wealthy british style sun. rise. markets why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on my parents really truly honestly believe that what had happened was as a result of my father's exposure to agent orange i was born with multiple problems . i was missing my leg and my fingers and my big toe on my right foot i use my hands a lot in my artwork i find myself drawing my hands quite

a bit to me for my hands you know just as if anyone would. but they do tell a story they tell a story of. oxen. the . imax kaiser this is the kaiser report well you know more bankers more shenanigans stays there max keiser when you look into this mirror who do you

see. well in fact you may be seeing jeannie diamond i think if you read this first headline take c.e.o. place and blame her to con a me look no further than the mirror if you want to know why the economy remains so sluggish says the c.e.o. of the j.p. morgan chase and company it's because of us we scapegoat each other we point fingers said jamie diamond while touring ohio no miramar on the wall there's a cricket is banker of the malts jamie diamond and this is a classic blame the victim routine i think he's implying that. we're just going to give it the old college try and try harder to overcome the stagnation of the economy the fact that diamond cut off billions of people from bank accounts because they weren't discoursing enough the legal shakedown money the fact that he's been involved an innumerable crooked scams over the past years paid

a small fine and bankrupted the economy no that plays it's all about jamie's vanity . well they talked about him being in a tent next to a j.p. morgan chase branch there in ohio and he's meeting all these groups all the employees have to live in the tents now because he's breaking up in the economy it's called gopher who were built to jamie bell. he was getting in like a bus going from place to place and i thought well this isn't so we're it sounds like of course is the heartland where all the presidential candidates are touring to eating corn dogs and doing things like that telling everybody how much they love them and vote for us i thought well when we all know timothy geitner is about to leave the treasury is this him on a tour preparing for the replacement as as him as a replacement for timothy geithner you know this is all politics because of course jamie dimon will be the new treasury secretary geithner will move over as head of goldman sachs or something and when they make that news they make that announcement

you know the public outrage will be there for a few seconds i'll be like oh my god another banks or another revolving door another political bank's third trifecta we're all going to get financially hoodwinked once again then they'll put this great photo up of jamie with the people in ohio and as cardigan sweater and golf club you know shaking hands hello i'm a normal birth and i'm not a an automatic blah program to steal all your money and destroy your family no no i'm a human being i'm jamie doran and i'm going to join research ok so let's move on from there so jamie dimon said we scapegoat each other we point fingers which i kind of think is him seeing all the farmers along the highway on his bus tour saying there's the guy jamie diamond he's the one that took our money from emma global so let's move to another part of the heartland of america an important voting state nevada vegas billboard with suicide dummy hope you're happy wall street well according to our first headline jamie dimon is very happy you're taking responsibility you're dangling off the billboard in vegas as you see from these

images those are the actual victims of wall street. those are suicide dummies and this is trickle down economic suicide i think you see here though you know i don't know why people assume this is i mean this is exactly predictable i told you that when you still money from somebody they blame themselves and i think what people on wall street know this and i know when i was working on wall street if you still somebody has money they blame themselves so these people are put our community f. suicide in effigy upon themselves whether they have hanging up a bank or the guy who stole the money that's the psychology that's the psychology that makes wall street very very rich the victim always blames themselves well the victim blames the cells especially in a casino gulag and here in vegas is the heart of the casino gulag also it's important to note that here is a work of art which i compared to banksy in terms of how much it's reflecting in telling you as a society to look at yourself and look at the society around us and instead this is

what the response is although the billboard alarmed drivers it's unclear whether regulations in the area ban roadside signs with graphic depictions of suicide a spokesman for the nevada department of transportation said there didn't appear to be state regulations on the matter and a spokeswoman for clark county was also not aware rules against the subject matter so they're talking only about whether or not you're allowed to hang a suicide effigy up on a billboard and not whether we should reflect upon the nature of our financial and banking system. jamie diamond would love it if every if thirty million americans committed to it would make his day that's less food stamps is going to process all that forgot the food stamp process saying it's who needs it all you know you'd rather have love for thirty million americans commit less indians on the reservation less mouths to feed less hassle so jamie diamond however could be very happy to look forward and up at the department of justice and the u.s.

