global economy with mike stronger for a no holds barred look at the global financial headlines tune in to conjure reports . you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm tom harpur welcome to the big picture.

max kaiser welcome to the kaiser report you know markets don't know. banks. banks toure's ringing markets kill autonomy's banks trading fraudulent so-called derivatives kill wealth and savings baxter's shut down the entire fabric of our financial system through which we individual participants must operate. banks we're going to go over some of these banks theories and their markets and puppet politicians they own destroying markets because we've got a few of them in the headlines over the last few weeks and we've not had time to cover them but we're going to cover them right now j.p. morgan gets a big holiday gift from the f.c.c. . so we did mention this

a few times over the course of the christmas once this new copper market was given approval for j.p. morgan but this article points out in one thousand nine hundred six the world learned a japanese firm had cornered the copper market the company sumitomo was fined one hundred twenty five million dollars for squeezing copper supplies and artificially inflated prices at that point the largest penalty ever levied by a us government agency the commodities futures trading commission called the scheme one of the most serious worldwide manipulations we've covered of course the speculation in various agricultural markets and stuff like that but actually that's in direct speculation because their investors are buying say agricultural futures but if two weeks ago three weeks ago the s.e.c. not the commodities futures trading commission but the securities and exchange commission approved it they essentially legalized hoarding. in the form of a controversial fund designed by j.p.

morgan chase that for the first time will lead investors buy shares backed by physical warehouse copper to use as a form of investment well you know it's interesting to use the word hoarding who are nervous because according to economists in america and the obama administration saving is a bad thing because of somebody one person savings is another person's loss of spending and that we need people to just spend spend spend horning is bad and yet the ses see as giving the green light to wall street to hoard vital commodities why why is wall street interested now hoarding vital commodities is the day of the pawn paper apocalypse upon us yes it is the day of the three hundred year high bull run and bonds upon us with a magnificent spectacular burst and bond prices yes that's baked into the cake for twenty thousand team that's why they're hoarding things like copper because they

know that as inflation hyperinflation currency collapse rears its ugly head j.p. morgan wants to be there after having made money and totally destroying the system with the revenues they want to repeat to turn it by totally destroying the economy by horning commodities and remember we've discussed this over and over is that j.p. morgan essentially is the us treasury now the us treasury has deemed that china is not a currency manipulator that's part of their that's what they're saying publicly but this could be a war financial war against china in a way because china is the biggest user of copper now the article points out that this scheme the investors purchasing shares in j.p. morgan's fund won't be buying copper to use but to store data chrissy's of the fund are complex but its underlying rationale is straightforward the more shares investors buy the more comp. or is taken off the market and the more copper that is taken off the market theoretically the more valuable the copper and the shares

become the seamy tomo trader who cornered the market in the ninety's relied on the same essential strategy to artificially inflate worldwide copper prices so remember when you spoke to mitch firesign he said that they basically j.p. morgan now had twenty seven percent of the compromise. yeah well you know most of j.p. morgan's horning going on happens right here in london under the auspices of life masters you know you think of blith masters the first thing that comes to my mind is horror thing and her attempt to corner the market and all these vital commodities while her bank simultaneously runs up those three hundred year. bubble ha bonds yeah ok we're going to actually turn to blith masters in a moment but i want to point out that opec itself does not use the spot market to price their oil products because they said that's open to manipulation they use

futures the instead so here you are allowing j.p. morgan to enter this spot market essentially the physical market and rig copper prices they now control twenty seven percent of the copper market with this new fund and black rock is seeking approval of their fund which will be twice as big as j.p. morgan's and this but blythe masters however let's turn to zero zero most two years ago february two thousand and eleven when you spoke to pierre giovanna vic of giovanna vic dot com who wrote the book masters and this is what he said then she gets her title of head of commodities and sons this is extremely interesting because what you consume this book is that what is interesting is not the fact that you invented the credit default swap what is interesting it's a sense two thousand and seven she's behind the moment is she's buying through foods she's buying sugar in two thousand. she was already in brazil buying

