i am max kaiser this is the kaiser report you know the free markets punish dumb investment decisions and the stupid investors who made them that's the textbooks theory it's called market justice and rigged markets douma investment decisions and stupid investors are rewarded in coddled with money printing and belts that's the american way the american fact is it rigged market injustice and the more don't investors and their stupid investment decisions are allowed to thrive the more rigged the markets necessarily become but when justice is denied the world is all was turned vigilante. whether it was the bond vigilantes or the days gone by or the balance sheet vigilantes in our first deadline anonymous analytics tell us i got to find out more about those i need to know more still see her tell me more well max

keiser anonymous is in the first headlines and they have a headline about one of your favorite companies out there corrections core of america that c.c.a. anonymous exposes us as biggest private prison company as a bad financial investment so this is anonymous analytics and they're looking at correction score for america c c a their stock market symbol on the new york stock exchange is six w. and they list themselves by the way as a real estate investment trust and their market cap is three point two billion dollars and they're saying it's a bad investment yet well this is fantastic news because as we reported on the show before and as i've been going back you know years with my common bank idea is to get a group like anonymous to put out the analytics that anonymous analytics to attract hedge funds to attack a company like prison corrections corps of america with short sales and they get yourselves it's capitalism versus capitalism it's dirty capitalism versus fair cow . but listen because corrections guard america is

a dirty company they do deals of municipal all these to get local sheriffs to put people in jail innocent people to make their business model their real estate vesper tries to work it's dirty just dirty as the day is long so anonymous analytics kudos to you i applaud you this is what's needed in the marketplace and a lot of us analytics it's the hedge fund of dissent well the fact that it's a real estate investment trust does suggest that here you've created a gulag system. but the population by is that as long as it's listed on the stock exchange this is something he said about auschwitz and what would have happened during world war two the core of america is the auschwitz of our day that the tribe blink of our day and if you give people shares in it they'll buy it they'll support it it's just like george osborne giving shares away to these four big banks of the couple of the big banks here in the u.k. give the people who are the victims of the big banks a token little stipend and they'll say great let's have massive fraud in the u.k. as long as i get a piece of a george osborne so the a.c.l.u.

says that this growth in the prison population has been fueled by historical anomaly between one thousand seventy and two thousand and five the us prison population grew by seven hundred percent far outpacing both population growth and crime as a result our country now has five percent of the world's population but twenty five percent of the world's prisoners but anonymous says and the reason why this is now a bad company to invest in they're saying is that the ties are changing not so much on the federal level because the federal government can afford to lock up forever everybody because they could just print the money but on the state level the states can't be in deficit they can afford to be stupid when there's been a collapse housing market remember property taxes are where they get most of their money so anonymous points out that state governments are increasingly enacting policy reforms designed to reduce their reliance on incarceration including top c.c.a. customers like california colorado based on a state by state examination of these reforms combined with

a close look at c.c.'s falling occupancy rates and decrease spending and on new construction anonymous identifies ongoing criminal justice reforms as posing a far more serious risk to c.c.'s business model than c.c.'s management is willing to admit so the key metric there isn't crime rates are falling but imprisonment rates are rising. anonymous analytics are saying that's an unsustainable trend that the real estate investment trust that is correct its core of america is into a bit of a prisoner bubble and it's in a google like bubble and that it should be sold short it should be sold it should be liquidated this is for hedge funds to attack attack attack corrections core of america use the leverage of the hedge fund to recalibrate and rebalance this corrupt model to put money back where belongs into a system that rewards meritocracy well in fact most of their people in prisons are there because of drugs this is why the explosion of population in prison

population is member ronald reagan started the war on drugs soon after by the way you know paul volcker restored you know strength to the dollar right so then they could afford to keep on printing the dollars and locking up people people and interest rates because a paul volcker went down for the next thirty years so they could afford to keep on rolling over debts and locking up people and and part of the way these were sold to local communities across america is that these are jobs for you you know tending these the gulags and in keeping these prisoners in prison that drug prohibition in america is ending pot will be legalized decriminalized so all those people going into prison that make corrections government money will not be going to prison because net net as anonymous analytics points out the economics does not support that model for the states or for the federal government so it's going to be a huge shift and to capture that shift sell your stock in this company are so sure if enough hedge funds sell short they can force the price down to zero that's what

