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tv   [untitled]    April 26, 2012 3:30pm-4:00pm EDT

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hello there it's eleven thirty pm thursday evening here in moscow this is r.t. and these are all top stories gyptian to get their final shortlist of presidential candidates but a return to mubarak's era with his prime minister back in the race. for the e.u. leaders pandered a flourishing right wing factions with the french president even threatening to quit. travel. to the protest mood sweeping through russia and relations with the us president to develop evaluate his legacy in his final media q. and a before leaving the kremlin. plus a massive blast through an alleged rebel bomb making love in syria as the successor to the infamous black mortar nursery company seemingly takes the opposition under its wing. thanks for being with us tonight next the states look at our washington's
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putting pressure on a credit rating agency the dead to ring the sovereign debt a person much more as promised in the kaiser report now. i am max kaiser this is a kaiser report would you buy tainted meat that had a bad rating of course you would what about a bond government bob stays or max keiser well we're going to look at that you know one of the biggest bond in the world is the u.s. treasury bond it runs the entire world so i'm going to flashback to oh about three or four weeks ago egan jones downgrades us a from double a plus to double a out look negative that's right there's a big trend around the world sovereigns around the world are downgrading america's
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triple a rated credit this is actually another a second downgrade a trend toward downgrading u.s. debt exactly now that jones their credit rating agency. headline this week s d c e pursues egan jones moody's and s. and p. remain at large the securities exchange commission voted thursday in favor of bringing in administrative action against even jones in what would be an unprecedented move the f.c.c. could seek to punish the firm by stripping it of its ability to issue officially recognized ratings on securities tied to government debt and asset backed deals an f.c.c. spokesman declined to comment the move stems from alleged material misstatements even jones made when it applied to regulators in two thousand and eight to rate bonds issued by countries u.s. states and local governments and asset backed securities what perceptions run the
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economy the rating agencies are supposed to cut through the smoke and the mirrors give a rating that gives investors an opportunity to do some analysis to do some comparative shopping so here is the government stepping in and saying it again jones you're an independent rating agency you don't take money as the others do for your ratings we're going to take you off line basically because you refuse to acknowledge that the king the u.s. economy is fully closed you are saying that maybe the economy is good. the other issue here is the fact that they're taking out the competition now you only have moody's s. and p. and fitch so the the problem was not having enough rating agencies we should have more safety this is what i hate about this whole crisis is that it's so anti-competitive rating agencies let's reduce the competition crisis on wall street let's get rid of lehman brothers and bear stearns let's reduce the competition oh let's talk about the global economy we don't like china's policies let's try to
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isolate them and prevent them from competing we don't like south american economies let's try to isolate is beyond isolating the son down the economic hit man a whack a couple of guys this is the tragedy of this american economic crisis is that it's all about american policy makers shying away from competition. and now barry ritholtz looked at this story and here's what he says here we have an allegation of a specific error made in good faith by even jones over the course of doing business at the same time we have a broad set of systemic errors made by the two much larger competitors moody's and standard as poor these two firms by design gave triple a reading's to piles of junk paper they did so because that was what they were paid to do by the underwriters these were not good faith errors they were instead a reflection of a wholly corrupted industry designed to mislead investors and legitimize junk paper
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that moody's and s. and p. are involved in what i would call reverse drug dealing you know typically a cocaine dealer will cut the coke with some baby laxative to give it away ach make the profits go higher here with moody's and s. and p. it's reverse drug dealing they take junk paper they take a whole portfolio of non-sensical goldman j.p. morgan enabled collateralized debt nothing but they give two percent of it of aaa rated government paper and then they say the entire pile of nonsense is worth triple a so it's the reverse of what you'd see maybe in a typical drug deal but the fact is the same total deception and it should be outlawed and when i said holy i don't mean like eight o l y i know many bankers in the whole financial services sector think of themselves as doing god's work but this hosts holy h. o. w. l. y. but you need to parse your words carefully in this environment when you're dealing with such a cough anie of mis representation and prevarication. technical
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violations oh that's a technical violations i'm sorry and we're told then turns to what nobel prize winning economist joseph stiglitz observed when looking at this racket of moody's and s. and p. and the credit rating agencies working with the banks in order to forced. basically fraudulent products upon pension funds and municipalities around the world stiglitz said i view the rating agencies as one of the key culprits they were the party that performed that alchemy that converted the securities from f. rated to a rated the banks could not have done what they did without the complicity of the rating agencies so we're told quotes stiglitz here and then he asked max some how these two whales of corruption and s. and p. get a pass i don't get it can you enlighten him well what he calls alchemy i called reverse drug dealing and he's absolutely right that systemic crisis their systems are part
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of a racket the racket including the investment banks and the government policy makers it's all part of a collusion insider dealing and another fancy word for lying would be mendacity just to throw that in as well and the result is you've got too big to fail now in these rating agencies that are supposed to be impartial and independent and whether it's a rating agency or whether it's the new york times right i mean their view is completely partial it's paper view it's paid for the opinion it's an opinion per click per view per dollar and it's utterly corrupt throughout the entire system and of course finally here is a bit of chart porn for those who like their porn with little bars and graphs look at that double top. and that's just moody's and s. and p. in their share of the ratings of mortgage backed securities so they were raiding those bonds and as you can see there you know one hundred percent of the market in many cases in certain years now right so they're there's no diversity there's no
