from the new center here in moscow this is our t. top stories now explosions and fighting in the syrian capital as rebels announce a full scale offensive against damascus that's made another diplomatic attempt to end the crisis. america's sends its own agents to patrol britain's airports at the london olympics well the u.k. is forced to draft more troops and police to security contractors bite off more than they can choose. and h.s.b.c. one of the world's biggest banks says it's sorie for laundering billions and international drug money as well as doing business with saudi arabia taro sponsons . well that's it for the moment next as promised mexico but exposed the very

essence of all the latest financial news the cons report is next. max kaiser this is the kaiser report you know sometimes nature gives a big signal or markets fail nature steps in for example huge torrential downpours and london flushed out all the rats now there's a big warning that people need to be aware that there's a rat infestation in london oh well quantitative easing what is that but a huge tarantula downpour of free subsidized money to bankers like bob diamond a big friggin rat this came out from the shadows. over. yes indeed a max. that big rat may be going to congress barkley sed chief

bob diamond could be brought before congress sources say washington politicians considering asking former barclays chief executive to testify as libel or fixing controversy crosses to the u.s. and again look at all the qualifiers that somehow they may we were thinking about it there could have been something there some allegations here that this could be kind of wrong doing mr diamond did you fix race. that was not a rat sound is it. really trying to make a rats but just listen to bob diamond that's all right sounds but yeah he was involved in fixing rates he committed fraud committed securities fraud many times over. i mean the u.s. i suppose will listen to bob diamond it because they want to hear some more inside information because the congress people can trade on inside information that's legal but nancy pelosi made five million dollars and they try to get inside information is a little be listened to they're like oh paul worker we illegally traded inside

information tell us more bob diamond you big frickin rat you know like you said this financial collapse is causing not so much the rats to emerge but as the fraud to emerge so you're never more than a few milliseconds away from the next actor from being committed and stolen from you but what we live in a snow globe of fraud it's all around us it's fraud to a new level stacey because it's synthetic fraud it's a synthetic fraud cooked up in the algorithmic laboratories of these big banks quantitative analysis bucket shops on wall street in the city of london it's not even real fraud you don't even have the benefit of let's say if it's a fake food at least you could pretend that it's getting some nourishment but this is fake fraud fake synthetic fraud courses dominating global commerce. and squeezing out all legitimate activities in toto well it doesn't matter if it's

synthetic it's even worse that it was just cotton candy that destroyed our global wealth i think the financial derivatives cotton candy that spawn in the bowels of the city of london they take one teaspoon full of collateral and they whip it into this huge enormous ball of cotton financial derivative candy and they present that as their business model no well you know there are people coming up with all sorts of innovative solutions to this the collapse of this cotton candy of debt fraud that has happened around the world you can always rely on the germans max to come up with some sort of solution that ends up with you losing all your wealth german economists make the rich buy bonds the german institute for economic research d i.w. suggested that those with a substantial private fortune be forced. to hand over ten percent of what they have over two hundred fifty thousand euros leaving on large private fortunes could

stabilize state finances in europe said w. expert stefan bach and he says max there are many historical examples of mandatory bonds and one off capital levies oh there are historical examples of one of capital levies in germany that is for sure that's going to come of a creepy feeling about this i mean they're talking about confiscating wealth to pay for debts that were run up by corporatists and neo fascists and you know this is the haven't we seen this movie before yes called scapegoating they're just saying we need some money to make whole this cotton candy of that one teaspoon of collateral that created all this derivatives this the fraud so we have to go after the people they're saying it's the rich people but it's not it's those the two hundred fifty thousand euros do you think anybody with over a billion euros is actually going to have to take ten percent of this tax levy you know to bail out the sovereign nations of europe that number struck me as odd to us

that anyone no with over two hundred fifty thousand euros is considered rich is going to have some wealth confiscated that doesn't seem like a very high bar the point is here max the sovereign nations like ireland had no debt very little debt one of the lowest that in the o.e.c.d. as a government debt then anglo irish and a golden circle of well connected guys defrauded the nation of ireland with fake bogus debt they went bankrupt and said here buddies in the treasury buddies in the prime minister's office here take our debts give it to those peasants out there so those debts were transferred to the sovereign nation and everybody has kept going about their business as if it's all normal now we're seeing how. how they plan on paying for it they gave you know we've had the last three years where those who incurred those debts those who wrote those fraudulent

