brazil. welcome to the kaiser report imax kaiser i am become death the destroyer of markets said any central bank are today. to get it to get the reference stacy yes max the central planning central bankers have literally destroyed markets and turned them into a giant weapon of mass financial destruction headline reads bons liquidity threat is revealed in derivatives explosion the boom in fixed income derivatives trading is exposing a hidden risk in debt markets around the world the inability of investors to buy

and sell bonds there's no volume in bonds because there is no market in bonds because bonds are trading at three hundred year highs here in the u.k. at two hundred forty your eyes in the u.s. they are well confiscation certificates for sure they represent no value whatsoever the only people buying these bonds are the computers buying amongst themselves for other computers and this is part of the takeover of civilization by the machines the only one buying the bonds are the machines the only one who talking to each other are the machines well this is the machine revolution it's also the governments themselves like for example in japan the government is buying seventy percent of all j.b.s. so it could be a computer doing it on their behalf but they are buying at south no no no that's not true because most of the government officials are those love hotels jacked up

overnight playing with some sushi wielding security girl and meanwhile the machines are buying those a jeebies the machines for themselves it's like godzilla lives inside the hole a gram that is the financial markets and he's. eating the entire bond market because this is the way the machines take over the machines are taking the global economy private so the article then goes on to say that for example the u.s. treasury market which is the largest in the world is trading at thirty percent less volume than last year even though it's at all time highs the yield is the. the lowest in two hundred forty years and they also said the shift reflects an unintended consequence wrought by central banks which have dropped interest rates close to zero and implemented policies such as buying debt to restore demand and economies crippled by the financial crisis inefficiencies in the hundred trillion dollar market for bonds may make investors more vulnerable to losses when ilda rise from historic lows so as you see it like anywhere you look there's just so much

rigging and so much government intervention that they are like distorted like a godzilla like freak creature that the whole markets have the participants the real participants have to turn to things like derivatives they're creating derivatives and italy there's been an eight fold increase in driven is traded on the italian bond market which is the third largest in the world because there are no real bonds they only have to create a derivative of those of that bond market that's another part of the story is that the the bond itself plus a government bond issued by a government to finance the activities of the government does not have any was buying that bond yields it's there's no there's no level that's why they're going to negative interest rates over there in europe because even though nobody wants to buy bonds so there's going to confiscate wealth and the derivatives market which are bet made on these holographic representations of ious some refer to as

bombs are exploding in value because bankers need some way to make a free even though it means generating trillions of dollars worth of bets. the horses are dead you know the horses are dead it's like the horse race has already been run. and all the horses are dead but they're still going to create derivative bets on a race made of horses that are dead the u.s. government bond is dead the u.k. government bond is dead j g p's of japan are dead jump on market is dead but they're going to make bets on the dead horses anyway because they can't stop themselves just they are in fact these are the machines the machines cannot stop it's the central banks i'll say i said governments before i meant central banks they're the ones flogging this dead horse the market is dead they killed the market they are the destroyer of markets they have become death and in japan this article

points out that trading in japan the world's second largest bond market has virtually ground to a halt as the central bank gobbles up about seventy percent of the interest bearing debt sold each month on four days last week the benchmark ten year note opened late because there were no buyers in the market other than the other then the central bank right well they have the central bank policies of zero percent interest rates as a relay such apennines bond market it is as you can as you infer in the beginning like an atomic bomb that is dropped from a foreign power that wipes out an entire country or a huge city and here you have central bank policy of zero percent interest rates orchestrated by a global cartel of bankers that want to free money to speculate on their own collection of artwork so if i own one hundred grandmasters old master paintings from one hundred years ago two hundred years ago and i want to see the price

quadruple then i'm going to tell the central bank please make money zero percent so i can borrow one hundred billion dollars to buy more of this artwork that i already have on my wall so that i can use that as collateral to go buy a football team in the u.k. or go by. some more trophy wives over there in central pay and the central banks are complying but to the point where you have to ask yourself are these social banks even sent into human beings is mark carney even a sense and kind of human being or see an automaton it's a machine is he like that movie westworld you'll burn or rips off his face and you see the inner workings of a machine the machines are winning let's go back to what your opening was it's a quote from oppenheimer when he created the nuclear bomb and the reason why he created the nuclear bomb was for the government in order to save the world from a war world war here we have central banks i am become death i am destroyer of markets because they had there was