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competition it's a pay per view it's a paper rating it's utterly corrupt they make money by selling bogus ratings but the mainstream media will quote moody's and s. and p. as if it's some kind of impartial judge and analyst in the space it's not their hacks well as the financial services sector. sitters themselves holy some sort of religion moody's and s. and p. of course did give the holy blessing to toxic sinning assets they were sinners and they said no i have sanctified these assets people indulgences right out of the textbook of the pope from the middle ages you've committed a sin give me some money and you're absolved from that sin you go directly to heaven same thing with these radios he's give us the money will turn your triple c. rated toxic securities sludge into a aaa rated god love and security so speaking of sinners max a sinner is in the news here and he is confessing to well the crime of our
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financial services sector parsons blames glass steagall repeal for crisis richard parsons speaking two days after ending his sixteen year tenure on the board of citi group and its predecessor said the financial crisis was partly caused by a regulatory change that permitted the company's creation the nine hundred ninety nine repeal of the glass steagall law that separated banks from investment banks and insurers made the business more complicated he said right well i think richard parsons dick parsons is would qualify for this c word and by the c. word i mean coward because where was c. while he was still serving on the board it does no good once you leave the scene of the crime and to fess up in a way that can be constructive and help your fellow man richard parsons why are you such a coward but max citigroup is important to this this story here because it's because
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of citi group that glass steagall was repealed now tell people of course what glass steagall is for those of us who don't know well last time morgan stanley goldman sachs blew up of the economy in the twenty's they passed laws to try to keep two sides of the brokerage industry from talking to each other and cooking the books and creating a huge blow up marc. that that was repealed sister emma glee over time ultimately under clinton they did get away with the last vestiges of glass steagall so then it allowed for things like citigroup to buy a bunch of insurance companies and other companies and just completely turn into a financial supermarket a fraud which is what's in a group is a financial supermarket a fraud it's all tainted meat imagine going into a supermarket and seeing tainted chicken to take a steak tainted duck all tainted meat stacked up five high that citigroup got to get insurance tainted seedings tainted management it's a stink did stink hole of fraud larceny and mendacity technical violation that the . yes it was the one nine hundred ninety eight merger of citi group and travelers
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group that depended on the u.s. government overturning the portion of the depression air act that required banks to be separate from capital market businesses like traveler salomon smith barney holdings might well see sandy weill what was the architect of this conglomeration and of course e book to made his money is on the hamptons somewhere smoking a big fat cigar you know trying to invest his billions in some way that's not going to be you know inflationary well of course wasn't also robert rubin who was in the clinton administration as the treasury secretary who campaigned to have it overturned and then went immediately to where did he go after that then they went to citigroup of course that he cashed in for hundreds of billions of dollars by using an insider washington connections as one of these is one of the biggest the original revolving darr door goldman sachs private sector back to the government back to the private sector making a huge paycheck on each transaction and then walking away from the scene saying oh
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and work as a university professor or president university like larry summers like over to teach the next generation of crooks in this country and in a follow up interview regarding this richard parsons is asked about these too big to fail banks that have emerged because of the repeal of glass steagall of course and here's where it gets. to the market fundamentalism the markets as gods he said people have a sort of notion that well we can decide that's too big to manage but it got that way because there was a market need and institutions find and follow the needs of the marketplace so what we have to do is we have to learn how to improve our ability to manage and manage it more effectively so the markets decided that citi group should engage in all sorts of fraud and become this massive too big to fail entity that they can get away with all of those sins dick is a liar that does start to
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a bogus justification for creating a monopoly monopolies are not supposed to be concurrent with the free market capitalist system so i mean that's that's it if you if you want to but monopolies are no joking matter. i want to get me one jokes about. dick's a liar mission rename those liar loans and ever they go from congress and say why did you justify these liar loans i just called dick loans well listen max we started the show with you can jones and we'll end it here with this monopoly where he's saying the market decided we need this monopoly well here's the assy see saying ok we're creating a monopoly from s. and p. and moody's they're going to be the ones they're the only ones that have the blessing to bless us the u.s. treasury market right that's right they hate competition america hates competition that's why the country is going down the drain that's why it's being out competed around the world that's why all the international league tables about who's the most competitive america's cresting stacey ever thanks so much of
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a on the kaiser report thank you max i know a much more coming away stay right there don't go to the gay forget the flight that's been canceled watch the next part of the show. and. play you for spring overseas my great story birds will come home to roost. when their mom says oh great. empathy she's way to go to the motions. towards those who live on the current. well. technology innovation all the developments around russia we've got the future covered.
