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tv   [untitled]    May 19, 2012 5:30am-6:00am EDT

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you're watching our t.v. just in time for a recap of the headlines the deepening euro crisis and how to solve it us set to dominate the g. eight summit underway in the u.s. this year's gathering is largely seen as a key test of the group's ability to deliver. and in the euro both stereotype policies are under fire with thousands of protesters expected to rally in the german financial center while fourth day early at least four hundred demonstrators involved in a campaign to blockade the banks called block you were detained in frankfurt. plus israelis and palestinians who lost their loved ones come together in the pursuit of peace and a sign of reconciliation that's becoming increasingly rare between the two sides.
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now stacey habit take a look at how the burning fury over a big bank has policy and such in the art world on fire kinds of reports is next. on american cars or welcome to the kaiser report coming to you from john king road in chinatown in los angeles just like the global bond market is coming to an end after twenty five years the art market is fundamentally changing from an era of was worthless pop to something of my. more substance stacey or yes max we're here at
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the charlie james gallery in los angeles and we found the gurnet of the financial war right behind us these that these are fantastic alex shaffer of course known to viewers of the show were here in los angeles at the actual gallery that is showing his art and it is the quintessence of our banks britain aides were the bankers run roughshod over our lives and he's captured that brilliantly by having these bankers particularly j.p. morgan on fire our. well they're the ones that bring down the economy but the reason why i bring up guernica is of course you know this is the iconic painting anti-war painting by problem because so based on the nazi bombing of guernica country in spain but i wanted to liken this to the financial war that you and i have been talking about the weaponized derivatives and high frequency trading and
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in particular in guernica i want to look at high frequency trading and compare those two together so first guernica was on april twenty sixth one thousand thirty seven during the spanish civil war the boss town of guernica was razed to the ground by german aircraft belonging to the condo or legion sent by hitler to support franco's troops for almost four hours bombs rained down on guernica in quote an experiment for the blitzkrieg tactics and bombings of civilians seen in the later wars we saw something similar with the financial weapons of mass destruction the flash crash of eighteen months ago or so and this attempt is testing out to see how easy it was a simply push a button crash a market of course after hank paulson lied to congress in two thousand and eight there was another crash that was engineered similar to a guernica like devastation to get his political agenda saw a financial agenda anymore it's about political agenda jamie diamond is
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a political entities not a financial into d.c. he wants to rule several countries at this point as a dictator with his money and i would add to that that i was talking about alex shaffer b. and he was mentioning to me that the next phase of this of this of this artistic movement will actually to be broadcasting flames onto the buildings themselves on the banks themselves will be flames broadcast on to them well i know max you're going to speak to in just ten minutes so let's go on to what we're talking about here because high frequencies. waiting and you mention the may sixth flash crash which was the first kind of test the experiment for the blitzkrieg tactics that with the later be used on us cope stealthing the i.s.c. anomaly and reset events so this is from barry ritholtz and he says i love these next charts showing some recent quote unquote anomalies in markets and if you look
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at these images scrolling through them you see quite a like sort of para wet suddenly and then in those represent a fraction of a second where suddenly these massive orders come in and now max a lot of there were a lot of normal people responding saying so why you know we don't want to keep on staying in the horse and we need this high frequency trading so now next came onto the form board and they explained what you're seeing from those charts they said what he's charged show is the farce that exchanges are playing by the rules and that the data you are getting is anything but real time nearly every minute of the trading day options price reporting authority traffic will surge to levels that would cause a certain exchange to delay sending their quotes for up to a half a second more but you will never know that by looking at the timestamps because they overwrite them before sending with fresh ones it's only from painstakingly reconstructing the data as we have done that these hidden time legs are visible only of those in the inner circle colet did at the premier routers have real time
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data and by the way know precisely how delayed the data you are getting. the training is this error is a blitz blitzkrieg for the same effect to take possession of property you know well for away from the majority of people put it into the pockets of the minorities so in this way you could say jamie diamond is you know he is leading the new social democratic movement of this of this age and there's another person who came on our l.t.d. who explained a little bit about this and this is a quite interesting word that is used by high frequency traders themselves he says for the explanation of food. event one exchange crushes the other exchanges potentially giving someone a one hundred to two hundred millisecond advantage also known as quote an eternity in the high frequency trading world yes well once again the point of it all is to effect an economy of supply and demand productivity wages and growth this is an
