you are to blame as the syrian authorities for the latest to them carnage and calls for action against president assad before international observers get to investigate. hocking and whistleblowing standing shoulder to shoulder as a new york conference discusses how to counter world seen as the u.s. government spying on the people and. let's get this party started indeed a higher spirit is among the next space station crew also the track same with the intrepid team will take off and let the twenty four hours and find out who walks home that bonnet is mine. and up next to the man who knows where the money is it's marked.

i am max kaiser this is the kaiser report finally those mainstream types are beginning to recognize that perhaps the only way to deal with the bank stirrers is to hang them i've been saying that for a number of years it's what people have done for additionally stacey yes max and there's a certain sort of compare chill ation going on here is mainstream media that has been defending these banks tourist for the last few years even though their crime spree and the the damage that this crime spree has caused has been quite evident now you see just a few days ago the f.t. asked in the center comment section is it time to give a teen the banks and then i want to turn to mainstream economist nouriel roubini

here and he was asked by bloomberg news should bob diamond should he face criminal charges and here's what he had to say you heard those from criminal sanctions. happen again but i'm wonder should occur because no one is going to enjoy terms like normal commercial buys used for any of these things the banks. the slap on the funny some people end up in jail maybe. somewhere you know somebody who you mistreat well that's that's the thing isn't it it doesn't make any sense to talk about policy initiatives or whether we should have keynesianism of austerity whether with inflation or deflation you've got entrenched group banks stores that are destroying the system by stealing money well. bob diamond or jamie diamond or any of these people we've talked about in the past that they're just stealing the money so you know nuria roubini is a professor done

a lot of work over the years studying books you know that we want is he wants to give his opinion as an academic but he's stifled because what's the point that it's just about if they're not going to prosecute the criminals then don't even ask many questions anymore well one of the reasons why you were first out there saying you need to hang the bankers is because you said you need a deterrent and here i'm going to show you the first headline shows you how much a deterrent is needed and how much it actually would work many wall street executives say wrongdoing is necessary a quarter of wall street executives see wrongdoing as a key to success according to a survey by whistleblower law firm labutta and sec row and a survey of five hundred senior executives in the u.s. and u.k. twenty six percent of respondents said they had observed or had firsthand knowledge of wrongdoing in the workplace while twenty four percent said they believe financial services professionals may need to engage in on the ethical or legal

conduct to be successful right when that number is really closer to one hundred percent because you take the live or scandal it's the bedrock rate that's referenced and indexed used to create hundreds of trillion eight hundred trillion and derivatives around the world that manipulate it and everyone involved with that is party to a fraud but you know it's like what do you alan joke where he says goes the doctor and says doctor my brother thinks he's a chicken the doctor says give him these pills and the guy says you don't understand we need the eggs. so the joke being that you go to the regulators to say hey mr regulator the entire system is being built by fraud and the regulator says well i guess you should maybe obey the law or raise interest rates and the guy says no no you don't understand we need the fees we need to feast on the fraud to pay that the economy is based on fraud certainly the city of london you know something like sixty percent of the g.d.p. of the british isles of the united kingdom comes directly from fraud in the city

cameron knows it that's why he's scared to death of any regulations coming in well as you said it's probably closer to one hundred percent that are committing fraud in here because another question asked in the survey you'll see that they quite understate their opinion sixteen percent have responded and said they would commit insider trading if they could get away with it well i worked on wall street and it's rampant most of the most of the times you call somebody to do a deal it's because you're calling them with information that you believe to be inside information so one hundred percent of all the deals are done based on the belief that there are these deals are being done inside information not all of it is inside information but everyone believes that they are trading on inside information they know that if they get caught that the laws will change to accommodate the crime well exactly here the question being posed is if you can get away with it would you do it go out into the street right now anybody out there go

out there one hundred percent are going to say well if i can get away with it yeah i'll do it right but on wall street they know that if they get caught that of course we're going to get away with it because regulators change the laws to accommodate the crimes this is over and over and over again that their argument made by the wall street the banks are is that we're financial engineers that are making markets and adding liquidity and the laws haven't kept up with us we're up breaking the laws you haven't changed the laws fast enough that has been the way it's been going on for decades now. when i worked there i observe this first hand has not changed only gotten institutionalized well the other opinion that is institutionalized as we need them barack obama thinks this timothy geitner thinks this is that they just like these bankers think that they need to cheat in order to succeed. these banker stroke politicians are also going to think the same thing we need to cheat although why somebody else will we need to do it first otherwise the