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imax kaiser welcome back to kaiser report time to speak with the reverend billy of the church of stop shopping reverend billy walk with a guy who remember other max it's a pleasure to be here today fantastic now reverend billy united just to work together at the one seventy eight mott street event recently we used to cast out black master as the market manipulating demon from the markets it was a big success your thoughts there wasn't easy the demon inside the head of global commodities at j.p. morgan chase black masters it's a. it's a do you know you know it's a deep powerful all consuming moving hundreds of billions here and there are kind of demons that took us it took us a good five or six minutes to even get on our feet she kept blowing me over and other people are quite happy that you were there to help the exorcism now lloyd blankfein of goldman sachs he said recently that he believes he's doing god's work when he's selling to pension funds the fraudulent mortgage backed securities that
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they're known for at goldman your thoughts of being a man of the cloth i have seen the adoption of religious posturing by everybody from the head of the new york police department to the mayor here to jamie dimon and chase it is simply it you have to understand in the in america we make our meaning out of bible stories we're all trudging across the desert behind a pillar of fire wrestling angels you know we're all involved in bible stories all day long we're very religious people i mean that's the bus why you know we've adopted this right wing apocalyptic guys we're trying to root out the jimmy swaggart that we have in our leadership just you know the scripts the surface much and blow you know that's what they are now reverend billy when we first met up i was in london and you were doing a campaign at that time with starbucks and starbucks of course exploiting coffee farmers in africa etc and now recently you've been involved with campaigns against
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j.p. morgan chase bank of america bank of america and others and with with a starbucks campaign it's very it's tangible in that there's a coffee being there are farmers are being exploited but in the banking sector on wall street it's not a tangible the time of derivatives you're talking about high frequency trading you're talking about financial abstractions and yet these people are doing similar types of exploitation in their own way but that how is that transition for you as somebody who is in direct contact with these dean. min's they you know they have metamorphosis eyes from a tangible to a ghost the holy ghost except they're not talking about the holy ghost we're talking about the demonic ghost in the machine how is that transition always bring it back to something that people can see feel just a couple days ago we had one hundred three tornadoes in the continental north american it. it is biblical it is apocalyptic j.p.
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morgan chase citibank and b. of a are the top three finance ears of industrial projects which cause c o two emissions and if it is true that you know the new york times and lots of other. commercial media types of venues are not so willing to talk about it in such a direct fashion i'm discovering that ordinary folks down in the bus stop in the diner talking on the sidewalks we just simply believe yes the sixth weather is coming from c o two emissions is coming from the financing of coal fire power plants and and methane and carbon monoxide and so forth this comes from the big banks now you point out the economics of carbon emissions and how these corporations amid all this carbon of course their finances are financed primarily by those three banks as you mentioned so it would be seemingly fairly simple to do
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an analysis and say well you know the banks are taking on this risk that the globe blows up here's the carbon risk here's their balance sheet here's what it's worth percy air how come we never see an analysis like that at a publication like the new york times or on bloomberg or a day's other mainstream outlets that the map a simple to do how come we're never presented with that share price per share carbon risk i think it's because the the impact on the earth which causes extreme weather some people think it even causes this late this increase lately in earthquakes and tsunamis it. that is always off the books exactly human cost is off human misery is off the books that doesn't register on the books until until mohamed was easy until to rear until bradley manning until we are publicly exercising i'm encouraging the twenty six hundred people who the
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twenty six hundred occupy communities the people in the twenty six hundred communities that have gone into their parents in the last year and have little tahrir square starting over here in zuccotti i'm encouraging them to go into the lobby of their local brick and exercise the demons themselves and have done this and bennett said it's a call to action right now is a call to action anybody who's listening right now just going to your local go into that local bank as you're doing what you must do your drama your clowning your somersaulting take a trampoline in there take a take it just just be big drama and out information about what that bank is doing we've been surprised that people up in the middle management of these banks really don't know what their money is doing you know this is true don't you they don't know anything about montopoli move or tar sands or fracking or they don't know anything about about the inequity of distribution of wealth they kind of an easy way but they say well they have that darwinian understanding of the world and well
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the good people rise to the top and that's what's happening right now they're not incentivized to see the whole picture because their paychecks to pend on a certain ignorance and blindness to the reality of the situation if they were to stop and to look at their conscience would kick in and they would be working in those in those in those roles you mentioned a second ago twenty six hundred occupy groups and my question to you is the splintering of all these groups is that. dilute of to the message and the occupy famously has no core manifesto and by creating all these. groups and more and more groups is there a dilution of effect that we're witnessing and they are becoming less powerful than maybe when it kicked off it may have and that's my question that's one hundred what you think about that second of all if is there a way maybe to coalesce around a go in a way that would be more of a strike force buying silver as an example well.