a financial war and they thought that they were saving the markets by creating this you know their intervention their nuclear bomb of policy and it's actually like nagasaki and hiroshima you see just isn't consumer bodies out there nothing is moving and they're still like dropping more bombs on these people hoping that they reanimate them and they go shopping maybe one day but here we have even the bond market who is supposed to be the most liquid in the world is that there's no liquidity people were as you always talk about people like crawling in front of a steamroller chasing nickels chasing yield here they're chasing liquidity by creating more financial products to create fake liquidity it's not a bunch of market it's the bomb market these are financial bombs that are being dropped like the goal of gay or the other big bombs and little little just a little boy or big boy or little big just little big gun or the little house on

the prairie boy so they're jumping. the the massive lie that is told is that the central banks are fighting deflation. and then flesh them are just came out this past few days. in the u.k. in the u.s. they're graduating down one and a half percent now officially as i've been saying on the show for a few years quantitative easing and zero percent interest rates cause the flesh and they cause the going to cause these prices to come down as they are doing now. because all this money is going to support a zombie banks machines that are crowding out all legitimate investment just causing massive malinvestment and there as a result the economies are imploding and then they say look the economy is imploding let's do more of this causing this economy to implode so paul krugman has been discredited utterly over there at the new york times he said this would not be the case he's completely wrong everyone who said that this would be the story as

now been i've been proven right of course and they are proven completely wrong while they're also pointing that out is what is happening why why you're seeing this collapse and liquidity the death of the markets is because the central banks are buying up all the bonds the bonds are what is used as collateral by the banks to lend out into the economy but because the central banks are taking all the capital out of the market there is no cap and there's nothing to circulate and they point out in japan for example bank of japan's bond paralyses seen spreading across markets the bank of japan's unprecedented asset purchase program has released a creeping paralysis that is freezing government bond trading constricting the yen to the tightest range on record and breaking stock market activity that's an interesting word breaking but actually what they're saying is breaking b r a k i n so putting a stop but it's also breaking it's breaking the stock markets is breaking all the markets they're creating bonds zillah yes mullins all of that is going to come up

from japan if the bond zillah's being fed by zero percent interest rates and we can get a can imagine that the yield of bond zillah rising from tokyo. it is in fact the utter capitulation of these bond buyers and you see the old will suddenly skyrocket and this will cause more damage then the nuclear bomb and any of the atomic bombs more damage more and more damage than godzilla and bond zillah will stop the globe and crave unprecedented nightmarish economic hardship as being fed by mark carney janet yellen mario draggy the central bankers and their theories about deflation which have been discredited on the show over and over over again how many times are deployed up there to get there as a very strange thing where you rooting against your percentage of traits you're causing the very thing they say you're fighting for spending in this what's gonna

happen is up there in tokyo tokyo is going to be like always pray that. god. will stop the good bugs. the table there's a shell this is the kind of damage upon silicon do that this is what bond silicon do to the global economy you keep interest rates too low and too low for too long. ok ok down now the article then goes on to point out that the danger of this to the investment market the flows on both the buying side and selling side continue to fall so takehiko your shino the chief fund manager at mitzi who trust a banking company he said falling volatility is a very serious problem for traders and dealers who are on able to get capital gains so you have fallen volatility you have falling yields there's nowhere to make

money other than i guess everybody should just go to vegas because your your odds of winning there are better than in the markets like to some but just because of our economy that's all of these not helping the matter at all but playing for discover propaganda. really you know tell us why much because this is supporting the same. sort of thinking that doing this you know einstein said the definition of insanity is doing the same thing over and over again expecting different results ok then they trade the atomic bomb and now. i say we've got to go. i'm going to go buy a new table great they say to the second half a lot more. i

marinate join me. in that impartial and financial reporting commentary contributes and much much. only on time past and on. right see. first rate. and i think you're. on our reporters. in. the end. to

all european views on any player all about what they're going to do but it is really think the european union's a job they don't listen to i'm sure there a need to we will what will we do i mean if the u.p.a. and you knew. well can you do both ukraine for example. economic pressure. for. office now a. part. of the time. there's a media leave us so we leave the media. doesn't seem to suit you in the play your

part of the visible. push is that no one is asking with the guests that you deserve answers from it's all on politicking only on our t.v. . welcome back to the kaiser report imax keyser time now to turn to writer and activist carrie mendoza of script a knight who is crowdfunding the people's water cannon and start joint dot com welcome to kaiser report things have me on max all right so you know i've been back and forth on twitter because great friends because i follow your your script and i've blogged as you do you really keep your finger on the pulse of what's happening in the u.k. the activist market and we kind of came up as people's water cannon idea if we did so i thought you should come because there is boris's office they're offering us this inspecting this is. not super soakers or w.

