even newsletters like us why don't we write insulting condescending nanny like newsletters to them saying can you really afford that fifth line of coke can you really afford that high class prostitute can you really afford that g five that you're borrowing for the weekend why don't these bankers at h.s.b.c. or barclays get a letter saying can you really afford to be lying on your back of the city with your trousers down and your willy sticking up squirming rain on yourself while some prostitute makes will next to you for a few bucks or bulbs. well you know so that's the one thing then we're going to look over in america where again the biggest landlord in america is actually fannie mae freddie mac. they're government sponsored entities they were supposed to not be actually backed by the taxpayer of the united states but when the financial collapse happened of course the taxpayer was shifted all these chileans of dollars of mortgages on to fannie mae and freddie mac. so the headline reads max buying

a fannie or freddie foreclosure chances are it was a meth lab so all these people are buying homes that were meth labs and freddie mac. and fannie mae are not actually telling them that they were former meth labs now this is dangerous there are lots of chemicals used in the production of crystal mouth and also they get knocks on the door from people looking for their next ten. mark carney incoming bank of gov why oh why doesn't he get a letter get can you really afford not to be smoking grass also think bank of england governor office mark carney fannie mae shaq's they were methamphetamine. labs the people cooked up the drugs they needed to give them some kind of mental relief from their government stealing their bank accounts from their bankers terrorizing them on a day to day basis being resold on a government meth lab shack where. even a for

a nickel on the dollar going to all happen can all be sustainable to all real junk it's all smack it's william burroughs as fed reserve chairman imagine william burroughs a naked loads of fed reserve chairman injecting heroin into his eyeball and you get up with what ben bernanke in work already doing a daily basis did he really afford them anymore can we support support them anymore . so the article follows this one guy jonathan hankins who bought a freddie mac. foreclosure up in oregon and he has a wife and a little child and only two weeks after moving in to discover that it was actually a major meth lab and he's trying to get freddie mac. to take it back and take some sort of responsibility because it takes the ten thousand dollars to clean your home out of all the chemicals the walls down and start smoking the walls you can do with a method for the former fannie mae jack. and a right freddie mac. won't take any responsibility for misleading us about the safety of our home and

attorneys just tell us that we should have read the fine print tell that to my son simply walking away will not only negatively impact our credit but would enable banks to continue this trend of severe negligence now this idea of just so read the fine print i think that's probably that's a lesson for the total economy and political economy at the moment there's probably a fine print that has been written into the constitution for example that's mainly what i was thinking fannie mae why not you read the fine print of the constitution you're basically. engaging in heinous acts of tyranny against your fellow citizens you know that's the fine print of the constitution fannie mae has a get out of jail free card fannie mae's supplies crack to congress the department of justice tara calder barack obama they all smoke crack they'll shoot heroin in their eyeballs they all read william burroughs on a daily basis they're all psychopaths and they all look at the american public like cannon fodder like trash can. just take out the garbage and sell to fannie mae i

can raise to characterize it rich securitized again to make a quick buck for all the general losers and i say we get rid of them all but they do smoke credit crack so all these guys are addicted to credit crack the crack of credit and you bring up a good point is that the constitution should trump the small print freddie mac's contracts with this these homebuyers of the four close homes whereas this is across the world whether it's cyprus whether it's ireland or iceland or the u.k. or here is that why do we keep on giving in to these people who say well if the small print of our sacrosanct contracts on this credit default swap with greek trunks your large print your bold print of your constitutions and your human rights write the fine print to so front in an electron microscope to read it so much you can afford an electron microscope and civil rights don't apply to you and those are going for to give eric holder a big fat bribe under the table then law doesn't apply to you and they sure can

afford to let jamie diamond to rape and pillage your neighborhood with credit default swaps and risk your guys' mortgages you don't get nothing. so there freddie macin fannie mae oh so many homes across america and so many homes across america are meth labs and here's a chart provided by n.f.l. implode and you see that there are meth labs all over america but primarily in the heartland of the bible belt huge meth lab located in the smoke crack everyone knows that jesus was a methamphetamine addict that's why the evangelicals in america love the meth labs this will hold together read the bible and smoke some track that's what evangelicalism in america is all about so this business of the government owning so many of these meth labs has created a new boom opportunity for businesses max joseph mazu. who co-founded meth lab cleanup in idaho has booked over fifteen hundred jobs inspecting in decontaminating homes being sold by for. annie mae freddie macin other investors