happened two hundred lifesciences remember hedge funds attacked huntington life sciences the animal cruelty company down to zero you can do the same thing with corrections core of america because they treat people like donal's it's animal testing it's the new slave model it's plantation economics it's slavery in america let's get rid of it well you know during the raid. in times when we brought in the war on drugs and started incarcerating people and it was during that time that girl's got her and came up with it it's winter in america now anonymous says it's now winter is coming for c.c.a. for correction score for america because americans are starting to wake up at least in certain states like colorado and washington state where they're starting to legalize drugs because they're saying wait why are we slaves to this federal government and this war on drugs that is financing these the military industrial complex but impoverishing us and locking up our fellow citizens. gil scott heron how did jill scott get into that i know you mean my neighbor when i was living up

with arlo you know he wrote the movie about ronald reagan but i don't see how that relates to i just everything really is to go is go to the man is genius he's gone and he's done with the city more god rest his soul well the seasons are changing is what i'm saying it could be spring time for us and the winter is coming for these gulag state so let's move on to this next headline though because i want to show you the price we've been paying for this military prison industrial complex average cost per official wiretap in the us fifty thousand four hundred fifty two dollars there were three thousand three hundred ninety five wiretaps ordered with an average of twenty nine point zero three days but the average cost max was fifty thousand four hundred fifty two dollars that's about one hundred seventy million dollars per year just for wiretaps and listen in on possible drug deals but only eighteen percent of these wiretaps actually lead to a conviction however right so that leads me to believe that

a sign from corrections core of america these phone companies that were colluding with the government maybe their stocks are also overpriced i would animist anonymous a little look at the phone companies it could be next well what this article is pointing out what bring these up is the absurdity of spending one hundred seventy million dollars for something that's only eighteen percent effectual this doesn't include the n.s.a. which is capturing every single thing that passes through america everything trillions of e-mails everything the storage cost for that we don't know but winter is coming for this sort of stupidity because with interest rates rising member ronald reagan could afford these war interest could afford stupidity we've talked over and over that the bond market has been of thirty year bull market interest rates have been declining so stupidity has been rising because you didn't have any vigilantes it was too expensive to be a vigilante in that. environment anonymous analytics as a hedge fund i really think that they could do fantastically well i hope you may

contact me because i think i could raise ten or twenty billion dollars for this fund overseas you know we can really do a number i want to then move on to what what this has caused in america is that you have the vigilantes coming in to save america but not fast enough because there are one hundred sixty million full time workers in the u.s. versus one hundred twenty two million before the great recession so nineteen percent of the workforce is now part time before the recession it was seventeen percent now related to the bond market you know the world took the latest jobs numbers from america as a boom as is that things are getting better but in fact full time jobs are declining people are only working part time in these gulags that are listed on the stock exchange with c x w or c.c.a. like the u.s. bond markets being sold off by foreign creditors and by hedge funds as well and there's a lot of reasons you could point to a lot of cross currents of the market interim arc it arbitrage type activities but

the fact is that we've now left a thirty year bull market and bonds are entering into at least a fifteen to twenty year bear market in bonds and that's the way the on market moves so the headwind of rising interest rates is out here with us for the next generation. and finally you know there is no more vicious successful wonderful vigilante than gold and silver and that's in the final headline here because max you were in the headlines with here's the jamie dimon downfall parody that cost the bank one point eight six million dollars on december seventh two thousand and ten grant williams that equity trading head for global investment bank jeffries included a downfall video mocking j.p. morgan chase c.e.o. jamie dimon in the company news letter and the next day he was fired for unacceptable conduct but a hong kong judge ruled today that the firing was hypersensitive and awarded williams one point six million dollars now the video max was a compilation of crash j.p.

morgan by silver campaign and now the hong kong judge. decided that the bag jeffries was irrational and they were hyper sensitive to fire this guy for fear of upsetting. jumped on well we just got a scalp of morgan but you know the old jews find the first of many relating to their silver position well it's interesting that hong kong is also the center of where all the gold is working in the world hong kong allowed snowden to go to flee hong kong is now saying jamie dimon he ain't that much so who cares if we've insulted him in this email so you know it's a what do you say you've got a lot of guts to show all of it was you know the words are one of the former good friends are here but well all right state your thanks thank you x. . states of us are going to have a whole lot more. jack

and not a significant amount of small arms into these already extremely volatile region of the porous borders. what kind of implications could it have not only for syria but also for the rest of the region it's a power game i mean if the opposition gets more weapons which can really strategically hurt the government it could change to the equation very graphic. good lumber tour. was able to build the most sophisticated. fortunately doesn't sound anything mission to teach the creation of life should care about humans and. this is why you should care only on the.

