dreaming of a sea round trip with open entertainments. and cuisine with. its. gaze. our summer sales on our cheek. and then. everything is. part of the big picture fish.

fish . and live on your t.v. screens and your computer screens this is twenty four hours a day seven days a week. syria's rebels civilian airports are their latest target and warning that international flights shouldn't strike any.

outrage against turkey's recent push for a no fly zone over syria as far as rallies in germany by both pro and anti assad groups. actions speak louder than words as israel appears to be gearing up for war with iran now launching a massive propaganda campaign along with. the london paralympics a key sponsor of the games is accused of humiliating disabled people as part of the government's attempts to benefits. give us the lowdown on the latest financial news headlines report is next right here. max kaiser this is the kaiser report you know poland must be coming along economically because of course they are attracting wall street banks and just

outright scams to things like. max keiser yes this is the first headline thousands caught in polish financial scam thousands of poles many of them elderly have fallen victim to a huge fraud which has left them facing financial ruin financial institution amber gold promised guarantee returns of ten to fourteen percent for what it claimed were investments in gold many of its clients were older poles who grew up under communism and lack the knowledge to question how a financial firm can guarantee such a high rate of return on a commodity whose value fluctuates on the international market now peter shack the chief economist for poland nor day a market says quote these were people with a low level of financial education they think it's still like in the old times where everything was guaranteed by the state no no no that's not like the new times is it well yes in other words it's an it's a scam that you see all over the world in new york london now in poland is this is

a mark of coming of age for poland they're being scammed by stamps so these people peter access as. i thought they were still like an old times where everything was guaranteed by the state so they under estimated the risk so let's apply this to the whole global system max because don't we see this in our global financial system what did all of the consumers in america did all the consumers in greece ireland spain the u.k. under estimate the risk because they thought that alan greenspan or ben bernanke would step in and save everybody well of that plus the bonds that arrived upon the shores of europe had a aaa rating thanks to fish and moody's and s. and p. so yes they had a false sense of security now the banks are underwater then greece goes underwater now italy's underwater spain's underwater because they were sold bonds that had

a aaa rated guarantee from the u.s. but it turns out that these bonds are not worth one hundred cents of the dollar they're not even worth zero cents on the dollar well in fact why they sell how they sell treasury bonds is sounds like how they sold this gold to the people in poland we are dealing with the loss of confidence in the entire financial system and an urgent need for safe investments the environment for gold is perfect as we hear this about u.s. treasury bonds. treasury bonds are sold by hucksters they are guaranteed confiscation of wealth as a guaranteed zero return guaranteed loss if you're buying a twenty year bond with zero percent near zero percent coupon in an environment where social banks are printing money like it's going out of style you're guaranteed a loss but so what they need to keep the wheels of the fraud going because of the cheat you train of fraud stops at the station then they're not going to be able deliver that big christmas bonus to do. so again they think it's still like in the

old times where everything was guaranteed by the state now let's look at our economies over here the can is full of cement this is from market ticker dot org and apparently the. dallas fed which has been a strong opponent of q.e. in all forms has come out with a working paper the soon to be infamous number one to six the paper isn't titled ultra easy monetary policy and the law of unintended consequences and one thing they note about quantitative easing is that cumulative stock effects provide negative feedback mechanisms that over time also we can both supply and demand it is also the case that ultra easy monetary policies can eventually threaten the health of financial institutions in the functioning of financial markets threaten the independence of central banks and can encourage imprudent behavior on the parts of governments translation they're actually heroin stops working. that the economy is runs on their stocks of money from occam it's instant debt just add more debt

and the returns are diminishing they've been diminishing for three decades they've been diminishing since the u.s. went off the gold standard they hit the wall two thousand and seven the now the end game is now in play and it's obvious now that their returns are diminishing and now they're stepping up to the plate and saying hey you know what maybe this isn't working this thing that hasn't been working for thirty years well the negative feedbacks they're talking about is that you can't have capitalism without capital you need savings and people aren't saving because the interest rates are so low so it's providing a negative feedback because all they now have now is money printing by the central bank that the bankers on wall street want because they live in these old times where alan greenspan is always there to save them they think there is no risk in the economy in capitalism because of this money printing but you can't have capitalism without capital and these banks the big banks on wall street or in the u.k. they have no reserves they have no collateral they have no capital they have ten to