told c.n.n. millions of people live in properties that were used as meth labs you see it's a libertarian paradise everyone smokes and becomes addicted to crack and then some poor schlub introduces a new business owner cleaner meth lab tourney's you step for nine ninety nine he'll be on late night t.v. soon we will be showing him christmas songs like old jingle bells will likely be christmas. and every song goes for ninety nine it's all cleaning up the mess from your home business and the meth lab cleanup business is booming but i want to look at another part of the economy here where the government has intervened and created a boom bust boom bust every single month and that's food stamps put rhode island town on monthly boom and bust cycle so max one socket rhode island at precisely one second after midnight on every single month the beginning of every single month woodstock experiences this monthly financial windfall nearly two million dollars

from the supplemental nutrition assistance program snap formally known as food stamps arrives federal money is electronically transferred to the broke residents of a nearly bankrupt town where it would flow first into grocery stores and then on to food companies employ some banks beginning the monthly cycle that has helped socket survive so max snap spending this food stamp spending has doubled in the past four years and tripled in the past decade surpassing seventy eight billion dollars a year in this town of one socket thirty percent of the population over thirty percent is on food stamps well let's call food stamps what they really are spent thirty them this rationing in america their food rationing twenty percent of the population in america is being rationed food being rationed medicine. over seven million live on two dollars a day or less. and the degradation of society the collapse of the economy the

emergence of a permanent underclass is shocking so much so that people are running away from america to move to cuba because their monthly allotment of sugar and flour and penicillin is higher in cuba than you can get in fricken wacko texas so the price in government spending however has encouraged this boom economy in people providing cheap food or low quality food products and so now of the few jobs still available are woonsocket many are part time positions and grocery stores like these temporary ones that pop up to feed these people with our us plastered of course around the first of the month was like slop and the pigs you know you are hearing a bell mimicking the pigs come out and you slop the pigs that's the food stamp that's a snap program once a month the first of the month the residents of the stricken town in america moon socket or ever the frick it is they get this slop the pigs and then the pigs go

wink wink wink back to the little trough and they try to forty k. a little bit to make more pigs that the government can slop them again with some more rations and food stamps and then the government makes rich j.p. morgan of course as a player food stamps every time the pigs come to slop the trough a cheapie mortgage every month he's making his money every year go to washington buy the politician the gold swaps or pay where they got a big american flag on their butts so you know it's ok well speaking of a hell of course europe is falling apart as we speak but we're going to cut to this little clip with constantine after we asked for an update on the situation there. is a report the latest on cyprus is the following the wholesale bankruptcy of the banking sector in the country cyprus is now left effectively with according to ron and without money let us recall that this collapse of the superior banking sector was and used primarily by the incompetent greek bailout by the e.c.b. and be you the so-called troika. well now demanding that ordinary secrets europeans inform depositors bear the burden of the troika incompetence speaking of the city

of crackers have issued a warning to cyprus that it will cease providing the needed supports for the banks that are keeping the secret banking system in karma but some of the life from now there will be no cash flowing into the system comes tuesday unless the superior people accept the direct to the e.c.b. and barely and according to the e.c.b. it starts years fourteen point three the governing council b.c.b. can make such a determination only on food over two thirds majority well suggesting that at least one peripheral state central bank cost the world against cyprus the bank says then shut until the earliest use the next week and the use now demanded that cyprus imposed the controls on all movements marmie into and out of the banking system incidentally such controls would be most likely to be in breach of the u. laws government calling market and that's the latest on the station souter's so the situation as you see still pretty bad but it's not as bad as the situation in houston texas where if you're really hungry because bankers have stolen all your

money. this is the future for you hungry homeless man ticketed for digging through trash. a man in houston ran afoul of a law making it illegal to dig through trash seriously james kelly was hungry and looking for something to eat he tried to find it in the trash bin near houston city hall for that he was ticketed been charged with quote disturbing the contents of a garbage can in the downtown business district they did get a broker's license become a stockbroker make a million bucks you don't have to live like that all right stacy ever thanks so much bring on the kaiser report thank you max chuck away much more coming your way . we are facing a lot of problems in the. because no one thought to drink no good school.

no no no no meds we refuse out for. other local what's not enough out there is a law in the local needs you want a community l.n.g. molten would be used. i don't give it that. you've just done for match up artist i was fired sparked i must fight. i'll fight. the fight. for for. food

