tv [untitled] August 23, 2011 7:30am-8:00am EDT
welcome back to reality live from moscow with me suture the headlines now nato planes have reportedly carried out air strikes on at the libyan capital have a look right here these are live pictures of downtown tripoli here i'll be smoke right emanating from the larger buildings in central tripoli reports of being a post nato bombing campaigns are meantime heavy clashes between rebels and government forces again resuming in tripoli as most sides continue to claim to have the upper hand again these are live pictures right here on our. also i doubt whether a rebel victory would actually leave the libyan people in control of their destiny
as experts point to egypt where those who fought for the revolution ended up with a government they did not choose. does fighting in libya still rages on western oil companies have already started circling around the storm country once again to spark some concern that the so-called battle for democracy was all about a black. right now and more on the situation in libya in about a half an hour's time first though as a cash crisis rages across the u.s. and europe financial guru max concept gives you the truth on continue to high level bouts of financial fraud the concert report is now. guys are this is because a report. stacy herbert apparently the vampire squid is back to devour us
and only an alien invasion force can save us stacy herbert yes max well the global financial deflationary collapse that continues to this day almost three years later apparently only inflation can save us and placed in is impossible by the central banks the only thing that could stop it is here's paul krugman if we discovered the space aliens were planning to attack and we needed a massive build up to counter the space billion threats and really inflation and budget cuts just took secondary place to that. this slump would be over in eighteen months twilight zone economics so called krugman over there the new york times all of the stimulus package the work ready shovel ready solutions all failed and he's calling on an invasion from outer space to rally the economy
to overcome what is essentially still bad behavior in the banks yeah and max you know you read the front page of the financial times there's no more gong than an alien invasion as a possible hope paul krugman hopes of an alien invasion are no more daft than people believing that central bankers might save us that they might save our economy move to curb swiss francs rise backfires as you see there. so traitor shrugged off new measures by the swiss authorities to stem demand for their currency sending the swiss franc sharply higher the franc jumped by two percent in just a matter of minutes as traders ignored the swiss national banks decision to almost double the amount of liquidity developable to the money market well look the central bank is a force that resides outside of the economy and it's there to provide theoretically
speaking price stability and full employment that's their charter but they got sucked into the bank they got sucked into the parasite that is the banking system so now a sense earth is no longer available as a location to create a central bank policymakers and keynesians brainiacs are saying well let's just create a central bank outside of earth or depend on an invasion from outer space aliens from abroad of course some would also argue that this is a thinly veiled reference for the need to create more war because people often say well world war two got america out of the depression so having failed to stimulate the economy by let's say imposing the rule of law and by a limited parasite bankers and imposing true accountability they want to go and send us servicemen and servicemen from other countries to the front line and get slaughtered so that paul krugman doesn't look like an intellectual pygmy well
speaking of war and act of war has of course spent a clarity over the past week chavez orders eleven billion dollars of gold home then as well as finance minister jorge do your debt donny said that the weakening u.s. dollar and near default by the u.s. government and the european sovereign debt crisis threaten venezuela's savings and they will be more secure at home and in allied countries yeah that's right the veriest goal. old hoard by various countries are not held in those various countries we've talked at length on this show about germany sixty percent of their gold is held in america now hugo chavez of venezuela is saying we want our gold two hundred tons of it to be brought home and held in the bank of england and of course the bank of england is not the only person holding that gold because tony and also include banks such as j.p. morgan so it's as if you go chavez watches our show realize that they crash j.p.