fifteen times their market cap in debt that they can't possibly ever repay. and they have an earnings statement that comes out every quarter of the shows a flow processing fraudulent claims that they take a fee on but the balance sheet is fraudulent the balance sheet is a kameron the balance sheet is a hologram in digital space that's been turned off in different countries and regions a bit at a time the the global economy is going dark you know if all these financial institutions were lit up from outer space using a special telescope that only looked at collateral value of banks on the world market you would see america in the world going dark and so they're in response they've ramped up the rotary after all the glib greenspan famously repudiated himself by saying i was completely wrong about my ideology that guided me for

twenty years in fact these markets are not operating anywhere close to what i thought they would operate ben bernanke he's less interested in so for putin than in self-preservation he's figuring out how to get out of washington d.c. one step or have the mobs with the pitchforks and torches so we move on to the next headline with in mind the notion that they think it's still like in the old times where everything was guaranteed by the state why all these polish people got scammed by this obvious fraud. where they had guaranteed returns what happens when the music stops a report from the federal reserve bank of new york suggest that the bulk of equity returns for more than a decade are due to actions by the u.s. central bank the s. and p. five hundred index will be more than fifty percent lower around the six hundred level if the bullish price action proceeding fed announcements was excluded the

study shows now if you look at this chart you'll see that the report shows that the market would has a tendency to rise in the twenty four hour period before the release of the fed statement on interest rates and the economy presumably on expectations that chairman ben bernanke and his predecessor alan greenspan would discuss or implement a stimulus money printing measure to lift asset prices but as i've explained the the fed is essentially at the. head of the river of cash and up until recently that river of cash would irrigate the economy equally jobs would be irrigated wages would rise the manufacturing sector would there be a benefit to them they'd have rising wages you'd have real estate rising you'd have stocks rising but due to financial engineering and the adoption of derivatives and high frequency trading that irrigation now is being manipulated so that the cash only goes into stocks a few stocks owned by insiders in washington and wall street and that's the only

place that goes and one bedroom i can goes in front of congress as we're worried about deflation we're worried about deflation he fails to say that he engineer as you just pointed out again in the stock market that's where the inflation is going that's that's the inflation dow jones getting close to fourteen thousand without the fed the dow jones would be at five thousand or less and that's what he that's what he should be talking about this is his re engineering of the economy to benefit. a few stockholders and to do some franchise one of the entire country it's reengineering look at that chart again the line on the bottom that red line that is what the s. and p. would look like today with out front running the fed the blue line is showing that the federal open market committee has released eight announcements a year at two fifteen pm eastern time since one thousand nine hundred four the study took the gains in the s. and p. five hundred from two pm the day before the announcement to two pm the day of the

statement and subtracted that market move from the s. and p. five hundred total return over that time here's what we're talking about here the insiders have access to unlimited credit at virtually no cost that's the great thing about having interest rates near zero for the elites everyone else remember pays a lot more for interest and if you're at the bottom of the socio economic scale you're paying an annualized rate of four hundred percent for money but if you're at the top you pay no money to borrow money so yeah you understand that they're going to now do quantitative easing so you call your broker as two thousand and nine remember in two thousand and hank paulson told his buddies at goldman sachs and on wall street that the government of what she was then working for was not going to lead goldman collapse they all the guys then went out on margin borrowed against everything that they could borrow against and went along bank stocks incredible amount of money was made in two thousand and nine people's wealth tripled quadrupled in two thousand and nine based on the fact that they can borrow money at

zero per cent interest rate with no risk now they call themselves captains of industry and entrepreneurs' but you know a recent smokey can make money in that environment it's no big trick to be able to borrow money and zero percent and and rule rule the roulette wheel on guaranteed winners how is out of business choice well going back to that first story they underestimated the risk because they assume the government would be there to protect them in this case and you notice that with this study it stops at two pm of the day of the fed announcement so if you don't. have your bets in by fifteen minutes before the fed speaks then you're too late if you don't if you're not done by two pm you're not going to catch your tee time ok you can get nine holes in at the bell haven club in connecticut if you get it all done by two pm you get nine holes in done and then finally occupy fs that's wall street tie up as protesters face burnout so occupy wall street the global movement against inequality that

ignited in manhattan last year with markets first anniversary by trying to block traffic in the financial district and circle the new york stock exchange it's called seventeen september seventeenth they're planning on making some citizen arrest but bloomberg news here asks that now the next step for occupy is they have to decide whether they want to do what most americans want which is a little bit of reform to the system or whether they want to take down capitalism go bloomberg of course would make that statement because he's trying to defray attention from the real underlying issue here it's not whether capitalism is going to be taken down or challenge because we don't have capitalism the train left the station lower down to we've got a entrenched kleptocracy and unfortunately what occupy wall street is completely missing the boat here they don't really understand what the problems are they don't understand who the players are they don't understand what tactics can get them over and i've explained to them several times what tactics they can use to neutralize

the level of influences that are destroying this economy but they fail to take note they don't want to do it any effective way because after all if they succeeded then they might actually have to move on with their lives and go to a post success story all right stacey newman thanks so much for being on the kaiser report think you max don't go much more coming your way. in a. good lover toure to mccurry was a beauty to boot. most sophisticated which on fortunately doesn't sound anything. to teach creation why it should care about humans. this is why you should care only on the orgy dot com.