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economy based on the financial rape so for those who are defending it they are similarly defending rape it's a financial blitzkrieg and this is what i'm saying from here it's more than just like one individual rape it's a blitzkrieg it's terrorizing the population it's carpet bombing people who are trapped in a city who have no way out they can't fight they can't defend themselves against this blitzkrieg if kurt vonnegut was alive today he'd be rewriting slaughterhouse five about the bombing of the new york stock exchange as opposed to dresden and another thing about this where is an attorney of the of course it seems very artistic because one seeks to turn to the and eternal truth through art and here these traders see one hundred to two hundred milliseconds as an eternity so there is a completely different time scale that normal people operate on compared to these traders and there is it is different sort of scale in general so for them you know for
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a normal person fifty thousand dollars seems like a lot of money to be earning in a year this is something they would earn in a fraction of one of these hundred milliseconds just this technology would be similar to the invalid smith of the gatling gun back in the old west when they could just crank out the machine gun and slaughter millions of people millions of buffalo all for the greater good of the private interests of the wells fargo by the way it was active at that time wells fargo became wells fargo bank same mentality warren buffett big shareholder wells fargo the quicker they slaughter the people the more they make money. they're slaughtering schools and so back to our i want to know we're looking around for our who where are the artists where are the guernica where are the people interpret ing the artists interpret in this financial war for us and here's a shocking headline. when you compare it back to world war two sort of days and fascism italy burns art to protest against crisis and its
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hellion museum director and the mafia influence north east of naples has pledged to burn three works of art per week to protest against the lack of spending on culture and he says it doesn't receive any public funds so it's not about an austerity measure he's just saying because the financial collapse has caused businesses to slow down but he said he can't get any loans to keep the his business afloat and he says i don't know who to turn to anymore for money and i refuse to ask the cumorah mafia the mafia in naples he apparently he would be fine asking chase or bank of america max i can see burning bra burning draft cards i like the burning bank work the ballad share for burning our seems more like performance art than a protest against the current financial legerdemain but will soon the test of time a look back and see perhaps a bit consider
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a fantastic piece of art itself well you mention burning chase and here is a headline with them in it case see man sues bank for foreclosure error claim j.p. morgan chase changed the locks seized new owner's property so a kansas city man is taking on banking giant j.p. morgan chase accusing the company of something that he said would have landed anyone else in handcuffs alan danforth bought a house in a short sale and fall of two thousand and ten j.p. morgan chase held the previous owners mortgage down for said two months later without notice the bank changed the locks and hauled away twenty five thousand dollars worth of furniture appliances and family heirlooms follow up on the blitzkrieg metaphor of high frequency trading in the national socialist party like atmosphere around j.p. morgan what you're describing there i guess historically the analogy would be. kristallnacht where the nazis rolled into town and they started destroying property
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this is the timeline this is that moment in history where you've got one out of control dictator jamie diamond lloyd blankfein could be the mussolini in this case or just stealing whether it's m.f. global through a banking system or going to people's home stealing their money and doing all manner of one gobble the things with the you know women and children well and in this case max he goes on to say i'm not the first one i will not be the last unfortunately he said he has installed a security system in case of another paperwork mistake so j.p. morgan chase this excuse was paperwork mistake they've sold off all his family heirlooms and memorabilia stuff that was important to him sentimental value but here's a guy he has to install a security system to protect himself from the banks because obama will not do it the department of justice will not do it the s.e.c. will not do it nobody will do this for you you need a security system in your home to protect yourself from jamie diamond on white
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blank frank because they can crawl through the window feel all your stuff and nobody will do anything the paperwork mistake here is the paper upon which airs of j.p. morgan stock is printed you know people can buy stock in j.p. morgan one share at a time for whatever is trading for thirty dollars or and they can demand physical delivery of that stock it arrives in the mail then i would make a video of burning that share burning paper j.p. morgan stock one share at a time there are only so many shares out there extent in the world let's burn it all down burn all of j.p. morgan stock no problem for all of j.p. morgan stock up. i like that i go there well dan for if this guy had his house burgles by j.p. morgan chase also kept copies of important documents inside the house and they were also taken experts said in case of a fire or burglary by j.p.