debts have scurried away but here they're saying this guy where one hundred twenty economists work at this think tank called d i w and i really thought this article was perhaps one of these spoof articles that is often on the internet and i looked it up this is this is a real think tank that's been around for since one nine hundred twenty five they survived world war two somehow anyway they have one hundred twenty economists working with them now this guy. continues if the people deliver ten percent of the x s wealth there anything over two hundred fifty thousand euros to your name is excess wealth according to him it could produce nine percent of the gross domestic product around two hundred thirty billion euros with that one could bring down the german debt significantly closer to the master limit of sixty percent all right i mean as you point out in ireland. the logical course of action to let's say neg

on the debts that were unsecured to begin with or to claw back some of the games that were stolen by bankers ok that's a good place to pick up some cash go go after the legal trail first claw back the money that was stolen don't pay the debts were fraudulent deuced any debt that reference libel or was fraudulent lee induced that's the big kicker about libel or that's why there are now thousands and thousands of lawsuits ready to kick in because they're tobacco moment because all contracts tied alive or are now no one void that's where you go get the money but to say anyone over two hundred fifty thousand euros is game to be having well seized by the state that's not economics that's just overreach by the state but also max one of your mean themes of the last few years has been savers versus speculators and as we're pointing out here. they're going after those with savings presumably if you have two hundred fifty thousand euro is in debt will you be asked to contribute to the save the bankers

fund no i mean look you mentioned savers versus speculators what it was just announced a spin in the last few days is that people who own preferred shares of bank stocks those preferred dividends will be cancelled and the comment by the spanish finance minister is that the people of all those preferred shares to get those dividends to get that income didn't know what they were doing they made a mistake how dare he make a comment like that the people in spain of course are rightfully outraged in the street looking for this guy well in fact that's my next headline max spanish bank bailout means forcing losses on cook's pensioners so méribel martina's fifty one was counting on income from the eighty two thousand euros of savings she invested in bankia preferred shares two years ago after losing her job cooking meals for nuns and a barcelona convent i want to pause and just say this is the sort of difference

imagine somebody who cooks for nuns being able to save eighty thousand euros one hundred thousand dollars she had savings of one hundred thousand dollars so she must've been living very frugally working hard to save that money her husband has now also lost his job but when they showed up at the bank to collect the one thousand four hundred thirty five interest payment on the seven percent securities loan behold it wasn't there because on june first the group suspended fifty two million euros of payments to holders of three billion euros of preferred shares she says we invested in the preferred shares trusting in the good word of our bank manager but our money has been effectively sequestered right sequestered seized by overreach by the state and the state of the finance minister in spain points of these savers and says they don't know what they're doing meanwhile the this woman who is saving this money she is. capitalist she is the one supplying the capital that is does a certain create a capitalist free market economy and her income is being destroyed so that the

bonds the preferred shares can then be valued by the city of london for wall street in a way devoid of its income stream if there are those preferred shares of an income stream that is very simple to say what their future value is in five ten fifteen years without an income stream they can keep their on their books and say that the as collateral it's worth ten twenty thirty times what it is because it doesn't have an income stream so they're using the income producing assets stripping it of the income to create collateral to create a much bigger apologies game doing debt the people in spain even more this is completely outrageous ok sequestered is often what one finds in a war so the army will sequester your home in order to how is the soldiers passing through that war zone so your wealth is being sequestered as part of this financial war the reason why bank he is not allowed at this moment to pay off these dividends

or pay off the interest they owe or is because european officials ruled they should absorb the losses under the terms of spain's one hundred billion euro bank bailout to feed the ponzi scheme to strip the income from those preferred shares and this martial law is economic martial law when you say the funds were sequestered so economic martial law in spain economic martial law in ireland they readily admit they have lost their economic independence they've had martial law declared ireland and the u.k. severe austerity measures a bailout for the banks while they are stripping the income from the population of quantitative easing quantitative easing in the u.s. so this is a martial law as been declared by these banks or is against the population we are now at war without any equivocation whatsoever this just one of the sort about a policy issue it's not about an economic theory it's about. a war world war three is on and the finally maqsood know who are the participants in the war so you see the austerity taking the money from the workers you see the savings confiscation

being proposed in germany and be happening in spain so you see those guys are one side of the war who is left standing well finally here on this headline is it to show investors are more than prepared for this but it will be more of a shock for the retail investors it looks like the senior debt holders will be made whole and explaining that is also going to be a political problem said michael simmons a financial credit analyst at capital markets in london it is useful it's a problem that's why they're shutting down all avenues of free speech they're shutting down civil rights they're shutting down right to assemble they're shutting down all civil society because the war is on and as we've been saying now for a couple of years leading up to the war but there's no question now that we're fully into this massive global war of savers versus speculators stacy thanks so much for being on the cars report thank you doug oh much more coming why stay right there.

