max kaiser this is the kaiser report yeah we're still in new york city stacy before we start i want to oppression of time square nine hundred sixty five. this will kill sign above times where it's all gone now lomax people really want to know not about the callahan but they want to know about the cyprus man what's happening on the streets of cyprus so we're going to talk about that because there's you know there's a little song called by fiscal cliff richard i don't know if you recall this we're all going on a bank holiday no more spending for a week or two not much fun or laughter on a bank holiday so of course the bank holidays are here just as we predicted on price report yeah absolutely we've been saying for

a number of years that at some point two things are going to happen one bank holidays and number two the same people who are committing these massive frauds around the world are going to reach in your bank account and start stealing your money this is the beginning of a major trend money in the bank is not safe only keep money in the bank you're willing to lose yes and of course one thing that is actually on the positive side about this is that at least now you see that you see that your wealth is being stolen because we've been talking about that for years is that quantitative easing has been stealing your money is confiscation as well redistribution is taking from the savers and sending to the speculators so i want to look at the same sort of deposit levy the savings levy the savings tax the wealth confiscation that has happened over in the u.s. and u.k. already for years now first this is a tweet from jim rickards if you think u.s. is different from cyprus it's not four hundred billion dollars per year goes from depositors to banks via fed rate policy fast shade.

interest rate policies are bank theft by another name but that didn't get the economy stimulated the way they wanted it to but these steps are still there that were incurred by the banks who took all the money so now they're just going to give up all pretense of enacting a policy and they're just going to reach in and steal your money. and let's see what has. happened in the u.k. which has had rather call quantitative easing and we've talked often to save our savers simon rose well he's got an actual he's broken down the exact number the exact pounds that have been stolen from pensioners and savers for years of savers propping up the banks and subsidizing debt save our savers is calculated that the total cost to savers in the four years since march two thousand and nine is two hundred twenty point four billion pounds max that's on a total savings in the u.k.

of one point one trillion pounds so he's to basically half of it is because of inflation and half of it is because of reduced interest on the savings account very well even the bank of england released figures six months ago they said for every pound that people are saving on their mortgage through artificially depressing interest rates the economy is losing two pounds from interest income that would have gone in these pensioners accounts and spent in the economy so it's a form of financial suicide and there was as a result there was no growth so now they're just going to reach in and steal your money was shocking to me so there are still people in the media who are trying to rationalize this and justify this claim that it's something other than just state sanctified fest so remember saver saver says two hundred twenty point four billion pounds of one point one trillion that's almost twenty percent folks so where is that up where where are the people storming you know the prime

minister all power how if interest rates are five percent in the u.k. eventually trace or five percent of the united states the amount of money that would be circulating in the economy not sitting on corporate balance sheets like apple is projected to now one hundred seventy billion in cash in the balance sheet the next three years if interest rates are at normal rates to reflect the normal historical trends the economy would be in a growth the g.d.p. would be expanding why they keep. zero percent because it lets speculators speculate for no cost they keep the winners we keep the losers it's perpetuating as part of a new form of financial fascism so why all the quantitative easing why all the deposit levies why tarp why m.f. global why why lehman brothers why the one to the well why all these well confiscation schemes what is happening well actually if you've got a massive crisis with one thing it says there about him is that he is often talking about the notion of accounts max explain to us what an account is well you see it

with the cyprus situation in other words the country had built up a number of faulty trade securitized trades that were never appearing on anyone's books officially and they kept them in the air account or off the balance sheet and with the idea that at some point at some growth they will leitch those areas back onto the normal balance sheet by paring those losses against newfound games but those games and those growth is never coming so those errors those losses are now manifesting themselves on these balance sheets without any any way to hide it so that side is gone out all these all these errors and broken trades and and losses are so are sticking out like a sore thumb and so the only way to to square the circle the only way to pay it off is just steal people's money from their accounts to pay off the debts from two years ago three years ago four years ago it's been sitting in these erika's for years well at davos the world economic forum in two thousand and eleven we didn't

see it we didn't cover here on the kaiser report the fact that bankers there said that we need one hundred trillion dollars so that was their number that's how much they need that's how much they are going to at the end of the day have to confiscate through inflation through deposit levies through a i.d. through lehman brothers through m.f. global the world but before there was m.f. global and a lot of people are saying that the cyprus situation reminds them of junk or is nine. j.p. morgan just taking segregated client funds which is again supposed to be a taboo nobody supposed to do that just like you're not supposed to take deposit or funds but before all of this there was refco and i want to go to two thousand and five october two thousand and five refco had just collapse it was a commodities futures broker and it collapsed and here is a song max keiser did. two

