sometimes you see a story and it seems so for life you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harpur welcome to the big picture. of. me is easy. easy easy.

it's. so. welcome to the kaiser report i'm max kaiser oh what a wicked web we have when first we practice to deceive said sir walter scott about the global derivative markets natch or at least he could have the deception at the

heart of the derivatives market is of course that risk can be separated from reward and once removed this risk can be disappeared like so many bearded men and little children in the war on terror gone. disappeared. gone disappeared. but the first law of thermo derivatives says that risk can only be managed never destroyed and so because of this practice to deceive we have a wicked web of libel rigging price fixing gold suppressing central bankers atop a pyramid of algo grifting client account stealing risk shifting banking scoundrels who have caused the global financial meltdown stacey max keiser yes we are all trapped in this weekend web and you can see that in places like ireland where we were stuck in this web of deceit that they've created of all these

derivatives and projects and debts that nobody can move without getting stuck further into this web of deception but when these deceivers get caught one of the things in a classic con is to try to blame the victim so let's look at some of these headlines regarding these deceivers and now that they've been caught s. and p. lawsuit portrays c.d.o. sellers as duped victims oh the poor suckers at citi group and bank of america fooled about the stench of their own garbage by those. sneaky credit readers at standards and poor's so the u.s. department of justice as we know has filed a civil suit against senator port the rating agency saying that they fraud gently raided these collateralized debt obligations of the subprime mortgage packages and the u.s. justice department made some peculiar allegations in this lawsuit this week against s. and p. and its parent mcgraw hill according to the government citi group was defrauded by

s. and p. credit ratings on subprime mortgage bonds that citi group itself created and sold bank of america to allegedly was defrauded by s. and p. in the same way if you look at a mafia movie the witnesses get whacked so the rating agencies were paid to give bogus ratings this was a story six months ago moody's s. and p. fitch all took money under the table in bribes to give faulty or dishonest ratings they rated toxic securities that were in the paper they were printed on aaa rating they were worthless they're all witness to the fraud so now citibank is going to try to whack him moody's which is as it is a big position moody's by warren buffett so he may have to a let one of us captains moody's get whacked because they're a witness to the crime so as the gets different more and more difficult to. to

repeat the same con. the money is tight even in the professional circles of larceny that is wall street so now there are more in about the about the whacking business however in this case s. and p. decided not to settle with the department of justice they actually want to go to trial because they reckon this is so absurd is beyond absurd that even the normal person out there is going to see how absurd this is it's so high hard to hide the absurdity of something is going to end up in the witness protection program for. rating agencies because they get whacked no make up protection right now i mean one of those guys will be disappeared as we alluded to in the introduction people are being disappear into like jimmy hoffa i mean whoever runs s. and p. now is going to go the way of jimmy hoffa is just going to be in a cement shoes somewhere at the bottom of the river people say whatever up another guy i don't know i guess he's got a vacation. day the department of justice is suing the s.n.p.

under a one thousand nine hundred nine statute that covers frauds against federally insured financial institutions so there are about twenty four collateralized debt obligations issued in two thousand and seven in particular that they're suing them for under the government's theory citigroup and bank of america paid s. and p. for ratings that convinced the banks their own c.d.o. awful was rock solid and because s. and p. deceived them into thinking the best of their own rubbish these banks and other lenders suffered more than five billion dollars of investment losses according to the suit while the banks didn't lose a penny they they apply for bailouts and got bailed out the taxpayer through austerity or inflation is suffering and i think that in the case of these rating agencies who are packaging fraudulent securities i mean look what happening in greece for example the rating agencies plus citibank plus goldman

