tv [untitled] December 22, 2011 2:30pm-3:00pm EST
eleven thirty pm in moscow these iraqi headlights russia needs democracy but not chaos president medvedev l winds the primary challenges facing the country saying russia is on the brink of a new political era where every boyce will be heard. arab league observers arrive in syria as the conflict there reaches a bloody peak an international sanctions cause living conditions to deteriorate. and tightening the noose on america's controversial death penalty the e.u. plugs the flow of drugs used to kill us to death row inmates. up next moxon stacey
discussed the ways gold and silver holdings are being redistributed in the u.s. and the experiment in the u.k. to have capitalism without capital kaiser report up next. i am mad because of this is the cause a report. with mojo raj oh my god what's going on so you never tell me what max you might as well fess up because you've been exposed as the lizard king the lizard king is back a.t.g. u.k. as you see from this photo they took a photo of us apparently when we were in london we've been exposed oh i love it when their heart all that is know in the universe i went undercover as a reptile to verify some conspiracy theories coming out of david eick apparently
there are reptilians running the world according to this exclusive report i had to ship shape myself back to my normal form to come and do the show so that there's a lot said shapeshifting going on in the headlines today trusty to season liquidate the customer gold and silver bullion from m.f. global yes one day it's your gold and silver the next day it's not the trustee overseeing the liquidation of the failed brokerage m.f. global has proposed dumping all remaining customer assets gold silver cash options futures and commodities into a single pool that would pay customers only seventy two percent of the value of their holdings and other words while traders already may have paid the full price for the delivery of specific bars of gold or silver and hold warehouse receipts to prove it they'll have to forfeit twenty eight percent of the value to me this is
the same thing as a run on the comics that's the same thing and let me break it to global audience there's been a run of the comics they don't have the inventory in new york to satisfy the claims . they don't got it therefore ipso facto gold and silver are in demand above and beyond what can be delivered by the market this market is. max i have exclusive footage here from outside the cone next to some m.f. global customers and see their various. ways i think that's from north korea very similar looking at footage actually from outside the comix these are very upset customers the global especially those that own gold and silver bullion on one of them is john breaux a partner in b.t.r. trading a chicago futures trading firm he says where house receipts like gold bars are our
property one hundred percent we are a unique class and instead the trustee is doing a radical redistribution of property well the warehouse receipts are just fictitious claims on nonexistent bully on the same thing and a lot of going market association in london there are one hundred ounces for every one that they supposedly have in storage it's been a long bout or margin or hypothecated a really high profit gated or really really really high profit gated it's just up there it's all fantasy accounting the gold and silver is not these weren't house for sylvie's if you think you all this gold and silver you're going to get a paper claymore of dollars that are becoming increasingly worthless that's one of the things is there's this issue of allocated in an allocated to gold and silver and most people are told whatever you do make sure you get allocated gold if you're going to buy gold because you want a receipt for the specific bar now another story we covered last year max was that jeff christian from the c.p.m. group when testifying before the c f.t.c.
group said there was no issue with delivery from the comix because at worst though he mentioned that there were ten bars of gold and silver trading for every single bar in existence there or was it one hundred to one hundred to one hundred to one and he said it wouldn't be an issue because we could just deliver in paper. well that shows you the mentality of the people who are supposed to be the custodian of your precious metal they think paper is equivalent to metal number two this only adds credence to those who say that the comix b.m.a. don't have the physical server number three if you have a receipt at the comix it's worthless garbage you need actual metal in a vault but here's an issue of this gold and silver property being sold off and you're getting a discount but what's to say that couldn't be applied to the whole property market in the united states what if somebody just shows up at your house and they've sold
it because they said oh you know bank of america went bust what if they seize bank of america mortgage holders what if they have to sell their houses in order to make good on all the bad debts of bank of america that's exactly what's going to shows you that the derivatives traders principally these banks including bank of america and other banks have seen or claim over you even though you might have a receipt or you might have a segregated account and combine that with the bombers the new laws that are coming into place that give the american government the ability to throw anybody in jail that they don't like the color of the sweater they're working at any particular day and there are no property laws left in the u.s. i mean the u.s. has both rebuilt on this thing of private property and capitalism while you think to have private property to have capitalism in it if you have capital to have capitalism in america you don't have capital because it's all debt claims tied to worthless can count the nations of of speeding out the of the federal reserve's back door receipts on future liabilities for
a thousand years that are put together in research characterized by corrupt banks that are smoking crack all day and you don't even have private property rights to go with it so you're living in a frickin prison over there you say you can't have capitalism without capital this is in the next headline as well revealed how city fees are eating into our pensions . traders hidden charges leaving pensioners and savers worse off treasury warned so this is from the united kingdom highly paid city traders are depriving pensioners and savers of thousands of pounds through management fees that are often hidden according to leaked advice provided by consultants to the treasury the charges are spreading and so steep that savers may find they get less back in retirement they and they invested in savings accounts and pensions over their lifetime the findings raise new questions about the prime minister's decision to veto a new e.u. treaty over his demands for greater protection for the city city bankers are
tapeworms essentially you live in your pension account there are parasites and they're eating it up david cameron of course chief parasite chief to form and residents over there number ten downing street the provides cover for a little tapering buddies but is the biggest form of all that's why europe kicked them out of a summit because they don't want tapeworms at the table well david cameron has insisted that the financial sector is of vital national interest yet the consultants brought into the treasury claimed that the often unnecessary charges built up by traders are damaging potential economic growth because of course there's scooping out the capital from the economy and you can't have capitalism without capital right i mean they should just round up a bunch of these tapeworms and take them public on the london stock exchanges tape worm ltd and just have a company run entirely by and for tapeworms put david cameron as the c.e.o. and have that guy lord sugar as a consultant to david cameron with a new tape or print a prize because that's all the u.k.