welcome back to the kaiser report imax guys are time now to go to moscow idaho to talk to john rubino of dollar collapse dot com your ringside seat for the global financial crisis john bloggs there but also provides dozens of links to stories relevant to the currency wars financial collapse gold and silver john welcome to the kaiser report max thanks for having me on the right john robineau your web site is called dollar collapse dot com tell us about the collapse of the dollar what is the process of collapse and is the end near or in fact here you know we've been talking about this theme for a number of years now dollars been edging lower are we at the collapse point now john you know this is it was actually set up as a marketing site for

a book james thurber gold money and i co-wrote back in two thousand and four and at the time we kind of got a collapse of the dollar in particular in the currency system the world in general was imminent and and we were wrong the system has held on a lot longer than. we expected at the time and the basic processes is not that complicated we are in the u.s. and also the rest of the world we're just borrowing too much money you know we've created a system. where governments around the world have printing presses which inevitably they're abusing you know every time there's a lecture in an election you get massive amounts of new currency being created in the hopes of you know reason was good for the incumbents and in the process we've built up huge amounts of debt which we can carry and at some point the excessive currency creation process is going to lead just through supply and demand to

a sense around the world with these paper currencies are really worth anything anymore and then everybody's going to have to be exits at once and we'll see a collapse of confidence in paper currency in particular in the u.s. but also around the world in general you know because if your currency is going to be discredited at some point and it's the general trend is going to be poor more and more currencies followed by more and more money printing followed by more and more crises based on the you know caused by the money pretty much poorer and better world and so the only thing that we can do now as individuals especially is the position are set for increasing monetary crisis and a general shift out of paper currencies and paper assets and into real assets so you know all roads seem to lead to go in silver right now. right so the book came out in two thousand and four dollar collapse the thesis was that this dollar

collapse was eminent and the has dragged on for some time and during this time we've seen it zero percent interest rate policies around the world by the federal reserve policy and now the european central bank is pursuing a much cheaper interest rates heading toward zero percent interest rates so this this this crisis has been ameliorated by the ability of these central banks to bring rates shockingly low which of course penalizes savers penalize. the pensioners to subsidize the speculators to work on the dollar but this says given some extra innings to the dollar but at some point even those extra innings come to a close and i think what we're seeing now with some of these prices in the commodity sector spiking to all time highs or twenty or thirty year highs and maybe this is the dollar collapse inflationary spike the timing seems to be right now

john your thoughts when it comes this is what it feels like the early stages of it and again these guys have so many weapons and basically they have unlimited printing presses they didn't know you know your houses were two million dollars they want to they could buy your house for two million make you feel ridge make you spend and keep the gave away one for a little while longer so you never know when it's going to fall apart but this is what it would feel like with gold and silver and boileau going up and farmland getting more valuable and and paper assets becoming less and less interesting to everybody because they don't return anything so money is flowing into hard assets because they've been growing relative to paper sets over time and let that process accelerate and you get hyperinflation although it's not due to the oversupply of money as much as it is a lack of confidence in the existing currencies that are out there and yeah we

could see the current process excel or it until it turns into a wholesale plate of your currency or we can see visco has come up with some new trick to pull this again for another two years and there's really no way to know right well i want to follow up on the zero percent interest rates on a bit more because part of the zero percent interest rate story what we're learning is that not only are the the the banks offering these rates and the central banks offering these rates to keep the speculators happy but in the case of the bank of a. and barclay and barclays and the live bore rate setting in the u.k. they're actively engaged in fraud and market manipulation to keep interest rates at an artificially low level to help out speculators so the fraud has now jumped to the institutional level the bank of england has been clearly implicated in a wholesale fraud probably the first time in its you know multi hundred year history as the bank of england mervyn king went so horribly discredited doesn't the

end even the bank of international settlements the central bank of central banks is waving their finger at these other central banks and saying you guys need to stop committing the fraud isn't that worrying john oh yes it's all for governments lie all the major statistics that it really is you know in the u.s. obviously everybody knows about them or unemployment inflation numbers distort and interest rates of the same thing you know that bear they're lying to us about the fundamental reality of the economy in order to be able to keep interest rates lower than they would be otherwise because you know the bond markets actually understood what was happening you'd see interest rates spike around the world. just because they are in the peripheral euro zone countries you know people are figuring out that spain and italy can't pay their bills but we in the us are in just as bad a shape except we've been able to to maintain the fiction. that we're in

