the headlines this hour on are american and european politicians pledge their support for the ukrainian opposition at a major munich security conference raising some eyebrows. where there's a new. street riots that are becoming more and more violent to promote democracy russia's foreign minister hits the west with accusations of double standards when it comes to. syria demands an apology from america's top diplomat threatening to pull out of direct talks with the opposition if they do not get one. and the olympic flame goes to the top of europe's highest peak just a stone's throw from its final destination the brand new course where cross-country skiers and biathletes will be racing for the gold in just

a matter of day. you can get all the latest on those stories online at our team dot com but before that straight talking about the world of finance for max and stacy on the kaiser report stay with us. welcome to the. the whole economy is jumping around tripping. a global financial flashback to two thousand and seven when the bankers first drop the acid trip called the liquidity crisis which led to the financial crash and burn which led to the central banks dropping was of cash well astral plane ing from their imaginary helicopter and saying one print makes you larger and one paper makes you smile and the money that china gives you doesn't do anything at all

go away as just. when she's ten feet tall yes it's been a whole round trip nowhere. yes max a lot of. thing is going on the first headline here china trade puzzle revived as hong kong data diverged china's trade numbers distorted by fake exports last year are set to come under renewed scrutiny after discrepancy between hong kong and chinese figures for bilateral trade widened to the largest in eight months so hong kong's december imports from china fell one point nine percent from last year and yet china's data show is that it grew by two point three percent so there's a huge divergence there so manage on a non-con are playing this round trip game where they're doing all kinds of accounting fraud it sounds like you know lehman brothers and in the federal reserve

bank yes has like repo one five deal they crashed lehman brothers now they do say that there were maybe a lot of faith invoices that were used to conjure up these data but the other thing where they talk about the round tripping they say another possible explanation for the discrepancy is round shipping of goods that are export from china to hong kong and then back to the mainland australia and new zealand banking group ltd said in a report yesterday the round shipping trade has become an avenue to fuel china's cap. well inflows as the current account may have been quote improperly used as an alternative way of liquidity injection economist lulay gang and raymond young wrote so they're using this as a kind of quantitative easing the fake train that they're actually putting things on boats maybe and sending it to australian and sending it back in order to make things look like their stuff is happening accounting fraud is the new opium. i go into accounting fraud and stoke up a ball of. accounting fraud yeah baby let's get on this accounting fraud crouching

accounting for leaping tiger of. pork. so you know it also is a reminds me of the round trip to two thousand and seven when the liquidity crisis began we're seeing this over and over and noticed this in the news as you look around this notion of liquidity there's a liquidity problem around the world and that's what you first saw in two thousand and seven before the giant crash of two thousand and eight of the financial markets in the banks collapsing in the u.k. they're reporting growth ok we don't know if the figures are based on a round trip in from china we don't know but what part of the growth from last year and you know mark carney and george osborne have been celebrating the fact that the economy is growing but i want to remind people that it's a lot of round tripping of our own cash that was stolen from us because this first headline is from august of two thousand and thirteen last year p.p.i.

compensation spurs the car to be three spending booze banks have inadvertently provided to boost the economy through the vast compensation payments made to customers who are missile payment protection insurance so last year they gave ten billion pounds to the economy which was promptly spent because people felt it was free money hey you guys still one hundred billion for me and now you're giving me ten billion back i feel rich it's kind of like a casino model well right now today this headline from this week bank customers the missile duff packets of accounts winning thousands of pounds in compensation so account holders were paying up to three hundred pounds in bogus charges of various things they didn't even know they had on like payment protection insurance sort of stuff and now there's going to be a new wave of round shipping your cash that they stole from me they're going to give it back and it's going to boost the economy so recycling is fraud recycling. the bank commits fraud on the customers to customers trust to the banks and that creates the g.d.p. growth. keep in mind that there's g.d.p. growth in the u.k.