everywhere you know. billy's life got souls on the other thing and this is why you know the prices are going up and to do it you're seeing the results yet while pierre giovanni is totally plugged in to what's happening in the french banking system it is a society general and b.n.p. of course are totally integrated into the global finance or terrorism network and we know the blith masters his book blast masters which quotes me extensively in that book by the way as he's two years ago he said this was coming the the the budget p. morgan these banks horning these commodities that's why we've been telling people that when the bond bubble bursts and commodities enter a phase of hyperinflation as just being telegraphed right now those of us gold and silver which is a way for people to get in on the action today just like like the masters wants to control thirty percent of the global copper market the people of the world should be controlling the majority of the solar market or the people of the world will

find themselves even worse off in a couple of years than they are today. well i can see where is this going where we're introducing it for copper why is blythe masters as pierre giovanni big pointed out in that little clip we just showed why are they accumulating. agricultural products he's been doing as he said since two thousand and seven two thousand and eight they of course owned the regulatory authorities so they of course would have known that they were going to get approval in this by the way the article points out that it's usually the commodities futures trading commission that would approve this sort of thing or not because they know the commodities market or allegedly they do this went through the f.c.c. because he's selling shares in these physical assets so the securities and exchange commission which is far more bought up right there in the center of new york rather than over in chicago they're the ones that gave approval for this one just because it's an exchange traded fund but it is a derivative it's the claims of owner of blackrock would have

a senior claim to anyone who owns the shares in a copper or exchange traded fund same thing with the precious metals exchange traded fund that's why if you're buying precious metals you wouldn't buy an e.t.f. because it's you're going to get paper and exchange for your shares are not going to get metal and this is really interesting because we've gone full circle on the entire history of the financial ization that's taken place in the global economy starting in the late seventy's early eighty's with the introduction of listed options in chicago which quickly became the market for listed financial futures and options in chicago so for the first time under reagan do you think election you had the ability to train treasury bill futures currency futures and that began the twenty five to thirty year period of the financialization of the global economy which made banks and like j.p. morgan and goldman sachs and these other global banks trillions of dollars in profit but now we're out the point of this bubble bursting so these banks very cage really are going back and realizing that the whole thing's been

a false from the beginning. and they're going to come back i'm going to they're going to corner all the commodities now that the bubbles bursting for the next way however max this could pull in a lot of members to the silver liberation army because this article actually ties it to silver and gold and precious metals and how those markets are open to abuse by j.p. more and more troubling is that the f.c.c. is decision collapses the distinction between precious metals traditionally used for investment like gold and silver and metals and other goods that we consume in large quantities like copper and corn is signal to the bankers that all goods are fair game for financial play no matter how vital to our economy or a well being so the past few years it's always been oh those silver bugs the silver freaks the conspiracy theories they think oh big deal and j.p. morgan's rigging market who it doesn't affect us however as they're saying oh my

god now all of us are going to be subjected to this j.p. morgan abuse. right that those who argue that the silver and gold manipulation stories overplayed you know they had some ability to argue the point in sold a library scandal which was a multi hundred trillion dollar global scandal involving manipulation by barclays and other banks that they admit they're not there's no more in any debate about it they said yet also the bank of england admitted to a manipulative little lie board so they manipulate lot more you're manipulating it's our global commodity and futures trading infrastructure which includes gold and some are to manipulate them down to make paper assets look better but i kind of disagree with this idea that ok we're going to turn all the commodities in the world into these highly manipulative exchange traded funds and other products and this is going to somehow cast a slightly different line in gold and so for the gold and silver still little story as a return of gold and silver as the backing of the global economy as the bond market

collapses is been in play now for ten years and will become bigger or more visibly in play this year and the next year as well as people like the hunt brothers back in the seventy's try to corner the solar market they were shut down because they were in the futures business today the summer liberation army has the ability to corner the silver market until blights masters thinking of late of course now again and finally on this story banks the f.c.c. in their statement when they looked at the london metals exchange where the element where j.p. morgan will be storing this thirty percent of the global commerce supplies they said that they don't see thirty percent of the supplies being taken off market will affect price so here's the s.e.c. openly saying there is no such thing as supply and demand in the price covering mechanism it's not really about the control of the physical stocks of commodities including copper so much as the impending collapse in global bonds and

