why you know. why don't what's really happening to the global economy with much stronger or a no holds barred look at the global financial headlines. and welcome to our team now past the hour here in moscow and with your top stories that time merican protests rage in egypt with crowds angry with crowds angry of a u.s. film considered an insult to islam and carl police fired tear gas at protesters and threw molotov cocktails at the u.s. embassy while washington sends warships and marines to libya to hunt down those who killed the town bassett are there. the federation all of europe plans from the e.u.

chief to buy nations together to form a formidable anti-crisis force with the region the central bank policing everyone's finances but critics say it's a plan to seize political power and not a cure. while the netherlands all just stick to the euro it has conservative scoop the majority vote and may form a coalition with the labor party with similar economic news about the pro europe parties are still set to renegotiate some austerity measures. next and stacie now roll up their sleeves and get stuck into the banks that have just become too big. the a. welcome to the kaiser report imax guys are human excrement that's best dead floods and billions in lost tax revenue apparently the contents of the fake cigarettes

brits are smoking these days but could just as well be describing david cameron's appointment to the treasury stacy herbert mags kaiser indeed it does kind of sound like this according to this headline dear david cameron in trusting economic policy to x investment bankers is no solution but. they never learn that and from the training they do best most inner core of the establishment in new ways burrowing their way in. so you know david cameron reshuffle his cabinet recently and apparently he appointed to her majesty's treasury three new consultants paul date an ex goldman sachs partner javid ex deutsche bank and greg clarke an ex consultant from boston consulting group they they this is sort of what i'm a madrasa that's what wall street is they that's a school for financial terrorism they bring these goldman sachs teacher mad do

improvise exploding financial bombs and then they stick them into economies and greece are in various countries around the world or municipalities or people's pension funds and i explode in people's face and they go bankrupt and that's the point because they're terrorists but if anybody out there were having some sort of you know hope that something might change in the city of london or wall street or around the world and that our economies might actually recover from the banks or infestation from the crime wave that we've seen then you can pretty much certainly agree with this cabinet reshuffle that it's not going to happen you know david cameron suffers from that disease were people who eat cat poop they go and say it's something in the poop that actually burrows into their brain and then it forces them to have an unnatural filiation with cats here you've got david cameron the prime minister who's got a brain virus where he has an unnatural failure action for financial terrorists to keep supporting them to her majesty's treasury and this will go on until they

completely and utterly destroy the economy and every single job is lost that's the goal well speaking of a banker who became treasury secretary who then became a banker again and was responsible pretty much for a lot of the financial disaster we see hadn't had with alan greenspan he helped destroy the world and that was robert rubin he's in this next story max didn't see the group defraud billions from us ally. november two thousand and seven were. robert rubin went to abu dhabi convinced shaikh akhmed bin ziad al nahyan who was the managing director of the abi dhabi investment authority to give them seven point five billion dollars lo and behold they lost it all for them so according to wiki leaks documents that were released last year but now are coming to light in an investigation done by alter net the u.s. embassy to the u.s.

secretary of state and secretary of treasury december twenty second two thousand and nine they were on december fifteenth citigroup announced that the aboud dobby investment authority has filed an arbitration claim based on cities alleged misrepresentation of a.t.i.'s november two thousand and seven seven point five billion dollars vestment the arbitration claim sixty four billion dollars in damages so if the ice investment was supposed to convert to two hundred thirty five point six million shares which was about four point nine percent of citi group max robert rubin the master seven billion that he could weigh those poor people you know people talk about the pump and dump scam of facebook it was only one hundred four billion dollars of zucker bergan wall street they stole fifty billion with goldman sachs of course remember goldman was involved in the pre i.p.o. scam where they sold stock to traders and investors completely outside of the f.c.c. law they broke the law they committed fraud ok we know that but here you have robert rubin the master of seven billion dollars in some shape and citigroup has

banned this basically. for fraud for years now this is the one of the most highly trained stocks in the world it's a stock that goes into the algorithmic trading programs on a daily basis millions of shares trade every hour of citigroup stock and it's right there for the taking all the front row in there and cherry picking that goes on robert rubin one of the just just really in the pantheon of fraudsters you know he's got to have a special place he is really the primo de primo on the fraudsters. so a few weeks ago we spoke to catherine austin fitts who used to be in the cabinet of george bush the first and she said that there are those in the world who can kill with impunity and those who can't so we're going to look at this story a little bit deeper because first i'm going to turn to the video for the two thousand and five and this is shake bin saeed al nahyan who i believe is the brother of shaikh akhmed bins i had on my own who was the head of the investment