. welcome back to the kaiser report i'm max keyser time now to turn to marc hochstein he's the executive editor of american banker mark welcome to the kaiser report thanks max glad to be here i'm mark now you're writing about bitcoin tell us why your instant good point imo sleeps in big point as a means of exchange you know people talk about the coin as a currency and it is a currency but it's also a payment system and as a payment system i think for my audience it's a potentially

a very disruptive thing it so it not only competes with the u.s. dollar as you've talked about but it competes with pay pal master card western union on some level it competes with a number of swiss bank accounts right so it's both a store of value and but as a transactional currency so people who are questioning its store of value because credentials you can't you can't question the fact that as a means of payment it's the fastest most efficient economic and to get money moving around the country at any given moment using bitcoin is by far the the choice preferable choice now people are now souping into the bitcoin space and hear a lot of pushback against this people calling it a ponzi scheme mark is it a ponzi scheme i doubt it i really doubt it i mean remember the code is open source so. you know and people have actually replicated big coin you have clones of the court out there i think it's possible that there might be ponzi schemes within the

community there's definitely we've seen that there are some rascals in that world but that's you know no different from the mainstream financial world i mean you say if you doubt it's a it's a ponzi scheme but i would say it's categorically not a ponzi scheme because ponzi scheme would be new investors coming in to pay off old investors and there is an unlimited supply of the of the fudge of the of the embezzle the bezel which is part of that scheme or isn't it going there's a limited supply is twenty one million coins and so they're for. by definition it can't really be a ponzi scheme but i want to change gears here first psycho talk about eric holder made a shocking admission that he couldn't prosecute the too big to fail banks because it would threaten the financial system your thoughts well i think it was shocking that he said it i think i think the statement itself was was i think a lot of people already thought that the government believes this you know threat to the financial system. is is one thing i think i think that that doesn't

necessarily absolve the government of. pursuing individuals and there's a difference between prosecuting a bank and prosecuting a banker. so to some extent it's oh it's a it's a little bit of a red herring when we talk about prosecuting banks you know what are you going to do you going to take the articles of incorporation and put it in a cell or is the are the are is the articles of incorporation going to blush in shame you know i think that. there are legitimate concerns i don't think i think that mary jo white put it a little bit better in her appearance the other day she didn't rule out prosecuting corporations but she did see as you see nominee yes the yes the the obama administration it's not came up before we get to mary jo white list yes keep on the sarah call the first second because here yvette with this new request by i think it's n.s.a. to have access to the same transactional information available within the finance industry in terms of all the transactions are taking place elaborate on that tell

us what's going on yes so there was a report on the reuters wire that the. treasury department is kicking around a plan internally that would give the n.s.a. and the cia and the the intelligence agencies full access to the fence and database of suspicious activity reports currently the f.b.i. has that kind of access but if the spy agencies want to want access they have to do it on a case by case basis so they would get they. be able to sort of mind the database that fence and the financial crimes and forstmann network collects of these suspicious activity reports that are that our banks are required to file those suspicious activity reports any bank will tell you or are quite voluminous they tend to err on the side of caution. rather than suspicion when they're filing those because they don't want to get ding for for not spotting a little mark let me jump in here for a second because last year we reported how hedge funds are able to hire cia agents

either active or former cia agents to do research to help them make training decisions and of course as trying to become a rogue element this economy where they're doing things like crushing economies like greece or they're involved in moving money around in ways that are highly questionable so i hear you saying that the cia which works for the hedge funds now has access to all the financial records at the same time eric holder the top attorney the top law man in the country saying we can't prosecute this i fear them he's afraid of the other hedge funds he's afraid of car like on when if carl icahn were in the same room with eric holder eric holder would crawl under the desk and say please karl don't hurt me i'm just a child i don't have any power please don't hurt me isn't this kind of sickening i mean you're you with the american banker magazine this isn't banking this is tyranny mark there's definitely a double standard you know i think i you know we did a story

a few weeks ago after. around the time that holder made that shocking admission if you look at a mom and pop check casher out in l.a. they had the book thrown at her because she failed to file all the correct suspicious activity reports and c.t.r. as if you know there was a article a few months ago when the h.s.b.c. thing came out about how you know as a somali immigrant sends you know not even two thousand dollars back home too. to a charity that's on the the you know the terror or suspected terror list and she gets the book thrown at her yet h.s.b.c. gets relatively light treatment that is unfair a lot a lot like treatment for it for admitting to laundering billions in mexican drug money yeah they get like treatment a somali family somali fisherman who had their completely lifestyle life wiped out by illegal fishing from other parts of europe they're struggling they're out there

committing piracy is as a result of having their livelihoods destroyed by illegal fishing they're trying to send money through h.s.b.c. to get tagged as the terrorists are the same bank who admits to laundering billions in drug money and terror money and they get a slap on the wrist an eric holder once again hiding under his desk please don't make me do my job to frighten you know you know it can be quite infuriating what when you when you look at the big picture for sure and you know if you talk a lot of community bankers out there because remember there's still seven thousand or so banks in this country if you know the assets are very concentrated in the big guys but a lot of community bankers if you talk to them they are as angry about the sort of the special treatment that the guys get. perhaps almost more so than occupy wall street is the way to hear some of the talk and even you know some of the mid-sized banks you know today kyra simmons who is the c.e.o. zions bank which is you know definitely a relatively large bank they're not nor is because j.p.