welcome back to the kaiser report imax guys are time now to head over to new york city talk with reggie mills in a blog dot com reggie welcome back to the kaiser report. thank you very much and as usual it's a pleasure to be back and enjoy the show all right first reggie middleton i know you've gone crazy for a google glass why and tell us about your encounter with the police while wearing it. well. i. guess to be the next paradigm shift in mobile computing to go through people's paradigm shift you've had the invention of the landline phone you've had the cellular phone more of the old days you had the p.t.a. which then became this one phone which is a sofa to be a combination which was

a significant jump and the next jump would be world of computing. which would be the most utilitarian example that i know of to date is the. fact that not necessary grass itself but the computer style grasses which grasping the most. i think capable implementation for. number one it allows you to. telecommute plus perform computation without using your hands and it gives you a first person view this can actually come in handy one of the biggest concerns of grass is privacy the ability to you know spy on others but there are times when that you know does work to users benefit a good example was when i was in a part of the us where maybe i was not i was frowned upon and not seen as popular as a would be the more diverse service such as new york and police officer of the law

to actually from the new jersey state trooper. state troopers was extremely belligerent and i told them i had to actually use do a google search to look up the harassment statutes in new york state which new jersey and he had even a larger attitude that she threatened to bring me and. unfortunately he did such a thing with a live camera on my eyes which of course is foolish but he did so actually took pictures of his plate his car his. profile and i treated it facebook to twenty thirty forty fifty thousand viewers it actually went viral and this is an example of what happens when you can actually capture the moment in real time. so the privacy concerns are real but the ability to. make things public. it is a significant advantage and it was actually my first real application real life implication of the utility of something like grass now grass might not be the way but

a future but this form factor is and who has the resources to push it through oh ok reggie i get it so there's a huge issue about privacy but you're playing the arbitrage here because you're able to spy on no spying on you and you're a you're making a case out of it let's jump over to talk about the irish banks for a second you write that angle of merkel is angry about angle irish tapes of the tapes where the bankers of angle irish are discussing their defrauding of the citizen and the government when she needs to talk to you reggie milton about the other irish banks what do you want to tell are angry i was just the tip of the iceberg and angela merkel who is you know of course a professional politician showing our age about anglo irish is very similar to you know an exterminator shauna richard he found a roach you know in the den of roaches you know if you're going to be so outraged i sleep it and identified and put in specific detail six five i was banks and ensure

that essentially insolvent significant misrepresented both basically from a layman's perspective for you know the legal eagles out there couple of fraud outright fraud explicit many of these institutions or insolvent or close to particularly with a mark to market such as a b. a b. has roughly a twenty to twenty b. in delhi whole which has to be fought before it's over the e.s.m. the e.u. risk you pool is about sixty five billion dollars so this one bank in ireland will take about one third of the u.s. if you pull. ireland itself is this in two percent of the economic activity the e.u. you have isolated six pants that need assistance to become solve it so one bank could take down the third. you know what you know exactly what is islands out a bill in deposit a recap basically taking the positive money seems to be from

a rich medical perspective guaranteed absolutely guaranteed so if i was angela merkel i would make all the banks especially the periphery of banks bad or being fraudulent or apparently being misrepresenting in their reporting mark to market ringfence anything that's considered necessary everybody else has to know play the market you know if you're thinking you think if you scream you swim now in order to do that if that would happen then rates would shoot up because you would have the average depositor who's been receiving between say twenty five basis points and two and a half three percent on their money despite the fact that when he's taking significant market risk credit risk into a political risk when they lose their money those who are looking at them are going to request significant significantly more compensation so instead of one and a half percent on your savings account you'd be looking for more like eight nine ten fifteen twenty percent you know this would drive you go insolvent banks or more of marginally solvent banks out of business but that is real economics that's real

finance so if you're taking significant risk you get significant reward for it but only reason you should accept one and a half percent risk is you have a new risk free investment. banks risk free how many you banks are truly risk free if you take a look at the situation so how many e.u. countries are actually risk free let me ask you reggie that's an important point you make about interest rates because when the crisis started back in two thousand and seven for the past five years and six years or so this is part of a thirty year bull market in bonds so the crisis was caught the tail end of a thirty year bull market in bonds or interest rates were going down so that all of these problems like the insolvency issues that you talked about with the irish banks they've been hidden by the ability to refinance recapitalize extend the maturity and do a lot of accounting tricks that would take advantage. what was then a bull market in bonds but i'm curious if you're what your thinking is in terms of where that market for bonds is now have we hit

a generational inflection point where yields are now going to start to move up and doesn't this pose a significant head risk for these kind of accounting measures that have kept the euro solvent or keep kept it afloat now for the past five years reggie middleton i through the natural bull market and years ago ok you had an extended bull market due to their policy and various machinations by both the u.s. central bank and its cohorts of brought such as the bank of england and the e.c.b. et cetera. the reason why they keeping rates low the reason why they're doing massive q.e. buying bonds is since the natural bull market is over and you have an official point we're supposed to turn. if rates were to go up it literally destroys all the profit. countries sovereign states some ice over the states because i can't really call ireland aside and say i should be so so over and t. when they decide to accept austerity in exchange for saving the banks which we're