department of treasury where he might be very soon and find some allies there because they're not pointing fingers at any of those bad. there is a tweet from reuters flash no criminal charges against goldman sachs or employees for subprime deal justice department says so there you have it look at the we were you peasants out there it wasn't goldman sachs you defrauded you investors and you pension funds around the world with their abacus deal yes they were selling you toxic products but it's your fault of course there's not a problem of justice there's the problem of justice going to cover wall street because i don't know this guy our caller he's head of it what does he do all day but because of those does he actually do a gosh darn thing to go after criminals i mean you've got truckloads of evidence piling up outside the white house there where every things is pat and it's nothing but pure evidence without any reasonable doubt pure

scavengers from the will of the wall from sea to shining sea. up of the book cougars eric. what's wrong with you are you. but there are some do gooders out there some guys with some programs to sell you who are seeking to help you all how do you spot the next big banking scandal there's a new company out there called digital reasoning and it says it can help financial institutions spot fraud by analyzing terabytes of internal e-mails now the c.e.o. hopes financial institutions will buy the software because he says he believes there's a pressing need financial institutions he says could save billions by spotting fraud or insider trading by employees or catching financial advisors giving on up the coal or illegal advice u.s. senate hearings later revealed that in two thousand and seven before the financial meltdown goldman sachs employees wrote e-mails bragging of selling blatantly

terrible investments to clients the c.e.o. of this company says his software could have helped compliance departments catch such activity the problem is the spawning fraud the problem is they don't have a problem spotting front we just we just thirty seconds ago said goldman sachs was found committing fraud so the problem is not can we find the frog we're swimming in the this company of course will probably go public in a fraudulent way brought public by the same fraudulent banks and then they'll discover more frog and then the justice department will be not going to be bad it's ok so here we have the department of justice. you know agreeing with jamie dimon that there are no banks or us in this global economy now we have them again morgan stanley price fixing pact fall by a.a. r.p. wins ok so this is the american association of retired people and a federal judge grudgingly approved morgan stanley's four point eight million

dollars settlement of electricity price fixing charges over activity estimated to have cost new york consumers about three hundred million dollars turning aside claims by the air r.p. that they accord let the bank off too easily the case which also involved electricity generator q span corp was the first in which the u.s. department of justice said it tried to recover improper profit from a financial services company that used to riveted to foster anti-competitive behavior morgan stanley made twenty one point six million dollars from derivatives minute relation of the energy market which cost consumers three hundred million dollars they made twenty one point six million the department of justice said over basically what the judge was going to decide which they were guilty and said no just make them pay four point six million dollars from a normally they be paying like three times damages or close to a billion dollars in funds and the company would be put out of business but because or soon as a friend of jimmy geithner then they're allowed to stay in business as long as they

can milk the cow of forever and. there's plenty of fraud in those to go to milk them some more of those what we do on wall street we've. looked for him you go there is our drummer and we've gotten all we ever do us district judge william pauley in manhattan said quote given the government's stark allegation of manipulative conduct against morgan stanley discords went to four point eight million dollars is a red relatively mild sanction there is a risk that a large financial services firm like morgan stanley could view such a modest penalty as merely a cost of doing business. dall you don't think so but despite this court's misgivings the government decision to settle for less than full damages is entitle to judicial deference particularly in view of the novelty of the government's theory right into paying the prince of for a million and change they're going to be involved in more illegal activity and

still more pension money rick more municipal bond rigging rig more live war type rigging one or more money for terrorists launder more money for drug cartels you know paid a pittance so you don't put the criminals in jail and you incentivize them to commit crime then they're going to commit crime and then your society is falling apart oh there's a shooting in wisconsin there's a shooting in taxes oh other societies breaking apart i wonder why because you're authorizing looting binah transcript ocracy and the pay for their looting they completely undermine the integrity of society that's obama's legacy he killed america beric yes let's turn back to those images of which now is just are those are effigies of people who are the victims of banking crimes committing suicide dangling off the advertising billboards on which you may find a chase bank advertisement well that's the future and it's going to be real now that jamie diamond lover thirty million americans kill themselves today jamie

diamond to be here is smiling less food stamps trust a process less less bother less people all yeah for me i'm jamie and you can go kill yourself that's to be the message for chase j.p. morgan chase j.p. morgan bank kill yourself bank have a nice day since your attention was going to cause report thank you much more coming your way. or you. were.

