freebird your video for your media project free media dog r t v dot com. thank you for joining our team with a quick recap of the top stories the u.k.'s whole banking sector is under scrutiny iles the barclays scandal implicates the elite they questions remain as the investigation into rate rigging continues with the former chief executive failing to provide many answers. violence in syria boils despite the best efforts of peacemakers but it's not just bombs and bullets that threaten people's livelihoods it's a lack of food and soaring prices that's taking its toll on people who haven't even taken sides and the complex. and europeans are hailing their parliament's

decision to reject the controversial anti-piracy act which has been slammed for violating internet freedom. up next mike's cause or gets all me a trial of financial criminals and his own show here on our. hi max kaiser this is a kaiser report you know banker bashing is becoming quite fashionable but we were first stacy well max take a look at this our work that really captures the essence of the global financial system a clockwork libel or yes this is bob diamond there of course in the position of alex from clockwork orange and you know is bankers doing the ultraviolent on our global financial system whether it's rigging interest rates rigging municipal bond markets rigging rigging rigging that's all they know how to do it is it is violence

it's a form of violence it's a form of ultra violence and this is the biggest concept that people have trouble getting their minds around this because they think these are victimless crimes they don't see them as being particularly egregious and yet they are really the twenty first century version of the pogroms we saw in the last century the the incredible devastation that was done using traditional means of warfare tanks and guns and soldiers this is violence committed by accounting fraud securities fraud currency wars and the result are the same you've got a concentrated group of folks trying to grab most of the world's assets and the rest of the people are suffering austerity and dying and starving and it's the same thing played out with different weapons these are financial weapons yes you have the likes of bob diamond and jamie diamond and i don't confuse their names there for a second and lloyd blankfein and you know every single banker at the head banker there

they're walking around like these droogs like kicking the head in of our global financial system of our banking system of our derivative system every single thing the integrity of the trust is gone because they're walking around kicking the head in right and having worked on a lawsuit. myself i could this is how i have the insight into the mentality of these brokers like diamond or di men or blankfein is that they're there purposefully committing acts of financial violence they speak of ripping clients faces off you know trades are executed the clients get their heads ripped ripped open you know this is the way they think this is the way they treat their customers like these sasnett them and they steal their money well but in response to them doing the ultra violent we see yet another fake inquiry into the hard core ultra violent crimes of the banking system and yeah i think we need to turn to the kaiser technique we should make bob diamond forces eyes open to watch kaiser report and

all the ultra violent crimes he has done yes alex in a clockwork orange is the good model for bob diamond sit him down in a chair prop open his eyes and wires and let some i drop slow in there occasionally and make him watch all three hundred six episodes of kaiser report back to back to see if that can really educate him now one of the bits the elements the important ingredients to this conspiracy that has been ongoing over the last few years is the serious fraud office and max keiser you've been at the forefront of really going after them here's a tweet from the telegraph breaking serious fraud office considering whether to bring criminal charges over libel or rigging hash tag rate rigging so in a subsequent thing they said they're going to decide in the next month whether or not to pursue criminal charges right decisions fraud office has been suggesting they're involved in and investigating and prosecuting financial crimes for many

years now they don't seem to get around to it and again because they never get around to it just like in a clockwork orange the authorities there was no authority there to come to the rescue of. population and it was the man whose wife was raped by this group of droogs that he's the one who did the technique on alex and he forced him to watch violent crimes and somebody is going to have to force these bankers to see the violent financial crimes the ultraviolent they've been committing but i've seen on twitter references to is this the banking industry is milly dowler moment and of course this refers to the murdoch phone hacking scandal where people didn't think that listening to celebrity phone calls was a particularly a big issue but then when the milly dowler incident occurred where this poor child was abused unmercifully by rupert murdoch and his minions of illegal spying

then the whole tide of investigation turned now will this be the moment when suddenly the public wakes up to something we've been saying here for years that they're being unconscionably disabused of any thought of a fair system where they can actually aggregate wealth without having it being stolen by the likes of jamie diamond or bob diamond or lloyd blankfein or the rest and now max let's turn back a year and a half to this serious fraud office headline reads budget cuts killed off live or inquiry so britain's premier anti corruption agency refused to carry out a criminal investigation into alleged manipulation of the benchmark libeler bank lending rate because it did not have enough money to fund it s f o chief complain that their ability to investigate cases has been compromised by cuts to their budget which fell from fifty one million pounds in two thousand and eight two thousand and nine to thirty three million pounds this year and is set to fall to