economy is in the global economy is one big one thousand debt to g.d.p. ratio for tape worm i think it's sir alan sugar but listen max the point that these consultants made to the treasury was illustrated by the example of a saver who made seventy thousand pounds in contributions between one nine hundred ninety four and two thousand. the nine only to see the forty six thousand pounds and profit from the rise in the value of the footsie one hundred being consumed in its entirety by the financial services industry so every single penny of profit you made on the rise in the footsie went to bankers but there is a cult in the u.k. where the population itself endorses rupert murdoch's position and therefore david cameron's that these are god like human beings that only through them can we create economies and wealth or people in the u.k.
have money in a pension account let's say the pension account is tied to the footsie index of forty one hundred let's say well what these bankers do whether it's a just b. c. barclay is our roi beigel scullin lloyds they take that index of other stocks and they buy and sell them every week so if you have the quarter yeah yes the forty one other stocks are powerful the zero but you generated twenty five percent of your equity in commissions and then they'll say well you know it's a fee that we need to support our lifestyle as fricken tapeworms if you think there's going to be any justice about these tapeworms and these fraudsters in our economies s.t.c. charges x. fannie and freddie chiefs six former top executives at fannie mae and freddie mac. including the former c.e.o.'s have been charged with securities fraud and a civil case brought by the u.s. securities and exchange commission for allegedly misleading investors so becoming some of the most senior financial executives to face charges but they only face fines of
a fraction of the ill gotten gains once again not because securities fraud is not considered a crime is considered the basis of the economy whether it's the u.k. or the u.s. securities fraud is the main contributor to g.d.p. growth so it's not a crime because it's the it's the raise on debt of these economies is to. aid and abet securities fraud well according to the civil suit the s.e.c. is alleging that freddie mac. for example cleaned to the public and shareholders that they only get two to six billion in exposure to subprime mortgages when in fact they had one hundred forty one to two hundred forty four billion so the size of their allies while they themselves were scooping out bonuses based on their profits their alleged profits is of course you know massive well the bonuses are based on the entire balance sheet including the off balance sheet items that they don't disclose at the quarterly as you see requirement so they're off balance sheet items might be worth
one hundred billion one hundred fifty billion and they say well we have a one percent bonus or two percent or five percent bonus based on the entire barron's balance sheet but oh by the way when it comes to disclose the risk of you know the quarter we're not going to include anything off the balance sheet we're going to only include a very fractional minute mouth of our balance sheet on our actual balance sheet to the regulators at the end of the quarter and sense we don't have any of that debt on our balance sheet we made record profits again the stock prices up at new highs our options just to new highs we just made another huge multibillion dollar bonus because a we didn't disclose the liabilities of a company that's a legal big we paraded around as a quasi u.s. institution which in fact we're not it's a purely private institution for fannie mae and freddie mac. and that's another lawbreaking incident right there and through we took all of the money that we stole from all the shareholders and all the citizens and all the taxpayers and we invested it reinvested it in we got provocation scams that also were illegal and finally max euro zone crisis foreign office plans evacuation of
expatriates so this is from the u.k. foreign office and they claim that they're going to if if the spanish and portuguese banks collapse we're going to rescue the british citizens living there but i my question is why not rescue the british citizens living in your own country from the crimes of the city but why doesn't the government want to read. the british citizens from the crimes committed in the city exactly as we've just showed like billions and billions and trillions of pounds are being stolen from pension funds right now today from pension holders well here's the here's a here's the joke of it all this whole euro crisis is now moving over the channel and it's going to attack the city of london and the guilt market in the u.k. in another three months it will be talked about whether or not the u.k. needs i.m.f. bailout like they did back in the seventy's all right you marmite in chile stick wielding psychopaths it's back to the army bell station ever thanks for being on the kaiser report thank you may not go away much more coming our way so stay right