and the water cannon you know tell us first of all the mayor is talking about purchasing some water cannons what all that about well basically. and the police commissioner. and concocted this plan they were water cannon on london streets so they asked reason they she said they asked the people who they said no so they just went off to germany and basically boot them anyway so it's a bit of a fool going on between boris into reason may of this moment in time but you know the idea we came up with was basically before we see it going to have three water cannon surely. the people of london and britain more widely would have at least one if they're very right i mean the water channel you've got a priced out of thirty thousand pounds is that what the price of a water tower goes for the rest of it which is less than the boris is paying it is so first of all he's over water town and well you know this is the problem when you have to take political positions they've never run

a budget in their life so that if we buy the water council crab to start join and then resell it to boris maybe we should be made to get the people. exactly so but the idea yes is the people's water cats are thirty thousand pounds and it's got a hundreds of people are rolling in money already because the idea is that and also i supplement this with our own. water pistols on the super soaker exactly so you know water what are your allies this is this is a london white water fight there where we're planning here max where it shows you every uses his water can and then we douse and we drank sham we came all the time with his little mop top looking at all one of us from up here and you know you've got to think can protect himself fringe benefits because you know as you know boris is going to run closing about half of the fire stations in london so you know we might have a purpose for a water cannon which is we can put out a few fires on the way to this is because of the one hand the policy makers or the politicians are saying the economy is recovering there is growth and yet they say

those are concerned about riots this summer so they're out there buying water cannons there's something that's connecting there where you know you guys talk about on the show by the zombie economy you know this is a zombie economy we have where you can have in the same year you know the stock market is hitting record highs and so he's usage of people relying on food banks to eat something toshi the city of london economy has become completely detached from the real economy that you and i would know. in the u.k. it's the widest gap between the top and the bottom of it anywhere in the world of the major economies in the world so there's this is terry packages done nothing except increase the normal economic gap with the have yachts and the have not actually the i mean you've got the richest you know five families in the u.k. own as much wealth between them as the book him twenty percent of people in the entire country you know the united states is well he's just. never with economic

inequality is just so to the levels of nine hundred twenty eight you talk about the wall street crash took about pre new deal say you know inequality is a massive issue the government now you say that they're preparing say we should be as well well in britain you know pretty strict class structure anyway you know you've got a pretty. class. divisions but what we're talking about here is something else altogether are we were saying that these fake austerity measures that by the way the debt in the u.k. has gone up than down so when us more says he's imposing austerity measures he hasn't cut back on the government's debt yeah the government spending or the crony capitalism is nothing to do with austerity that's the thing i mean the reason they pick the sterett is to try to make everyone feel kind of post world war two as if we're all in it together when we're really working towards rebuilding the nation somehow from some sort of catastrophe and i'm sure they're doing is extending the

catastrophe they've they've lived through this ridiculous absence of regulation on the financial services industry economic boom to go off across london and the world and then instead of actually kind of going through the wreckage and and helping but everybody up there actually saying no you guys called you guys meet here and h.s. said you know your homelessness there's too many of you poor people in fact you are because they have dragged us dying meanwhile the banks are still getting their bonuses politicians are still getting their posts politics consultancy positions and raking up millions and speaking tours and we have tony blair winning his way back into the country to defend iraq this week. continues to be perpetrated on people who no wonder they're buying water cannon you know because it cannot be that long until you know the british people kind of wise up to the fact that basically been taken for right so the poor are being scapegoated. and not just the poor the poor are being scapegoated anyone who's reliant on public services which is pretty

much all of us you know anyone who wants to use a hospital scapegoated anyone hughes now at the age safe with their whole lives every tiring they now try and get a pension because well you made a good point i want to focus on this for a second the worst areas a misnomer if it's a transference. in this country. you're saying it brings up images of post-war togetherness and ration books and there's something wrong going to fight together in the joint us in this fight against something just making you want to just taking your wallet and all the transfer of money especially so we know that with general percent interest rates that money goes from savers and pensioners and workers that goes into the club the crowds absolutely so the should call austerity is transference there's a transfer aspect of it so wealth transfer money is not just a transfer of wealth transfer of property it's a transfer of assets you know schools have been sold hospitals have been sold to the h.s.b.c. now owns three hospitals i write in the u.k. in r.b.s.