no matter what the number is that they say the level of debt is growing faster so i mean that's the that's the big joke i mean i was born in carney or you know the mainstream media will tell you that yeah it's growing but the debt is growing faster so it's completely unsustainable and there's a bubble being built and all crushed yet and what is debt of bringing forward you know future consumption so that's why we're always around because we get to the future tomorrow and we're already spent yesterday it makes more sense to just. stay home in a chinese point because there's nothing for you out there just rain marmite and fraud. but again you know it's you often mention this casino gulag model and what happens at a casino first of all the house always wins and in case some sucker wins some money there at the slot machine here we don't know how much has been stolen from libel or or stolen from for x. market rigging or gold market making or all these p.p.i.

sort of schemes and they decided to give us some of the money back that they stole from us and for some reason it makes you feel good just like when you lose a thousand pounds at the casino and they give you a free drink and then you're like woo part of a yeah there's no rule of law they'll never have a law enforced where they just b.c. of barclays lloyds royal bank of scotland have to conform to the law but they'll try to shake them down for a few the pennies that they stole and then like the casino people will be happy that they've got a free drink after the bank just stole my house well you bring up the rule of law you know there was a headline this past week where the lord chief justice here in the u.k. warned the metropolitan police the police here to stop working for private business they become they're using their public authority as the ability to arrest and season search people's property. for on the behalf of that in this case they were talking about virgin media virgin media offered them

a deal of twenty five percent of the kickback basically if whatever they could get from these fraudsters they said they could get twenty five percent back so they've been warned not to act as private forcers for private business for sale dot co dot u.k. buy yourself a bumpy virgin media yeah gray fascism again so we're talking about this round trip and the other thing that's round tripping is of course back to two thousand and seven is we also saw a lot of crises in the emerging markets back then but here we have it again in the turkish lira and we see a beautiful roundtrip here look at this chart and that is after the central bank of the republic of turkey raised interest rates by four point two five percent the lira soared only to crash back down again. remember the turkish lira crisis back in the early ninety's was there just amazing black markets that

spring up one dealer was trying to sell me some lira on the black market and he made fun of my shoes so he got into a fist fight like pummeled the guy i mean that's the kind of risk you take when you have this kind of black market action in currencies trying to find that guy where was it turkey you know bust his chops like a congressman from new york. well it's a new york thing isn't it i mean these big you know you go to these countries these black markets whether it's in turkey or venezuela or these other countries that are being financially destroyed by america it's all of these black market dealers is going to give a new york style you know negotiating tactic which is give me my money i'm going to bust your chops you know the problem of the turkish lira is first of all goldman sachs said you know though they raised rates by four into the twenty five basis points true the fact is that they were only raising it to two hundred twenty five basis points so. markets quickly realized in the round trip back to where it was

the other thing is that the fed has announced that tapering and of course this is a round trip the current the money the free sloshing money of liquidity was sent out it all went to the bankers which then sent it to the emerging markets brazil latin america asia so all the money went out that way and now it's retreating it's coming back and that's what you see there now another issue this past week has been the state of the union address by barack obama and he's mentioning inequality now jaitley who i follow on twitter tweeted out this interesting chart of income so if you see here you see wages as represented by the federal minimum wage of money terms that's fallen from one gram per gold hour in one nine hundred seventy to other under point two grams of gold per hour today so it's been declining at four percent a year and obviously you see your wages were nominally rising but in gold terms they were always falling well we've talked about this before that there in the last twenty or thirty years the advent of derivatives for bankers to manage the economy

in such a way where they can make asset prices that they own stuff like art go up without allowing for any wages to go up so this is the modern equivalent of a the atomic bomb that was created that was a totally distorts the relationship between matter and energy here you've got the relationship between risk and reward which up until the derivatives industry was somehow connected through something called supply and demand and liberal economics but now there's been completely divorced there's no connection between risk and reward anymore you can take all the reward and head all of your risk which ends up going into the general population the public domain in the form of no wage growth no wages no jobs and then when barack obama gives his state of the union address again it's all optics there's no substance every single point i made can be counter factually proven to be a frickin law the guy's the biggest liar. create a mount rushmore of lies made out of marshmallow and dog poop because this guy is

