bank reserves is simply for a subsidy so the go the government will lend money to the banks at a low interest the banks earn a higher interest in the federal reserve it's a pure giveaway at some of the proverbial free lunch well let's talk about these m.b.a.'s securities because this basically relates to the housing market and recently we've seen housing prices rise and the stock market hit all time highs has this been a direct effect of these q.e. programs i mean is this has been has this been a true housing recovery no let's look at the housing market it's fundamentally changed now that the federal reserve has pushed down interest rates to one percent on government securities you have all of these bond holders and the cash rich hedge funds what are they going to do they're not making loans anymore and making money by loans what they're doing is for the first time they're buying property real estate at one hundred percent cash there are a lot of vulture funds and hedge funds that are buying real estate for all cash instead of debt leveraging so what you have done is you've turned th

we'd be remiss without mentioning the fed which is named its own accounting manual to make sure the big banks get paid ahead of the taxpayer a new york times article highlighted our recent guest steve and how bernanke got it oh so wrong and provide some choice coats quotes from a nobel prize winning economist in two thousand and three nobel laureates robert lucas jr actually said it has succeeded the central problem of depression prevention has been solved finally detroit might be in the sewer but that doesn't stop movies from upgrading its outlook on u.s. debt from negative to stable and that aaa rating still intact moody's actually said the federal government's debt trajectory is on track even without further budget measures well you don't want to get sued by standard and poor's right all's well that ends well except we're just at the beginning of the end of the debt supercycle so stay tuned as we talk to michael hudson about the bubble economy and the role of the fed in just a bit. and now it's good to what's in your prime interest. treasuries are headed for the largest two week gain this

it is too that the reserve banks, the 12 reserve banks around the country technically are owned by the banks that are in their district and that the regular. that's more of a accounting convention that a reality. the federal reserve board is a government agency in washington. its leaders are appointed by the president and confirmed by the senate. it's a government agency like any other. it's covered by foia and all that kind of stuff. the reserve banks are a little more strange but it's kind of weird hybrid structure to the profits are all returned to taxpayers. so when the new york fed makes money off all these programs that money gets returned to taxpayers. they have had record earnings lately because of all this money printing, i believe $90 billion last year. but it is a strange structure where the presidents of those reserve banks are chosen by a board of directors that includes a lot of local businesspeople and they have to be approved by the fed aboard in washington but it's, i don't think it's a simple essay is owned by private interest but i can see why people would say that.

like the big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the kaiser report thank you max stay tuned for the second half a whole lot more. good you take three sports three. three. three. three. three blog video for your media project medio don carty dot com. the interview. i would rather asked questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question more. the civilized world produces more foods that it needs. well people die of hunger in other countries. millions of victims every year. where a meal is the most value trade. last. is flood or droughts to blame. and it was a bad year without a train. we couldn't find anything with the water with it all but there was great hunger and some. of that help comes too late and without good intentions. charity diplomacy and business on elsie. welcome back to the kaiser report imax guys are time now to turn to paul somervell the c.e

big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the kaiser report thank you max stated for the second half a whole lot more. sacred lumbered sure to mccurry was able to build the world's most sophisticated robot which on fortunately doesn't give a darn about anything to mission to teach creation why you should care about humans and. this is why you should want your only on the orgy dot com. when the great space blind to what is happening in their country. the american dream is disappearing. the houses with gardens are. the poor are left hopeless the streets are full of angry crowds fighting against. the stole the american dream the lead. up to. the sea. the first trip. and i think the true. foreigners. and instead. of being the. odd. welcome back to the kaiser report imax keyser time out of charge of paul somervell the c.e.o. of somerville advisory market welcome to the kaiser report i'm max all right paul somervell let's talk about hashtags anglo tapes which have