too much brighter. movies. from friends to. start on t.v. don't come. one industry in the soviet union. did not display our labor school. for the attempt to get a job with the web. one could easily be. pressured to do the ok that's producer. yes it will be.

moved. back to the kaiser report now max kaiser time now to go to london and speak with chris kirk is the former energy market regulator in all around energy market expert first cook welcome to the kaiser report hello again max i curse god first of all you've just returned from tehran there were reports just a few days ago that the exports of oil were down twenty to twenty year lows is this true and what sort of impact did you noticed while you were there yeah there's no question the the oil exports are down but how much of that is due to the buyers playing hardball or or actual production falling what is happening or what is happening max is that the iranians are actually put in a great deal of oil into storage offshore half of their tanker fleet is now fall and all of their. tanks on shore are pretty much full. the interesting thing about

sanctions which i think i misunderstood is that oil will always find a home the only question is price and the more effective the sanctions the. more leverage we say that the buyers actually have so the chinese are playing hard ball the indians are playing hard ball south africans are playing hard ball and the iranians in not prepared to sell at the price these guys are bidding but sooner or later something's got to give and there's a misconception that this that the sanctions will lead to the rise in prices my view counter-intuitively the more effective the sanctions the more low ball you know the beds of the those left in the market will be and that means that the aggregate bid in the market is lower so i see actually in certainly in the medium and long to. as being a negative for the oil price but you know i think i'm in the minority in my analysis there max rest of the big guys are ganging up on iran and they're

colluding to keep the price low. iran wants the price up all the producers want the price up the buyers markets want the price down that's the way the market works and what i'm saying is that the buyers are colluding to just to keep the price low and you know the same thing wal-mart does with its suppliers it knocks their prices down from it i wouldn't call it colluding max it's just that buyers have an interest in low prices i'm sure they're proceeding independently but they're all just looking in lowball bids because that's what buyers do when you when you you know they're squeezing the iranians as hard as they can basically because they know they're between a rock and a hard place yeah well if you're squeezing iranians with the. economic sanctions and you're low balling their beds i'd say that qualifies as collision right now let's get back to this supply being knocked offline basically prices are falling

you say the market isn't as you call it a managed to climb even talking a little bit about that so can you just expand on that a little bit more i believe that it's all a managed decline of the two reasons one is. political objective i think in the u.s. for gasoline prices to go below two dollars fifty a gallon before the election so that's one reason for prices to decline secondly and this is perhaps the more ingenious i think that once the price goes to maybe sixty dollars which i think it could go to that and maybe through it you in the next few months once the price goes to that level max then russia iran venezuela none of them exactly the flavor of the month with washington all of them will be bleeding and will be in. deep deep economic trouble and the interesting point is that they will blame the market for this they will not blame

the us which they would do for a military strike or sanctions they won't blame them for that they will blame the market for this when in fact it is the market which is being manipulated and it has been for at least. seven years but only for the last three by essentially by j.p. morgan in my view and the saudis between them i have no doubt that that is what has been going on using the pre-pay mechanism which i think i've described to you before invented by enron right well to talk a little bit about that some more low couple of points you've made there chris first of all you've been dead spot on in terms of your calls in terms of oil price drifting lower primarily you've been talking about you know the surfeit of supply more supply out there has been driving the price lower but now you're saying is that there is a managed decline you've got j.p. morgan involved goldman sachs b.p.

