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news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. showing corporations to rule the day. hi i'm max kaiser this is the kaiser report cognitive dissonance trying to hold two

opposing views in your mind at the same time and get knowledge of the weather that i'm not just talking about barack obama stacy ever tell me more to talk about by cell by cell on the buyer on the cell on the buyer on the seller right that's coming up next but first i want to say france hits back at obama over europe debt crisis so you know obama was on the campaign trail and blamed everything high unemployment the financial catastrophe in america on europe well french foreign minister laurent fabius on tuesday hit back at comments by u.s. president barack obama about the threat of the european debt crisis saying it had originated in the united states he said quote the crisis did not start in europe lehman brothers was not a european bank but that's what i'm saying cognitive dissonance on the part of barack obama he can't seem to hold the truth the facts of the global financial crisis originating in america on wall street lehman brothers and other terrorism

proponents in wall street with the current crisis in the jobs market any blames europe that there's completely that you can't make that claim it unless you've got and satellite has got some kind of brain damage or is that you know cognitive dissonance you just he's like a lot. prepared to deal with this crisis but max the french banks are no better in terms of like perpetuating this cycle of debt and bogus derivatives and stuff but what really interested me there for a second because the french banks bought from american banks collateralized debt obligations that the rating agencies like moody's and s. and p. gave triple a ratings to they loaded up their balance sheets then those debts exploded it was a breeze an act of financial attack from america and you know it all started in america barack is deluded if he doesn't understand this ok well we'll agree to disagree there because i believe that

a lot of the fraud happened in london it happened in bank parabolic predator agricole credit lyonnais is deutsche bank u.b.s. all of those banks were involved and fraudulent knowingly fraudulently packaging together securities that they knew to be bogus now with this i want to say you and i recently took the eurostar from london to paris and next to us was sitting a guy who was talking very loudly to one of the other passengers on the train and he mentioned that he had worked at conoco phillips as an oil trader on the floor and he said when oil went to one hundred forty seven all of the actual real legitimate hedgers in oil traders were looking around just in total shock how how it even better over ninety dollars because they said there was so much supply there was an even anywhere left to store or oil and he said well we knew it was the banks it wasn't us because nobody i knew who was an oil trader who actually needed it what it would dare enter at this price and he mentioned in particular j.p.

morgan chase covering losses elsewhere now these are just assumptions and allegations but i was unaware that j.p. morgan even had anything to do that that they were a big player in the markets i assumed when he was saying the banks he was in say goldman sachs and said he said j.p. morgan so i went to google and i said jay people. oregon oil trading comes up headline that was not covered by anybody but the chicago tribune j.p. morgan fined for wash trades in oil and gasoline so max what is a wash trade well watch trends are entering into the market will sign simultaneously with buy and sell orders for the sole purpose of manipulating the price of j.p. morgan is it was engaged in massive wash training as a relates to the oil market to manipulate the price higher and as you alluded to they've got losses elsewhere on their books elsewhere on their balance sheet they work them way their way out of these losses they trade out of these losses by

manipulating markets brazenly illegally obviously and there's though accountability for this you know cording to the wikipedia and now what j.p. morgan has been charged with by the nine x. awash trade not to be confused with the wash sale is an illegal form of stock manipulation in which an investor simultaneously sells and buys shares in order to artificially increase trading volume and thus the stock price the united states security and exchange commission defines a watch trade as a quote securities transaction which involves no change in the beneficial ownership of the company so this is what the nymex says is that on ten separate occasions between january one twenty eleven and june thirtieth two thousand and eleven traders employed by j.p. morgan chase executed blocked trades between separate legal entities with the same beneficial owner. or gasoline so during this time max. the price of

oil rose twenty five percent from ninety one dollars a barrel to one hundred fourteen eighty three a barrel which was a post two thousand and eight peak it can trigger a stampede in the markets you flood the market with orders unit relate the prize with an upward bias this triggers a stampede of other funds and hedge funds looking to cash in on this price spike they also make sure aids in concurrent markets options markets futures markets to cash in on their inside information and market manipulation they will tell you if you put them in front of congress or you put them in front of charlie rose as lloyd blankfein told charlie rose last year when grilled about goldman's market manipulation and wash trading he said well we're making a market that's a misnomer that's a lie they are engaged in watch training in an illegal way to profit from an either legal scheme as part of

a syndicate their own criminals and you're right i mean they trigger trades from pension funds and passive investors because as i said this oil trader who said he was working at conoco phillips at the time he said they removed themselves from the markets because they knew something was weird and not right and that they themselves would not engage in this activity or they will put on algorithmic program trading that is triggered at certain price points think about it as an improvised exploding device while here in the markets people's pension accounts goes combat because goldman and j.p. morgan have planted exploding algorithmic devices that when certain prices are triggered it the computers come in and we know that eighty six percent of the volume of the new york stock exchange is computer driven so it will trigger a device algorithmic trade and they know that they'll get a price spike on the upside that they then cash in on so c.m.e.