as discrete the thing is you mentioned liberalism that we used to have now we have neo liberalism which is transactional ism and contracts and trade in fact back and forth which is why we have derivatives hundreds and hundreds of trillions based on the real economy of a fraction of a trillion so the same thing with the income is people are spending more and more because it looked on paper like they were making more and more so they psychological that they thought they were earning more but in gold terms they spend declining at four percent a year so this is why we have these this global instability this are happening trip to instability the only way said the j. of the. point being that to under truly understand how inequality. has widened dramatically historically is to look at things through the prism of gold then you'll see the true picture you can't rely on g.d.p. productivity wage numbers anything the government publishes is just different

a lot you can look at you can't use those numbers you can only use those numbers if you're applying game theory to portfolio management and trying to front run the liars with insider trading that's the only good that they're there for if you're trying to understand the economy can only look through gold and price things in gold to understand the true trends in the true distortions and finally that's what why people are nations like china are acquiring gold my germany is acquiring gold now when we round trip back to two thousand and seven and the credit crisis and the collapse that is coming instead of the bailout we're going to bail and this time wealth wealth tell lens yes herbert bayliss i mean this is what. lloyd's going to give you your money when you just b. c. they don't give you your money that's a big deal it is the beginning of a bill and you say we got to go buy. buy. states for the second.

community boards alone more than somewhere around two hundred children all for them they also found that child abusers convicted child abusers got access to those kids these whole recalling phenomena and what i'm saying is overall it's an amazingly rosy picture in that adopted kids international as well as domestic are treated better than regular kids growing up in untroubled biological families in the united states.

welcome back to the kaiser report imax keyser time now to turn a bit firesign author of this epic classic planet pods eight minutes welcome back to the cause report where your dog your bringing your dog sammy. max i was going to bring sammy but he doesn't like going out in the rain is you can see it's our first official day of winter it's freezing freezing rain out there notice look what sunshine oh my god this is what they call the what's on time can we i.p.o. it it's worth courting to some twenty billion dollars valuation but let's talk about taper taper and more taper and lack of taper and you can't ponzi it to what's

going on because the fed has gone from eighty five billion dollars a month in quantitative easing to seventy five billion now sixty five billion they are tapering they are tapering we said you can't taper a ponzi they are tapering what's going on you can't taper a ponzi max but the numbers aren't what they appear i think if you're to go and look very carefully. the first amount was ninety five billion so it went to eighty five and out of seventy five if there indeed tapering but the lack of transparency out there is very difficult to tell what they were doing the rest the world having an effect that the emerging markets are the currencies in these emerging markets like the south african rand the russian ruble argentina their cult of turkey it's all collapsing i think that you know there has been an ongoing currency war that started in two thousand and eleven when the fed the e.c.b. and the bank of england decided to have this lax money policy they flooded the world with about seventy trillion dollars since two thousand and eleven we've got a couple charts we can flash up here. indian rupee has dropped forty two percent

the brazilian reale down fifty seven percent in south african rand down sixty eight percent leaderboard in the in the clubhouse so you know you've seen this in a lot of these markets now people are just starting to talk about turkey and argentina ready to default again i don't know if that's going to be number five or number six maybe. since two thousand and one i think was the last time argentina defaulted but this is all unintended consequences of money printing bernanke on his going away tour his last tour i don't know what it was called said the problem with q it's a direct quote the problem with kiwi is that it works in practice but it doesn't work in theory so now can they taper it i think that they've they've said ok we've done twenty billion in tapering i think now when the stuff starts to become unglued not as a result of the tapering but just a result of too much liquidity and too much mis allocation of capital ok let's go back to two thousand and eight because two thousand a get

a credit crisis the credit crunch the sub prime market collapsed they came in with these programs quantitative easing to save american banks j.p. morgan goldman sachs bank of america merrill lynch what i mean you know bank of america so they flooded the world with all this money essentially to bail out american banks now five six years later they're pulling back on that liquidity presumably having accomplished their goal of saving american banks now there are a lot going to let these other countries and these other banks out hang out to dry it is that is that a an unfair characterization it's difficult to determine where all this money really ended up and i think if you go back and you look and it's on the website the tarp website if you go back you can see that a lot of foreign banking institutions were. beneficiaries of the tarp program and the bailout programs and i think with guarantees implicit guarantees and everything else they had out there is probably closer to thirty trillion that they stocked out

