Skip to main content

tv   [untitled]    November 5, 2011 1:30pm-2:00pm EDT

1:30 pm
monitoring. the story. dynamics. the trends. the greek prime minister supposed to pump in the vote in parliament after a week of drama in athens and chop the e.u. and sent markets into turmoil the p.m.'s no holding talks to form a temporary governing coalition but the opposition is demanding immediate elections in the country. us police weigh in with handcuffs batons interior gas to cut down the anti corporate occupied movement but activists say they're determined to stand their ground against the all. political ads boardings are appearing all across russia as the campaign kicks off to win seats in time for lower house of
1:31 pm
parliament seven major parties are competing for much of. a financial show cause a report on the next. max kaiser this is the kaiser report part school of economics are we all involved with right now actually none we're only involved in massive banking fraud and i want her to come in and give us some details stacey well a crucial element to the banking fraud is the accounting fraud and accounting errors the first headline max boops the financial crisis was actually just in counting error you can all go shopping again and this is from max kaiser dot com i wrote the headline. and it was referring to two headlines that i noticed germany
1:32 pm
discovers extra seventy eight billion dollars a major accounting error and then accounting error trims irish debt load so ireland's finance department has discovered in an accounting error that will bring down its national debt by four point nine billion the unexpected bonus will true marlin's two thousand and get to one hundred ninety seven billion dollars this is the shadow banking system where they do all of the banking deals it's about the same size as the visible banking system and depending on the politics of the moment the banks or subtract that that will depending on what their political agenda is remember during the two thousand and eight crisis suddenly paulson in the u.s. that oh there's a all kinds of debt about to be unleashed to give us money and he put a gun to people's head and held him hostage and this is the problem of having a shadow banking system that gives the bank robbers and the politicians
1:33 pm
a way to put a gun to people's head and remarkably in and out of states they always criticize socialism as government having a gun to your head and yet literally goldman sachs has a gun to america's head. but they call that capitalism well speaking of terms one of the things that. many heads of corporations or politicians resist is a debt jubilee even though we've had it for thousands of years and i thought this was a good way to actually use their own term something that they're familiar and comfortable with of accounting fraud and just use this as a way to get rid of all of our debt problems just by you know swapping things around on the ledger right well this is the banking system needs to be reduced which is the same thing as a debt jubilee this is something new in the annals of banking scandals it's only been about thirty years in the whole history of banking that you have the development of the shadow banking system the dark pools as they're called the
1:34 pm
completely opaque global trading that goes on the fact that ireland and greece or germany or some other country and announce that they've discovered that or they adding new debt that they didn't see it shows you how connected these things are and at the very top as we know from a report that just came out recently the entire banking system is controlled by a very few group of bankers with barclays at the very top of the pyramid and notice again the word error it's an accounting error when the top point one percent those people who control the entire global financial system when they commit fraud it's called an error just a simple accounting error when a normal person does it they end up in jail pregnant mom arrested child taken over five dollars shoplifting charge so this is a woman in honolulu she was seven months pregnant she was famished and she ate two sandwiches worth five dollars in a safeway supermarket in honolulu and she was arrested on shoplifting charges
1:35 pm
because she forgot to pay which is exactly an accounting error right in the error is an interesting word here when i was working on wall street we have the error can . which is the error account for the office of every office has an error account where whenever you break the law and you commit an act of criminality that results in a loss you stick that in the error account and then you work it off through i.p.o. hot i.p.o.'s for example this group on i.p.o. or any i.p.o. where it's hot to day one it's up twenty or thirty percent they do that on purpose to wipe away the errors in the error account now if you make an error and there is a game by accident then of course you keep that immediately goes right into your pocket or the manager of the compliance officer bribes brokers for privileged and privy to that positive ever here she has an accounting error that results in her losing her child and being thrown in jail for the night here is another accounting
1:36 pm
error in the news hunt for m.f. global's missing seven hundred million dollars so m.f. global is a futures broker headed by john corliss sign the former head of goldman sachs who then went on to be the governor of new jersey and was in line to replace timothy geithner at treasury now remember timothy geithner also committed a crime by failing to pay his taxes because he it was an accounting error he forgot for ten years and then went on to head the i.r.s. so who knows what will happen to john course line but apparently m.f. global commingled. it's a countless yeah this is one of the worst things you can do is take your customer's money and just slap it in the fund with everyone else's money or even your own money and then when you again have losses then somehow only the customer experiences those losses but when you have gains you take all the gains so instead of just people called socializing the losses and capitalizing on the gains but it's
1:37 pm
beyond that it's just outright co-mingling of funds putting a gun to people says and stealing their money i mean this is we're getting to the one nine hundred thirty s. where it's basically give us all your money and we're going to send you to get out and if you complain we're going to do the final solution and kill you now business insider says that that commingling is the regulatory equivalent of a felony offense. but then they continue there is a basically benign interpretation which is that m.f. global was guilty of nothing more than sloppy bookkeeping but well this is always the excuse i mean again i work on wall street and there is a law on wall street all the errors accrue to you is game you know all the losses are distributed to your customers and it occasionally there's a customer who actually makes money at the end of the year we call these on wall street the gifted client because a matter how many times you try to kill them they still end up making money they're gifted in this sense so how john course i'm bait grow up to his firm m.f.