as part of a political sanctioning process to disenfranchise the country as it's being served up on a silver platter. to the people who are looking to destabilize the country style the managing of the price down using manipulation like we've seen in live war in other markets that bigger factor now than what you were had been talking about terms of their market being oversupplied yes i mean the price wouldn't be going down if the price if there weren't oversupply i actually think there's maybe between two and three million barrels oversupply in terms of consumption as against production what the has been max in the market has been financial demand from refiners who basically have been worried about the iranian risk premium so they've been stocking up on physical supply but of course the chinese have been filling strategic reserves on a massive scale and all the sovereigns have been building reserves as well so it's

difficult to say how much of the demand has actually been for consumption and how much has been financial demand but for sure and i'm not the only person saying this nick butler x.p. p. and a very very knowledgeable person was saying in the. f c two three months ago. the market was maybe two two to three million barrels oversupplied and i would say that that's probably right so the price is going down and the reason that we're talking about management marks is that the alternative is a meltdown a collapse so essentially they have to keep the price going down smoothly we see the occasional spike you know in case speculators jump on board the bandwagon and send the price lower they have to be scared off and i think that's what we've seen recently for instance the blip back up we saw just the same in two thousand and eight the price would go down and then there would be brief rallies and then the price would go down further i see it going down at least until november in the

election and after that i think after a decent interval venezuela and iran and russia are in big trouble will see the price come back up again all right chris cokie mentioned enron there i want to i want to get into the enron you mentioned a moment ago you were an energy market regulator what do you think of the important j.p. morgan barclays and perhaps other banks have been manipulating the energy markets in america in a manner similar to enron so as the ghost of enron is rear its ugly head dress code . well. many people. if they can do it they will do it and if producers can support prices with leverage then them then they will support prices and. the middleman will make money essentially the middleman the light the light the house and the casino but in this case they're running a roulette wheel with about seven zero is on it rather than one. and what's been

going on is that the technique that enron dreamt up about fifteen years ago was something called prepay they would sell commodities for cash now at a discount ok but these commodity transactions were not visible to the market and as far as investors and creditors were concerned they did not know the enron had all this these off balance sheet liabilities in commodities and that was the fraud that saw the top people in enron sent down for many many years that's how enron did it and they used this technique called pre-pay and the people who were on the other side of these deals with j.p. morgan city group back when they saw this all there on the internet you can you can find it is quite open the f.c.c. investigated but those techniques are in widespread use today some of it is visible but what b.p.m. goldman did for years was not visible and what the saudis are doing now is not

visible to the market and that means we have a two tier price and a two tier there are some people who know what's going on in the market and most of the people who do not classic asymmetric information as they call it marks you know i'm sure you know all about that you know bring back the classic scams you know some of these scams are classics from your past bring them back as people love the old there are starting for the scams of the 1980's and ninety's. but there's nothing new under the sun marks. scott thought what china for a second report recent report suggested china's crude imports are plunged to december two thousand and eleven levels your thoughts yes in deede i think china is is. definitely the economic activity is going lower there. it's not just a matter of crude also imports like copper it's the difference between financial

demand and demand for consumption and i think that what we've seen is the chinese are maybe pulling back from the consumption that they actually had i think probably will find looking back that their consumption began to decline that considerable time ago but it's maybe been hidden by financial consumption and the building of strategic reserves they've been building new tanks and installations like they're going out of fashion the they stocking off again however they're looking to build literally hundreds of millions of barrels of reserves and they've been doing that and it's been i think hiding their consumption their actual physical consumption for refining right well you know that would be a big plus on the demand side and i just want to get back to this what's going on geopolitically in the iranian theater because up until recently whenever iran was mentioned straits of from you being caused oil spikes you know that was the

narrative but now the narrative is that no matter what happens the price of world's going down and you're saying it's due to factors number one there is an overhang of supply and number two it's being managed down by parties that are interested in squeezing iran and you see this happening through through november and caught up in all this will be the other folks in that area including china chris clark. yes for china it's a net positive for russia this would be a net negative yeah russia are in the same boat as iran except that russia have a more functioning stock market than iran does for instance russia and iran are very much in the same boat whereas china are on the buy side they would benefit from a fall in prices but you know the end of the day it's only going to be a temporary fall because it's going to be pumped back up again and you'll know that

the sell side you see have an interest in stable high prices and the buy side have an interest in stable low prices but the middleman max have an interest in volatility for them stability is death and what we're seeing we've seen one massive increase to one forty seven dollars down thirty five we've seen it pumped up two hundred twenty eight or whatever it was and it's going to go down to sixty or probably less and the middlemen are going to cash in on this again and again and again it's going to be pumped back up and then boom and bust as we saw in the property market it's leveraged by borrowing and by derivatives and this is the casino that we actually live in max and it's not sustainable it has to end chris thanks so much for being on the kaiser report my it's always my pleasure all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert ever think my guest chris cook is going to send me an email please do so i kaiser report r t t v are you until next time ask are you saying they are.

you know.