and realized everything. i'm tom becomes the big picture. here r.t. headlines protests across the globe rage on for a sixth day as muslims vent their anger over a movie made in the us mocking islam protests have been spreading to new countries and continents the clashes even happening in sydney australia. washington strongly condemns the film in an effort to contain the scandal but opinion polls show anti-u.s. sentiment has been simmering for here is the. russian opposition groups marched through moscow after a summer long numbers fall short of previous turnouts despite the appearance of

public sector workers for the first time. a report up next stay with us. welcome to the kaiser report i'm max kaiser it's own merit call jamie diamond collateral transformation desk is feeding the multitude of banks with five quadrillion infinitely levers toxic derivatives and to treasury bills of a bank nation not to mention two total does. stacey herbert tell us more max kaiser yes j.p. morgan and bank of america are leading the way on this first headline here big

banks hide a risk transforming collateral for trade yes from next year we have the dodd frank rules coming in and that means that traders need to back their bets with u.s. treasury bonds or other top rated holdings so the problem is that the u.s. treasury bond market is ten point eight trillion dollars while the derivatives market is six hundred forty eight trillion dollars right right right right this is the collateral transformation scheme that's put forward by geithner and others is similar to the trans substantiation scheme that occurred oh i don't know five or six hundred years ago in the catholic church where they turned actually wafers into the bone of christ so you're taking basically something that is in a nerd object like an old toaster or a weed whacker or maybe some coloring books from tim geithner's grade school and

you're saying this is collateral to back trillions of dollars worth of derivatives . well yes and all of these derivative trades are happening now by a clearing houses like the chicago mercantile exchange now that's where they're monitoring it and making sure that there's some sort of collateral so in comes the seven banks including j.p. morgan and bank of america and they're the biggest because they have one hundred forty trillion worth of derivatives on their books so they plan to let customers swap lower rated securities that don't meet standards in return for a loan of treasuries or similar holdings that do qualify a process dubbed collateral transformation so literally somebody comes in with corporate bonds or non government backed mortgage backed securities so junk they can take that to j.p. morgan and j.p. morgan blesses it with a loan of a treasury bond which then they put on as collateral for him for example the chicago mercantile exchange but they have to pay back with that treasury bond they

have to get a treasury bond to pay back the loan eventually or this is market fundamentalism this is this is the church of wall street and jamie diamond and others giving their blessing to collateral that is junk i mean they could just open up the sluice gates of big and just have the junk pouring from attics of america into the balance sheets of these various banks and say that's the collateral missing a lower rate of securities they're not securities it's just pure garbage it's a toxic waste dump it's a fukushima nuclear disaster poisoning the pacific ocean tuna fish as collateral it's the equivalent of transforming garbage into gold it's the old alchemy dream doesn't work of course not you're just adding more debt on top of debt on top of that you're deferring the day of reckoning by a few months but you're guaranteeing a bigger to me this is a fine neutral nucular bomb maker well exactly many are now asking whether it's

averting risk or actually just transform. and hiding it so let's turn to this quote from darryl duffy of stanford university he's a finance professor there and he says quote the dealers look after their own interests and they won't necessarily look after the systemic risks that are associated with this regulators are probably going to become aware of it once the practice gets big enough so this is something you say all the time max here there will be a head of the regulators there concocting this whole collateral transformation market and it will be another twenty years until it blows up or maybe ten is a disaster and then the regulators will say well look here and see if there's anything that was done illegally but the regulators are always fighting a rear guard action that frank was trying to take a look at all the ponzi scheme ing that was going on up until then a during the process of the legislation the banks come up with some new ways to skirt regulations new ways to create securities based on what it took to expose

them they just discovered it anti matter particle that was collateral to spin another trillion dollars worth of debt to keep these bankers in los lifestyles while the rest of the world suffers austerity and make no mistake about it the people who are suffering austerity in countries around the world hundred million people now the roast in the body many of them are at death's doorstep to support the transformation of garbage into collateral to feed the stream of corrupt market fundamentalists so remember now with all the stuff that dodd frank bill jamie diamond has been very vocal about going on to the news and standing in front of parliament part of. standing in front of congress we might as well have a parliament by the way wise or just turn it into a constitutional monarchy but remember he was saying that oh this is going to be a disaster for our revenue stream and all of this and the banks need you know to make more money now or less well in