1:38 pm
global has filed for chapter eleven bankruptcy protection making it the first u.s. financial firm to fall victim john course i was a victim of poor victim of europe's debt crisis so he is falling victim to the european debt crisis it wasn't him leveraging up m.f. global and its customer accounts in a while the reckless bet on what he did is he bet that big on sovereign debt in europe because he was certain that the taxpayer would be forced to bail out all of these debts at one hundred cents on the dollar that's right course i was a victim he's going to make we shall feel better. but he did drive a two hundred year old firm off the cliff in less than two years for this he gets a twelve million dollar guaranteed a contractual obligation that m.f. global must meet so he gets a twelve million dollar golden parachute but how did he destroy it in trying to become what some dubbed a mini goldman course lines m.f. global may have leveraged his bets too much and may not have paid enough attention
1:39 pm
to risk so hearing that junk or sign wanted to turn this company into a mini goldman sachs i thought of episode twenty one of the kaiser report time for a flashback who. just talk about among other things goldman sachs this is quickly becoming the most vilified financial. grand in history why well when you're successful. bring in the all of those other things that are truly human and then when you make an occasional mistake. public mistakes and public he later then refers to as being these credit default swaps that were sold to greece now it always comes back to greece and not. over there and gracie's calling for a referendum and he's throwing the global banking system under the bus as rightfully should be these goldman sachs needs to be euthanized but it comes back
1:40 pm
again to an accounting error is a misspeak that goldman sachs' me that he was referring to and it's that mistake and the elevation into a holy sort of divinity where your fraud becomes just a mere mistake because one can never be evil if one is one of these goldman sachs people so he was hoping that his fraud his fraud by stealing m.f. global clients money would just be considered an error in accounting error now it's a macula the steps and let me explain another words goldman and other banks loan money into existence there's no collateral for it they simply loan money to people to do deals mergers acquisitions initial public offerings and this money comes out of the money oh it's fear there's no basis for there's no collateral for it there's no physical representation of it goldman sachs because the money is
1:41 pm
immaculately created from nowhere they consider themselves above all law and if they get caught stealing they simply a magnet the courier more of this fee out money out of nowhere to bribe whoever needs the bribe obama the bribe the attorney general eric holder they'll bribe the entire republican and democratic party think immaculately conceived of money from nowhere to prague anyone they need to do whatever they want with impunity because they're doing god's work so accounting error and fraud john chorus line bankrupted m.f. global a two hundred year old company by leveraging long going betting big on europe. here's this headline max selling more insurance on europe debt raises risk for u.s. banks yes guarantees provided by u.s. lenders on government banking corporate debt in europe rose by eighty point seven billion dollars to five hundred eighteen billion according to the bank for international settlements almost all of these are credit default swaps so the sellers of the insurance last grow the fault take the premium as cash and mediately
1:42 pm
and they're never on the hook for any liabilities because they're causing systemic failure when the system collapses and they say we can't pay out because the system collapsed well what about the money you took selling insurance against a stomach collapse we can't find it it was junk or sign it's in the shadow banking system what is your go it's like jackie mason is running the global system whether you go i don't know who or what there's some gold it was there one day it was over there oh yes maybe he's got a bagel i got to i'm going like i don't know who. they don't know but it all comes back to these occupy wall street protests and all the media the puppets the mouthpieces for these bankers for the goldman sachs bankers say that these protesters are anti-capitalists well time and time again every single headline we show you we expose the truth that they are relying all of these guys goldman sachs j.p. morgan morgan stanley dexie all the people investing in these companies all the bankers
1:43 pm
they expect a taxpayer bailout that the whole system depends on that i don't know capitalism and for that you need jobs dilla our artwork here max this is a good ones yeah bozella that there's you when you're looking angry but that's you in the background with the big big look that's you when you're looking pretty wild and angry there max is no you in the background. but certainly when i pray it's a big fifty foot tall stacy stalking the globe well stacy that's unfortunately all the time we have thanks so much for being on the cries the report thank you. max so much more coming our way stay right there. and discover its beauty. communicate with the wild. test yourself and become free.