chinese will do it and they'll get ahead of us so this is their rationale but the space race has been replaced with the frog race so timothy geithner is lecturing the chinese in the meantime he's trying to commit fraud faster than they can commit fraud on him so here's sixteen percent of respondents so they would commit insider trading now let's look at something called outsider trading max labor department asks nuclear guardians for help keeping jobs data secret c m b c is learned that the department of labor has asked sandia national laboratories the organization that ensures the safety of the nation's nuclear weapons stockpile to scrutinize the security procedures surrounding the release of monthly jobs report data so they're free that you know not only are there insider trading happening from those inside the government they have access to this jobs report before it happens every first friday of the month well here they're saying that it's high frequency traders and people with super computers are slowing down various websites on government

websites in order to keep other people other participants in the markets perhaps from seeing information for their front running or siphoning off before this information is publicly made its insider trading their argument is that they're making a market netting liquidity instead of work manipulating markets and trading on inside information and the regulators of course the they are bought and paid for by the bankers and so they'll change the law to make it easier for the crime now just think of for example of the brits who are being extradited to the u.s. for hacking into say the pentagon computer system now look at how helpless they act when it's bankers who are doing it at the energy information administration which publishes data in the oil coal natural gas and electricity markets. the agency is constantly dueling with market players who try to access its website for data while the same time delusion the site with so much traffic that others can't access the

same information there are some bad actors out there who would like to slow down things for others and speed things up for themselves we've blocked certain ip addresses that appear to have malicious intentions to clog up the pipes for others so they're identifying they know the ip address they know the participants responsible they know their name because he goes on to say that the attacks come on an ongoing basis and they show the vulnerabilities of average investors trying to keep up with technically sophisticated high speed trading firms in an era when data posted on government websites moves markets in milliseconds why don't they prosecute that's the question right right why don't they prosecute they have all the information they have the crime but they don't prosecute why well i think that the question resonates throughout and anybody out there who's suffering austerity or are being or losing their job or losing their home there's no barrier

anymore for committing crimes there's no punitive damages there's there's no there's no you know i don't understand why most people don't get their broker's license and their banking license it's not that hard to do you can get a serious seven broker license and three or four months you take the series seven exam and you can make a millions of dollars stealing money out and it's foolish not to think that you know why not why don't more people do it i was a broker i stole millions but it got boring after a while i left a business it just got so boring stealing money there's no challenge to it and i'm thinking you know it's got to be something to do that's more interesting than just calling people up all day and stealing their money but a lot of people out there who are facing unemployment you can't afford to eat anymore get your broker's license steal a few million dollars it's not there's no laws you're quite your family is. carving gether brokers license and go steal a million are you stupid well you asked why there's no attempt to stop these guys here's bart chilton the commodities futures trading commission regulator we don't

have the technology to keep up with it we don't have the speed and we don't have the super computers government is just quintessentially slow will never be able to stay ahead of them oh yeah no the us government has no super computers the n.s.a. has no super computers oh isn't the n.s.a. spying on every single american e-mail is there we already know actually the n.s.a. has every single email in the history of the world on their computer what do you access all that look for code words of insider trading all the manipulation they're doing you know who's doing it again if you're starving you know if you're brokers license it's on you. well ok so here is bart chilton and he's saying that the u.s. government doesn't have the super computers to deal with insider trading and fraud so we're going to look at a slow motion old school old technology fraud that bart chilton was on able to stop ok and this is exclusive iowa futures broker forged

bank records for years so russell lawson door sr the sole owner and chairman of stricken futures broker peregrine financial group intercepted in forged bank documents for more than two years to cover up hundreds of millions of dollars in missing money the national futures association on monday froze the funds of the iowa based brokerage which does business as p f g best after discovering an estimated two hundred twenty million dollar shortfall in p.s.g. customer accounts now what this man was doing was using a p. o. box with a very old technology called postal mail you might have it's so old you might not have actually even heard of it if you're under thirty but he was just intercepting these letters that were being sent to his bank which was his p.o. box and he would just said yes they have two hundred twenty million dollars in the bank account not again the forged documents we know from the mortgage scandal the