s business secretary vince cable as compare the bank of england to the taliban and to the hottest vince made this comparison not because of their reckless quantitative easing nor because of their overlooking bank fraud and infinite retired profit cation that is to say because they are indeed terrorists now vince cable saying that the bank of england are jihadi he's for insisting banks have minimum capital reserves vince. old boy as i've said for use the bank of england are indeed like the taliban but only because they provided the safe haven for the jihadi of banking fraud who strapped on the debt packed suicide vests and blew up the entire frickin economy. and that same taliban central bank is now papering over the bloody aftermath with little pieces of digital paper that explain more we turn to stacey or well max first of all i did look at jihad and i'm sure the n.s.a. knows i looked it up on google and the definition provided by google was that it's a war of struggle against believe hers so this is important for the rest of this episode this notion of unbelievers which i think we sho

like the community banks the savings well you know the roofs and whatnot sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank rates that are as low as they have been are no

versus the smaller banks like the community banks the savings well you know the. sure smaller banks are at a disadvantage the large banks obviously because there is an implicit and explicit guarantee by the fed i mean they can say in the media and they will talk about not wanting to save the banks and not wanting to step in again that they would do yeah but they have to get their hands are tied the system is geared towards that that size which we looked at in the in the beginning of talk when we're talking about the entire size of the u.s. economy resting on these banks they can't afford to let it to let it be at risk so they would they would step in if they had to well let's talk about their mandates they actually have three mandates most people only talk about two of them you know you have maximum employment you have price stability which actually means inflation but also moderate long term interest rates how does that fit right moderate interest rates i don't think you can call moderate interest rates and zero interest rates and the interbank rates that are as l

the bank survived. one of the bis is brilliant of doing, it has been since it was born in the 1930 reinventing itself. after the war, there was a sense, there's an argument for this. you have to get the global economy up and running. we have to start making and selling thing. countries have to start trading. we need somewhere to be the to call focal point of this. t only a year old or whatever and the world bank. the bis is there's. it has a lot of experience. they have contacts all over the world. the bis survived in the next phase over the next few decades, basically until the 1990s the bis hosted all of the prepare work on technical and secretarial work for the preparation of the euro. that's how it kind of reinvented i.t. this starts in the late 1940s with a lot of obscure things like the european monetary corporation fund and the european central bank. they met at bis and place is important here. because say that were based there, they were managed there and the bis did a banking. so it became a kin

>> the shareholders or the member banks. the other central banks. there's an annual general meeting every year where they discuss the way the bank is going and the governance of the bank to another thing which i should mention is also that the bank is still very eurocentric. you can see its heritage, that it was set up in 1930s a century by the europeans and buy america as well. after the collapse of communism although small countries like estonia, macedonia, slovakia, the new countries, they are all admitted and i added of the population, it was something like 16 million people in all of these small new countries. but in africa, only a jury in south africa are members. algeria is not a member of the bis. that's quite an amazing that one of the biggest economies in the world is not a member. pakistan is not a member. kazakhstan are not members. so in africa, in asia, in central asia, there's against it and i asked why, if they said well, the sympathetic has to meet certain standards of governance, economic transparency and the way the economy is run.

big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the report thank you max stay tuned for the second half a whole lot more. so basically when the saudis or the iraqis will do the turn of the companies when they provide the shooting the promoting for the regime that the d.n.a. their cousins if you share a language to share a a faith to share a culture and tradition now what you're saying is that because you are an arab because you are a muslim you for some reason have the same right to protecting the syrian people but to me it sounds just as you know condescending as the bushes claim or you know supposedly car responsibility here. choose your language. kill it oh if they still some of. the concerns get a. chance to opinions that invigorating good. clues to stories that in life choose access to offer to. play. because leakage. welcome back to the kaiser report imax guys are time now to target paul somervell the c.e.o. of somerville advisory market welcome to the kaise