hundred fifty really. just forty two point. zero when it broke many years ago at this time this time this was really the beginning of this new era of post regulatory financial securitization and jim rogers i remember at the time got tagged pretty good he's not been vocal about it i wish he was more vocal about it he kind of set the stage for the m.f. global and these other confiscations that have come down the road i want to look at

one in particular rezko situation that applies to the global economy and apply cyprus it applies to ireland iceland the u.k. the united states tarp all of this collapse and all of this confiscation of wealth so hillary rodham cattle futures controversy is the name of the wikipedia entry and in one thousand seventy eight with only a thousand dollars thirty living in this house here hillary rodham clinton gave to read. one thousand dollars that was almost her net worth ten months later it was worth one hundred thousand dollars and marshall school of business looked at it and they found that two thirds of her trade showed a profit by the end of the day she made them and eighty percent were ultimately profitable many of her trees took place at or near the best prices of the day only four explanations can account for these remarkable results blair her broker at raf co may have been an exceptionally good trader hillary clinton may have been exceptionally lucky or blair may have been front running other orders or blair may

have arranged to have a broker frog gently assign trees to benefit clinton's account but no option number four is the is the option that i know for a certainty is what they were doing there what we call it look back trading in my day i think it's also called something else the long straddle is another name for this basically brokers put on simultaneous option trades or futures trades going long and short at the same time but not assigning account numbers and then at the end of the day we close out those positions you put the loser into a corporate account that needs a loss for tax purposes let's say jamie diamond is a loss for the quarter we'll take the loss the losing trade etc any corporation to sign up for that the winning trade they put into his account because it's a political influence game they know that he's about to become a major political figure refco wants friendly regulations hillary clinton is the prostitute in this case who is fronting her account allowing the prostitution of

the financial markets to occur in her account under her skirt and the result is we know is more deregulation and more bastardization of the financial system and she says she's guilty she's culpable she falls into that category and so finally back in cyprus tweet by max keiser cyprus president let me securitized ghastly just price at a two year discount over a volatility index spread out of the money cake option right what i'm saying there is that oh. until two thousand and seven going back to the beginning of the bull market in bonds it's goes back to one thousand nine hundred three all the criminality committed on wall street and around the world could be headed by simply repackaging all the bad trades extending the maturity and reselling it because you were doing this against a interest rate scenario that was fall and you know bonds were in a bull market rates were decreasing and all of the all of the detritus of the fraud that committed all around the world could be just stuffed into these recent

characterize securities that were bought up by pension accounts and huge passive pools of capital and sold when that bond market essentially ran out of steam in the last twenty four months it's impossible to hide it anymore but they this is not going to stop them from trying to securitize everything so in the cyprus deal they're talking about well let's securitized the gas let's create gas futures let's put into people's accounts let's let's replace their money that they worked hard with a claim on some for cock to future gas revenue that may or may not appear that will satisfy them and of course interest rates should keep going down because we manipulate interest rates and they'll get be satisfied they'll be made whole other words they just keep blowing this this chunks of vomit in people's face the people in cyprus are being knocked down with projectile vomit coming out of the mouth of the e.c.b. and the i.m.f. christine lagarde is projectile vomiting into the face of the people of cyprus and

saying that jump and they're saying i'm not into eating vomit and i'm going to profit just either kristie and then the new york times all right what's the big deal. you know i don't see anything wrong here meanwhile he's sucking christie's vomit down as fast as he can say here but thank so much because a report thank you max go away much more coming your way. we are facing a lot of problems. because no one thought to drink no good school. no permits when you park. ave a local what's not enough wealth is a law in the local needs you want to community l.n.g.

most will be. done for the wrap up artist i was fired almost fights. fights. fights are right. when their own country can't offer them a living even loving mothers sometimes have to leave their children behind. i don't like to work just a bit longer. is the dream of millions of migrants the children might choose their own motherland. the room. i want my children to win over moscow. russia has become this stepmother land. migrants working hard to find

a way home. choose your language clearly we can with knowing if they feel some. of the views of the consensus get to. choose the opinions that invigorating to. choose the stories that impact your life choose the access to your office. welcome back to the kaiser report imax kaiser john manager reggie middleton a boom bust blog dot com welcome back to the kaiser report thank you could write rigi let's talk about cyprus having crossed the rubicon. the mere thought of confiscating what is. put in the bank is basically.