a section in this article on bloomberg called transformation fees so potential reward for revenue starved banks is an. and securities lending market that could generate billions in fees j.p. morgan and bank of america which have the biggest derivatives business among us banks holding companies with a combined hundred forty trillion dollars of instruments are already marketing their new collateral transformation desks this is not really the transubstantiation that backs the eucharist of the catholic church this is more like outright devil dump this is the devil because jamie dimon is saying basically that he wants to make money by creating more devil or securities with no collateral instead of lobbying for simply raising interest rates because if you raise interest rates then you can make money the old fashioned way which is to loan money but jamie dimon there's a lot to be a banker who doesn't want to be in the biz of lending money to make money on those

loans he wants to be in the double business he is a he is he is satan essentially and he comes forward with this trifecta of fraud which is a transformation transubstantiation a trance collateral ization of all garbage that is wantonly spoon throughout the universe as collateral for his bogus money that's the devil that shaking jamie dimon is saying if you see him on the street you know to do well here in this article as i just read to you they said it is an expanded securities lending market that will arise from that we don't need more debt we don't need an expansion of the securities lending market the problem with our global financial system is that it was already too leverage to expanding it was something that needed to be contained not expanded so here we have a way there always it seems like every single time anybody steps in to try to

regulate them they just figure a way to expand the market based on those regulations sixteen true. of debt in the u.s. is that up close to now two trillion in budget deficits that's not enough raising the debt ceiling every six months that's not enough a six hundred seven or eight hundred trillion dollar derivative supporting a multi million dollar notional value that's not enough now though we need more debt spawn for more quantitative analysis that somehow is mathematically proven to turn a weed whacker into a chilling dollar loan that's the business model and as i've been saying on this particular episode of the kaiser report it is conclusive evidence that we're dealing with bees above this man is the devil jim dagger it is the devil to do all part of the same metaphysicians of the same double dissolution ectoplasmic manifestation in the financial world so here we show again however that

the two different worlds that a banker versus a normal person lives and so not only do they get to borrow at zero percent and then lend to the government to the taxpayer at three percent. on the other hand you also have that they have the most toxic debts worse than your credit card that you're never going to be able to pay off and they get to swap it for u.s. treasury bond and then conduct business as if they have that as collateral so imagine if you know you arrived at penn station every morning on your way to your job at like some fast food restaurant and if you got to swap all your bad debts your credit card just deposit your credit card and got a u.s. treasury bond to return and go have fun for the day in new york city. jamie dimon j.p. morgan then made a debt payments in penn station they found a man urinating in the corner deaf a kid in on himself eating a donut from six months ago and they gave him half

a million dollars and lo and behold he couldn't pay back the money so that debt is now being exchanged to treasury for fresh treasury bills that are going to. lateral to make more loans don't most people or to go to a mental hospital and simply open the doors and say everyone has a ten million dollar logo as you've j.p. morgan thank you very much well that might help the economy max so now they remember this is all about the transformation fees so here's this had by max f.b.i. promised martyrdom payments to sting target and to me this reminded me of the banking system why investment bankers keep on blowing up the global economy and melting down markets the f.b.i. promised on mean el khalifi martyrdom payments of a thousand dollars per month if he volunteered to blow him self up so this was an illegal immigrant in alexandria virginia in america and they met this guy and they convinced him that they were paying his family his mother a thousand dollars

a month for the rest of her life if he blew himself up so he finally agreed to it because he didn't have any money and he thought this was a good way to take care of his mother and of course they arrested him this is genius it's layaway martyrdom. you can get to. see it all on layaway i mean it's only only the wall street banks could figure this out though do you think chick. suicide bombers and their closer allies are propensity to blow themselves up as a basis for a loan to perpetrate their voter scheme at the end of the year. so now they are making inroads into radical islamic. or as collateral to support their loans and then they wonder why building the system to blow up but that is this story is very similar to the collateral transformation they're guaranteeing the explosion of the global financial system once again because they're collecting the

billions and fees as the article points out now i want to go to one final headline here max and this is another collateral transformation scheme. owners lose possession after homeowner twenty nine palms is mistakenly foreclosed so wells fargo foreclosed on a home on which the got their elderly couple the guy built the house on his own when he was sixteen years old helping his father build a home and there's no mortgage on it but wells fargo foreclosed on it they sent a crew to break into the home of alvin and pat to joe hasse and took everything they took all of their possessions threw them away and they you know it was left for them from the deputy sheriff good news we know who took your possessions or wells fargo bad news your stuff is all gone. well robo banker you say one of the key characteristics of this. crew of the various democracies around the world is that anyone who's on a wage is being distant to mediate it out of existence so people don't make

a wage anymore they don't make a living anymore you get the bankers at the top who suck all the fees by collateralize ing jihad meanwhile you've got robo bankers robots showing up at your doorstep you know gunning down poor jimmy and jamie they're good kids and stealing all the stuff you know without any mind whatsoever because you don't want to pay somebody to actually do a proper foreclosure even if there was a proper foreclosure to begin with there's a totally improper for closure by robots but they're transforming your asset into their you know something that they're going to give to jamie diamond to collateralized and treated as a derivative somewhere else he's forming. these pooling jamie devolution. all right so he's here but thanks so much for being on the kaiser report thank you max don't go away much more coming away stay right there.