authority and as you see from this video this is how he responded to an afghan green merchant mohammad shop or who he thought had overcharged him yes as you see he's a cattle prodding him and running him over and shocking him and shooting him with a newsy some guy cheat him out of some couscous any put a cattle prod uppish wrenching and beat the living daylights out of them meanwhile robert rubin and steal seven billion some lolo's and he gets none of them yeah i mean how did i will do continue well i miss you does that grabbing stolen so much money no one's declared a fatwah nothing how does this guy make it through the day robert rubin so you see this guy's relative the head of the investment authority you saw from the video this is how the those people there deal with you know being defrauded you would think that therefore shake. on my end would have responded differently so

however he agreed to arbitration of course now first max explain what the arbitration is what an arbitration panel is when you deal with the wall street bank but maybe eight percent of all of the complaints that go to wall street are found in favor of wall street because when you do daily do a new business with wall so you sign on to binding arbitration so you never go to a jury of your peers it's all settled by brokers and bankers who work for wall street that's one of the charms of working on wall street doesn't happen often fits with you so some people can commit crimes of impunity. murder with impunity that's one of the tricks on wall street sign off on binding arbitration these arab folks i don't understand why they haven't figured this out yet i mean they all went to private school in london then they teach anything about fraud and legal contracts and planning arbitrations not what you want you for it can you know guy out there you made a boo boo here really keep making the same glue all them over and over again there you go on the punishment so he agreed to this arbitration apparently there was

a three panel crew two of them had formerly been counsel for citi group so they so wasn't going to last but even despite this you know shake committed been fired and died in a glider accident which i'm sure was completely illegitimate and morocco oh better call saul now the economic hitman obviously was at work on that one he was in a glider accident he was in a glider accident dear so it did go to arbitration and of course they were found there's nothing citi group owes them and it reminds me of what happened with that shake ben and when he beat up the afghan merchant for overcharging him he won his so that was presented to a court and they saw this footage and they determined that. nothing seemed to happen there is nothing illegal well it's amazing that on the street you know these guys are quite upset if they get you know ripped off or a sack full of onions but

a billionaire in a billion there they're not so upset about because at that level of the multi-trillions and multi hundred billion dollar fraud it all kind of works out in the wash and whether you're mideast dictator or somebody in washington d.c. like robert rubin or tim geithner a barack obama or the crew they can just expose not talk or see in the country of their choice whether it's america or some place in the middle east to extract from the population visa v. the implementation of a autocracy and that's the prevailing political system we see all around the world now so part of the reason why they actually filed this arbitration suit was that citi group had promised they wouldn't dilute the share from about five percent but in fact they did during the crisis they should billions of new shares where be in particular got crammed down even more than the other participants sandy weill however he was part of the group of six that rescued citi group he invested twenty

one point two million dollars and sold at a profit of six point two million dollars only two years later that's a profit of twenty nine percent in two years that they're all crammed down you know they bring in a preferred share that has seniority to all other shares and dilutes everybody else all the other shareholders and quantitative easing is just a global cram down done by central banks they bring in a transfer of one hundred billion or join dollars of fresh money and they cram down all the existing holders of the tickler countries currency and they dilute the value of that currency and lowball you've got prices going up and people rioting in the street thank you central bankers. so this final headline here max hunder a set stage for three privately run cities so these are cities in honduras that will have their own police laws government and tax systems they can they can negotiate international trade deals outside of honduras they don't have to abide by

the laws of honduras now this this is a scheme concocted by michael strong who calls it in a narco capitalism system and he said these cities would be based on the best practices of free trade zones around the world like dubai. well i don't know capitalism doesn't work as a oxymoron as a matter of fact either anarchy or capitalism adana both and you know this is just a replay of what we've seen in the original banana republics of this region to get three of these zones there's just going to be basically lord of the flies writ large over three different places run in a nice climate to grow bananas and impose once again an autoworker see well first of all honduras is the original banana republic it is already a corporate own state by u.s. corporations these are going to be separate zones in which they want to put some call centers and manufacturers of clothing they're saying but the fact that you

saying these are going to abide by international human rights laws like dubai does now you just saw one of the shanks of the u.a.e. run over a man for owed her charging him the courts there found the shake didn't look like anything happened to me so you know if this is his model is dubai these sort of shakedowns around the world where there's this a global elite who can kill with impunity. well you know i've been to dubai and it's a place where slave labor is alive and well so what this man is saying is that they want to bring slave labor to honduras they want to impose on. an arc of capitalism which is code word for autocracy and slave labor they want to totally undermine any oh you know what let me go to guess let me guess they're going to impose these geographic goal locations on top of some indigenous peoples part of my right that's the point it's the local indigenous population are saying we didn't agree to this

we already have the banana people here and we don't want this other private corporation taking over that is so it is an initiation of force it's a coercion you know they're taking this land of these people but you know michael strong thinks well we're going to add jobs and wealth because where an arc of calculus but these people who are already living there these indians who have been there for thousands of years their families well they are apparently not good enough for the right private city it is a position of forrester for those not qualified as libertarianism and what i suggest the indigenous population do is open i can see you know ok i stand center thank so much for being on the kaiser report thank you max don't go away much more coming your way.