big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the kaiser report thank you max stay tuned for the second half a whole lot more. i am going and i am. playing at. the end i. do we speak your language i mean come on they will not advance. news programs and documentaries and spanish what matters to you breaking news a little turn it if angles couldn't stories here. are you here with fists to ensure they all teach spanish find out more visit i to allahabad all tito is calm. live. if. you. live. welcome back to the report imax guys are time now to target paul somervell the c.e.o. of somerville advisory market welcome to the kaiser report i'm max all right paul somervell let's talk about hashtags angle which has been sweeping twitter now first we've got a major reveal coming because you've done some investigative work on this but first let's remind the audience of the story thus far sure it's supposed to start off with the story about a bank it's not a story by one rogu

as the central bank purchases interest bearing assets for money as q.e. unwinds those interest bearing assets will obviously be sold and the key question becomes at what price as interest rates would likely be rising and central banks become substantial sellers of financial assets prices are likely to fall since q.e. as involved major purchases of financial assets a relatively small fall in asset prices more asset prices that future sell day compared with prices at time of purchase would generate significant losses so basically they're in a situation where right now they could tell their taxpayers that they're making money on quantitative easing however should they seek to stop the program the have to report losses because of the games are based on the ponzi scheme i mean bernie made off got to report every quarter to his investors that they were making money as long as there was a new fresh crop of suckers coming in to feed the ponzi scheme then once they figured out oh wait a minute ponzi schemes over then they all lost everything and that's the problem

like the big four banks here in the u.k. are all zombie banks all right stacy ever thanks so much for being on the kaiser report thank you max stay tuned for the second half a whole lot more. real damage and complexity of this oil spill is not something you can grasp just by looking at dirty birds we have between four to five million people in this directly affected area of the coast and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're open for business here b.p. is the single largest oil contributor to pay. the u.s. war machine is heavily on b.p. and their oil this is a step backwards. it's a step. is toxic is a look a lot like. it was it was not a picture that either the government or b.p. really wanted to have i don't want dispersants to be the agent. this. is. the official. stream. enjoy favorite. if you're away from. mobile devices you can watch on t.v. any time anyway. welcome back to the kaiser report imax guys are ti

it's the three biggest billion banks in london and london from both sides of the atlantic and bearing in mind there are six billion banks clear the c.l. which is the london clearing bank system which is basically six billion banks pretty much all of those control what's going on they clear everything in london every day but basically so you've got now or this run so what happens is the fed steps in and says look we rather than expose this whole collapse and that and also on top of it the whole fear fear system being in collapse what would do is withdraw the provide bullion to the market so borrow it and we're happy to continue to read hypothecate what we've got which is already leverage as you say people are asking for their billion back is already a problem so what they do is they see backwardation they go the only solution that we can see short term is to dump the futures price in other words they provide so much synthetic supply into the paper markets of the comix paper markets that we drop four hundred dollars well here we go full circle four hundred dollars lower where are we aga

the dis to their banking. so it became the kind of local focal point for all of -- for much of the postwar planning, especially to do with the euro. and then in the 1990's, the late 1980's and the president of the european commission, he set up the committee to work out european union, i.e. the euro. and debased. the politicians wanted based in russell's or strasbourg, but it was based in basel in the dis which served as a secretary. so you can see, again and again the bankers making itself absolutely the center point and reid evolving and reinventing itself. each in a clever and nimble institution. in one of the key people was alexandria. known as the father of the euro. his day job, general manager of the dis. and after the committee passed its -- it was agreed in the plan was going forward this set of something called the european monetary institute which was based, of course, at the dis. and then a stay there until the end of 1994. became the european central-bank which is another international bank protect

here on this network is what we have in the bank we have our knives. believed to be the saturday we're just about staying there to get here it is great will be an ideal way to talk about the surveillance. download the official publication to yourself choose your language stream quality and enjoy your favorite. if you're away from your television and just doesn't gossip about with your mobile device if you can watch your t.v. anytime anywhere. coming up on r t a judge makes a major ruling in the bradley manning trial will the wiki leak or face the aiding the enemy charge we'll have a report from for me just ahead and a lawsuit against a key provision in the india a has been thrown out there are fears that the provision allows that attainment of anyone anywhere suspected of helping terrorist organizations more on this court decision coming up and the first week of ramadan in iraq has been deadly insurgency and sectarian violence have created a sky rocketing death toll more on the chaos engulfing the country later in today's show.