group which operates nine x. ordered j.p. morgan to pay a fine for this max. thirty thousand dollars which the article points out is equivalent to just over one millionth of j.p. morgan's total employee compensation last year of twenty nine billion dollars j.p. morgan also neither admitted nor denied the rule violations it's not a fine stacy herbert there's a bribe there's a difference between a fine and a bribe if you pay a regulator a small amount of money like this so that they don't prosecute you for breaking the law that's not a fine that's a broad regulators are as culpable as j.p. morgan the rating agencies and mainstream media in perpetrating this fraud that's causing people in athens to blow their brains out jump out of buildings and all kinds of mayhem and how much by the way of their losses on silver were they covering at that time at the same time because you have maintained that you know

a lot of people say oh max keiser who cares about jamie diamond's huge massive short position in the silver market because for every seller there's a buyer so it's a perfect market well in this case they're admitting to the fact that they're a buyer when there's no real seller but it's was training there is no market in the sense of true price discovery and buyers and sellers and conducting a free competitive market it's wash trades that are computerized and it's completely fraudulent and the price of silver has been victimized by these computerized wash trades for years same thing for the gold market same thing for the oil market and as a result it has cause revolutions in places like egypt and finally on this story max the woman who made all these trades her name is a bell emmel ma do and it appears that she's in london and that she is still working for the firm j.p. morgan issued a statement saying we're confident that a bells intentions were blameless she is

a valued member of our team she rips the markets face off and. raw and it's not the kind of sushi you want being conducted by professionals in the market space that are manipulating prices so that price of gas in oil is completely trading like a drunk bird so you know while all of this disaster in financial crisis and debt crisis an alleged debt crisis some blah blah blah is happening in europe this week that's why i'm focusing on making sure that behind the scenes you look like you look at who is perhaps capitalizing on that chaos as we saw in the oil and gas markets at the time so we look to london again j.p. morgan faces four point two billion dollars trading loss i.s.i. forecasts so j.p. morgan chase the largest u.s. bank may report a four point two billion dollars second quarter trading loss in its chief investment office in london according to an estimate by international strategy investment group this is a lot more than they're admitting to now and it'll be

a lot more again next week in the week after that there is that i'm hearing thirty billion dollars in nominal losses and the company is insolvent and there's going to go the way of enron and zero ok so where are they going to go looking for paying off those losses so exactly where they go to pay off the losses the the u.s. government assumes the bank is a part of a bailout and then they're going to impose austerity measures and by the way probably before j.p. morgan goes bankrupt morgan stanley will go bankrupt just free traders out there and so of course they also nickel and dime and steal from their clients they stole from m.f. global clients they still from municipal counties across america they were caught big rigging here we see j.p. morgan charge students ten point two five percent on loans j.p. morgan chase charges merola tovar as much as ten point two five percent annual interest on student loans a rate as high as a credit card unlike the federal student loan program which lets the consumers borrow a fixed rates directly from the government these loans for at least thirty banks

and other private lenders feature mostly variable rates that could be more than twice what some people pay. in the us program so here you have that jim crow sort of system that you said that some people pay high rates some people pay low rates these are student loan debts backed by sallie mae backed by the taxpayer ultimately and j.p. morgan chase is charging people temp point two five percent but is discrimination using interest rates these are the new jim crow laws so actually j.p. morgan is telling students to go to the back of the bus they have to sit in the back and pay ten twenty percent interest rates and be consigned to a lifetime of indentured servitude and jump down turn around pick a bale of cotton as far as all jamie dimon is concerned he's a slave master i want to go back to the pretty civil war days so fifteen percent of the one trillion dollars in outstanding debt is to the sort of lenders like j.p. morgan that's one hundred fifty billion a year that's fifteen billion that is going in excess charges to those banks that's just a fraction of the losses that we've just said jake morgan has on their london office desk right and when these people who have these loans and are paying this for

schooling can't get jobs and they end up being unemployed and on food stamps oh guess who controls the food stamp market in america j.p. morgan all right stay here but thanks so much for being on the kaiser report he would go a much more coming why stay right there. hi