those stores. who are going to.

take your stuff. to. make your statement. so we're. going back to the kaiser report on nice guys a time out to go to united kingdom talk with john. nomics dot com john welcome to the kaiser report. the maps are right john. there was no law but it relation crime there was no subprime c.d.o. crime so why is everyone so upset with the bankers everyone's upset with the bankers because since the year nine hundred seventy one the bankers have got a much much much much richer and everyone else has got much as much or as

a percentage of g.d.p. you know profits. the financial sector profits have shot through the roof in those years. wages of shot through for i think i think the biggest. problem with the financial sector is the level of disparity between them and what else might well imagine nine hundred seventy one of course that's when nixon closed the gold went down we just embarked on this global experiment of fear of currencies all the world's currencies refer to each other there's nothing collateralize in any of this currency of any substance and now are into a weird phase john where the bankers are trying to come back with arguments that they don't have any actual collateral on their books but they are flow they have deal flow and somehow this is their collateral your funds they have really high

population you know if you have if you have a very very tight and full of assets and you're just read up on the gains in re up against the riata getting them then it's going to look like you have a bigger economy but if ultimately you're not producing much and if ultimately people's wages are going down and ultimately if people are getting poorer then the financial sector is that i mean the key to do all of this is a financial sector does not produce anything what it does is it kind of reallocates capital resources and that's what ultimately we have in the west since nine hundred seventy one they've been set free to rehab off the case and to reallocate resources based on their preferences and ultimately so it's not really working out for the wider society it's working very well for them to their wages and that the profits in the bonuses are going up you know a tire from their hatch. certainly

a graph and it showed very clearly that as the love of the leverage those up it's correlated very very strongly with love the bank of bonuses and that's what we've done is what we're getting the bankers are operating for themselves they're looting and pillaging and they're not going to stop until it stopped or not john we had another banking scandal last week with standard chartered they're being they're being looked into now as part of a money laundering scheme and their response from the u.k. from boris johnson from folks in the city is that the u.s. is taking a very anti british approach to this that they. are calling the kettle black that they're not looking at their own back yard on wall street but the fact

remains john aziz and i'm curious what you think about this a i g lehman brothers m.f. global the london whale barclays lie bore a just a p.c. money laundering standard charter they all went through london and it all touches on something you've been talking about here really hypothecation because only in london do you have infinite really hypothecation that is to say you can sell the same security an infinite number of times with no collateral correct and that's the problem you know glossed ego was repealed because the u.s. banks felt like they could be true london where you had infinite area of the geisha so i do i think there is something sick of the heart of the city and i think that thing is the ability to multiply up a tiny base of collateral to whatever level you want i think i think that's absolutely connected with. all of these scandals i'm

not i don't i don't i'm not completely convinced that what standard just that is done is particularly awful because i'm not sure the united states really has any right to be dictating to individuals and businesses which countries they can do business with while this is another aspect to this growing crisis john aziz because here you have internal e-mail e-mails at standard chartered from individuals at the banks saying who is that f. ing america to tell us how to do our business. and so here you have a conflict which is now morphing from just a bad rogue bankers in a corrupt system sealed by central bank shenanigans and corruption now it's feeding into this glowing political crisis so my understanding john is that at the moment

standard charter got the word from this. financial services authority in new york city that was calling him up on the carpet the tim geitner shut them down and now it's all back to business as usual so for a moment there though it looked as though there was going to be a bit of a conflict for real between bankers who want their own softer terminations and bankers and new york who say no it's our world pay us or your tribute or we'll put you out of business well i think one of the. one of the good things about the financial sector being in the destructive and corrupt. mode that it's in is that ultimately the bank is going to destroy themselves and when you when you do have a financial system. you know competing are completely under strain wait to. grab as much as they possibly got there know where the tribe trampling each other down hard johnny talk about banks destroying each other and of course you cannot

bank society other without central banks assisting and destroying each other and of course central banks policy of quantitative easing out of the say keep rates artificially low only to benefit a select few and meaning the savers around the world subsidize criminality in the city of london and wall street isn't that also part of this kind of suicide mission were all the banks are lined up in a circular firing squad all absolutely. quantitative easing is demonstrable way and empirically shown to enrich the financial sector at the expense of everyone else because of an effect known as the cancel out of facts whereby when you introduce new money into the system it doesn't either any purchasing power or does it transfers the purchasing power from the old money to the new money so what what what we have is.