the and the return of hyperinflation that's really the big. the story here j.p. morgan wants to be hedged against all the damage that they've created these past ten years because as the u.s. treasury and u.k. treasury market collapses fifty sixty seventy percent and you have five six seven million people in britain suddenly homeless they want to have the price of all the commodities like copper jumped fifty sixty seventy percent doesn't mean the demand for those commodities and has increased it just means that against fear that money apocalypse that they engineer or those prices are going to be at those levels that's what this is all about a bond collapse and not really so much about color and commodities i think sarah thanks so much for being on the gaza report thank you ranks all right stay tuned for the second half a whole lot more for you here on the kaiser report. download

the official publication if you so choose your language stream quality and enjoy your favorite. if you're away from your television just. not with your mobile devices you can watch your t.v. anytime anywhere. technology innovation holding these developments from russia. the future

covered. he. welcome back to the kaiser report on max kaiser time now to turn to david halsey's a senior research fellow at the open university in the u.k. david welcome to the kaiser report it's good to be good to see now on your bio it simpler dot org you write i think that current p.t.p. file sharing systems like bit torrent are essentially global economic experiments

from which we may observe new economic phenomenon so here we have. the file swapping which is relatively narrow what's known from bit torrent what's happening post napster era and you also mention bitcoin ok so burning all those together ok well what's interesting about the way the research has been going to see between the research is that because massive deployed systems i mean bittorrent it's the largest possibly the largest deployed system that's said to be. measurements can be made because it's an open system so anybody can go in a measure what's going on the data can be collected and data can be used to understand the kinds of economic transactions are going on within bit torrent now you might think a bit too it's not an economic system but in some sense it is because bittorrent depends on the exchange of data block for block now the way the bit torrent works

is easier to. fatah mechanism which is essentially i'll scratch your back if you scratch mine kind of approach this is still a very if you like primitive form of economic exchange so by measuring what's going on in bit torrent communities and different communities have different kinds of exchange relationships you know actually understand the fundamental micro interactions these fundamental economic my cook interactions they're leading to say the positive outcomes of bit torrent communities which is everybody helping each other to achieve the common goal which is the sharing of files well the current state of the bit torrent ecosystem seems to be reminiscent of what we had before copyright before copyright law came into existence you had this open free exchange of information and ideas and you could get argue i suppose going back before that you know it almost mimics the whole evolution of d.n.a. d.n.a. is a strand of information that meets up with new strands of information and you create

this evolutionary process but then there's something called copyright and the copyright lobbyist on the copyright some may even call it a cartel that are extremely. vigorous and their protection of their copyrights which seems to be thanks to copyright extension laws becoming perpetual copyright that's the goal of hollywood to have things under copyright forever essentially so how does that work with this open system and how is a conflict to be resolved well this i think you're right in what you say interesting leigh as you say when printing was originally invented a lot of the original printers were accused of piracy as well as promoting like subversive ideas so it's a very similar thing going on i think the interesting thing about the way the be torn is changing this. is that it's. we

decentralize distributed system it's a peer to peer. robo sed so it's very difficult to shut down so it's not the case that you can simply go to one website or go to one organization and usually go sanctions on them because it's fully distributed as long as users are running the. client that in fact the actual control of copyright cartels as you call them is. is not quite possible so this is why you see this kind of ongoing battle between these kinds of centralized organizations their own copyright and distribute users who are trying to share information ok now that ideology if you will that you are talking about the bit torrent information wants to be free ideology was expressed in its purest form i would say with wiki leaks and wiki leaks is the p.t.p. networks to take journalism to

a new evolutionary plateau but they met the financial blockade of master card and pay pal which shut them down so that brings me to bitcoin which of about mistaken is a bit torn approach to currency decentralize as it's virtually impossible to do what they did to be the master card by imposing a financial blockade or thoughts you seem trusting that you get a peer to peer solution to the attempt to shut down peer to peer publishing so as you say wiki leaks some of the infrastructure that depends on a certain period to peer into structure but also so there's a certain ideology of information wants to be free and this links back to when we talk about printers and printing if you look you know do your research and look at the earliest printers as well as being accused of being pirates and pirating novels and whatnot they're also publishing subversive pamphlets information that would

embarrass the government etc so essentially if you can if central. institutions and i believe it's the case it's my opinion that because of this technology new developments centralized institutions are losing their control potential control over the information that people share and as that control starts to loosen i think you'll increasingly see the rise of these distribute. attempts to share information with us for political purposes to promote democracy. or whether that. was the kinds of purposes of sharing information centralized entities don't don't when you check to financial services where sense you want financial services or information sharing systems with degrees of trust built on top of that all right now you talked about p.d.p. systems and you talked about it in terms of being economic and there being an economics involved which is to both. hidden the