sachs plus lloyd blankfein member there and grace they gave to play rating to toxic securities that they knew would blow up knew that the country would blow up and they're in there with privatization schemes they're taking over assets for pennies on the dollar as part of a leveraged buyout of a country called greece. and so now as i said there witnesses are coming forward in the saying wait a minute now that people are on the streets with torches and pitchforks and looking for their pound of flesh we want to point the finger at citibank and citibank is saying wait a minute we need the government now the department of justice under holder who's he's a hit man he's going to whack him one way or another of course bank of america and citigroup have a long history that one could see that they didn't they are very innocent these two banks in particular would have no understanding of the fraud they themselves were perper to look up argentina you know back in the eighty's and ninety's they had the government nationalized citibank private debts. and then to force the the people to

suffer through austerity and so citibank is a serial. financial. high jinx or you know i'll going to avoid the t word for today just just for writing i mean if i thought the t. word is being prosecuted in this country or america i would mention if i thought it or drone sent up the strength of jenkins over at barclays bank and exploded in this intestines of splattered on the wall i thought that would have any effect if i thought the government would give a flying hoot about their own population i would mention the word but i don't because they don't well let's talk about the u.k. because of course this week we've also seen r.b.s. fined six hundred fifteen million dollars most of that is going to the c f.t.c. in the u.s. department of justice and a little bit to the f.s.a. here but here's the headline regarding this max maybe miss to blame for libel or fixing i've never seen this but i'm pretty sure i know what you're going to say that their mates on the phone and they're just swapping gossip and they happen to

slip into their gossip oh would you mind rigging the live bore is that what's going to bring this up the story's going to be close so following this fine stephen has through the c.e.o. of r.b.s. the taxpayer owned r.b.s. was asked is there a risk of a cartel between investment banks to deliberately fix the libel rate has to reckons that the problem is that more a junior level there was a meeting this city bars kind of thing going back to the big bang so he's saying in the beginning there was nothing and then maggie said let there be fraud yes in the beginning there was stephen hester and on the day he committed massive fraud on the live more scandal and he's blaming his makes he's blaming oh it's meeting this well i'd like to see him use that defense you know it in a situation where the crimes are a bit more obvious you know people don't understand. when the stephen hester

commits fraud f r a u d in case you're wondering how to spell that word stephen hester committed fraud serial fraud serial fraud to matter. when you commit fraud. people don't understand that it has consequences. and so stephen hester's defense that well a bunch of my mates were arguing for gay rights down in what starts out our director lives in brighton well you know we didn't take on board the fact that we were committing massive acts of financial fraud because we were touching each other we were naked we were in a hot tub and one form i mentioned hopped up naked i was touching his bomb and i said hey buddy i'm stephen hester what you really like or for me any sort of stupid i love you and they committed this massive fraud statement after saying you know we're mitch we know we're we want rights for for fraudulent market riggers and cameron saying i've got the entire backbenchers behind me they're trying to blame

this libel rigging on a few bad apples and that these few bad apples did it for personal gain i was not an institutional crime the institutions themselves were not involved in this and they said they found no evidence that this went up to the senior levels of management and they are and they also found from the emails that the libel raking did not stop until november two thousand and ten at r.b.s. two years after the taxpayer owned it so the taxpayer itself is complicit in these crimes by the way that makes them but he's saying that it's so it's not an institutional systemic fraud and it's not a conspiracy and it's not a cartel the classic ingredients of a rico lawsuit and yet even on september nineteenth two thousand and eight you see an email going back and forth from enter dealer broker b. he writes to yen trader one can you do me a favor you're not going to get paid any bro for this and we'll send you lunch around for the whole desk can you flat can you switch to your semi at five in three

quarters one hundred yards meaning one hundred billion between u.b.s. just get take it from u.b.s. give it back to you b.s. he was a pace some bro we won't bro you noticed all erotic language of the r.b.s. traders there in the hot tub of fraud and they're touching each other and they're. saying wait a minute don't tell my wife don't tell my wife that i'm in the hot tub committing fraud massively stephen hester's right here giving us all nice all of oil rub down thank you stephen hester put it back in your pants and tried to act like you're not a complete fraudulent hoaxed or so another journalist asked why they are serving no time why they're not being arrested because if you rig a sports match for example you would do time you would be arrested and thrown in jail when fourteen year old boys join in on a nationwide riot and steal a bottle water member david cameron said if you're old enough to do the crime you're old enough to do the time i'm going to can't take the defense that they were