twenty nine million pounds by two thousand and fourteen fifteen but while this is typical trick used by government to make sure that there crony buddies in the city of london or on wall street. don't go to jail is that they defund the regulatory agencies responsible to investigate same thing with the f.c.c. in the united states you know the f.s.a. and the serious fraud office they don't have the resources to prosecute crimes but isn't there some duty to tell the population hey we don't have any money but i want to tell you there's a major crime going on that somebody should investigate or perhaps you the population might want to give us more money or convince your politicians to give us more money to investigate this ongoing crime but remember this is a thirty five percent collapse in funding from two thousand and eight when there was quite a lot of evidence of a financial crime wave sweeping the world i told david mitchell on ten o'clock live

you know approximately a year ago and i told him explicitly that these criminal acts were taking place and of course david mitchell and the rest of the panel on the show who's been indoctrinated in this notion that bankers are gods and we can't possibly question what they're doing you see the response is pathetic well let's turn to a clip of that max because here david mitchell is asked you whether reforms will help. answer a spankers in the system corrupting the system you've got to get rid of this case and what this banking these banking reforms how is that address that and how is it failed to address that it doesn't matter what the reform is because you've got no regulatory to see who's willing to put anyone in jail during the last major scandal decibel crisis the united states eighteen hundred bankers went to jail this time they got none except me anyway ok so there's nothing said enough to research prosecution there to ensure our strong. feeling money you have just talking. then the point i make is that there are no money in the regulatory

agencies to effectuate reform by design because there is a collusion between the regulations agencies the city of london and the government and this is quite clear well more important than that max is they have. to be thrown in jail if the guy is doing the ultraviolent on the global financial system he needs to go to jail or have the kaiser technique well there has to be a deterrence in place. to deter criminal behavior and david cameron weighs very quick to say that when the the looters were out there stealing four pound bottles of soda that they should be sent to jail even though they were ten or twelve years old but when confronted with the unequivocal evidence that bob diamond and his crew of barclays had been stealing millions and colluding with the bank of england to rig interest rates on the library front he is not sure whether this requires a response or not and that's why his society over there in britain is collapsing in

front of his eyes just why the economy can grow is because there's this asymmetric approach to law and justice where if you're rich and you're a crony of cameron there's one set of laws if you're somebody else then oh that's a totally separate set of laws you know i was speaking of this clockwork orange i want to talk about another group who you might call a move tony blair says he is interested in another term as prime minister. i thought you would like this max tony blair said he would like another stint as prime minister although you accept that it's not very likely to happen and it interview with the evening standard which he was guess editing for the day mr blair made clear that he would like another job in public service well he's leveraged is number is time in number ten to go do oil patch deals he claimed it was no blood for oil in the average i.q. war that's been proven that there was blood for oil now you onesies do you still thirsty that's the problem we have a bloodthirsty war a holik of

a violent person like tony blair who's by nature extremely violent they are never satisfied but importantly max let's turn back to that channel four clip because here you are saying that the banks and the government are the the same. it later is controlled by the government there is no doubt that the you know it is ok for the banks from saluda listen we're now moving into conspiracy theory nonsense ok tony blair now makes three million pounds a year as a j.p. morgan executive he also works for a swiss bank as well but listen we have heads of goldman sachs in all sorts of governments across europe so the guy that guy on the channel four thing who said it was a conspiracy theory that there is no collusion between banks toure's and government won't but a lot more scandal shows the bank of england is wrecking markets so i don't know what more you need to do to be aghast at how corrupt this global system has become we know what happens at the federal reserve bank in washington it's happening with

mervyn king and bank of england in the u.k. they're colluding with bob diamond to rig markets on a three hundred trillion plus a market so this is beyond just mere settling of the books this is a wholesale pearl harbor attack on the financial system the ultra violent now i bring up tony blair because he's also in the news for blair defends p.f. i as n.h.s. trust face bankruptcy now notice that anywhere a banker is running things where ever system they touch turns to bankruptcy tony blair has defended the spread of private finance initiatives under labor a seven n.h.s. trust face administration as they struggle to repay large debts from p.f. ideals so the scheme saw private firms building hospitals leaving the n.h.s. with basically a mortgage and an annual fee to pay over thirty years the total value of the n.h.s. buildings built by labor under the scheme is eleven point four billion but the bill basically max comes down to seventy billion on its equity extraction they load the

