lation then they should consider closing these prisons getting rid of something completely wasteful like the monarchy and returning to some kind of genuine economy well but the point is that once you become a ward of the state this is what is essentially happens especially during a crisis situation now my question is why as wards of the state why aren't the city of london why are they receiving newsletters like this 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 squirting rain on yourself while some prostitute makes will next to you for a few bucks or bode. 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 and 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 were 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. who has. what isn't he get

a letter can you really afford not to be smoking bath salts i think bank of england governor office mark carney fannie mae shacks they were methamphetamine. labs that 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 market even a for a nickel on the dollar could it 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 lunch at fed reserve chairman injecting heroin into his eyeball and you end up with what ben bernanke in work already doing a daily basis can really afford them anymore can we support support them anymore. for 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 mathlab and he's trying to get freddie back 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 rip the walls down and start smoking the walls that's what you can do with a meth and fed law former fannie mae shack. and a right freddie mac. won't take any responsibility. they fifty 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 fine print that has been written into the constitution for example the middle of it 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 supplies crack to congress the department of justice tara calder barack obama they all smoke crack will 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 they can just take out the garbage and sell to fannie mae i can race to characterize it rich securitized again to make a quick buck they're all degenerate 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 contract with this these homebuyers is the for clues times 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 the small

print of our sacrosanct contracts on the credit default swap with greece trumps your large print your bold print of your constitutions and here human rights write this fine print is so fine in the 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 and low. law doesn't apply to you and they sure can afford to let jamie diamond to rape and pillage a neighborhood with credit default swaps and risk your guys mortgages you don't get enough in. so there freddie macin fannie mae own 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 in 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

that's a little huddle together read the bible and smoke some track that's what evangelicalism in america is all about this business of the government owning so many of these meth labs has created a new boom opportunity for businesses max joseph most. who co-founded meth lab cleanup and i had a how has booked over fifteen hundred jobs inspecting and decontaminating homes being sold by fannie mae freddie mac. and other investors super told c.n.n. millions of people live in properties that were used as math labs this is a libertarian paradise everyone smokes and becomes addicted to crack and then some poor schlub introduces a new business owner clean your meth lab in turn easy steps are nine ninety nine he'll be on late night t.v. soon we will be showing him christmas songs like oh jingle bill will likely be a christmas jesus. and every song goes for ninety nine it was cleaning up the mess of 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 a monthly boom and bust cycle so max and woonsocket rhode island at precisely one second after midnight on every single month the beginning of every single month. woonsocket 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 employees and 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 socket thirty percent of the population over thirty percent

is on food stamps well let's call food stamps what what they really spend search them it's 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 in woonsocket many are part time positions and grocery stores like these temporary

ones that pop up to feed these people with our us plastered a forest around the first of the month was like slop and the pigs you know you're a hearing a bell mimicking the pigs come out and you slop the pigs that's the food stamp that's a step program once and once a month the first of the month the residents of the stricken town in america moon socket or over the frick it is they get this slop the pigs and then the pigs go wink wink wink back to the little troughs 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 huge player food stamps every time the pigs come to slop the trough of the mortgage every month he's making his money every year go to washington buy the politician the go swaps or pay the go 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 that 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 that us recall that this collapse of the superior banking sector was and used primarily by the incompetent bailout by the e.c.b. and the so-called troika. well now demanding that ordinary secrets' europeans and foreign depositors bear the burden of the troika incompetence speaking of the e.c.b. a practical issue that 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 form out there will be no cash flowing into the system comes tuesday unless the superior people accept that 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 will suggest another at least one peripheral state central bank cost the world against cyprus the bank says then shock until the earliest use the next week and the year is now demanding that

cyprus imposed the controls on all movements of money into and out of the banking system incidentally such controls would be most likely to be in breach of the u. last 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 the 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 and 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 don't go away much more coming your way. we are facing a lot of problems in the. because no one thought to be in school. when you. saw the local what is the law in the local needs you one a community l.n.g. walton will be. done for up artist i was fired i was fired. i'll fides.

welcome back to the cause a report imax guys are time now to turn to mark hochstein as the executive editor of american. banker mark welcome to the kaiser report thanks max glad to be here i mark now you're writing about bitcoin tolls why are instant bitcoin i'm mostly absent because i mean as a means of exchange you know people talk about bitcoin 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 it's a transactional currency so people who are questioning its store of value

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 replicate it because when you have clones of becoming out there i think it's possible that there might be ponzi schemes within the big 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's 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 is this limited supplies twenty one million coins and so therefore 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 the cell or is the

are the are is the articles of incorporation going to blush in shame you know that 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 say yes you see nominee yes the yes the the obama administration has not been able to forget the mary jo white list yes keep on this eric holder for second because here event 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 would. 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 of 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 car like on her 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're 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 the 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 few months ago when the h.s.b.c.

thing came out about how you know as a somali immigrants sends you know not even two thousand dollars back home to to a charity that's on the. you know the terror suspected terror list and she gets the book thrown at her yet h.s.b.c. gets relatively light treatment that is unfair. there are a lot of 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 miracle there once again hiding under his desk please don't make me do. 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 they're still seven thousand or so banks in this country. 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. zion's bank which is you know definitely a relatively large banker not nor has 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's just 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 prey they 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 there and let's move on to the f.c.c. nominee mary jo white she's still 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 this sort of two mary jo. why it's 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 max 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 concern 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 is what let me ask you this because you're a smart fellow. and i may disagree but go on because it seems that all of these wall street banks are they really want to commit fraud whether it's a i g bernie made off the m.f. global the whale the j.p. morgan london whale they outsource to the city of london because their regulatory environment is correct it's yeah yeah yeah london is basically kind of like the cayman islands except without such nice weather. that's 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 there there's a great book called treasure island by this guy nick saxton 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 the london whale c.i.a.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. comment or else move on so moving forward what can we i'm really interested is bitcoin we only 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 pick 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 cash to society and ninety percent of the arguments against cash i think are spot on but not because you have anything to hide markets because of the trend you say with the cia getting in bed with the yes funds reason to date and to make money and then destabilize everyone there pushing the real economy aside in favor of this cup talk or see the expansion of the of surveillance is very wary something and i think is one technological bulwark 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 thinks it 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 big

coins saying what the price should be that's beyond my ken what i think what 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. and there's ways to even enhance that privacy further there are 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 keep transactions anonymous because they're called there is a big balloon floating around out there and it's doing nothing all right mark cox a thanks 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 stacy herbert i want to thank my guest mark hochstein of the american banker if you want to send me an e-mail please do so at kaiser reported r.t. t.v.

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