just mates there maybe where maybe well that we torched the corner store and we stole of baba lucas say and then we set the guy on fire. because we were being made i mean why can't they use that defense that's right there in the white yes now r.b.s. not keen on blood on the market for the sake of it this might be the takeaway quote from the r.b.s. board sir philip hampton says that he hasn't seen the need for multiple casualties or near the top of the bank for the sake of blood on the carpet him explaining why they didn't need any arrests or that they didn't need other than these twenty one bad apples that they identify junior level bad apples resident apples and the h.s.b.c. money john money cartel bank scandal the barclays libel or rigging the. other two major banks involved and a i.g.a. of the mis selling scandal the the credit default stand on every single orders for major banks in the u.k.

the inter board of all these banks are or are complicit to fraud f r u d they're complicit in fraud go over here tell me you're not fraud but you won't because you're busy in the heart of touching each other well it's coming down here and it got it for your fraud that's unconscionable. thank you thank so much for being the cause report you. say to have a second half of a speaking to misfire stein author of planet ponzi. couldn't take three. three. three. three. three. old freeboard video for your media project free media r t v dot com.

let me let me hear one wouldn't let me ask you a point. here on this network because we're having the debate we have our night. before you leave this space station never get here it is great we're going to talk about your name and we. welcome back to the kaiser report i'm max kaiser so i'm not a go to make. planet ponzi which i'm holding here right now this is the book that

explains this is the the result of the entire global scam mitch welcome back to the kaiser report thanks for having me here all right and you have some props some lovely props i like what i say tell me what what. solve this well the x. i think that what we need to do is explain to everyone the scope scale and magnitude of what a trillion dollars or three trillion dollars actually means this is a u.s. hundred dollar bill hundred dollar bill. this is my briefcase if you take this briefcase a million dollars is a lot of money to me you can fill it up with hundred dollar bills and it would be a million dollars ok i got it so this is the roughly the size of one hundred a million dollars one hundred dollar bills correct now the fed's balance sheet which is over three trillion dollars that would be in hundred dollar bills if you were to stack them up it would be ten thousand times taller than are actually eleven thousand times taller than the empire state building that's pretty high

three point seven million meters tall ok so it's vast one point four trillion is the entire amount of money the monetary gold in the world now not before this crisis started they had roughly eight hundred billion on their balance sheet now it's over three trillion that's right and during the crisis as part of the deal with the crisis they swap toxic assets with the banking community for fresh treasury bills and they keep those toxic assets on their books with the idea that at some point we're going to take it's a make it at some point growth will happen and then they can unwind that balance sheet but gross not happening the problem is there's a blame game going on the favorite game is three three different elements of it divert and deflect do delay and pray and extend and pretend that's the bag of tricks that they have unfortunately you reach a brick wall at some point and the effectiveness of q.e. starts diminishing each time you do it right because going back to you know if you

go back twenty thirty years there was the idea was you can float debt the debt creates growth and the growth as long as the g.d.p. is rising faster than the rate or percentage that your debt is growing your net net you have a growing economy but starting a year ago or so no matter how much they inject in the economy there doesn't seem to be any growth so instead of changing course instead of saying you know maybe the strategy needs to be reworked maybe we take another direction they're doubling down they're just they seem to be you know the very definition of insanity they're just doing more and more of it and as a result this is leading to real. well inflation that you really see in stuff i see you've got some silver this is the kaiser ethical silver around you have a gold krugerrand which i hold onto and just for safekeeping safety safety that's explained that a year ago the cool the safety it's safe it's safe now it's never been safer so so what does what it why did you bring these today well i think that what's going on is asset bubbles are being inflated by the central banks around the world by