the banks they get this new money and they get the old boat and the people who are . with the old money the people are the retirees. anyone holding dollars isn't purchasing power for the benefit of the backs. right so to put this in terms of a security is transaction there's two terms people can look up on google after this interview want to be the council on a fact but the other would be the cram down so when you introduce more money you are effectively cramming down all of the existing holders of money and those who have been crammed down with this new layer of money get all the benefits those who were there before their benefits have been crammed down or diluted down to something a very little in terms of equity and this is a continuation if a lot of people refer to this as a policy scheme which is kind of like the e.u.

imagine a floating upwards in a pyramid scheme but it's actually a perpetual cram down scheme where new money quantitative easing is constantly used to financially repress the population into oblivion giving only the few insiders the benefit direct absolutely but it's not it's not just quantitative easing as well i found looking up looking at the danger since one thousand nine hundred two what is the the financial wealth of the financial sector goes up. as more on the straights it wire the sense transmission mechanism which is interest rates but as and to a much money supply goes up. the financial sector gets richer so it's it this is just a new phenomenon since quantitative easing this is been operating insinuate slowly and consistently. since. you seem to want. ok john you

mentioned this term transmission mechanism which is enter goal in any notion about free market capitalism or free markets and price discovery that is to say that when a certain supply and demand curves are happening in one area of the economy there is a transmission mechanism that will affect another area of the economy we see this right now between the euro and the dollar the euro is going through interesting times and there's a transmission mechanism visibly the global banking system where the dollar is perceived to benefit but in this new world john isner true that it we don't have transmission mechanism vala transmission mechanisms that should be operating freely are now being blocked by the sixty or scenary tools of central bankers and primary bankers and commercial bankers who have raised the fee to do business and have destroyed the market so grievously with high frequency trading we end up with price

fixing and commanding control economy in a global soviet era monell culture economy free market essentially is debt correct absolutely. well what we see. when the central bank chooses to act and redistribute purchasing power is the central bank is actually determining who gets to decide what in the economy when the central bank transfers purchasing power out of the banks through quantitative easing. it transfers real power to command the economy. to the financial sector and away from the productive . industries and business people and entrepreneurs and individuals and so as the financial sector of the operates more power it controls mover the economy and so if it is effectively central under the central bank you saying the

fine that the sec is it should have more power all right final question john the global economy. if we know that the only outcome is going to be at that jubilee of some sort because there's no way five hundred trillion and more in debt it's going to be paid off for the global economy of a sixty or seventy trillion g.d.p. output so what's the timing on this and now what will be the winners and losers well there are three of us yet there is the debt to the what we forgive the debt and start again there is lick the nation where the system crashes the banks go to zero and the jubilee happens that way and there's a third way which is hyperinflation and i'm not going to say which ones likeliest but given the image of leverage and drought and we can grow organically you know as

. without the debt being severely reduced i think i'm absolutely virtually certain that it's going to be one of those three options and it's going to be very very messy and the winners and losers i can't say although i i i would guess the banks are going to game the system from the political. to the political side for that so that benefit i can see the winners the losers but the timing. could be any time from now up to you know twenty seventeen twenty twenty two twenty twenty five because the. the back is in the politicians and everyone move asked that interest in maintaining a standing system is going to try as hard as they can to keep kicking kicking kicking taking kicking kicking the can i was just

a matter of how well until the roof falls it is going to one of those three things look well ation that or huge huge huge inflation all right john disease a disease a nomics that's all the time we have thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guest john. nomics dot com if most i mean email please do so at kaiser reported r t t v dot ru until next time ice guys are saying bio. download the official application. choose your language stream quality and enjoy your favorite. t.v. .