revealing to everybody exactly how for you to go to fill a hole that probably can't be filled think about it what is the purpose of a bank you know you take a bank is a place where you put your money to keep it safe and to hopefully get it back with potential return on it with interest so if you put your money in the bank and some will confiscate any amount at any level is a bank still a bank the entire banking industry is now changed. we should have been warned because remember during the m.f. global crisis the depositors to account all the errors were made subordinate suddenly to the creditor j.p. morgan or jamie diamond completely in an illegal fashion that they broke the law and they want to head of their customers and they certainly stole a billion dollars so that was really the warning shot wasn't that they gamed the rules have changed that no deposit a safe anymore. i know the rules have changed you know the rules have been revealed you know they're probably always have been the same what is interesting is the fact

that the banking system in the e.u. in the e.u. area is so fragile to begin with and anybody who came up with this idea obviously doesn't understand bank finance you know the most ubiquitous the most important and the most fleeting of all banking finance sources is the deposit because they can withdraw their money at that instance notice or they should be able to and that is the money that is the most feeding and at the same time. if you go to. anybody in the. holders over you know the possible this but the part of the deposit holders the thought of this to be less powerful and that's been the story since two thousand and seven two thousand and eight when this global financial crisis first hit there's all the central banks all the policymakers barack obama and david cameron all the world leaders have bent over backwards to protect the bondholders by imposing all kinds of bailout schemes restructuring schemes quantitative easing schemes to protect bondholders now they're just stealing money from depositors to

pay bondholders going back sixty seventy years isn't this fascism. to be it's also you know so if the fetus when you have deposit is free a big thought that they would make you have the confidence in their bank we can once a couple of the banks of the counter parties to their bank then pull their support out as it's nobody wants to face as a counter party if they think their big primary funding source which of the positive they're going to run the positive down to run if you tell them i'm taking your money now what about the mainstream media for example you know you're in the blog us share but you know but you've now emerging as the go to guy in the high tech space and i'll get to that in a minute with your calls on apple and google and the rest and you've really emerged as one of the premiere tech analyst really in the country but what about the mainstream like a new york times for example aaron sorkin writing that all those really matter that

the money was stolen from depositors it's all good i mean aren't they just some just some degree also responsible for this the soft fascism i'm going to say something a lot of mainstream media guys are not going to like i mean they're reporters ok most reporters. are not analytical by profession or sometimes by nature so they say something that my on its face appear to be extremely you know it ok. this is could actually be wrong ok either way once someone important says it it tends to be repeated by those who simply follow the flow and then you have something that may be backwards what is stated but that's propaganda. that's propaganda they're pushing a line ok let's talk about the cyprus story how little impact bank loans in europe you know it last time around the time by france france already had trouble people trying to get money out of the bank and they changed the rules in terms of how much

you can get per a withdrawal they're already tightening the screws on depositors how does the map in europe look who's next after cyprus how does it all shake out your thoughts cyprus is a catalyst this is something that i believe is going to happen anyway the bank was actually did it happen it's just that the the the depositors were a backstop were prevented from taking but so much money out of the real bank one of the larger brains going to be the kind of party runs cyprus brings it cattle this and it makes it very difficult to get direction i could see it will happen as to where it's going to happen for us it's hard to tell my guess would be and i can see now i'm still working on a project but i've found several banks guilty of fraud you know. in europe as this appear on the central bank's balance sheet the same as it's appear on six or seven of these other banks balance but in london they call that the cation and it's legal they would have the documents to show that it's not legal because the documents have a group called this and it's very clear now that it is of course the word missing

now but just to be clear you're saying that banks in europe have pledged same collateral multiple times illegal fashion above and beyond any any possible here and populations game real bifurcation should not be possible because you have to own it to get it ok now what about italy the economist the commercial banks just the pages of handles that italy should also take a fifteen percent cut of deposits and they are telling depositors there she. tellings take this threat seriously what do you think what you think i dare i like to see it happen as much good t.v. . did. you know that when you take you know you don't know who these depositors are what if you know i mean italy is famous obviously for its organized crime family so if you take the fifteen percent of somebody you know down in sicily or naples or somebody like this from what i understand these are centers of organized crime isn't there

a risk of retribution are we going to find bankers whacked increases employment because then you hire people still if you call them one so you know there's always a plus and minus they give you an example of what happened in cyprus ok cypress. is going to take a levy basically take money from deposit holders and exchange or go give them bonds backed by the revenue output of their gas my gas mine ownership is not a separate theirs because turkey is disputing ownership of it ok turkey versus cyprus turkey has a standing military cyprus doesn't turkey has more geo political power versus cyprus ok it's a good chance that cyprus is not a strong standing yet they're going to play with response to that let's assume that . cyprus does somehow outmuscle turkey these are gas mines that are not developed there are no standing pipelines to turkey or to create to get to the rest of us that has to be built up has to be built by a country that's being built out that is actually stealing from its own the