1:44 pm
see what nature can give you. the. world. bringing you the latest in science and technology from around the world. we've got the future of coverage. i'm max foster welcome back to the kaiser report time now to go to upstate new york
1:45 pm
and talk with author blogger thinker all around swell guy james howard kunstler james our constant welcome back to the concert report hey max you forgot to say good are big cookies and make very own clothes they are just make your own cookies and you put in the girl scouts of the community get run for their money all right james you have been veteran of the culture wars over the years and right now they global financial collapse is gathering speed enter travels and from visits to year website consular dot com i get the sense that you sense a great social uprising is happening right now that this is really not just a flash in the pan what we're seeing with these occupy movement for something bigger going to top down not a little bit one of the things that nobody has. talked about is what's going to happen in the summer of two thousand and twelve when the party conventions are held
1:46 pm
and it seems to me that we're going to be facing something that will make the nine hundred sixty eight convention some look like a labor day picnic and the failure of the both parties is really sort of bringing us back to something like the lady eight hundred fifty s. where the american political parties lost legitimacy so they started to disappear you know the weeds were running america for thirty years going into the mid eight hundred fifty s. and one day they were just gone because they didn't stand for anything anymore and nobody believed him and they lost their legitimacy and they're gone virtually overnight you know so you're going into the eight hundred sixty election and you know there's this new party comes along the republican party they've already run one key. and eight hundred fifty six john c. fremont the western explorer going he obviously did not win the presidential
1:47 pm
election but eight hundred sixty to come up with another but no abraham lincoln a congressman for a one term congressman who came out of nowhere a railroad lawyer who had one amazing ability he was able to articulate the terms of the convulsion their nation was entering into and i think that we're in a similar situation there was we were the last time that america faced a really great siddur convulsion and that was the period just before the civil war so i think we're heading for a tremendous political upheaval in the coming year and i mention two periods in american history marked by war eighteen sixteen the civil war which was coming about in the course one nine hundred sixty eight the vietnam war vietnam war in america the draft resulted in the popular uprising at the time the youth movement and the anti-war sentiment of course america doesn't draft anymore people for their wars anymore they outsourced to private contractors and mercenaries like
1:48 pm
halliburton and they get people however in the us to pay for this war and to impose austerity measures on a lot of ways you could say that people are being drafted into the poverty the war against wealthy the continuation of this wealth and income gap people are being drafted into that there's a war going on between that that one percent versus everybody else south i just a comparison you're making is that it is it is similar to one nine hundred sixty eight in that we do have this war going on it's just an undeclared war with all of these equal historic. predicaments you know you get new problems coming along and the problem that we're facing really is the rule of law in money matters and we can't seem to reestablish it and i think it was one among the great hopes for chines. that mr obama represented was that he would resist that was the rule of law on wall street and banking in money matters and he has absolutely failed to get
1:49 pm
the s.v.s. he seek to enforce the law or to refer cases to the department of justice he's done nothing to reestablish the glass steagall at he allowed the supreme court decision on citizens united to just pass by without. doing anything to even start a legislative process to redefine what the personhood of a corporation is because obviously corporations are not people in the way that people do they don't have rights they don't have duties obligations and responsibilities to the public interest in the same way that people do their effect their sociopathic you know they exist really only to have allegiance to the shareholders and the boards of directors and that's where it begins and ends so the idea that they should be able to express themselves freely by corrupting the entire political process by flooding money into the political process is absurd but more
1:50 pm
to the point president obama did nothing to introduce legislation to redefine what a corporation is or just even start the process of a constitutional amendment to redefine it he allowed the f.c.c. to destroy eighteen thousand files of matters under investigation which could have been used for possible referrals for criminal activity vs he say the dodd frank finn reagan legislation is a joke it really didn't even include any regulation that was all left until after the bill was passed and for the banks her lobbyists to go in and actually write the rules which is what they've been doing for the last eighteen months and that's absurd you know he's done nothing to deconstruct the too big to fail banks and make them smaller. and make them less dangerous to the systemic integrity of the financial system so i think that you know that these failures are just so
1:51 pm
monumental that they really invite a third party and i heard something interesting the other night i was to i was at a conference in virginia and i was talking to a guy was a political operative for howard dean and i told him i heard upon a podcast in which larry kotlikoff the boston university economists one of the only economists in the whole usa who has a you know a credible idea about it that had been talking about vising a possible third party candidate and i was wondering if it was actually howard dean because he's kind of stepped out of the picture for the last four or five months but it's beginning to look like it may actually be michael bloomberg and michael bloomberg is very quietly going around hiring people including a lot of. people who work in the hillary clinton campaign and he's a political independent now and you know i think there may be a possibility that he may be minting i third party campaign he doesn't have to you