copyright cartel as ray are now calling them they will argue that there is no economics or whatsoever with peer to peer file sharing that this is an attempt to overwrite all the laws of of capitalism of supply and demand with free p.d.p. however if you look at sites like well google for example here's a site that's a hundred billion dollars plus company based on the free aggregation of information which they organize to an algorithm and then sell the advertisers a piece of that organism organizing algorithm so there's the economics of free turn into a multi hundred billion dollars surprise talk a little more about the economics of p.d.p. and why the hollywood cartel is getting that completely wrong and in fact putting out a message that is the opposite of the truth well i think this all depends on the view you have of capitalism or all the way the economic systems are organized i mean historically economic systems change over time they're always changing change is

the norm and of course you have probably heard before. this idea of a disruptive change or disruptive technology now at any given point in time of course there will be successful entities who are doing very well in the current economic system and one of the incentives that those organizations have is to reduce or restrict disruptive change because by definition disruptive could affect and often does affect their dominant position so the way i see movement to a more distribute. kind of economics approach is it's a disruptive disruptive innovation which challenges more centralized more government regulation based current government regulation approaches that only you know in some sense if you go back to the disruption from a feudal system to a capitalist system it away capitalism is in a textbook sense supposed to be a fully distribute system it's the idea that individuals and groups can actually

exchange freely in order to satisfy their needs and therefore in some sense there's a kind of perpetual. if you look at kind of history or see where you start off with mainframes and then you had p.c.'s and now you have the cloud and then you have pete pete also in economics is there's a constant tension between attention for centralized control which has its benefits let's let's be clear about that and also a more distributed approach and there's always a battle go it's a constant arms race are you talking about the transition from feudalism to capitalism let's talk about the sixteen ninety four clearly a pivotal year in the transition this is the year the bank of england was established. anthony hard dame who is a senior executive at the bank of england recently said that peer to peer lending boom that's going on with sites out there that are making

a possible for people to lend to each other bypassing the banks on the high street . could make banks obsolete is what anthony how they set this shows to me is that sometimes we have a tendency if we're on the peta piece of things to see centralized entities as monolithic in the sense that everybody's involved in them follows a certain kind of ideology a way of thinking about things but actually within within all the essential. institutions quite forward thinking people. who very small know what's going on in a looking towards how perhaps the future. without maybe some sort of constant just stalemate now if there is a tendency to centralize amongst one group in a population and then there is a tendency to decentralize by another group in the population any talk about this in terms of

a natural tension that goes on and it seems hard coded to go back to the original algorithm that drives us d.n.a. between having people in the group that are both for control and people who are for chaos and the mix of these two elements somehow produces you know you might call it civilization not to get too high falutin but there is that our reality our present reality to follow up on this kind of wheel of chaos and control ever spinning there is of course now a move to regulate p.t.p. lending to some degree and to take it completely away from being out there and unregulated is that a good or a bad thing it sounds like it's a typical progression of things well i think the answer to all those kinds of questions when he was a regulation good or bad the question is what is the regulation i think some level of recognition and regulation the creates more confidence in the systems could be

good if it's written in the right way of course there's another side to this which i think he. which is you know this could end up being a way of co-opting or absorbing this into an existing centralized i'm thinking about for example micro financing which started out in a very much a decentralized off the grid entrepreneurial venture in bangladesh which was doing a lot of good and then it got absorbed by the banks here in london and wall street and it turned very bad very quickly yes i mean. things can go wrong as i said depends on i mean there's another danger not an expert in p.h.p. lending in the current government relationship there but i know that recently the goldman thing was about one hundred million pounds you know to promote. lending now there's a danger there which is if you become dependent or even. influenced by preferential

treatment by government and then that can influence how things operate i mean as you say the basic ideology here is to have as much individual freedom and entrepreneurial behavior if you like but the lowest possible level ok david thanks so much for being on the kaiser report thank you max all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest david halle's of the open university here in the u.k. if you like to get in touch with us you can do so via tweet or twitter at kaiser report or facebook dot com for slash kaiser report talks on mascot or saying by all . the wrong things decades. of people killing each. other there will be.

from society. brother. and my frustration. to the most violent in u.s. history.