morgan by summer campaign could be applied to gold is demanding physical delivery of his gold because you know that j.p. morgan and the other banks don't actually have the physical gold they have to go into the market to buy that gold but they're bankrupt to begin with that means they have to incur more debt which means that they're going he's trying to collapse j.p. morgan just like we're trying to collapse j.p. morgan so big ocean as welcome to the gold liberation army yeah but the point is whether or not he'll ever get to school back because he's put in a request but is this going to trigger other people demanding their gold back other nations demanding their sovereign gold back there are thousands of tons held by germany at the new york fed all countries around the world story in the u.s. will the u.s. get that back that's the big question what do you think well i think now i think america is correct yet i would say i would agree with both you engine records that these countries and he's made a big story out of this he believes that america should commandeer the world's gold
which would give them something like fourteen thousand tons in toto and make them on the glide path toward having a post keynesian post currency economy based on having the most gold but you're right this is a huge set up for a global conflict. so hugo chavez says this max quote we've held at ninety nine tons of gold at the bank of england since one thousand nine hundred eighty i agree with bringing that home it's a healthy decision max the only way hugo chavez is getting that back as he comes back with an alien invasion force hugo chavez well he's good friends of course oliver stone and sean penn and noam chomsky maybe they can put together an invasion force go into the vaults and the bank of england and liberate venezuela's gold at the least it could be a great moving but max hugo chavez is not the only one seeking gold gold equals
treasuries the evidence a stunningly high correlation of gold to twenty year treasuries from july twenty first to august sixteenth is a point eight nine over that period gold is up twelve point three percent and treasuries are up eleven point eight percent i was so results the conundrum that people are talking about right now on this show people say that bonds and gold cannot both be hitting new all time highs simultaneously because that would mean that inflation and deflation are happening simultaneously let me break it down for you thusly the bond market is being bought up by computers. the gold market is being bought up by people who are fearful that the bond market is being bought up by computers understand i'm saying one is real people and the governments are buying gold the other one is fake a bunch of computers buying treasuries to make it look like the us economy is not as catastrophic as it really is and that can only last so long well the reason why
people are going to gold instead of the treasury according to this article really hold stock com gold does not carry a downgrade risk as do treasuries so this is the beginning just like i said hugo chavez pulling his gold out of the bank of england this could set a bank run on the bank of england and all their gold this is also the same thing the downgrade of s. and p. this is the beginning of the rush out of treasuries and into gold it is it is a run on the bank answer mask the collapse they instructed the computers to buy more treasuries using borrowed money which is only making people buying gold want to buy more gold like i said treasuries carry the downgrade risk or at least they did until last week d.o.j. probing s. and p. the investigation centers on the alleged cases in which the company's analyst sought to award lower ratings on mortgage bonds but had other s.n.p. managers overrule them the department of justice in america alleges that they began
the probe of s. and p. before the downgrade of us that they're going to rewrite that story of the boy who pointed out that the king had no clothes in this version the king investigates the boy for having faulty eyesight. well so i mean yes s. and p. did faulty grade these things but our fiction logo and world goals go vote no no they didn't fall to the grave these things but two trillion dollar error supposedly according to our body peter schiff this was an assumption that certain growth parameters would be met there's no way in heck i mean growth parameters will be met this is a straight up and straightforward honest to goodness report there is no true trillion dollar error s. and p. made the right call the fact that they're now being vilified by the people that they made the call against doesn't invalidate the call well i'm talking about the lord the securities when they raided the mortgage securities that have exploded and across the entire global economy the s. and p.
rated all of those goldman sachs c.d.o. as they read of them triple a they redid all of those things aaa that they sold to french banks german banks swiss banks italian banks all those things blowing up economies are rated aaa by s. and p. there but they were also rated aaa by moody's they were rated aaa by fitch those two are not being investigated as far as we know at the moment because it's only s. and p. that has downgraded u.s. government debt now this is the question people are going into gold because treasuries carry a downgrade risk or at least they did until the department of justice sent a message to those who dare to downgrade i get it ok well so let's look at where this message is going matt taibbi a whistleblower claims that over the past two decades the agency has destroyed records of thousands of investigations by white washing the files of some of the nation's worst financial criminals the f.c.c. has kept an entire generation of federal investigators in the dark about past inquiries into insider trading fraud and market manipulation against companies like
goldman sachs which a bank in a i.g. so what do you think about this story here that the f.c.c. is the one that was through has deleted files that is great in the law by the way because according to the law they're supposed to save these files. for twenty five years you're right it adds substance to the idea that there is a criminal racket because the f.c.c. and the investment banks in the fund managers and the rating agencies and other aspects of government are cool looting to create this on the whole the racket of price manipulation and price fixing and extraction and siphoning of wealth for their own anger at the jeopardy of destroying society was their doing and only it also part partially explains why obama keeps on saying we have to look forward because in fact there's no way to look back because all the records have been destroyed as dorsey fly in that part of the whistleblower in this case said it pays a startling picture of a federal police force that is effectively been conquered by the financial