there now you had you know president obama did his state of the union address where he said and i'll quote. here are the results of our efforts lowest unemployment in five years a rebounding housing market and eight million jobs created and our deficits were cut by more than half let's look at those three items wait a minute you're taking over the interview i was i going to talk about barack obama's state of the union speech that wasn't on my list of things to talk about you know money and i want to talk about china ok let's go to china right so china everybody's worrying about this trip and their books are seriously cooked right so there's this shadow banking system just as focused on this whole quantitative easing in the bailouts in the money in the liquid case because china was growing at these extraordinary amounts but their shadow banking system grew even more robustly and now they've got some genuine credit crunch crisis happening potentially in

china so that again this is a result of this tapering idea is it so it's china and mirage now about to implode well the china mirage will implode i mean china has a billion people i mean china is gigantic it's got a massive engine they deal with things a lot differently in china than we do in the west so as you saw this morning the h.s.b.c. p.m.i. came out for the first time under sixty it showed a contraction in business which which is is fairly bearish in china that's that's right the chinese g.d.p. p.m.i. came out this morning so can you believe the g.d.p. numbers in china is the question and i don't know what will we get a questionable i mean official from the chinese government came out i guess it was eight months ago in the press and somebody said well look we're going to compare these statistics this is before we get around turns we're going to compare your statistics to your consumption of power and generation of power compared to g.d.p.

and the two numbers don't match and the official said wall our g.d.p. numbers are for reference purposes only you know whatever that means i'm not really . sure so the round the round turning with the hong kong customs i'm sure it's probably going on yeah around shivering in the aga khan custom so to break that down a little bit so in other words they are reporting on these numbers erroneously fallaciously because they're double accounting and double chipping and they're not really explain the round trip you know it's the round trip ing basically from what my understanding of it is is is the difference between what china is. reporting as an export and hong kong as reporting as an import and then they try to reconcile the two when it goes back to china so i mean it's the same thing that's going on in greece starting next october where they've changed the methodology of the way they're going to calculate g.d.p. so you're going to see as a result you're going to see their g.d.p.

boosted by three percent now they're just magic in the numbers they did the g.d.p. numbers they change the basis for calculation in the united states that's what i was going to talk a little bit about the way the unemployment is calculated and how that skews the market because the politicians will come out and tell you oh well unemployment is getting much better it's improving but they're not including what they do is once you're done with your benefits and you drop off the payrolls it's not that you're counted as unemployed you just don't exist any longer the employment picture got a lot brighter in the u.k. as you know and everybody was crowing about the numbers mark carney included was crowing about the employment numbers and he's changed his strategy in terms of raising interest rates he said well that forward guidance is out the window so he's come up with a bunch of the other terms that he has like escape velocity which is a meaningless term so if you look at the seven point one percent number in the u k . out of the jobs that were created in two thousand and thirteen in the first

quarter one thirty three to thirty percent one third of them were created in the property markets and for the entire year i think one in five was created as a result of the property bubble markets so these are in real estate now i think there's over close to five hundred fifty thousand people employed in that sector so that has to spawn off some sort of revenues but we're not generating the type of growth of the quality type of jobs and part time jobs don't count to buy these massive million pound for you guys and built a creation of thirty new jobs are in the real estate sector realtors selling properties to other realtors that are pumped up by osborn's help to buy a game you know is especially financial masturbation so they're going to party on financial masturbation and they're saying look we're economy is growing they're not pointing out the fact that it's the feeding mobius strip of fraud it's a ponzi scheme and this ponzi scheme otherwise known as a so but i want to get into the whole big picture here here because. two