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i don't my punchline but but from your perspective in visiting so many of these groups yes there is a tendency to believe that more is more that by spike creating more groups that we create we cover more ground but in effect it becomes diluted the effect and when just thinking about it because in the church there is monotheism you know there was polytheism then there was monotheism and it became quite powerful right as a result sure there's something be more monotheistic within the occupy movement to solidify the chorus as it were first of all the twenty six hundred community groups around the world were not caused by a central figure. designing it and paying for it or organizing it this happened organically. because i'm in a little town in finland
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a little town in the woods in northern california and so forth people just they they looked at their local city hall and they looked at their local wal-mart and their local bank of america branch and they saw what they saw on television it's a comedy square art or at st paul's cathedral in london or at the tire rear of the various more public expressions so you know there's something to be said for just three pup tents in a park in a little town that only has eleven hundred people then those three people are living in public which is the beginning of any revolution and they are sharing information with more people around them who come down to talk with them now having said that i agree that we need to have that's why i'm here i'm not a leader necessarily we don't really have leaders but i'm i am saying j.p. morgan chase and city and b.
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of a are apocalyptically involved in mass death. the global egg investments by global commodities traders and the blowing away of less powerful people around the world right now the impact on our earth the extinction the extinctions of life forms we're losing dozens of kinds of species of life every day there are whole range is that are covered with nothing but dead trees these trees were carbon sinks they they took the c o two out of the air we didn't even have a winter in new york this year we had sixty degree days in every month this year i mean the changes are radical and they're they're speeding up and the bankers have hundreds of millions of dollars to spend on advertising the big breaks are free of any regulatory agency of any government of any moral regulation of any kind from
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any group of any kind they simply must be invaded we must go into the lobbies we must confront them we must do surprising things in barcelona a few weeks ago a bunch of us led by by a my longtime partner salvatore went into a local joint you bought one of the key climate killing investing banks and we just took our clothes off following following savi who was naked we just took our clothes off and we we did a simple thing we registered our sorrow we started crying we called the action naked grief we just started bawling we were retching and we took over and then we headed out information to go to the to the people who gathered around hundreds of people came around and we were there for just you know fifteen or twenty minutes but it had a huge impact in the press we made you tubes out of it naked grief we did something that day we got fined five hundred euros for illegal per eating of all things by the local children of the fascists who now run the local barcelona security state
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but something like that must be done in just be creative make up your own art make up. religion make up your own alternative culture and go into that hallowed church of the interior of the bank go by the pillars go past the the the the hushed. and all the mysterious equations the mathematical mysteries that you of all people do understand most of it most of us are just in all of it stop being in awe of it go in there do something strange why don't and then hand out information about what they're doing and gradually will grow even to people watching surveillance tapes of what we're doing in those bank lobbies they were and lots of ordinary people behind the badges behind the uniforms are really really starting to wonder about this so-called leadership in the banking industry plus my primary demographic of people watching surveillance tapes.
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but you mentioned extinction and captain paul watson of sea shepherd talks about the economics of extinction in the case of the tuna in japan that a lot of very large tuna the more they catch to get closer to extinction the value of the ones in the freezer back in tokyo go higher increase and this this type of mentality infects these bankers certainly with the nature with animals and when one has to wonder if that's the way they think about people as well well we've got to go we're out of time reverend billy thanks so much for being on the kaiser report it's a pleasure to be here today max all right that's going to do it for this edition of the kaiser report with a max kaiser and stacy herbert my guest reverend billy going to send me an email please do at kaiser report that r t t v are you guys are saying. no no no.
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it is.


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