scheme and what it means is print print print by the bank of england it's going to have more inflationary pressure right now inflation is on a tear in the u.k. three point one percent you know that the government says was actually eight percent nine percent on officially so you're going to see that continue to race ahead living standards continue to collapse and the housing market will reach the point of a bubble and then collapse again this is our form of jihad here it's a war and disbelievers so they're angry that we disbelieve there we don't believe their lies that they're telling us lies we know the economy is crashing we know wages are down and so what supporting these house prices rise and what's where are the jobs where's the real income where's the where. real wealth creation you know what vince cable is calling me an infidel because i don't believe in his ponzi economics i would return it and say cable you're a pos date which means that you've turned your back on free market capitalism you don't you are frickin welfare socialist bum queen who'

here i missed that word is what we're having in the bank we have our knives out. but if you feel this right about staying there again you're in a situation where being idle or even talk about the surveillance equipment. is easy to use. it's. easy. to. say. good afternoon and welcome to prime interest i'm parry i'm boring and of all the english if they've had life. i don't understand gold yes that's what i'm. a lot of the fed chairman actually told congress today maybe that's why germany wants three hundred tons of it back that would be the goal of the fat is holding on its behalf we have just one word for you finance minister. tungsten but don't worry chairman bernanke he assured the s. and p. five hundred now it all time highs that the monetary q.e. stimulus will continue until the economy can stand on its own feet such anthropomorphization is quite quaint for an economist rishon isn't it we debunk the likes of bernanke you talk about the mortgage jubilee with economist stephen king later in the show and jamie dimon can't seem to find its share of that isn't about

the u.s. banks getting whacked pretty hard by american regulators as well right now. >> want to talk about the new financial targets for barclays. it said it would see a return on equity that would exceed its cost of equity in 2016 rather than 2015. investors have to wait it out for a little bit longer. >> investors have already been waiting quite a long time. as long as i've been covering the bank, they have been saying we need to get our return of equity above our cost of equity. the targets -- they used to be in the midteens percentage wise for return on equity. slowly creeping down and the cost is slowly creeping higher. one day i'm sure that barclays and other banks will achieve that target. it is going to be put further into the future. >> want to delve into the santander numbers as well before we analyze them. spain's biggest lender reported a 29% jump in profits. came in at 2.25 billion euros in the first half. the share price is now just a fraction weaker. down a third of 1%. stephane has b

were quite happy to release bullion into the market or into the bullion banks before why the slowing down now and again i believe that having to work but both of these indicators is you could look at the barometric pressure or the temperature and these are gauges or to assess what's happening in the internal machinations of what it was and these two very key indicators are both indicating tightness in supply there flashing red and not only that but if you look at the delivery situation on comix that is also flashing red ok i can't wait and what really does more well is because the amount of gold actually held in the comix depositories is extremely low the amount of gold which is registered for delivery into the market in other words dealers gold is incredibly low and so far as we can see a lot of the may settlements haven't actually been cleared yet and that's only looking at the day to day drawdowns if you like out of the bullion banks now i was just reading some comments by jim sinclair is one of the. deans of the in the gold business i would say yes he isn't

the u.s. banking system has considerable freedom indeed from two thousand and one to two thousand and eight one had access to a mortgage no matter your credit history or the reason why you want to do all the bank's board then aid. to transform loans into stocks to bet on the exchange market by the security given by ratings agencies they easily transformed loans into financial securities any kind of risk was dumped on the stock market and banks started a period of generous giving and easily accessible refinancing. and here you have you know these loan programs that made it very easy to borrow money and you didn't have to qualify you didn't have to show the income and the government is saying help people borrow money make it easy for people to borrow money in the investment bankers are saying we can make a lot of money or people can borrow money let's relax all the rules so that so this is a standard what they call ten o three form it is a loan application that a client would complete when they're looki