better shape than a lot of these other countries and you know what basically we're becoming a third world country and so far we've been able to hide the macro facts that basically the lifestyle that americans have come to take for granted are disappearing everywhere in every sector of the economy and the question is how much longer can the prod continue first of all and you know once it's expose then everybody has the exit in the in the game in and secondly what happens to the people that have been committing this right you know these guys are committing criminal acts as you say on the show a lot and in any other walk of life. these kinds of financial lives would be considered crimes and you go to jail for it but if you're a major bank or the head of better reserve or the head of the bank of england you somehow can get away with this and b. because it's seen as macroeconomic policy or monetary policy where where lying is

basically accepted as a way to help you help the people that you're you're in office to help ok and obviously that that's the fundamental flaw in the system now with you've got to get away with it and the question is how much longer you know do we end up putting these guys in jail and i you know i hope so. but right now the people who would have to prosecute the criminals are the criminals and so we won't see it until we see some kind of regime change or some kind of dramatic change in public sentiment here presents the odds that that movement ron paul's pet project. is the first step in the public taking back. control of the mechanisms of more material is good policy and you know should we discover actual crimes there you know blatant. undeniable criminal activity that could open the floodgates know maybe we point out

. that we're doing things which you know we do a lot better than we would find out a lot of criminality and maybe the people who are responsible who are actually get punished work and that would be such a sea change in u.s. policy at least i think it would spread to the rest of the world maybe that would be a good thing if i went to the barents and you know sends us off the edge of sports we are currencies go i don't know but it's wonder if it would be and it you know is kind of one that would be nice to see these guys get punished were the crimes being committed against sabers in the tours and the rest of us right well john you know i after direction toward a john course i'm for example former c.e.o. of goldman sachs former governor of new jersey he was caught stealing one point five or one point two billion from m.f. global. jamie diamond as an accomplice is defense was the money simply vaporized and now he's back in business again he's going to be starting a hedge fund so they caught him red handed they said in his defense was the money

simply vaporized no penalty whatsoever no public outrage whatsoever even though segregated customer accounts were stolen by john correspondent jamie diamond absolutely no prosecution whatsoever but i want to ask you about two thousand and eight for a second because back in two thousand and eight there was a total global financial system came to the precipice of annihilation but was pulled back when hank paulson went before congress and extorted close to a trillion dollars worth of dollars and what we found out in two thousand and eight is that the world needs dollars because the seven hundred trillion dollars worth of derivatives that are floating around the global banking system are priced in dollars and that any unwinding that happens. is requirement to require dollars to make that happen so there's just a demand for dollars and how do you square that circle john because as long as the situation is teetering on the extension they'll be a demand for dollars to on why the derivatives contracts that are causing the

problem yes part of what's keeping dollars as strong now is that debt in dollar terms creates a demand for dollars like you said so people are out there trying to find dollars and borrowing in order to pay off their existing debts but that's one of those things that can keep the game going for a while longer but won't save the dollar in the end because once people lose confidence in a currency the change happens very fast you know historically you know you see a system going on and going on and going to just falling apart you know why more germany was like two years it's still a hyperinflation that we we remember to this day and yet it was over in the blink of an eye just because people lost confidence in that currency and the same thing will happen to the dollar eventually if this history is any guide but. there they do have tools and there is a system that set up which kind of tends towards keeping the dollar going for a while but again it's you know all of this is going to go until it stops and we

can't know when that's going to go i mean we we couldn't know the day that the housing bubble was going to burst word be tech stock bubble bubble was going to burst but eventually they burst and the same thing will be true of the dollar bubble when it happens who knows but it does feel like it's it's imminent and so the really interesting argument is going to happen at the bottom when everything is falling apart and then you know what we're talking about now we're basically impotent because public opinion doesn't really matter anymore to these guys but at the bottom it will you know will be able to have an argument about whether to have a constitutionally limited government with some money we're going to have a row and have a you know a strong central government that controls everything and that days. coming and it's going to be a really interesting debate but right now all that's left worth is to just watch a poll or try to protect our own finances and then be ready at the bottom to try to change all right john a beano and we're out of time thanks so much for being on the kaiser report thanks

max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert all of them i guess john rubino of dollar collapse dot com if you want to send me an e-mail please do so at kaiser report and r t t v dot r u n of course you can follow me on twitter at max kaiser until next time ask out or saying goodbye i'll.