criminals it is charged with investigating you know it's also remarkable is that the crash in interest rates you would think it would spur a refinancing boom for homes but what they're finding is that there's so much of a mess in the mortgage market that people who could normally refinance and spur the economy because all the paperwork was fraud fraudulently signed and induced that they this normal machination of lower rates to spur the economy is not working either so fraud is just totally blocked any potential growth in the u.s. economy max not tight because nani says as one former s.e.c. staffer describes it the agency is now filled with so many wall street hot shots from often best to get it bank that it has been in infected with the goldman mindset from within and the goldman mindset max what is the golden mines that greed and suicide banking and bank until you kill yourself. that's the goldman mindset their suicide bankers goldman sachs could be the aliens
from outer space they could have spawned a banking parasite they're eighty five broad street before they moved uptown and now they're they've they've made their way into all these ready. story agencies there are the there the night of the living dead or i should say night of the living deaths all right stacy ever thanks so much for being on the kaiser report thank you max don't go away stay tuned much more coming away so stay right there. twenty years ago this country. illegally how did. you get a job. where did you take the. real you believe in science tends to. from. the future are
covered. i welcome back to the kaiser report i'm max kaiser let's go to town to see and talk with catherine austin fence who served in the george h.w. bush administration catheters also a former banker and is now an investment advisor and blogger at laurie dot com catherine fitts welcome back to the kaiser report well it's great to be back all right catherine also fits first and that being in the latest rolling stone asks is the f.c.c. covering up wall street crimes your thoughts. yes because the economic model is a criminal no no so of course they're covering up crimes they have to ok so you say the economic model is a criminal model explore that a little bit in other words the banking system itself is basically
a glorified pile of these can correct well we have an economy that simply no warning organized crime in and you know part of the profit so that organized crime is hard with keeping the whole economy going it's not just the banking system it's every community in america so if let me give it this way if the united nations says we're competing for four hundred billion dollars here will money one tree and then then this financial centers to attract and many are wondering are the leaders ok let me follow up on this money laundering fim because walk over here now owned by wells fargo which is owned in large part by warren buffett has just been fined two percent of one year's profits for laundering three hundred seventy eight billion dollars of drug money for the mexican drug cartels what about the settlement is that an adequate deterrent first of all you know absolutely no and if you're if you're a businessman who is in on attracting those revenues and processing is revenues
there's no way a sign like this can be a good turn if something you know something is part of what i do you an essential part of the business model of a sign like this will stop it ok let's talk about the proportion of these banks first of all the banks in the u.s. and in the u.k. because i want to kind of talk about the u.k. a little bit the g.d.p. numbers that are quoted in both of these economies as the relationship to what comes out of the banking sector it has grown fantastically over the past twenty five years and over the past ten years in particular from five or six percent twenty five years ago to twenty five thirty forty depending on how you make the calculation fifty sixty pursue. g.d.p. directly tied to financial leisure der main in the banking system so it's a fair to say that the g.d.p. numbers that come out of the us in the u.k. are tied directly to banking fraud. i think here tonight you know they include
banking front but the truth is securitization its economy so we're shifting much much much more of the economy into financial instruments that can be traded in representative and and you know there's new doubt that the fraud is very significant and part of the reason it's very significant is that it a lot of the fraud is journey with the instruments that were installed in his government so you really have the government banking on one and a lot of it is done under the national security law ok i talk about securitization more and more the economy moves into securitization more corporations who are reporting profits are reporting profits as a result of transferring them a thousand to companies that get into the security securitization business but let's take an example for it goldman sachs for example in the mortgage business we now know that the mortgages when they were originally offered there was fraudulent to spend then we know that they took the mortgages that they sold
a repackage them or securitized them and fraudulently marketed them to funds around the world and then we know that they went into the foreclosure process and goldman and bank of america these other corporations and banks engaged in fraud on foreclosures so there's so if you take away all the fraud associated with securitization it occurred especially itself as they are proving to be an inherently fraud but business i mean the. but what it what your thoughts are thought on that but i think it's much worse than your describing max. because. the word which is worse for human induced to let me is an example of one house let's say we had a fraudulent religious mortgage on their house but let's say we also created. you know two mortgages that were completely fraudulent so so i think the collateral fraud you know if you take the description you described and you actually.