going to fail anyway which is a totally different conversation so when nature takes its course in nature will economic nature will eventually. resume you're going to have both nation states and banks and certain businesses they're going to go under this is guaranteed this illusion is you know let the profit that the insolvent go because by forcing and this may be something that may have been preordained we never know but by spending throwing good money after bad you actually having certain states having to sell this sovereignty to accept austerity in exchange for capital to bail out institutions that can't be built up the tapes from anglo irish which i did want to . april as a matter of fact us and guy which was a scam anglo irish takes. admittance that the seven billion dollars was pulled out of his right and no matter how much money they would get they couldn't pay it back so any dime that went to anglo-irish was wasted you know ring fence anything that

need to be in france and let all the investors take a loss which they took anyway and then that money that was spent to save and been spent to you know we invigorate the economy could be given back to taxpayers in terms of services benefits infrastructure so reggie middleton you know a lot of these bankers and government government policymakers have been pulling numbers out of their bottom so to speak that reminds me of tarp right i mean wasn't tarp the same kind of thing where hank paulson just picked a number out of it out of a hat he did you know but you know. if the ngo irish bank is pulled that number out of there right i don't know rahane pull his from because his number was one hundred times as large so i don't know where hank pulled it from but wherever he did pull it from it was a large dog place and these numbers again or at best arbitrary at best so you had to write this was years ago what two thousand and eight ish two thousand

and nine ish the money was given it was supposed to the supposedly to rescue the banks the banks are still not doing well lending is not occurring ok and i'm going to be sparse banks are still playing shenanigans financial games. most of the revenue gains so most of the profit gains or accounting tricks you know provision in these you know it's you know you do not have true growth of banks in trouble you still have almost zero interest rate policy the centuries or the federal reserve has been buying mortgage backed securities they threaten that they may taper that by just the mere threat has caused interest rates to increase ok the situation you know has not improved significantly if you take the. mediation desert and the q.e. out. situation is probably gotten much worse it's quite possible that the us and other allegedly stronger nations will be in the same situation as out in the

biggest difference is the us has its own printing press so they can adjust the rules as we go ireland does not has to follow the lead for those who are more influential in the e.u. which would be germany and out. now reggie middleton they. thought of the smoking gun and you've talked about it i've talked about it massive fraud being perpetrated by the bankers and the tapes came out the irish public heard these tapes they heard that they had money stolen from them that they were defrauded part of a conspiracy that they're been suffering austerity needlessly and yet the population doesn't seem to care why how do you counter that well. i'm going to put my psychology head on it and i think that that is basically the way. society is made you know you have to have a significantly large amount of the populace that remains. apathetic potentially ignorant you know it has

a native kind of haitian but that's the way it is and by having that populous that is a movement you have a smaller much smaller subsection of the populous that is able to gain right and then the even a small some such in that top one point zero point one percent that is the group control everybody else the issue with that is that point one percent acts in its own best interest so if point one percent in the interests of point one percent but they control eighty ninety percent of resources eventually you get a significant in belts when the imbalance gets to the point where it tips over that's when you have a massive reset and things started from scratch and then you know others from a populist attempt to kind of let it into that point one percent i feel that we are somewhere close to the point where you're going to have a tip and the tip is not going to come from the drive from the majority because as you said a lot of people simply don't care it's going to come from the economic rebalance that's going to be forced from let's say two or three i would banks going bust and

then many fourths of the positive recap and take everybody's deposits. below bill in these banks you're going to have a certain sliver of that episode of populist wake up and when they wake up. then we saw things happening then some sit down the pub quiet and watch things work but until someone takes a significant loss very serious loss and a significant amount of the public takes a loss i think after three years the road to your ok well reggie middleton read of time but just to reiterate you think that bail and that is deposit confiscation is coming to ireland thanks so much for being on the kaiser report reggie middleton ok you're welcome he's very welcome glad to be back. all right that's going to do it for this edition of the kaiser report with me max geyser and stacy herbert i'd like to thank our guest reggie bed all day no boom bust blog dot com if you'd like to tell us of those tweet us at kaiser report and so much time ask i was like but

you know. what defines a country's success the faceless figures of economic growth. for a factual standard of living. he.

hundreds if not thousands of books have been written on conflict resolution and he's building one that taught us on the subject and universities all over the wall but the last stanza. previous conflicts in the forgotten war the international community is often paralyzed to see down the spread of violence and sometimes openly aiding as well to discuss the subject of knowledge joined by. director of the.