his new book of course debugging economics and i hope you bought a copy not only for yourself but these make actual christmas gifts for everyone you know on your list to get this book goes explains why things are so screwed up now the book is also available for download on ken doll it's called debugging economics to make it emperor dethrone if you want to follow steve's work as website is debt deflation dot com steve kean welcome back to the kaiser report of the big macs all right steve king your area of expertise amongst others is the minsky moment now recently mark carney head of the central bank of canada used this exact phrase so tell us what the minsky moment is what is the significance of the central bank governor using it well the scheme in it is a point where you go from a period where debt soon private to spin raj in no time and rossing private debt finance is a high level of the economic activity and you can do just with income alone you get a copy of accumulated so much debt that's that somebody becomes impossible that
stops rausing and a sin is the change it goes from being called it is a negative suddenly debt which used to add to demand subtracting from demand and you know a whole new ball game we have what's actually drives the economies not rising debt driving it up but to reducing did do leverage and driving it down. significance of the central bank in mentioning this is central bank is thing coming from many near classical background argue that the level of product it doesn't matter just the distribution of metal his conny coming out and saying no the aggregate level of it matters and when it would really well with debt is flowing that matters even more because that means we're in a a daily verging environment so you actually total his his store growth in the euro do leverage and i. deserved a bit of an accolade for central banking that's really innovative thinking all right now to give an example of this absence of the inclusion of private debt in economic analysis let's look at the u.k. for a second because the u.k.
was recently revealed to have close to one thousand percent of their g.d.p. in debt six hundred percent of that is in the banking sector i otherwise you could private debt that's private debt the banking sector debt but talk about the u.k. for a second is that correct that pretty much people omit that private debt and that should be included correct absolutely in the whole idea that you can form a model capitalism without including money and debt into models next ninety nine point nine is in a new possible models include need of money no did is it trying to model how the flaws seem in that it doesn't have wings is just ridiculous that it's left out and that they do it from a piece of classical neo classical priori logic i stop assign all well dead is simply because i'm saving money learning a person who's borrowing money so in the cylinder saves his spending power goes
down on the bar or bars his spending power goes up to cancel each other out of religion and i recall the impact that is totally ignorant of the wind which money's created in the modem financial sector which is to discreate my bank banks create money by creating day no say that has to go without for it to be created a system in. from how asinine half assed the go thinking about the economy in the absence of any knowledge of the actual imperial reality of the economy so what actually happens in the real world is rising debt which is endogenously expanded by the banking sector finances expenditure and if they vote expenditures on new investments in factories innovation that's good as well as whole ship material which is good stuff but when it finances gambling on rising asset crosses that's what misc equal ponzi finance and that's the zoster us now of course they'll be a limit to how much money you'll borrow for an investment because roy you are going to be basing your expectations of the of whether it's worth going into that bit on
what you expect to make in profit in the future out of genuinely selling new widgets to it with paypal so you've got to make some sort of its summation of what you think you can make an income out of that but if you believe you going to get money by selling an asset on a rosling market you'll borrow for the bloody hills and that's what actually has happened in the banking sector happily finances that now i am totally gobsmacked that figure that you quoted to me is correct same thing as saying it's four hundred fifty percent of a english english the financial state is dead so six hundred percent is just. i'm stunned because america's pride process began with a level of financial safety debt of one hundred twenty percent of j. k. so we're talking live with debt is four possibly even five songe as high as the level of course the catastrophe in the united states when the it's the fan in england is going to be some pretty serious yes well i mean it makes sense when you consider now we know when you take on board all the machinations of the m.f.