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morgan chase it's a good idea to have copies of important documents in a digital form or a safety deposit box but this is something you and i have also talked about not only could j.p. morgan chase lloyd blankfein and jamie diamond type guys steal your stuff but you know you need gold silver artwork diamonds and in your co it's time to start thinking about that because this is the blitzkrieg coming these are the guys taking your stuff and there's nobody there to protect you right so they steal all your stuff and then they'll sell you insurance to prevent protection against them spree stealing all your stuff it's kind of like j.p. morgan bankruptcy a community like gomery alabama and then everyone's on the street and then they process all of the machinery behind food stamps so they try to hedge their bets one thing i guess never learned was to hide the heads used programs the way jamie diamond is now hedging his full cost and now finally for this first half before you go talk to alex shaffer i wanted to say wrap up with guernica is something that
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very similar happened to pablo picasso that happened to alex shaffer and so alex shaffer painted j.p. morgan chase burning and as probably cost has painted guernica and a few years later in nazi occupied paris during world war two picasso suffered harassment from the gestapo one officer allegedly asked him upon seeing a photo of guernica in his apartment quote did you do that picasso responded no you did. brilliant ok stacy herbert thanks so much for being on the kaiser report thank you coming right up after the break alex safer so don't go away.
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i am maximizer welcome back to the kaiser report time out to go to artist alex schaefer right here in the gallery showing his art in los angeles alex safer welcome back to the kaiser report thanks max all right alex a for for those that aren't familiar with your burning chase story give us a brief outline of the painting and how it made you well known in fact quick synopsis before even occupy broke out i started doing a series of plane air urban landscapes setting up my easel across the street from a local branches of chase bank here in l.a.
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and i had i was approached by the police the second time i did one and they wrote up an incident report and three weeks later i was visited by two. plainclothes police detectives to. determine if i'm a terrorist strangely enough i think instinctively people know what the bank is doing they're destroying lives at the strong property they are in fact terrorists and i think that's what the police are keyed in on there they're obviously in league with the terrorists now j.p. morgan chase has been in the news for the past week with more deadly derivatives threatening to take down the global banking system in kind of a nazi blitzkrieg like fashion isn't this what your art is all about exactly i mean in my the thing that i have said from the very beginning and it's something that i've taken mean from you that this is financial terrorism like picasso they're doing this you know the fact that i am painting this. meaning is is you know is not
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going to talk down the economy or or whatever and they're destroying our economy i completely believe it and our politicians are doing anything and i said earlier in the show that for the past twenty five years there's been a bull market in bonds or a bull market and paper assets around the world and in art we see this really reflected in a sensibility that's mostly pop you know the lady gaga pure pop phase now it seems with your art and other artists like william bonzai seven and a few others were entering into a more serious phase if you will of the art is there anyone else out there that's now kind of getting into this stream gee. i don't know i think a lot of artists are sort of out to lunch like a lot of people i think what's happening is we're leaving a conceptual era and entering a tangible era you see the seventy's and the conceptual money that we've been
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living with grew hand in hand with conceptual ism and that paradigm is over in the art schools if you're in touch with what's really going on and i think it's a it's an absolute. analogy to to our money system what's happening in the art world what's happening in that with our money so kind of at the beginning of this pop period you had artists like andy warhol depicting the dollar bill as art and here at the end of that era we now have the dollar bill being incinerated. good you like that ok now so you are artists who is responding to what's happening around you and walk us through the process a little bit without getting overly intellectual about it but how do you arrive at an image like that burning bank image and is it correct what i heard earlier that the next idea is to actually broadcast flames visually my friend robert robert
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clinton said we should do that and i think that's it's a great way to take it to another level and i guess be conceptual about it and it's the same idea you know but the thought the way that the paintings evolved for me was you know anesthetic evolution i was doing paintings of of like tract homes. that i was seeing being built all the way back in two thousand and four it was like guys this is coming you know and so i've always had a kind of an underlying outrage to theme to my work in addition to just enjoying painting and you know portraiture and whatever and so it finally came out i think i destroyed symbolically a painting by painting flames on it and then i thought yeah ok we could actually do this and have it have a meaning now you know who who needs to who needs to birth ok so keeping on this kind of our academic theme here typically or historically
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art in a lot of ways has been the filter through which society views what's really going on through the lens if you will of the of artistic vision but these days. we have twitter social media alternative news sources that have captured that space in a lot of ways an art to some degree curious where you think about this has been marginalized your thoughts. i think that as art has become more kind of obtuse and conceptual and language based i think that it is alienated it's increasingly alienated people from it you know until it becomes this sort of. snake eating its own tail of philosophy and aesthetic rhetoric that. that just makes people not even care about it or doesn't matter you know when you mention the snake eating it's own tail chorused what one thinks about