morgan they're sort of in that in that mid range you know he said that he thinks that we're just about one misstep away from the large banks being broken up at this point yeah that that that's not going to happen you know here we are in a rooftop and west side of manhattan i almost feel like we're at the thanksgiving day parade and bullwinkle in term of the frog and i'm floating by i think this year for the parade i should have a balloon of eric holder float by because he's so full of hot air the guy just yaps and yaps and yaps but he's actually not working for anybody but the banks are very let's move on to the. see nominee mary jo white she sells through senate confirmation what's your background what does her appointment say about what we can expect from this too big to jail going forward while you know they talk about their sort of to mary jo white right she has in the past been an aggressive prosecutor she prosecuted the blind sheik behind the original world trade center bombing plus and here banker goldman for a while so i got that confused it's an easy mistake to make macs i don't blame you

but you know she's also been a white shoe lawyer representing wall street clients and you know when the lawmakers were questioning her the other day you know that was it was it was a it was a fairly decorous affair but they were. you know they did ask some pointed questions about that is how can we expect it to be theirs to mary jo white so in other words she's a duplicitous double dealing scoundrel like all the rest of these fake regulators well i think that's the that's the concern that's a concern that some people may have i wouldn't put it exactly those where it is the regulatory environment i want let me ask you this you're a smart fellow. you know why you may disagree but go on because it seems that all these wall street banks are they really want to commit fraud whether it's a i g bernie made up the m.f. global the whale the j.p. morgan's london whale they outsource to the city of london because their regulatory environment is correct yeah yeah london is basically kind of like the cayman

islands except without such nice weather. the way you know it is viewed as a supine jurisdiction and in terms of in terms of regulation and you know i've been written there's a great book called treasure island by this guy nick saxon who writes for the f.t. and he does a great history of that and you know yeah i don't think it's a coincidence that you know the london whale c.e.o. stuff was going on in london that. you know a i.g.f. he was in london so it's viewed as something of a regulatory haven it sounds like a financial porn film starring mary jo white called supine regulation. that. comment or else move on so moving forward what can we i'm really interested is a bit coy and we'll have a minute or so left a lot of people myself included i have become the defacto face of bitcoin around the world i didn't create it but i'm now the face of bitcoin but nevertheless he said modestly. through what is the potential for

a bit coy to challenge the central bank model of supporting terrorism and manipulating interest rates to levels that are exploitive and damaging to the society at large you know i i look at it on a much more prosaic level you know people talk about because it is a radical thing but my interest in big corn is actually a little bit more i would dare say conservative and maybe even reactionary i want to preserve privacy i want to preserve the option to have anonymous transactions and we're moving away from a cashless society and ninety percent of the arguments against cash i think are spot on but not because you have anything to hide mark just because of the trend you say with the cia getting better the yes funds reason to data to make money and then destabilize everyone there pushing the real economy aside in favor of this cult talk or see the expansion of the of surveillance is very wary something and

i think is one technological borke for privacy and transactions all right so it's about a four to five hundred million dollar market cap for bitcoin right now rick fox vignette up in stockholm sweden thanks again capture one percent of the multi hundred trillion dollar for x. market at some point over the next five years your thoughts you know valuing bitcoin saying what the price should be that's beyond my ken what i think what i. i really focus on is what i personally am interested in is the means of exchange aspect it is it is a it's a really fast way to move money offers greater privacy than other forms electronic payment there's and there's ways to even enhance that privacy further there is something called zero point that i read about today that you know that you can you know sort of further. your tracks i guess yeah yeah and which i get is not necessarily a bad thing people have legitimate reasons to want to be transactions anonymous

because they're called there is a big balloon floating around out there and it's doing nothing all right mark thanks so much for being on the kaiser report my pleasure max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guest mark hochstein of the american banker if you want i mean email please do so at kaiser reported r t t v dot are you saying. when their own country trying to offer them a living. sometimes has to leave their children behind. i don't like to wonder just . the dream of millions of migrants the children might choose their.

i want my children to win over moscow. russia has become. to find a way. live . cold.

blooded. goodspeed. which i. live. in an. amount of money.