thousand and eight credit crisis they flood the world with liquidity to balance the zombie banks they still do now in the u.s. i believe they feel that these banks are safely reliquefy they're pulling back these other countries are seeing their currencies collapse because they're taking away the punchbowl fact of life because of the fed is the really the global central bank in defense they're raising those interest rates turkey's raising rates and these other countries are raising their rates which of course is the death knell for all the real estate speculation is going on which brings us to these two other commies the u.k. and the u.s. so let's look at the u.k. for a second the u.k. has been living on cheap rates in real estate speculation well this emerging market trend of raising rates to defend themselves against the u.s. tapering will it come to britain will britain at some point have to bite the bullet and say oh my goodness. because of the fed's tapering we're running out of money on

our ponzi scheme we've also got to raise rates which means really the whole real estate bubble in the u.k. collapses well that's an interesting point of contagion rates in the u.k. shores that's my question two of the biggest problems with two of the biggest problems are right now it as long as too big to fail exists no one can trust the financial system because that's basically heads heads i win tails you bill me out and that's not capitalism but we understand it and they deserve it but they give them all that free money to keep the zombie banks alive but that's what happened the u.k. is still ristal zombie apocalypse headquarters well well well the contagion come to that story it's on the shores already because we're seeing we're seeing on the beach and being you know violating the capital is two different things here look at that building we do know that million pound flats what what's happening now in the markets as i can see is you've got a tulip mania you've got people that are stepping up ten to twenty percent to buy flats that are already ridiculously overvalued because of the george osborne mark

carney liquidity and the help to buy ponzi scheme ok so what happens is you know you can keep putting money out there and liquidity and the united states learned with fannie and freddie by allowing them to go hog wild and that blew up now president obama getting back to that for a quick second said the real estate market is recovering but if you look at who the buyers really are what you've got are a lot of hedge funds and you've got a lot of banks that are buying bank funded and indies that are buying single family homes to rent them out so that it's turned into more of a marketing you know the next best investment and goldman just came out with a securitized program to sell bonds on these which we've seen something like this before when it blew up the first time like timberwolf and the other private investments i mean this is just the same stuff recycled because the market has a very short life does not hurt america. foreign policy is if latin american countries go belly up due to tapering because you know they were very upset when

the us invaded iraq they took their eye off the ball in venezuela and all these argentine and these other banana republics they've been manipulating for decades now with tapering the economies are these currencies are crashing so it opens up the possibility of cia you know get on the airplane go over there venezuela you know once again they run the show so isn't this part and parcel of their kind of a global geo political strategy that's all idea well we're just going to bankrupt these countries again as we've done in the fifty's and sixty's and seventy's we did it was in iran in the fifty's you know it doesn't help them geo politically they want to control latin america again they hate the fact that latin america has gone capitalist and without the u.s. getting a major play doesn't help them going to reestablish a beachhead in latin america well i think the united states has a bunch of problems i think there's no chance that they can pay back and my book explains that the two hundred twenty trillion that they have in debt and entitlement social welfare entitlement programs venezuela as an example going to south america as their currency has declined seventy four percent you see that

that's a big problem argentina had to raise prices thirty percent but it's a big problem because we're going to end up being rolled by the cia again because as they were before the fact that they were a minute we got to go we've got to go we're going to cut to come back what we read of the clock says out of time time thanks for being once again the kaiser report thanks mike that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert of the thank our guests misfires stein of planet ponzi dot com if you'd like to get in touch tweet us the kaiser report until next time but you know. i know c.n.n. . fox news have taken some knocks lately but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurate. that was funny but it's closer to the truth and might think.

it's because one whole attention and the mainstream media works side by side the joke is actually on here. at our teen years we have to put it pretty. good because the news of the world just is not this funny i'm not laughing dammit i'm not. good. at. you guys stick to the jokes will handle this stuff ok. well. science technology innovation all the least of elements around russia we've got the future covered.

hello and welcome to world the part of the conventional wisdom is that a child is always better off in the family down in an institution given in being without family means losing all existing social ties but it is international adoption really always in the best interest of a child to discount that amount joined by elizabeth bartholet buckle to director of the child advocacy program at harvard law school. i really appreciate you being on the show i think it's a very sensitive issue and we are all for a very very interesting discussion thanks for having me now i know that you are one of the most vocal advocates in your country for international adoption but after growing steadily for almost six decades do number of children being adopted in.