are involved in barclays is a wealth fund to buy up hospital bankrupted three private financial so across the piece you have the government as quickly as possible selling the family silver kind of to create i think folks positive essentially and go with the reason economic activity happening out there during these off everything on which we were largely i think it's going to take a couple of years for people to realise that we're going from landlords of foreign country to renters you know he said the government's basic plan seems to be set off with the royal mail sell for peanuts based bargain basement prices to the investment companies who then own a much higher rate so they make their profit and then they get to rent it back to us for you know three six twelve times as much as it ever cost to run the n.h.s. it's a classic example of the royal mail there they sell it off for peanuts especially

to pensioners and places like germany so there are many pressures will be living off the fat. but the people who own the day are going to be paying more for postage and i don't have income at all so these are good income producing assets the n.s.a. has the royal mail transportation education there's taxes off selling off to foreign investors for peanuts yet and then the service charges here skyride. i get that of all the campaigns in the u.k. right now there's fracking there's the n.h.s. there's student c s those seem to be three big ones at the moment with one of the n.h.s. of course we're doing a project i started on as well which one. refracting about with vivienne westwood. who has done it but come i spent a few weeks can go round and people that it was a. stunning to see kind of you know hard to base to members of the one who community and i'm just worried people from across the country coming together in a really cohesive nice way to a pace you know an existential threat

a century and this is like fracking is really touching a nerve you know i think because you know i'm i don't live in this country but i'm a i'm an observer i'm going to talk will of observing. in their in their ethical logical of their habitats in their ways i'm fascinated by and i noticed that british people will spend hours and hours and hours watching monte don in his garden talking to plants you know go to their guard lovers and and roses and and so this fracking i think like animal rights is another seems like a british hot button issue whatever so whenever a little is in danger somewhere yeah you know it's a letter you wrote it was you know you better are doing the right yes to save that total somewhere but the gardens another thing so fracking yeah and also sounds like another f. word is to say have like these days monsanto days how the burdens and the quadrille of sounds like godzilla we talked about. a great criminal namely quadrille i

realized i had a feel i know you know that evil is this still quadrilles fracking you i'm mercifully in your garden right and we're not silent that can't be kind of stuff to bring. this is a painful frak from quadrille but is that part of the reason why this is such a hot button issue is that. you know people misc. for the people of britain love britain as in the land mass part of it yeah i think that's part of it i think the other problem is that sometimes i think you know what we see that really upsets us the may so i get frustrated by issues like the n.h.s. been sold off which i think is a really huge issue and it is a big issue but because people can't physically see their hospitals being sold off it doesn't quite translate but people can see the signs going up in their local communities about fracking wells are going to be opening here at such and such a day you know it's not that complicated these guys are going to dig a hole in the ground they're going to shoot later toxic rubbish into you know and

they're going to make it all mass in the process and. then you are lending money carcinogenic securing dry you're going to suffer contaminated water tables all of these issues which you know we're seeing in the states these issues are being you know shared widely amongst us so we can see what's happening already we know we know this is about i dare say people don't have to think too hard about their own position it's a straight this is this is not complicated there are no financial instruments involved that we have to get our heads around. the bailout is that the crime was so complex that i think sometimes people get lost fracking is very very simple just a simple thing that people in the states when they find these kind of energy resources or mental resources they get some money. here in the u.k. if gas is found underneath your property you don't get nothing because the queen it's owned by the queen the queen says essentially it's the crown assigned by the crown even better than that is that they've just bought her yesterday and i suppose

the developing debating the second reading of the infrastructure bill which is basically because they don't want the queensland to be both a boil this fracking you need to do the the aristocracy that still own food or british land so basically everything is left is ours it's a public asset so they're put into this bill that means they can actually privatized that land they just hand it off to. new quango which is then becoming a privately owned company so that's going through at the moment the whole point is to shift what we call streamline the planning process which is kind of you know tori language for we're going to make a noise here for us to sell the slum to our friends said they can put fracking wells on a lot of an old patent but get away with this because she's the queen i need a. queen is just some notional figurehead like a fairy queen was somebody thinks yeah i think she was the queen your skills are and you know you cut the cord on the hospitals and think she is the ceremonial role

but she's an evil old bat complete here prince charles has vetoed you know hundreds of policies a few years they were coming to parliament which would have infringed upon his business and commercial inland interests the queen is the only time we're going to have you back saying that with the people's water canon get their hands on the raised area and mendoza thanks for being on the kaiser report thanks for having me on max pleasure and that's going to do it for this edition of the kaiser report with me max keiser and stacy herbert i'd like to thank our guests kerry and mendoza scripter knight if you'd like to touch tweet us a kaiser reports like stand by. i know c n n the m s m b c news have taken some lots 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 i

think. it's because one call attention i mean street will work side by side with actually i'm good. at our team we have a different approach. because the news of the world just is not this funny i'm not like dammit i'm not. ok. you guys talk to the jokes well hand over the. place.

crosstalk rules in effect that means you can jump in anytime you want. mission to teach me.

just.