welcome back to the kaiser report i'm max kaiser time now to go to new york and speak with the reggie middleton boom bust blog dot com reggie middleton welcome back to the kaiser report. thank you very much if we approach would be better as always reggie you're one of the first to call facebook correctly in particular you question whether or not mark zuckerberg was the man to run a multibillion dollar company other financial media are now asking the same thing reggie gave us an update on facebook is this sucker going to zero. i

don't think is going to zero because there are you know there's definitely some value in the assets but. it's going to stay a much closer to zero than it is going to be to was is i.p.o. price of it was thirty dollars. no the issue of facebook was it was outrageously overpriced to begin with and they increased the price several times right before the i.p.o. even that fundamental what i would consider a fundamental fair value that i told my pain subscribers right before the i.p.o. i think things look a little worse now than it did then because there was already indication a facebook growth trend was slowing. going even more than it was at that time so facebook is mobile speculative play unfortunately was marketed as the best thing since sliced bread and the i.p.o. of the decade and that's not the case you know they did differ in which is the company by over sun the stock and over pricing the stuff two different things but

you know anybody who bought it simply got taken to the. you know our favorite banks goldman sachs it out. right reggie mentioned goldman sachs them going back you know six months or so before the i.p.o. goldman sachs made an offering to clients that violated s.c.c. rule because s.b.c. role said that before a company goes public they have to make certain disclosures and that number of investors are limited except for a but they said you know what work that out later isn't it the case that may be investment banks should follow the rules and laws why is it that we always are allowing investment bankers like all that are j.p. morgan to commit fraud and then six months later or a year later and they lobby congress to change the law or create a new law what about just a bangle law your thoughts. well the law is flexible and fluid as you see and this is somebody who's quite in law who doesn't have a significant lobbying influence but you know

a lot of lobbying fluence are tightly correlated so you know goldman sachs broke the law who broke the law you know if you would have done it broke the law goldman sachs did it it's goldman sachs a piece go to the wall now i'm pretty sure there was a technical loophole that allowed them to do the offering. understand they actually had to pull the offering about before they pulled it they changed it to only foreign investors so i'm not a lawyer but you know it is obvious that in as you mentioned many times on your show the big banks with goldman included have committed. or have perpetrated the purposeful misleading of their clients so i'll put it that way since it might not defy the front of the fit the definition of fraud you know it seems like fraud that means use it for you and everybody else but let's just say they purposely misled the clients for their own financial gain let's talk about mark zuckerberg for a second because before the i.p.l. a lot of eyebrows were raised because according to

a shareholder agreement except it gives mark zuckerberg a double class system in terms of the stock an ironclad control of the board ironclad voting control and people are saying well maybe we need to get rid of this guy but you can't get out of this guy mark zuckerberg because as you pointed out months before the i.p.o. you're putting a twenty something year old kid in charge of a hundred you know multi-billion dollar operation and giving him especially an ironclad control over this operation there's no way you can get him out of there at this point correct not legally. the problem was a coburg is he's unproven you know he has brought facebook to where it is now which is impressive but the combination of being unproven the amount of competition that facebook has and the voting structure are you investing in something where you have absolutely no say so what you're listing in. you know it's not a quiz you know if they are going to avoiding you know going to a poll vote knowing that your vote will not count you know what the purpose of

voting right but living up to a common shares in equity and leading up to the i.p.o. to nerd of course have like barack obama put his arm around mark zuckerberg at the white house i mean that is i mean when i was working on wall street that would be considered an illegal inducement but now i guess a thing goes now speaking of lawsuits reggie middleton let's talk about another technology company apple company is very even following closely they managed to block some of samsung's new products and samsung a product line i know you're a big fan of what are your thoughts on what's going on here. well i think that's probably apples when from now i'm not a lawyer so this family perspective but i'm pretty good the common sense thing it looks as if it was when it's going to be overturned or it's a strong chance of it simply because you know it appears that the jury did fail to read the judge's instructions and in addition even if apple does win there are a couple of strings attached that apple's lawyers failed to take it consideration