i'm max kaiser welcome back to the car is the report time now to turn to pierre know that pierre welcome back to the kaiser report but all mike's pierre barack obama says that economy in america slowing down due to europe but what is that true well it's unclear for mr obama i mean this is something you know why not why not just to remind him that you know the banking crisis you know the sopranos and all

the stuff of banking banks going down that was not in europe that was you know back in you know just it's if i remember well that was in the south in two thousand and six two thousand and seven so if you were hit now you know by the credit crunch so during so you know and i saw i saw just a dismantling you know the number of people you know on the food food tickets you know just you know beat all time high records food stamps food stamps so. we don't have that here for the moment things are gone but i think in one year we'll get it well i mean people america say you know they're they are they're fearful of becoming quote unquote socialist but if you live in france and they people america say frances socialist we don't want to be like france but as you just pointed out america has a new all time record close to fifty million people on food stamps and three hundred million that you made smacks of something you'd see in a socialist country is that true you know it's true but you know where we have no

upright a socialist president but take a look at this the head of the pile a duality see where mr francois long lives. he's a working you know for friends he hired a big wig from the bank the bank or chilled you know obama hires a big week from the jeep or morgan banks so you know i think we're not you know we're not out of this mess with big big big guys and funny hats let's talk about the pope this pope and j.p. morgan are in a bit of a street brawl in that j.p. morgan has closed down the account with the vatican what's going on there pierre you know this is this was the weirdest wire of sins of so far in the in the g.p. morgan made a statement public statement. asking the vatican to leave the bank you know technically they give them like thirty days to leave the bank because of this since

it is lack of transparency you know this is real so j.p. morgan is accusing them that the pope of lack of transparency i'm going to add something regarding the vatican because this is absolutely a bruised it's not normal so. as we can see what's happening right now for instance this morning the cops went you know down to the to the house of the previous head of the vatican bank mr to diski you know and through you know to take a refrain young. maybe when they were taken in custody i don't know yet but the point is that the vatican bank isn't trouble this is what it means and it wouldn't do it not the first time you know the first time the bank was saved by the vatican bank was saved by the opus dei everybody knows that ok but this time i don't think that there is days going to save them so opus dei want step in as they've done not even mel gibson apparently can say the vatican but you know going back to the eighty's i believe the vatican went through a crisis where they were caught laundering money for the mafia and. were brutal

calvi it was their banker was found selling from the blackfriars bridge in london right to commit to he committed suicide he was it was to be. it's you know in his head you know that's interesting point and you get i get to so it's a very good point you know i don't know how to commit suicide like so this idea that the vatican's balance sheet is even dirtier than j.p. morgan i don't hear any of the global diaspora of catholics you know voicing their concern that the pope's the victor christ vicar on earth is possibly involved in a soul lation scandal but counting fraud or not even j.p. morgan was again touch with how come there's no i don't know outcry from the global catholic population i think the catholic the don't care too much anymore about the vatican specifically after all discount those there's something so wrong right now in the vatican and you have seen the last count go so much you know he was caught you know stealing documents so they tore in jail i mean the vatican jail didn't

serve so i think two hundred years or so devoted it is going to explode but it is going to explode because they're bankrupt that's the reason and there is a good book which has been written on the vatican finances and the church showing you know how the vatican is selling right now all their real estate you know and trying to you know to get some money but the the wall street explosion of the twenty ninth of september two thousand and eight you know we did vatican two on but on the edge of bankruptcy so it's important and that's why it's just coming back to j.p. morgan j.p. morgan made the statement you know we're going to leave but be sure that diverts going has still have an account opened this is just you know like some noise from you know the vatican is not in j.p. morgan i don't trust and i think that by nestor is interested in their gold and silver right and so let's return to buy the masters for a second because the london desk of j.p. morgan has been hemorrhaging money and spinning out of control they want for that

two billion dollar loss that jamie dimon referred to as asymmetric head which of course is an oxymoron you can't have an asymmetric hedge either heads or you have a directional benefit but you. and have an estimate treat people it was clearly a french idiomatic expression i'm not familiar with however. pierre. there are some estimates that this two billion dollar hole is now it's of four billion six billion i've heard seen estimates it's twenty billion is it just another lehman brothers is it going to zero on the stock well i have the feeling that's my intuition but so far my intuition was you know on the spot i have the feeling that mr jamie dimon will not finish didn't do year he is going to be fired you know he's going to be fired from his office before the end of this year now he was rumored to be taking over for tim geithner the treasury secretary her. yours will be even worse my god