starting a current japan starting a currency war i don't know how many people realize that but when you inflate asset bubbles to create phantom collateral to support debt based aggregate demand which is what the central banks are screaming about keynesian theory let's create aggregate demand what's going to happen is the debt based aggregate demand that they're creating with phantom collateral that's going to evaporate and implode when the stock markets ultimately collapse because they're not based upon reality ok let's on printing and then the debt is going to remain and what's going to happen i mean pensions are evaporating the pensions people are screaming in england because of what's happened with the pensions and it's a good thing that the m.p.c. has nine members who can vote against more monetary stimulus and against more unlimited money printing i mean bringing somebody in to print money is a dangerous game all right so two points terry mentioned pension holders in the u.k. suffering and the bank of england put out a study that said for every pound that is being saved on mortgages let's say with lower interest rates they're losing two pounds and savings and pension accounts and

in the insurance industry so that it there again you have the arithmetic of losing now you also mention this idea of collateral collateral value so we know that in the global system of banking it works on fractional reserve where banks hold maybe ten percent of the loans that they make but over the past ten years mitch correct me if i'm wrong they assimilation of these trillions and trillions of dollars of bad debt means that they're not really holding time percent and i'm really holding one percent in the case of the federal reserve bank you know they're there what's the storm. the core money that the base money the base money is relative to the debts they're less than two percent now correct leverage in europe has not changed leverage is getting bigger in the u.s. too big to fail has gotten bigger now there's a couple things we want to talk about here numbers never lie but people bankers and politicians do so you can manipulate numbers to say anything and inflation is a good example of that oil prices for example i brought another prop along if we

take a look at this oil prices since two thousand and eleven as you can see are up thirty six percent yet the official inflation numbers as the government would like you to believe they claim are benign and ben bernanke he says they're controlled similar to when he said in two thousand and eight or nine that sub prime housing crisis was contained what you also don't see in in many places when people talk about buying equities and equities are undervalued if equities were really and truly undervalued you'd see a lot more merger and acquisition activity which you're not really seeing but gold in the past ten years as you can see from this chart is up over five hundred percent and the equities returns have been flat or or or minimal well you know this all sounds all very fascinating and we know the risks we've covered the risks and it people say well one's going to explode i think we already are seeing it exploding and something called the currency wars but what i mean japan is one of the crucial players in this their currency against the euro and against the u.s.

dollar and the pound if you look at it there's been a gigantic move in the past six months i think twenty six percent the euro has moved against the yen that's currency devaluation currency debasement it's a devaluation and sixteen percent against sterling and sixteen percent against the u.s. dollar. now the euro this is a hundred euro two hundred euro note if you notice yeah i can't even tell it looks like play money they've got a bunch of arcs on here and some bridges do you know where the bridge goes or where this bridge is that would be the point nuffin in paris connect over the sand this is where i first met stacy herbert well no it's actually the bridge to nowhere because they couldn't agree upon what what countries bridges to put on here so they made it up it's imaginary like the value of this currency is appreciating on nothing just on air so it tells you what a bad state the economy's must be and you know spain is ready to implode you can't believe anything that the leaders of spain said you know there's

a corruption charge going on there and quite frankly they have they've had negative g.d.p. negative income from tax revenues twenty six percent unemployment sixty percent youth unemployment and people are buying those bonds that's only the banks that have taken money from the l.t.r. oh are investing in those bonds those bonds are way overvalued in my view ok that gets back to the plan a ponzi because this is a lottery ticket and plan a ponzi correct basically so it's a worthless piece of paper with worthless monuments that has a little hologram in one corner that is backed up by the value of the european central bank but their pay and central bank itself is imploding in terms of its let's say base money to debt ratio is imploding it's exact it's expanding alarmingly at an alarmingly fast rate that they they're not growing there's no savings it's become a whole gram well there's been no deal leveraging in europe yet none of the banks of the lever and that's

