never happen or just making empty promises people who make up the promises or don't fulfill the promises should not be reelected we should be voted out now i think the latest thing i heard over the weekend was the administration blaming the european crisis for unemployment in america i don't see the correlation there but what i think is. something's got to be done something's gotta give and the debt has to be contained before it implodes and i think that will happen eventually if you have a tearing of the societal fabric and i think you're starting to see that with sixty percent unemployment youth unemployment in spain you're seeing that the children have no future and tomorrow's generation has no future and they are left with no resort but to go out into the street and rise obama's point to europe now for the unemployment in america is making a connection there and there is

a connection you could say if you want to bring together all the banking scandals in america and europe and say you know they're creating financial instability which in turn is creating inability for corporations have any confidence in these economies and therefore they're not hiring but he's not pointing to the source the sources banking scandals that ultimately come from wall street and the city of london and i want to ask you something you're a hedge fund manager you deal transactions all day long but these markets themselves are becoming unstable these markets themselves are becoming prone to what we flash crashes and moments of extreme tail risk as it's called you know one one in three hundred percent of tile you know percentage happenings are becoming more the norm so just you know from a day to day practical experience why how do you commit funds in this type of an environment because if you're really in the trenches and there's just these computer algorithms eighty six percent of the trading on the floor of the state exchanges computer driven how do you deal with that you know on the front line with

all this the bullets flying around your head in the instability how do you how do you manage that just on a day to day basis well you reported the important feature that is you've got to take a macro position in a macro view that's going to be safe and as a prudent fiduciary what your responsibility is is not to lose money it's not necessarily about making a lot of money. you've got to make sure that you ensure that your clients don't lose a lot of money and if you take a couple of positions and asymmetric hedges that seem to work out against your other positions you have a balanced portfolio fairly balanced polo right though hedges. asymmetric right now wait a minute that sounds like an oxymoron exactly their heads are not is an asymmetric a would be a position directional position so is this the jamie diamond mind game that he plays themself every morning he thinks he's hedging his form but it's an asymmetric catch so in the two billion dollars blows up it's because wait a minute it's not because i was taking directional bet and broke the law it's

because i have asymmetric heads are you also one of these asymmetric love breaking hedging guys tell us which tells the truth could fess up you know i think the way that it works max i think that there are situations totally different and i think what they were doing and i can't i can't comment on what j.p. morgan was doing i can tell you what the market has been speculating what they've been doing i think that you've done something about his silver positions and their commodities desk in a recent article in bloomberg the head of the commodities desk at j.p. morgan. came out and said no we're not. manipulating any of the commodities markets we're not involved we're only dealing on behalf of our customers and i think what needs to be done is i think that since you have only toothless regulators in america they need to actually go in and say ok well who are your customers you have to disclose who you're making your commodities trades on behalf of if you have the largest positions because if you look at there are quite a few anomalies in those markets if you look at the time in sales on any of the like bloomberg or something you can see that there are massive spikes and you have

to have gigantic amounts of margin to post to take those positions so it's obviously one person doing the transactions so i'm just. you know to bring that up by then that person if i hear you correctly is black master i'm not saying that the wicked way i just j.p. more whole lot of people are the inheritor of the three billion short ounce naked short ounce of silver financial terrorists known as black masters but that's what people are saying yeah i don't i don't i say i don't this shows that i say i don't know i don't know how to confirm or deny i don't know what i say i don't know who it is yet somebody but it's always a national a big m. so let's so it's a lot of gall to go to be quite frank manthey because you've got asymmetric hedging and itself is you know a mobius strip of fraud jill and i could i could try to make it a little clearer for you if i have a lot of positions if i own some assets in europe what would be the best hedge to put on it's not go you are obviously in any hedge that you put on you're going to

be exposed to some amount of basis risk but if you're going to have currency exposure so you really want to hedge that exposure so how can you do that you can short the currency or you can do a strip of options are you making money by playing what you expect the other players in the hedge fund community will be doing in reacting to different scenarios by they're hedging and asymmetric hedging or are you engaged in some fundamental economic activity that benefit society in some way well that's right you're talking about proprietary trading i mean there's a difference between trying to hedge a portfolio as a hedge fund manager or you adding anything to society. well i think that some of the environmental aspects that i've invested money in and funds in to outside of your normal day to that job now the book was always able to be had a benefit to society because you're describing this job of hedging on hedging on edging in the hedge like community in the proprietary trading desk of banks like

j.p. morgan in your exposing a bit of a whistleblower type role but as this and dear due to your fellow headstrong community just are they wearing the planet ponzi baseball cap available on your website are you part of the are you now a pariah and i see you walking around with gold krugerrands i mean this is this is safety. this is what are you are your paper currency i think is problematic but it's not becoming a pariah and it's not anything like that the reason why the book was written to begin with the title is a catchy title it's a shocking title but it makes a point it makes a very important point the point is if anybody it's the most descriptive term in the world for what's going on in finance and i think it's some a story that needs to be told when i entered these markets which was over thirty years ago to give you some perspective you know we did normalize trades different types of trades and transactions when larry summers i don't know if you know who he is but we speak of larry often on the show not in terms when larry summers actually

in one nine hundred ninety nine pushed to get glass steagall repealed that was the beginning of the end because what that allowed is securitizations now derivative products were good you needed some sort of control on them when they got out of i was against that i was against the euro because the euro will never work a single currency can't work unless there's a single taxing authority and in less you have one overseeing government body which you don't have and you will never have because you go get seventeen countries to agree on anything but going back to glass steagall and derivatives. you know you let the genie out of the bottle and they let children play with toys they didn't understand now that was what seventeen years into my career so things have changed drastically now think about if you just modernization act another milestone in the deregulatory i would quote alan greenspan. testifying in front of congress i think it was or he was testifying in front of

a committee and he said why are they worrying about. coming up with in terms of dog frank where they're worrying about implementing new laws when they're not enforcing they just need enforcing the existing regulations which they haven't done as you can see i mean m.f. global they're looking into it what happened with m.f. global i'd like to know i mean isn't sarbanes oxley if you sign off on accounts aren't you held responsible as the c.f.o. ok let me let me let me let me let me finally kind of ask this question because it seems like we have interview lots of folks on the show from different perspectives but there is a need for for capital markets there is a need for the distribution of risk and reward there is a need for. some kind of unit of exchange in a banking system and you've come up now for thirty years and you've seen a progression. stand which has moved away from the underlying utility value of these markets into something which is approaching pure casino capitalism so we're

staying with an industry still trying to do something about it by raising awareness is that that is that what you're trying to do or i think that there are still guys out there that think that the markets can you know i always i'm an optimist eternal optimist even if you read my book and everybody's going to say that i'm pessimistic because it's a plan a ponzi ponzi ponzi but i think that what the world needs to be a better place at the end of the day and i think everybody tries if you don't try to change you'll never get change and only if you try to help people to get change and bring them and make them aware of what's going on can you get change i mean a lot of people in industry like what i've done some people don't ok. we're out of time the book is planet pausing i hope you come back and talk some more of the show obviously a lot of things we couldn't get into given the limited time but would love to have you back on thanks so much thanks for having me all right that's going to do it for this edition of the cars report with me max kaiser and stacey herbert or thank my guests mitch firestein here is the book plan of ponzi going to send an email please do so because i reported r t t v dot are you don't like timex guys are saying.