welcome back to the kaiser report imax keyser time now to turn to joshua bell ours a social justice first dot com joshua welcome to the kaiser report thank you all right joshua you recently wrote

a piece financial suicide lessons from economic demography tell us about this ok well it's sort of tongue in cheek go it's go. enjoy them several themes. the recent study that you actually featured in your shoulder which was the kind of inspiration for the old school cambridge search i would just. use the particular technique to. model your mobile sort of stories that have occurred in britain. purely to the recession and found it to be around a thousand so just purely due to job losses or the kind of chaos that we've been experiencing in britain around a thousand people have been led to commit suicide who wouldn't have otherwise ok let me jump in for a second because since the crisis began is spend talked about in terms of a victimless crime that these are bankers that they're very high paid it's very sophisticated they're just shuffling

a lot of paper around and there are no real victims on the ground there and we've made the point repeatedly that there are real victims of the. there is a calculated bet being made by these bankers where the collateral damage the suicides yes are baked into their equations and they are externalized they don't care there is contempt for human life is that too strong a statement rather than contempt i would say just absolute lack of concern they don't they don't have to think about it before either understand or the connections between you know what they're doing in the broader economy necessarily only say they don't understand the connections clearly they are able to read a newspaper and they see that people are committing suicide due to economic. economical pression as it's called you know in the mervyn king brings interest rates down down near zero that causes people to commit suicide because their savings are wiped out and their wages are valued at zero because when you say the price of money is zero you're saying your worth as

a wage earner is zero so there's a direct connection so is it just going to this is this a yes oh my opinion is cognitive dissonance. the way i like to see is all this all this whole thing is kind of you want to you want to but where the wealth flowing which direction where is were flying from where is it flowing to the kind of in britain the policy is it's kind of i see it's kind of a double. like a double here because on the one hundred euro you know the bank of england this is quantitative easing so it's basically printing money to give to the banks were not technically printing but if you see it like that so that's increasing the claims on wealth that are in the banking sector one of the same time the treasury is you know implementing austerity so it's depressing the real economy so control over wealth is increased in the financial sector it's. decreased in the real sector which leads to job losses which leads to all sorts of things and the point is that . it's on accident it's

a toe or coherent policy but you can imagine individual bankers just thinking oh i'm just doing my job i'm doing what i'm told the c.e.o.'s you know the. their lifestyles they it's kind of easy not to care they can look at looks like people are you know running around like headless chickens you know you can rationalize it you can say well you know these people are not working hard enough and of course it's kind of like a self. justification it's like you know it's like it's like any so any discourse is not racism you know you need to and he said greeks are lazy bear in the trouble they're in because they believe me not because of the structure of the euro not because of illicit financial flows from greece not because of their forty six billion euros in switzerland you know it's an easy scapegoat a scapegoat but also a kind of takes the pressure of you so that's that's the whole point of scapegoating one sector of the population you know paul more a former top regulator boss was on the show recently and he pointed out that the

number of people thrown into poverty as a result of this crisis one hundred million and that from that number he's saying many are have committed suicide many are dying many are on death's doorstep and we liken it to a financial hole a cost now you know i saw a report just on local news here the b.b.c. they're talking about italy and the fact that london bankers were in milan and they mis sold credit default swaps and bankrupted the county the inner bankrupting the the country and it was all part of joining the euro you know to hide debts to join the euro and we know that from the period of when greece was joining the euro goldman sachs was down there conducting massive fraud your high debts are to allow greece to join the you're also hearing our two countries greece and italy who are frauds only induced to join the euro thanks to book cooking and fraudulent schemes by london banks wall street banks and it's not

a matter of mis selling the way the b.b.c. will characterize this this is not mis selling this is a calculated fraud as part of our financial hole a cost then b.b.c. by using these words is guilty of appeasement yes you know just straight up lying yeah we have a lot of this you know they took too many risks they didn't take too many risks they deliberately made. the worst possible worms because what you want is you want people doing that to you because then you can extract wealth so what you said they are issued these credit default swaps and now these governments after total of all their crooks are lost to them to the banks so. you know they're going to tax the population more and that austerity will actually the press and the economy so the other dynamic i really wanted to capture was was about the you know it's kind of a short minded grab of wealth but because that ends up destroying the economy it's eventually everyone will lose to germany at the moment and it's kind of the driver