1:52 pm
know he does have to go out there and raise money he can just wait for these republican stooges in dunces to knock themselves off and for mr obama to keep on just doing what he's doing which is pretty much nothing and then you know we'll be in the spring or summer of two thousand and twelve and you know mr bloomberg may present himself as a very interesting historical threshold moment so we'll see how that works out i james howard kunstler let me ask your thoughts a bit of a thought experiment here for a second because you mentioned how corporations have the rights of individuals in america this is something that came out actually of the civil rights movements of the fifty's where there was a huge grab power by corporate america is there related to. the power given over to minorities in the u.s. but let's go into a thought experiment here for a second if corporations are in fact individuals and in fact they're committing
1:53 pm
crimes commensurate with crimes that you see being committed in states like texas where individuals are that are given capital coliseum and they're given the needle . would it isn't it therefore true that a corporation like a goldman sachs or j.p. morgan as committing crimes commensurate with other crimes that the state is giving capital punishment for that these corporations and someone represent these corporations should be should be given capital punishment for their crimes against capital if they're individuals should they also get capital punishment for similar crimes all you could really say about this is that there's been so much tension building up as a result of the failure to act in any way to discipline these banks and corporations there's just so much tension building up there sooner or later with his release it's liable to be very shocking and surprising you know
1:54 pm
where we could heading into a situation that i think is going or resemble the french revolution only you know instead of being directed against their aristocratic overgrowth you will be directed to go. over. or you know it could be very ugly but don't make the cut in the first i mean take somebody like john course scene right he's a former goldman sachs head he becomes governor new jersey he's also has fund manager now he's missing seven hundred million dollars anyways co-mingling accounts customer accounts of corporate accounts which is a shocking transgression of all s.t.c. laws for decades here somebody who is clearly committing crimes against capital that if in fact that company is an individual then he should get capital punishment they mean that's only fair about what's the argument against that i don't get it and other words if you're black in your taxes in your case you get killed but if
1:55 pm
you're like i new jersey and you still get nearly a billion dollars he bombed gives you a pat on the head in a big fat wet kiss what's going on here there's two laws that i guess there's two sets of laws there there's one set of laws for the ninety nine percent and then for guys like john coursing. the more crimes he commits the greater. benefits you get it's a recognition from this administration correct well look when you don't enforce the law at all you get all kinds of distortions and crude versions the fact is that we don't electrocute people would give them weasel injections for stealing money i mean you can put them in jail for one hundred twenty years and you know you can do a lot i'm away for a long time what you're proposing is rather a jacobean kind of solution to this and and that's precisely what i mean when i say that you know we're kind of french revolution. at political atmosphere the problem with jack uprisings is the tend to get out of hand and you know you set up the
1:56 pm
guillotine and you want to get rid of a few bad guys and all of a sudden you get rid of everybody and then everybody's getting rid of you so these things can get out of him and i that's why i think that we have to pay a lot of attention to what the rule of law actually means and what it means in the case of the usa as we have a lot of laws that are on the books for prosecuting criminal misbehavior in banking and you know all kinds of things that were not really in forcing so you know i wouldn't want to apply the criminal code for murder and arson and rape child molestation or you know for crimes of you know stealing or robbery i mean that well mascot in there in france actually there is a movement to create a lost a little statute for financial pornography and financial rape to prosecute bankers in france because they fail as thou this is the only way they can grab the public's attention as a group of lawyers here that want to introduce the concept of financial rape and
1:57 pm
financial pornography for this very reason that there needs to be a greater understanding the public's mind of what guys like john corey's zenit blankfein and and jamie diamond do on a daily basis now before we go tell us about your site. and i just got a note about the consular cast book published this week tell us about that my podcast meister duncan career published a book of true scripts of our conversations with us three years and it's being published by users are the press. in his name he's the author duncan query it was called the consumer cast all right well look for that there's the consular cast book published this week and there's a podcast it goes where the james howard kunstler that's all the time we have thanks so much for being on the kaiser report if you mix or r r i that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest james howard kunstler if you want to follow us on twitter as
1:58 pm
kaiser report or on facebook and forward slash kaiser report or e-mail me at kaiser report at r t t v dot ru until next time this is max kaiser saying.
1:59 pm


info Stream Only

Uploaded by TV Archive on