system up with debt they pay themselves a huge dividend and then expose the entire system to any fluctuation in interest rates which of course are inevitable and then it goes bankrupt is the philip green model over their t.v. if you call it pants up a billion pound dividend by loaning the. company up with debt paid to his wife in monaco and then of course he was totally exposed to the vagaries of interest rates but when confronted with this information on sky news tony blair said that the contribution p.f. i had made to rebuilding the country's infrastructure was immense he said p.f. i have been copied around the world. of course it because it's a disease it's a financial disease that's been affected the financial department and treasury department's of governments all over the world to see an easy way to pay themselves huge bucks and pass the burden of the risk onto the citizens through socializing the risk privatizing the gains you see people look at tony blair and said look if he can do it if he can steal all this money from everybody why can't we do it of course is copied around the world well i might add that the miami cannibal the

zombie who ate the face of a homeless man he was copied around the world that doesn't make a good thing so he's here but thanks so much for being on the kaiser report thank you max don't go away much more coming your way. well. technology innovation all the developments around russia we. covered. welcome back to the kaiser report i'm max kaiser time now to go to new york city talk with reggie middleton a boom bust blog. welcome back to the cause

a report thank you very much as usual so it's good to be bet all right regina middleton last talk about french banks you see them as the next most likely to fail a black call consuming it can omics and banking systems around the world talk to me about the french banks to be honest the french banks have an awful lot of competition as to who is going to fall you know it's a race with a lot of competitors but it's not as if the french banks are not the front runners france is one of the. the two strongest economies in western europe. or in the e.u. shall i say accompanied by germany but france has a lot of secrets for instance their banking system is a much larger than the sovereign state that the banks are domiciled in which is france itself if you take the assets delivered assets of the french banks it's

larger than the g.d.p. of france by multiple and not simply one zero one times larger pacific and larger. combine that with the fact that the french banks and france itself is heavy leverage and it has its own funding issues with. its funding rates at historic highs you can see where there is significant stress potential calamity in the french banking system as it goes so goes france or the french banks levered several times now if the french banks fail you know france as a socialist nation will do the bailout thing much as much like the u.s. and the u.k. and greece and practically everybody else portugal the issue is how do you build something that's significantly larger than yourself it's as if. with one hundred thousand a bank decides to be allowed j.p. morgan itself you know can i do it and i can set to do it i could put headlines out

because a significant spike in a free market as momo traders moment to trade is chase prices versus value but at the end of the day you have a disconnect and that's what i see for the french battery system in general ok so you bring up this interesting point how do you balance something with the debts are bigger than the entire country's g.d.p. now doesn't this expand a little bit to this developing scandal out of london involving libel or and what i mean by this is that these banks have been allowed to grow their balance sheets to considerably bigger than the. g.d.p. of the countries that host these banks can comment gently we see a collusion going on we now know it's between the e-mails between barclays and bank of england there's collusion going on to keep the library rates and other interest rates artificially cheap as a way to allow the growth of this extraordinary debt to continue is there is

that it's same thing is true at the federal reserve bank and banks in the united states correct yes you know it's a different mechanism and cheapening the rates but it's exactly the same it's the same go. rates in the us close to zero and they get it was preposterous considering you know the fundamentals in the macro situation and the same thing with europe the libel. scandal i guess you'd call it collusion is quite interesting because if you take a look at the at the u.k. bank cd rates c.d.'s rates you see there's no in the world they can actually borrowed library at the lab or that's called it so that should draw attention is to why would it be that cheap and if you take a look at the communications and even the. anonymous insiders comments you know it's widespread they would lower the library officially. and everybody's in a room management was on board the economist board risk managers want to board the

bankers the traders the structure product guys everybody so it's not as if this was hidden and all the banks did it and they would do a daily beat or officially go to library daily now this also begs the question why is in a watchdog was an oversight you know what the central bank would do is they'd ask for a library at the bank would say write it down a piece of paper here it is you know so bankers are now able to be trusted to that extent you know you know question of course and then. you ought to be depressed suppressed elaborates but the. elaborates are that much higher and then you force your clients or push your clients into a higher rate of the base rate knowing that you automatically support your new synthetically suppress the rate knowing that the lab with the real leverage is higher so i would think at the end of the day and the corporate clients of the bank that. had to pay

a higher rate you know should have some type of compensatory to pensacola damages let me stick on this point a little bit so on one hand they're saying of all the banks around the world that are on volved in dodgy dealings the french banks look particularly vulnerable and this is really interesting because and in context of course you've done a lot of work and looking at j.p. morgan's balance sheet united states and showed how vulnerable that balance sheet is and then within a few months jamie diamond had to agree with reggie middleton and say yes our balance sheet is completely fraudulent we've got billions of dollars in losses and all they had to do was look at boom bust block it would have seen that months ago but of all those banks in the world the french banks look the most vulnerable to you but you just said something a second ago i wanted you to explore a little bit more you're saying that the c.d.s. rates the credit default swap rates were were such that they could not even take advantage of these artificially low lying bore rates and my the point of the question i want to ask is isn't it true that when you're looking for fraud in these