sub prime scandal that bankers force documents routinely j.p. morgan goldman sachs you know current countrywide credit bank of america merrill lynch they forged documents everyone on wall street forges documents and i don't know a single broker i've ever met in the history of doing business on wall street the hasn't routinely forged documents as to it's a daily thing you know news in the post office this isn't the arbitrage between high frequency stealing and using the post office is the old the checks in the mail trick you know like well we can't possibly enforce regulations because we put that into the post office by the way we're defunding and starving to death and put another hundred thousand people out there on the street without jobs look everyone at. post office is losing their job get a broker's license get a series seven license become a professional thief make millions of dollars add liquidity make markets it's easy i mean i don't understand why people don't understand how easy it is to get a broker's license you can work for any one of these shimada firms and you can make

millions of dollars just stealing money i don't get it i mean if you are starving it's your fault because you're an idiot all right it's here we're thank so much for being on the kaiser report thank you x. don't go in much more coming away stay right there. max kaiser welcome back to the kaiser report time now to go to rob kirby of kirby

analytics rob kirby has been a way out ahead of everybody looking at the price dislocation the rigging of markets the failure of price signals and looking at the failure of price signals to understand that there's institutionalized fraud going on all over the world rob kirby welcome to the cause report nice to be with you max all right rob darby your latest post on our newsletter is called live or reading the tip of the iceberg tell us about the last war crime how did it happen and what's underneath it the iceberg well but i'm a little max but what's underneath the library scandal let's start with the exchange stabilization fund lawrence summers robert rubin and also in crude oil ben bernanke germany geithner the price of gold prices so for goldman sachs and. alan greenspan ok so barclays is barclays really the type of spare hours that talk about that a little bit well no actually berkeley's being a london based bank and u.s.

dollar live or being an i'm so an american centric. rate reference rate it is officially posted or set in london. but u.s. dollar lie bore is an american centric and when i say american centric i'm talking about the u.s. treasury i'm talking about the u.s. federal reserve and specifically i'm talking about j.p. morgan so it's american centric it is not berkeley centric at all and that's a misnomer in. and a fallacy to say that berkley's is a herd of us dollar live more scandal right well. let me let me let me put this into another another issue because clearly they incentive to manipulate interest rates are a way to keep the bankers and business and their fractional reserve banking their ponzi schemes their non reserve banking none of these banks have any collateral

j.p. morgan has no collateral damage a bank has no tear one collateral whatsoever concurrently with this massive global fraud they have to also attack with the one market that has a tendency to expose the fraud and that of course is the gold market so can we can we say without any any any doubt now that the gold paper market and so are paper market along with live war has been a bastardly manipulated max i'm going to take it a little step further the understand libel or libel or reference rates deal with the cost of the custom money one year and less you see i've written a great deal about interest rates watch controlling the long end of the interest rate curve the library side of it is the control of the short end of the interest rate curve so the two go hand in hand why border is the is the is the control

mechanism for the short end the interest rate swaps or the control mechanism for the long end and effectively it gives the puppet masters total control of the entire interest rate curve so you get you going to break it down into its components you got to short in the long and then you've got the metals prices are the proverbial canary in the coal mine that typically when we used to have free markets you know a sudden or big movement. in precious metals would alert people historically to shenanigans going on in the interest rate markets or malfeasance was appearing in the interest free markets but what the derivatives complex serves as a lot of people try to characterize it as debt the derivatives complex is not debt what the interest derivatives complex is it's a price control mechanism it's a price control grid and it gives the people who who regulate and the people who

have purview over the interest derivatives complex excuse me it gives them control of all the strategic pricing the price of capital the price of energy the price or the cost of capital itself and these are the things where the receiver control is instituted and it is most pronounced all these all these strategic things ok so we're in this post capitalist world where the coder a of bankers they control the prices it's not a price discovery mechanism anymore there's no market functionality anymore there's a grid as you call it it's a global grid ally bar is part of that grid and these guys decide at what price interest rates and day or what price goal to be to satisfy an objective now concurrently there is massive unemployment social unrest revolutions around the world huge wealth and income gaps and revolution in the air so what is there and is

there an to foster revolution there is that what they're trying to do because it seems like that's what's happening it may sound a little bit lofty to say it max maybe to some but not to me anymore their goal in my view is one world government one world bank one world currency and i really do believe that there is there is a coterie of of clowns in the world who are who are that full of hubris that they actually believe they can pull this off if you look at time of energy manipulation gold manipulation miscible bond manipulation library manipulation the one bank stands tall j.p. morgan tell us about this. this so-called bank j.p. morgan which i refer to as the fed or the us treasury and drank the size of their derivatives book. which is currently sits around seventy trillion and notional and i mean it's been as high i think is ninety trillion few years back and but the it's