were then when you live not that something will collateral fraud you know you're getting through the exponential for us i think the fundamental for crisis was far worse than you just described right so you have on top of the three phases a fraud that i just described the price of an inducement fraudulent scared ization and of course the fraudulent placement of those. securities and to funds around the world the asada securities and the derivatives that were created on top of the fraudulent securities on top of that so that adds to the parties came i mean we keep coming back to this were technically illegal it's technically legal but in a in a country like america or the u.k. where the banking lobby has effectively taken over and change the laws repealed last eagle brought in the securities market and made to make fraud legal is it enough to say well technically legal i mean at what point do we say
enough is enough we need to take stronger measures. well i think i think at the heart of the matter minutes is not to paint out of control i think the heart of the matter is physical violence because a lot of what has happened particularly and you know that i understand in the united states is is you have people who are afraid to say no because the results are saying no is physical violence directed at them or their families i mean we've had lots of people murdered in assassinated etc etc so the question is you know yes we have to say no but the question is how do we say no and that's why you know this has it comes down to shifting our money but the reality is is is we have a force operating in the world that is completely operating outside of the r. and and now when yet has come up with a way to stop it we're talking about my only violent mobster operations. but i never thought of apple he was a personal example but i was a i was. you know i was
a former assistant secretary of housing and i had my own business in washington and i i was helping the department of housing and urban development essentially run things clean and we had to get rid of the clean team to to run the housing bubble and i was targeted i was poisoned a dead animals left on my doorstep my house was broken into people tried to run me off the road you know it was very very violent and it went on for years so you know so people who are trying to run the government clean or or run while street cleaner targeted and literally you know have to fear for their lives i mean people have been dying so. you know it's a very very dangerous this situation and the and the challenge is if you have people who can kill and physically harassed with impunity how do you you know how do you run a governance process just for people who are unfamiliar what your role with the
bush fan are going to strachan was what exactly i was assistant secretary of housing so i was the lead breaking later for the housing area and it you know it's very interesting max because i left washington in one thousand nine hundred eighty eight and i kept saying to people look you know they're interfering in housing bubble this is going to destroy their country it's going to bankrupt the country and literally i'll never forget it in about two thousand and two thousand two thousand and one the soprano t.v. show had a whole series on it had fraud and my own college roommate called me up and said well fitz you must be telling the truth it's on the sopranos and i said why is it that the soprano teacher is this show's more credible than the former assistant secretary of housing but literally max i lectured in spokane london and in wellington new zealand all over the world in sweden trying to work people about the housing bubble and the investment community in all those places simply just. even when fannie mae went down in two thousand and eight i have been on the radio show
in in outside of san francisco explaining about the housing bubble. you know three years and one of the biggest investors in san francisco lost over a billion dollars so insanely going down in peru up a thing on their website and put it up and said you know we had no idea there was a well i was on the radio free europe some assistance or truth and housing saying you know describing the problem and created you know ok imagine fannie mae freddie mac. they were caught committing fraud they were bailed out by the government there are liabilities are now the taxpayer liabilities we've talked about like of the air we talked about wells fargo talk about bank of america all the banks committing master fraud securities fraud accounting fraud. and. what role in the global accounting and securities fraud that you see in the banks how central
is that the city of london factor into this that max clearly the city of london is very important and i would say the united states that european investment interests have been controlling since the revolutionary war from everything i can tell but you know the other thing i would say is we're talking about a model which is is is not just for r.t. it's it is the model it's the clan instead demonspawn are all of these three things are so there's the official reality that has law as you and i were brought up to believe it and then we have a system which believes it's above the law i mean i literally had the secretary of hud once say to me look you know i don't have to pay attention or i don't have to be able or i report to a higher moral authority so we have the planet run under a model is our operating. there are different set of rules or laws that we believe the law to be now if you look at how much of money's been pulled out of the economy
globally whether it's by united states one in whatever we're talking about trains the trains of dollars and you know what i refer to a lot of it and you know. that's fundamental question is where is not the money going because we're talking about truly trillions and trillions of dollars that have been pulled out and managed to according to as you know i call it a financial clooney star but the question is who's running the financial killing time and weirs all the money go on because it's very very significant and it's a system that doesn't consider itself to have to obey the laws that you and i are talking about now ok let me ask you a question about the europe a european debt crisis french president sarkozy and german chancellor merkel have proposed a quote collective government headed by e.u. president your thoughts so central that what we're watching is this is the academic
failure essential centralization the more essential lies that we could be economy scared going to get so we're just it is socialization has just wrecked europe so what we're going to do is we're going to do more essential is a sure course that's the worst thing you can do so you know this and he to say this because i don't think europe has a debt crisis i think europe's governance is being really engineered and debt is being used to deal with so we go into a place we encourage them to take on more debt than they can ever afford then we do a series of things that all the and then we say we have a debt crisis and then we heard to them terms by which they will start being run as a senator and government and instead report up to the top of the financial system so that's why i call it a financial could be tired because. you know it's not a debt crisis it's a plan alright capping off unfair thanks so much for. the kaiser report.