and let this be in a lesson to small business operators an entrepreneur's grow wide that you know sometimes you should listen to lawyer for legal advice but let's not necessarily business advice so apple wins. they have a win they have a winning verdict a billion dollars it could be more samsung's products a block let's go through a few scenarios and they were number one a complete win for apple a complete loss for samsung legally ok samsung is out of a billion dollars or twenty two b. now as a revenue let's say because of the three billion dollars samsung samsung raises the prices of his contract manufacturing it is the largest contract manufacturer for apple so if you have samsung you heard apple because apple has to pay higher prices you know that's one scenario scenario number two and this is something actually happened already apple when the verdict ok samsung makes a technically superior product i think is widely recognized by almost everybody

after the verdict samsung's sells samsung's flagship product which is galaxy s three shot through the roof you have headlines that say sales go supernova they both remove it cetera so what apple did was they energize in total charge sales of samsung's primary competitor competitor product no this is obviously something apple didn't. predict but it worked to go contrary. to goals were ok and then you have another scenario ok apple loses ok and then samsung comes back in. with the come nation of google and partners apple actually gets some of its products banned this bannock again be temporary but this is a high stakes game and it is a game the apple never had to play in the past before apple attempted to innovate market so now they're trying to litigate that is a sign of a company that's used to speak and it's on its way down in terms of growth you know

apple makes a lot of money they're not going out of business but there's no in a word they can replicate the growth of the past five ten years by trying to litigate everybody out of business you see how it works and greatest when they had already your latest research paper boom bust blog dot com it's called does paper oil destroy fundamental market pricing so this is the kind this is the duality this is the contrast and the tension between the futures market the paper market and the physical market we see this in markets all over the all over the world but in the oil market specifically what are you saying well what i did was over and over academic studies on the financial ization of the energy markets in the commodity markets with a constitutional oil so i can tell you what i found those four those four have definite spikes in the prices of physical oil you know per barrel and a lot of these spikes are in are occurring in the face of.

perspective in the face of lack of basic will demand you know you have economic activity faltering falling in recessionary times but you have the price of oil increasing which you know doesn't make sense to me and i think many people so the first thing they look at as a financial person is to look to see if the people markets which is or the derivatives futures options etc have affected this now practically all the academics that's a free seven out of ten the eight out of ten paper has said there is no correlation between the trading in the futures markets and the price of oil are you talking about the physical markets the financialization of the paper markets and is there a correlation between these two and the reason this is playing out on the big world stage right now is because the paper markets the futures markets of course are tied directly to the price of money or interest rates and interest rates are being kept

artificially low with programs like quantitative easing and there's now talk of a quantitative easing three in the us and this of course keeps the cost of speculation down to near zero and it causes huge wealth transference from savers and workers and workers are having their work valued at zero because the money that they make as a zero time value of zero percent interest so they're asked and being asked to work for free and but you see this happening playing out with these central bankers is are these central bankers it looks as though they've taken an adversarial position against savers and workers because clearly the markets are not recovering g.d.p. is still declining wages are contracting there are obviously their programs are not working so what can we conclude reggie middleton other than the central bankers have taken an adversarial position against savers and workers your thoughts. we conclude that the central bank has as absolutely no idea what the hell they're

doing basically you know if they're trying to solve the problem you have to solve it you know and there's some pain to go through voluntary pain to go through so the problem this is something that's china be avoided in practically every tribal area of the developed world and europe right we all know what needs to be done in europe right you have to get countries go technically insolvent you know their american term bankruptcy you know they have to go bust ok you have to have the bondholders take significant if not complete losses decreeing start from scratch but in starting from scratch you have to have true fiscal austerity you have to tighten your belt significantly and they have they have to choose stimulus you know you have to hit the gas when it's time to speed up you have to hit the brakes when it's time to stop you know nobody wants to do everything that it takes you have people who believe in stimulus in the stimulus and you just have g.d.p. you know economy's going while eventually putting out then you have people who believe in full austerity but you know if you cut the circulation off the on the on

dies it falls off period you know and then the. cities who want the economy to get better but they don't want anybody who made the bad take a loss all right well you know if you made a bad bet you take a loss it's just that simple you combine all three and that's what's needed that's what the true banks refused to do because if you're banks in essence represent the oligarchy you will never ever be the power voluntarily so it has to be forced all right there's a central bank. casually act according to their remit we saw this on our paul volcker but under greenspan a bernanke either they've spent politicized they're playing political favorites and they're absolutely making very bad economy much worse anyway regimentals and we're out of time thanks so much for being on the kaiser report very welcome all right that's going to do it for this edition of the kaiser report with mate max kaiser and stacey herbert our thank my guests reggie middleton a boom bust blog dot com it going to send me an e-mail please do so at kaiser

report at r t t v dot ru and so next time next guys are saying.