positives to fund. and a bailout from the c.p.p. so basically you know what you're doing is you're pledging something you don't own that you can't afford to build out to justify taking money from people who trusted the banking system what they've done is they've destroyed outright destroyed trust integrated system is confidence that allows a better system run because no bank standing in the world has the liquid assets to pay for the positive that it wants which is the definition of a bank. so this is very interesting what's the conference destroyed in cyprus where does it go next i would have much confidence in much of the core of you up outside of maybe two different two countries and most of the states. in specifics later on next couple weeks ok let's move over to london in the london a well you say ben bernanke used to blame how so. blank is the catalyst of course greed is supreme but ben bernanke you drop into three zero kept in these there oh no the bank business

model is i take money i have. ten dollars of capital you know in debt and then i go into business with it usually i loan you money right at my cost and then you pay money back now but you're saying it's a moral hazard in other words cheap interest rates quantitative easing zero percent interest rates make the cost of crime cheap and the moral hazard just grows exponentially because nobody's reigning them in there's no regulations they say ok here we are in london whale is supposed to be no proprietary trading for the volcker rule will bypass the law or make these risky bets will get bailed out by the government anyway and so this is you saying low interest rates not only do they deprive savers of income and deprive the economy of that economic activity but it just feeds criminality right and also it causes criminals to reach for the you know if you get once you're hungry you do more things for food so you know it's not just to say it was not getting return on investment it's the banks so the banks have to do more aggressive business to did that extreme right so that low interest rates

not only deprive savers of income but that also deprives banks of income so they take even riskier bets right now what about mark carney they're bringing him in from bank of canada to run the bank of england in a couple of months with this idea of getting the house in order the only possible outcome of this i think would be some massive money printing and more quantitative easing and more inflation coming to the u.k. how do you see it well you know it doesn't matter who you know. you know countries get revenue three different ways you can print it right you can generate economic activity. or you can tax it ok and those rules don't change you know they put me in is it back to being a chair there's not much i can do different what i might do is start cutting some of the you know what i would consider fortune activity and waste out but if you do that you want a political problem so you know it doesn't matter who you bring in you know you can bring in. you know and you still have the problems the best way and the most

efficient way to cure the problem is to flush out the unproductive bess's in order to do that you have a graphic real losses dollars and i'll take a loss right. exactly all right let's talk about the technology space you made one of the best calls of the decade cell apple at seven hundred by google nobody else is making that call the time one of the best calls of the past ten years by far now let's talk about apple a little bit. can short get it one hundred seventy billion this year is that what's going on there tells apple saving money as a call option on the future that's basically it is the cash or it's the call option on future volatility. the problem is as cash if i were apple management i would start taking i cash and i would spend it on developing cloud infrastructure immediately and i would friend or indeed for the hardware because apple has said

she lost the race what's it called the mobile handsets you know that's not available to the populace for several years out but if you take a look at a high and android handset and apple and said it's such a big disparity it's not going to be. it can't be called within one cycle apple needs to build out the infrastructure in the cloud. and get away from gadgets no they have to build up to six in the cloud and they have to improve their gadget but the problem with the gadgets is right now you heard it here hardware is dead the my . you know gadgets are shrinking and we shrink and continue to shrink just like they did and you see where you know at one time with the i.b.m. p.c. . computer you had very you know white margins the same thing with apple google recently i believe they bought motorola right all right part of motorola was the whole thing and they sold pieces ok at the time they were saying that was a bad idea is just what i was like calling well it's the same thing google did it with you tube with the g. mail with. ground station which is now google voice well google is doing is taking

several industries and they using those industries to further the ad revenue business model what they're going to do specifically and i could market google's map specifically they're going to take the motorola hotmail or yeah they're going to all for very high end hardware at a very subsidized price basically go buy a high end sit for what you pay the subsidized rate for. samsung but have to be locked into a two year contract and they're going to change the business model because samsung and google are now in competition directly south of the china for android so what google's going to do is they're going to attack the samsung business model by calling up their margins so they call for diversity just like if you go to a dell website right now you could build your own computer or a memory card driver tell dell they're still in business and i read you're going to cut their thanks for being on the kaiser report ok you're very welcome and that's going to do it for this edition of the kaiser at par with me max kaiser stacy herbert our thank my guests reggie melton a boom bust blog from the same e-mail place to psychiatry reported r t t v dot ru

the next time ask the same. the american english forces are in the early stages of military operations. to free and speak. since the world. has allowed us to continue the policy of returning. players to bring the.

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