also with us from the world bank, oliver griffin, welcome back. we would also like to welcome james. how are you, sir? detroit in the news, and there is a lot of fodder out there. >> a lot of interesting facts, disturbing facts, but also some positive vibes. let's take a look at some of what we are finding online. 15 houses in detroit, you can buy for less than $500. that is a sign of the times. >> i believe they call those a handyman special. >> i am not sure if it is a good deal or not, but it is indicative of the way things are. $70 for that house there. plenty of examples. that house for $100. it is pretty extraordinary. it shows the way the city has been affected. it shrank in its population from 1.8 million to 700,000. that is another example also. this is a science lab in an abandoned school in detroit. i was going to get to the positive stuff, but i am not there just yet. this is another photo shared on social media. to show how it has been politicized, if it had been run by the republicans, the auto industry -- detroit celebrates 312 birth

state and money in the way a model of the economy and when you do that of course the blood banks to has dramatic effect upon how the economy help writes and that's what i fundamentally analyze what we actually have a chart here of yours and it is a u.s. private debt to g.d.p. ratio that has five years in private debt reached record highs starting with this graph in one thousand twenty days so are you still expecting to see a private debt deal leveraging what would trigger this. i'm just working with richard by going the in the governor woods foundation right now to reveal all of those figures because we found him actually including some bank that i shouldn't include in the profit at this we're going to be changing that child has some point but yes there is we have got to a level of debt in terms of the private sector which is probably three times the level which i think is sustainable in the long run so we're going to see de lay bridging which is roughly equivalent to one is she had a driven out of the economy but there can be periods where people go back into borrowing money aga

the. monetary policy central banks no problem checking. but there's no way to check out now to explain all this let's turn to see herbert yes max keiser well you know that the u.s. federal reserve chairman ben bernanke when he basically alleged that he might taper one day well the bond pocalypse set upon us and now he's claiming to un taper well i'm not actually going to taper but the question is quantitative easing can it be unwound so to economists look at what's happening in the u.k. and what they found is that central banks and governments have so far profited from q.e. as the central bank purchases interest bearing assets for money as q.e. unwinds those interest bearing assets will obviously be sold and a key question becomes at what price as interest rates would likely be rising and central banks become substantial sellers of financial assets asset prices are likely to fall since q.e. as involved major purchases of financial assets a relatively small fall in asset prices more asset prices that future sell day compared with prices at t

"banks have enormous liquidity, plenty of capital. the problerm with lending is not so much banks as much as the borrower not wanting to take risk and borrow the money." the professor says the impact will be minimal because firms will have until the end of 2017 to adapt. "some may not be able to meet it now, but they will easily be able to do it over the next four years." "the markets will expect the banks to be in compliance much sooner than 2018. in fact, they'll expect it within the next year or two." for the next 60 days, the fdic will take comments before final approval. professor mondschean believes banks will be able to tweak the rules to suit their needs, but the financial services roundtable vp says that's giving financial institutions too much credit. investors are bailing on bonds. according to morningstar fund tracker, investors in pimco, the world's largest bond fund, pulled $14.5 billion from the fund in june. the fund fell 2.6% last month - it monthly performance since 2008. morningstar analyst eric jacobson says the fund h

of the government to take the bank over. the government is going to take over 51% i think is absolutely false. the share is 25%. there are success of the prank bank as a premiere microcredit institution earned its founder the nobel prize in 2006. but two years ago, he was forced by the government to resign as the managing director. the nobel prize winner released a statement saying the government's bid for larger shares of the bank is an abuse of power. she is on the board of directors of the bank. she says if borrowers are at risk -- >> if the government grabs the bank, it will crumble. if it is destroyed, we will be powerless. there is no main function in our structure. we will not allow it to happen. >> the final ruling of the commission's recommendation is due on tuesday. millions of borrowers will wait to see if they have access to this precious source of finance. al jazeera, bangladesh.