a massive problem because you don't know what kind of toxic assets are on the books of the banks i mean look at m.p.'s and m.p.'s scandal all the emails disappeared are you shocked i mean mario draggy was the head of the bank of italy at the time and all these e-mails have disappeared there's an investigation quite mortgage backed security so he went down having all right that's that's exactly right but you know that's monte de passion ok we've got a minute or so left and i just want to talk about the strategy here to the exit strategy the unwinding strategy because they've got all these banks they've got all this incredible killings of dollars of bad debt they say. bernanke you said well we can start on winding in fifteen minutes no problem that's what they say but of course once they do start to unwind there's an actual bid for these things that they're trying to get rid of and then the rest the market knows that the it's not going to be supported by the central banks anymore and going to sell so they're going to be selling a desert when all selling at the same time so you can have a huge crash and they and therefore a lot of people are saying there is no exit strategy this will never end what we're

heading for mitch curious what you think about this would be a global reset. like we had a brain was after world war two that won't work i think that you'll have to have sovereign failures and what's happening your engine can your thinking pretty there'd be others want to get a first one and that would be hyperinflation you know i think i don't know it's going to hyperinflation but you're going to have east if you debase the currency by thirty percent that's exactly what you're going to get there is no exit strategy there are no buyers for the massive amounts of so good global ponzi scheme they music stops and somebody doesn't have a chair and that somebody ear think it is japan well the first one might be japan but the united states has to get its way out of debt they can't kick it down the road any further which is what they're doing that's a strategy that doesn't work hope is never a trading strategy ok yeah that doesn't work i mean you know how you can remain alter the longer the markets remain irrational that's exactly right you know why board library scandal was a tip of the iceberg as you know there's a lot more out there but lack of enforcement as usual is the problem they have the

tools to do it they've chosen not to do it look at m.f. global what happened to that i mean one point two zero and let's end on course i disappeared off into the sunset so you know i don't think so and yet so what do you think about this idea that the banks are now saying that they're victims that they were involved in these toxic c.d.s. because the rating agencies gave them high ratings it's kind of a ridiculous argument but you know i think that that argument s. and p. they're going after s. and p. and if one was guilty they're all guilty you know i think that the banks could have been unwound like the savings and loans in america and the resolution trust corporation that was the depository for all the bad stuff during the savings and loan crisis in america that is what now people call it bad bank correct correct well i want to go now to that bank it is a bad bank right so they took all that junk they put it into a bad bank they essentially planted the deposits they got new management and

they brought about competition got rid of the bad guys made a competition and they tried to work out of the bad debt over twenty thirty years. as the market hopefully improves you kind of leak it out leach it out and you can get rid of it over time but the idea of creating a bad bank now it's in a six hundred trillion dollar global derivatives market and it is like you need a bad planet i think this is a planet he's a bad bet when it ponzi but i think that your six hundred trillion in derivatives is an understatement if you look at the controller of the currencies website it's exponential the amount that they're admitting to on balance sheet so you know that it's probably much larger it's a much larger number as always when they report losses like the whale went from two to six to whatever right. it's bigger than six hundred trillion i'm telling you need a bad planet that's exactly what it took to store like sequester the bad ted policy is the way out planet x. way it's the way out we're going to monetize planet ponzi this is going to be the new collateral holding the global central bank could you can float

a one trillion new credit default swaps using this is collateral is always c.d.o. yellows and see all these products have come back and leverage has gotten bigger there were no lessons learned by too big to fail the regulators have lost even more to keith that there is no guard dog the guard dog has no teeth but a reasonable bark on television that's all the time we have it goes by so fast we'll have to have you on again soon but thanks for being on the kaiser report max i appreciate it was great thanks for having me ira 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 misfires stein author of this classic instant classic plot of poncy if you'd like to contact us please tweet us at kaiser report or at facebook dot com for which last kaiser report so next time ask either saying bio.

technology innovation all the developments around russia going to the future or covered. you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and 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. worse for the. white house today radio guy and plot available minutes from a quick. watch a watch to do good you never achieve anything like this i'm cold.