them it's the machinations that you see the shifting. positions and you see j.p. morgan enter again it's always the strategic markets like we saw when j.p. morgan entered natural gas started trading natural gas within eight months of j.p. morgan entering the natural gas market they were the biggest player in amaranth was dead you move on to crude oil you look at the interplay between the strategic petroleum reserve and and swaps that they're doing what it is is a shell game and they move they move the balls around underneath the shells at will . specifically specifically using their utilizing or in conjunction with using. as i said the strategic petroleum reserve and good old fashioned futures whether whether it's crude oil or natural gas and then the story goes on and on and on and

it's repetitive max we it's not just that we see it in the energy market we see it in the precious metals market we see it in the it in the interest rate market and it's the same players every time. that have the big positions and always seem to be on the right side of the trades up until very recently when you've seen the morgan first announced a two billion dollars trading loss and now the other start the trading loss might be nine billion dollars and i will admit it's got me a little bit perplexed just what's going on currently at j.p. morgan regarding their law yes because. i for one don't think j.p. morgan is subject to accounting of any kind i don't think they've been subject to accounting probably for the last ten years and my reason for making such as. statement is when you go to derivatives book and seventy trillion dollars in notional there's variance in terms of p. and l.

. in a position that big so i mean just think that a position of seventy trillion. when you induce volatility in the markets couldn't have a fluctuation of say one or two percent of the of the outstanding notional amount in a you know difficult market environment which is which we've had plenty of recently but i mean one percent of seventy trillion dollars position or book gives you you know swings in piano like four and five and maybe ten times the market cap of j.p. morgan so so it's a p. morgan's really book mark to market losses that's one hundred forty billion i don't mark to market anything max right so they're going to got a book value one hundred forty billion but they can at any given moment be sitting on losses between one point four and three trillion that would be my guess right now that i mean i worked at a loss rate and i know that at the end of the quarter of course it came some

profits in on numbered accounts and some losses in a number of accounts and then you sell those to corporations looking for you know if they get a tax loss is seldom the loss so imagine that ok it's a five billion or nine billion dollars and that's going to offset some taxes possibly but it's completely manipulation on the balance sheet the complete manipulation of the regulator meanwhile what they don't show the regulator is as wild shadow banking snake that's a whipping in the derivatives when up and down by trillions and trillions of dollars and meanwhile of course that monster gets fed ultimately in the form of austerity to the people who are starving there's there's that but there's another angle to it max i view them as is a monster and every time they need a feeding something must done and you know you know to allergic stand i view the bear stearns to borrow. go back in two thousand and seven. the upshot of bear stearns dying was that j.p.

morgan more or less feasted on the on the carcass and through the lehmann debacle we also saw. how there was some fast and fancy footwork being done to the tune of one hundred b. eight billion dollars which j.p. morgan had transferred one hundred thirty eight billion dollars into lehman's coffers so that lehmann could see ower do trades this hundred this hundred thirty eight billion the j.p. morgan advanced to two lehmann after lehman had collapsed in my view there's a direct line from that to j.p. morgan suddenly. having an injection of eight billion dollars worth of less than one year. swap derivatives added to their book in the first quarter of two thousand and nine i mean that this this is so this is so blatantly obvious to me what has occurred there i mean j.p.

morgan was in the hole wanted to be in the market j.p. morgan didn't want the notoriety of being in the market so j.p. morgan creep prepaid the collateral that that lehmann was going to need to to to produce the trades that j.p. morgan needed to do and you know what and i should back off a little bit because when i talking about j.p. morgan j.p. morgan strapping on a trillion dollars worth of less than one year swaps isn't j.p. morgan to begin with because the orders are coming from the u.s. treasury specifically the exchange stabilization fund which is which is a secretive arm of the u.s. treasury which doesn't which doesn't answer to anyone which is beyond any oversight and these these orders are being broke or through the new york federal reserve trading desk and. and there and there being basically what i'm saying u.s. monetary policy is being conducted through the trading desk of j.p.

morgan goldman sachs citibank and bank of american working stealing these are the five institutions that hold ninety eight percent of three hundred two trillion dollars worth of notional and derivatives that are held by all american bank holding companies iraq army are out of time thanks so much for being on the kaiser report love being with you max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert are a thing my guest rob kirby of kirby analytics if i say i mean e-mail please do so at kaiser report r t t v dot are you saying buy off.

good morning from the front and clear in more mouth to feed but where will the food come from can science provide the answers to the future of under the mike.