ok i want to get back to. a love letter all fabulous yes fabulous fabulous says that the crisis did not start in europe lehman brothers was not a european to bank right right that's clear isn't it you know it's extremely clear it's diplomatic so it's basically what the loan for abuse was saying so you know go beep yourself and how is home on francois hollande the new president or prime minister president how he doing with merkel now the german derision should be between until america and for so long there are quite bad. for one man reason is that angela merkel during the election. she said that she is you know behind nicolas sarkozy so that was not a verse mark move from her that that's for sure and we can see that she was not very very smart in this last six months you know between france and germany but the french socialist started the war against her. months ago so this is going to

deteriorate did there were it i'm sorry and we will see. you're on the prices deals on the french bones you know go higher and higher are out going to ask about that because we have spain is now requiring a bailout this is on top of the greek rumor exit in portugal so where does spain stack up in spain now the next and into the fire star is france going to be the next into this into this fire i think portugal will be the first because you know in the last year as i've seen deward there were like twelve percent you know on the on the boom so twelve percent to this is death so portugal spain. i think yes italy italy's and not very good shape was their bones and thirty yes france you know france is the last one a few months ago i got a text message from me a b.m.p. had limited the cash withdrawals and it's even worse no talk about it yes it's even

worse. when you know from my readers that you know they cannot withdraw you know they're going to bunker style because bunker style is the one of the biggest french banks and all the really people are there so normal people are going and they cannot withdraw morton two hundred fifty or sometimes three. and most of the time the whole computer network of the bank is just down so nobody believe that there are down but the just put it down because they don't have the money to serve people so it's even worse because the bone last week there was you know like flyers on the on the branches saying you can remove you cannot remove eight or nine hundred euros and like even two weeks ago you can remove two thousand euros no problem so it's going down every day and it's just causing people to think that there might be a bank run in france with

a bank run started already you know people people started to to buy apartments you know in one room apartments or they started to buy gold and. silver that's for sure they get their life in true and stuff because everybody knows now that. we were going to have a bank run in france to its start a new spain you know spanish people are crossing the border to use their french to machines though this is a bank run when french people will see that spaniards are coming you know the french it's e.m.c. and all they will start to remove their money too so last year real estate in paris was up twenty percent it's one of the best performing markets in the world and what you're saying is that's a stealth bank run yes all the europeans who have some money don't they just bought something in paris you know because health system health care but no this stops so we started to see prices in paris go down you know and very fast this

interesting right these pockets of real estate strengths whether it's australia canada france are now crumbling you know crumbling london is still benefiting in the cosmopolitan london is benefiting from the election for so long all the wealthy french parisian for french people they just left the country and do went to london because they don't want to to have the seventy five percent of the tax you know look you know this is where seventy five is just too much for a lot and also great the wealthy great people are depositing their money in london now it's a hot money so once again we see that london you know london and germany you know their concern concentrating all the money and of course the swiss but no one has a problem because as you have seen do you know international bank of switzerland started to make wanted to divvy zings this is crazy you know we're you know the whole situation is just you know you know going going down on the gutter i don't

know if you know the euro nationally was brought in to bring harmony in the euro zone but it has not has failed it's bring misery you know instead of harmony and is the bad guy once again germany. the bag we can't see the german is the bad guy into germany protecting their interest which is normal every country is protecting their interests the point is that you know all the countries you know except germany you know they're just they're bankrupt but when things get heated in a fog of a currency war people can say well they're protecting our interest and a lot of times ancient animosities come out scapegoating emerges yes now you're at each other's throat yes and you see that happening on the ground yes we started to see that as said previously twenty months before the election the french socialist party you know when you're on the dais said a lot of trash about germany and then joe merkel. it was really scary i just want you to see the good teams use of the french revolution many of them still exist

they're in storage so they can be pulled out of storage any time exactly we can put some of the ties in yankee jewett you know you know which one was to read and you know we start branding the getting you know get some additional income exactly and we can put another plate so it will be faster great idea again i'd like to talk more about this bill rather time thanks so much for being on the kaiser report. all right that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert i want to thank my guest joe gnomic he is the author of the bestselling book in france a blight master soon to be published in english if you're honest i mean email please do so at kaiser report at r t t v dot ru until next time guys are saying. you know sometimes you see

a story and it seems so you think you understand it and then you glimpse something else and you hear or see some other part of it and realize that everything you thought you knew you don't know i'm tom harvey welcome to the big picture. is he. the fourth.