in europe kind of if you are pushing these this increase and in all the peripheral countries telling them you know you need to cut down but eventually that's just going to just destroy the german market for exports and it's already happening so germany will actually lose in the long term as well so you know this kind of political capture where special interests are able to. essentially vote for the majority of the population with political kind of sunshine and actually everyone loses and the others are much are a second but first let's kind of stick our money in here in london is become the epicenter of global fraud because primarily the regulatory environment is nonexistent the f.s.a. is nonexistent they are a regulator for hire you came from a few bucks and they'll sign any document blindfold that they've got no accountability to anybody essentially so you've got a.g. was in london you got money bernie made off went through a lot of lehman brothers the local and then the well of clue m.f. global ok and they have this concept every our party cation where they can use as

collateral securities and then use the same securities as collateral again infinite number of times it's all the same thing an infinite number of times of london if you took fraud out of the g.d.p. of the u.k. . what would you have left over anything it's all to do with what you measure is actually productive activity because i've had this conversation with friends but you know we need to succeed because we will of course come from but how can that because that's the opposite of fraud is you know fraudulent bets or even worse because it looks like there's a claim on something but there isn't so. you know all sorts of numbers for a second because the government is saying the city is worth five or six percent of g.d.p. or something like that but they don't relate the ancillary markets deconstruction better part of the fraudulent boom in mortgage lending that's often on land and all of the services industry that are tied into the city but it's actually the g.d.p.

you know rough back to the ample of calculations probably closer to thirty percent of g.d.p. of the u.k. is tied directly to financial fraud so if you were to take this is why they don't want to regulate because it would destroy the the economy entirely and people actually have to get jobs and make an honest living and that's abhorrent to this coalition government but ok let's go back to germany for a second because we talk about the endgame with germany here and there's two scenarios here either a there are suicide bankers and they're just painted themselves into a corner and they too will go down the ship or be they are basically getting countries on the periphery to give up their sovereignty in exchange for loans until such time as they obtained all the rights and privileges of these countries they have a rent seeking play on these peripheral countries at which point they turn the loans begins back on growth begins to resume but it only. greece and ireland and others have lost their sovereignty that's the that's the second

scenario your thought it seems to be bernie. essentially become the next territories of percent of is there's not really any other way oh because i'm. you know the fundamental problem is is the structure of your and the inability of these countries to devalue and because germany's suppress this wages below productivity these other countries can't compete and so the the effect as harmful aspect describes it as exported unemployment so that they can really go down and down and the only solution is to have a kind of federal system whereby the surplus that germany makes at their expense would be reinvested in those economies and the only political where you're likely to get away with you know among say the german public is if these countries are based economies so that's the irony you either stop doing what you're doing now or you if they offer you a long term a tool then that's the only sort of sustainable direction they can go why can we not assume that they are thinking long term we've had three right here ok i mean

this is a problem this is in the blood the target blood i mean i this is just historical fact and why would this be germany four point zero zero well i guess i guess as someone born in britain a school that would be the kind of overall most people might suspect but you know they are it's probably the case it's probably the case that you know the power elite wants more power. but you have people already seeing it like that i think what part of the problem and the reason people don't see it is that so much of the conquest is done through algorithmic trading and automatic trading and through the ability to manipulate the infrastructure of information and so you don't see the storm stooping troops you know you are being colonized nevertheless finally george osborne here in the u.k. he was good at the para olympics and he's got an economy in recession back in recession and he's sticking to his guns yes doubling down i guess you could say in

his austerity program and your thoughts. more again this is an even more bizarre because a common occurrence even see what the long term goal is. it seems just to be pure straight up. political corruption i mean he's printing money for the banks while taking it from disabled people you know that doesn't always during which is hard to believe or he just is doing what he's told and for the u.k. which which has overstepped. this kind of policy is going to create more that reduce the ability to pay so it's just a disaster but a few people will oversee a benefit you know like how the richest people in the u.k. have been richer become richer since two thousand so it's a coincidence they just maybe it's just a coincidence. of luck. joshua mellers of social justice first dot com that's all the time we have thanks for being on the kaiser report thank you and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert

i guess joshua bell ars of social justice first dot com if i send an email please do so at kaiser report r t t v are you. technology innovation all the developments around russia. the future or covered.