global scandal because of the loophole in the regulatory environment of the u.k. which allowed for infinite really high population with no limits whatsoever on rehab obligation and as the ground zero for the m.f. global scandal lehman brothers murty made off as well as a couple of other these major leagues gandalf all of that debt that was used to finance all those scandals are on the balance sheet of these u.k. banks which of course we know from experience is going to end up on the balance sheet of the government and the government is going to then oppose further austerity measures to pay off this debt correct well i think actually the government much itself in the foot with the story figures before it actually reaches that point is i mean it's incredible that the process hasn't hit the banking sector with the debt level of you know between four hundred fifty and six hundred percent of j k we're talking iceland is there and beyond and some wise but what you've got is cameron imposing austerity now to supposedly stimulate the
economy does another design in a classical invention a huge coal reserves recode uniquity one so now they're trying to make it sound more intelligent by calling an expansionary fiscal consolidation absolute nonsense which avoids fraud but. that's not working in the economy is falling and saw is so they're actually discrediting austerity before you've had the banking process you simply have to have let me let me cut into for a second because let's give a hard example exactly how this debacle economics you know that you write about is so important because in a recent study that came out an article in the financial times i believe. it said that well you know yes britain has debt close to one thousand percent g.d.p. however it's growing faster than a country like france but that's really poppycock isn't it because that growth is tied entirely to debt which is tied entirely specious and is on the verge of collapsing per a minsky moment that even the canadian central bank head is warning the global system about so to call to say that they have any growth at all thought organic
growth it's pure debt field growth and that debt is completely unsustainable correct is simply saying hey listen our economy is doing better than europe plan because a ponzi scheme destroying foster than your real economy exactly sell they're saying that they deserve a aaa rating from various rating agencies because they've got a more successful ponzi scheme at the moment now mark carney was famously the head of the canadian such a bank who made this comment about the minsky moment he was last summer he was be rated by j.p. morgan c.e.o. jamie diamond john was winching on about needed more leverage that was tried in canada or else the financial system would crash and we should mention that only in canada the m.f. global customers were made whole because their regulations covered the kind of excesses that we saw in the u.s. the u.k. so you have jamie dimon lecturing a central bank governor on the need to reduce acne from the system as jamie diamon as an egregious self-serving banking fraud peddler as it seems to have claimed
what they were saying is look i'll scream we would continue having even more ponzi behavior than we had last week of course that there's a sort of scheme works until it collapses in collapses spectacularly on the trouble is characters like jimmy dominick go to school and with the money in the meantime and so couldn't possibly sit and it's coming i mean you decide blatantly obvious that this is going to end in twos and these cause floods of lying it is the making going from a tear in her trickle of jews to a flood so he's a total business total ponzi ponzi. behavior and some gun glad to see condi and the canadians standing up to that sort of intimidation from the banking sector are now speaking of jamie diamond he's featured in a bloomberg article quote bankers seek to debug imbecile attack on the top one percent they stealing your phrase debunking if there's any deeper look it is to be debunking economics is the subject of this excellent book which i suggest you buy
for christmas but diamond claims that the occupy wall street movement is just jealous of his success now let's examine that for a second because here's here's a known financial terrorist he is absconded with the taxpayer money in the hundreds of billions of dollars he's impeached he employs evil legal tax dodging and security dodging techniques every single day of his life he breaks the law while he sleeping but he says people are jealous of this well how can that be i mean people are jealous of criminals as i would you say this whole thing about jealousy first stop the people who got involved in the occupy wall street movements like that some of them the old classic left is no argument against that you get plenty of the in this social workers model that most turning out that the fundamental people did because they feel the trust in banking is being be tried and they want to will the rich trust rules and of course will be saying that behavior like the banks that this sort of behavior are the dominant push is where trust is abuse you cannot justify a salary of twenty three million dollars for one person let alone the rest of the
money but one with themselves nobody earns that money if anything less and on stock on and there's no way these gauze iran style but simply the talk of a ponzi scheme it's making money by causing as it crosses to raj by leverage ing up the process with the level of debt they're creating and creaming off some of the debt on the way out it's totally unproductive totally destructive behavior and this is what's brought the financial system to its well well the global economy too and sales and that's before him but. i'm not sure i'm stymied a ton of money but what einstein regretted was the use of his. death of equals mc squared to create atomic bombs and the ideas of derivatives that were first start of the seventy's as a way to manage risk have turned into atomic financial bombs that are being wielded by the likes of jamie diamond and of course david cameron is a complete nincompoop in this arena he has absolutely no idea between a income statement and a billboard full of allah cottle's but he continues to preach that the financial
sector is really important to the u.k. economy what would happen if the u.k. economy in the city of london suddenly started to a bay the law with the u.k. economy crashed immediately or would it crash over a period of a few months on the events so it's are in hot minutes so you're talking to said debt level of six hundred percent of g.d.p. you so dependent upon the dead of the rising to keep the entire mechanics of drive the leverage ing up going forward and maintaining as astronomical house process in london and the salaries of those gauze used to writing off on the top of debt as soon as that sentence and from growth to decline. that's going to be the biggest downturn in this financial crisis is that it warps anything that's happened in america to go from that level of dead to suddenly dead on growing anymore so when it hits you should it incredibly quickly and of course the classic thing as you said yourself really just recently did the basis of the english one initial
successes fraud everything from you know all the way through or when people stopped losing money because of fraud that the first ones to jump ship so as soon as this thing turns in the wrong direction the fraud is being fading the english system will suddenly try to skate in the opposite direction and they'll have the most enormous credit crunch that's why i reckon three and a half minutes off returns that's when they'll leave that the economy will collapse all right steve came out of time thanks so much of a on the kaiser report for you that was great fun and as usual all right that's going to do it for this edition of the kaiser. a report was made max kaiser and stacy herbert i'm with my destiny of came from australia the author of this classic instant classic debugging economics seven email please do so kaiser report r t t v dot ru until next time x. guys are saying.