markets it's staring you right in the face correct if you're looking for it yes you know the key is you have to look forward you know in the banking system when. i scratch your bed you scratch my situation you know if one looks for he causes trouble for many of entities long food chain so if you look for you'll be ostracized you and you'll probably end up like many of the traders who got caught sort of i mean the traders who are blamed for these multibillion dollar banking losses it's interesting when you have two three four five billion dollar banking. loss and they accuse a junior trader you know of causing such a significant loss let's take the best case scenario and say that's true what kind of mismatch resistance do you have in a world class bank where you have a junior trader that could take a loss you know it's outrageous the key is that if you take a look at all the market mechanisms that are unfettered by. the ability of the bank

to affect pricing such as the c.d.s. market such as the bond markets you see that the market thinks that the banks should be paying a significantly higher rate than the banks say they are paying so that in itself is an indication of potential fraud now you can investigate and see if it's forge of the not but it's very difficult to manipulate a bond market currency market because it is so lot so deep so wide and so liquid in order to manipulate it you have to have significant capital you know more capital than most banks the economic output of most banks are privy to so if i was looking for the truth looking for forger act with a purely market based pricing mechanism at work my way for reggie what i find shocking is that you know if you look at let's say professional tennis for example they have computers and machinery and cameras that will show when the ball falls outside of the a lot of court committing a foul and

a foul is generated the call is computer generated and you said reason i ask this is you say well the fraud is there if you if you want to look at it. it's the fraud is there if any regulator at all simply set their computer to alert them any time libel or rate was significantly at this connect with c.d.'s rates it would signal fraud it would take five minutes to do this it will take virtually no cost to implement so it's not about just not looking for fraud it's about racketeering is it is about regulate. is involved in a racket where they're engaged with the banks and the regulators and the government and the fund managers to rig these markets as part of a global racketeering correct you know in a nutshell one of the one of my earliest i think their first appearance in the show i went over the term regulatory capture and that's basically an instance where the

regulators were actually captured by those who they regulate you cannot effectively regulate if those who were put supposed to be regulating have any type of influence over you whether it's economic political. social and the other influence it is impossible to regulate now i'm not going to say that the regulators have been purchased bought off the political influence etc but you know if it walks like a duck quacks like a duck you know it sounds like the smells like looks like about you know is an ostrich you know it's really just that simple as you clearly stated you know you can take a look at disconnect between you know the market based mechanisms and was actually quoted and when you see a spread you know you should look into it the fact that nobody's bothered to do this i think the libre ganda was brought to light by a reporter or a journalist which is ridiculous you know report and journalists are doing the jobs of regulators that all blogs or the next guys show so you know what you need is a completely open system and a restart and when you do that you have fresh blood and you have different

incentives and hopefully the incentives as they go on not distort it to the point where people are rewarded for a lack of economic growth which is what we have now versus a capitalistic system where you're rewarded for big secret creating economic profit and capital all right so finally let's just talk on these french banks again there's two primary banks here in france you've got b.n.p. you've got society in general is its face safe to say that both of these banks are as insolvent as j.p. morgan if you mark everything the market you know insolvencies might my call. b.m.p. because it is heavy leverage and it goes bust that's roughly half a billion pieces and that's just that's just it if you take a look at the losses a b. and p. had to write down in terms of greece and greece is a very very small sliver. of b.m.p. pretty. significant portion so if it goes bust right and it's about

being basically has lost half of its net it will be right there and that's just chances of it we need to bail out many of the southern nations are going to move in tandem so you know that fifty percent is actually going to be significantly lower ok now how does being build out by friends because they're being picos chances are the other french banks are going to move in tandem so france as a social nation will of course move to bail out the banking system first is ring fencing you know the central banking services and then let everything else you know be taken care of by the markets but that's the way it should be done i can almost guarantee that's the way it will not be done so all the b.m.p. bad assets and debts will now be loaded up on the french seep. to be taken on by the french taxpayers which will make friends insolvent just isn't solvent as the french banking system which was hit by the potential actually insolvency of italy so you can see the contagion change and you see how you have a snow fall that becomes the flu that becomes

a potential death of certain banks and the sovereign states that they are in of course a sovereign state my opinion cannot go back but it can have to be forced to be set which is the case with ice and that should be the goal because if you take a look at iceland one of the fastest growing countries in iceland in the has been ice and the reason is because they forced him he said of the system ok reggie middleton rather time thanks so much for being on the kaiser report you're very welcome max and look forward to coming back right now is going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guests regular. blog.