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are the derivatives that these banks peddle they are self-referential the derive their value from mathematical equations that are derived from other mathematical equations and there is in fact no they're there they're pure abstraction they're abstract art in a lot of ways that they sell as having economic meaning that simply isn't there i want to kind of return. to the visit you had from was it the f.b.i. or homeland security they were plainclothes because i think they wanted to be as as unintimidating as possible but. part of me just feels like it's a bureaucracy that has to play out no matter how absurd it is and i think that there was a feeling a little bit of certainty with the whole situation i mean i feel like we're impose our old world right now where there's no law you can do anything you want you know . i like one thing i was saying to the cops when i was out screaming on the streets
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on may day it was like you know i have and the cops thought this was great i said i have more respect for someone that actually like robs a bank with a gun you know because you have to have some nerve and take a real risk and you have to be like athletic then someone like jamie diamond who just just fleeces you with programs and these super fast computers it's just it's immoral now let's ask you a theoretical question here let's say did a painting of fort knox on fire would anyone care not no because the gold wouldn't be destroyed right well right yeah it would just kind of melt a little bit but i think the what's what the tension in the painting is that when you set a chase manhattan bank on fire in the painting people are saying wait a minute that paper is flammable because after all that has no inherent value is just paper. and it's very unnerving for people and i think the fact that the reaction has been so outsized compared to the actual you know the symbology in the
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paper and in the picture is because everyone now in the world realizes that they are living on a very flammable paper ponzi scheme that can exist that's the perfect way to put it you know it's like. a grain fire you know into dust is in the air now we've had of course this global occupy movement and did see the imagination of people around the world there's occupy movements around the world came from occupy wall street it's came through los angeles it was and we saw it again on may day there are some protests around the world to get. it seems one thing it lacks curious what you think it lacks a certain. you know hasn't done lacson you know stated goals there's yeah i definitely agree. there i mean to me that when i'm out there and out and i consider it to be an educational opportunity you know people are pamphleteering
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you're talking it's a very charged environment and i just say to people because they'll have signs for gay marriage and they'll have signs for you know immigration rights and and bring back you know industrialized united states and i just go you know what we have one problem it's like for rose saying everyone's being at the branches and nobody strikes at the root you know if you don't like war you don't like basics. i mean a lot of times on the show we actually come up with ideas that eventually become global means or campaigns crash if you morgan by silver as an example we said earlier in the show came up with an idea on the spot curious what you think about it if people have actual shares of j.p. morgan sent to them to their home the physical shares which is still possible in the current system and they set those on fire made a video of that we took the bank down one shared time i buy torching all of the shares as both a statement and as a necessity to stop the terrorism what do you think about this i think it's great i
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mean i'd love to see you tube videos like that i've been to end the fed protests when people start pulling out ones at the end and start lighting them on fire and i thought that was a real i was kind of shocked you know you sort of indenture urban ingrained in this idea you can't destroy money and and then you see him burning it and i really felt like wow you know that's good sense the first series came out of the burning of the j.p. morgan chase banks there's been this huge scandal they jamie diamond the terrorist came out he said you know what i ever saw in london that irresponsibly blew two billion dollars some are saying it's not going to be eighteen billion dollars and he also just survived and vote from shareholders to were thinking about removing most chairman but they said now we want to keep mr chairman so the too big to fail are getting even bigger and bigger and bigger so as the artist who's got this
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series going where does it go from here well i have put there's been some people who have played with the idea of taking it on the road and going to some places like an m.f. global headquarters or office in toronto or. going to kind of a tour and you probably could come up with a great list of banks around the country in the world that need to just go go up and in symbolic flames i see also you play with some of the tag lines in the advertising for the banks yeah sample citi group they have a tagline live richly oh i love that you were the images are you know kids getting you know mainlining alcohol or downing you know like a box right that's what we've had on wall street for the last twenty years probably financed by easy money easy credit yeah it's die and i see in the money spigots just that some point of course the easy money will window will be shut and then
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you're going to have possibly what will you have simply people lining up to peaceably enter prison or will be something else another outcome. i mean that hopefully there won't be chaos but i mean look at look at what look at what's happening around the world you know i mean america is so large that it seems like it's happening to us in slow motion. but you know how long does it take if you get a situation in a certain city where suddenly there's no services and then you know the food business is you know takes what seven days to get really hungry and you'll do stuff you won't think you'll do fair enough out of say for at a time thanks so much for being on the kaiser report thank you max graduation again the great show and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert or thank my guest alex schaefer going to send me an e-mail please do so at kaiser report at r t t v are you until the next guys are
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saying bio. makes it. ok to. see the trolls if. they tell.
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