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tv   [untitled]    May 28, 2012 7:00pm-7:30pm EDT

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russia wants a games only play with the syrian government from the massacre in the town of houla saying rebel forces bear some of the responsibility for the deaths of more than one hundred civilians this comes as the un's peace envoy kofi annan arrived in damascus for towards what we called an every individual with a gun to lay down their arms. as the syrian conflict drags on is being fueled by weapons of flowing from neighboring lebanon illegal arms dealers are mostly driven by soaring profits but others themselves are joining the fight against assad for purely religious reasons. and russia's best be led by identified one of the world's most dangerous computer virus is used in cyber attacks across the middle east the wrong planes the virus was responsible for recent mass data loss and blames the
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u.s. and israel for one mission the spyware. next on our t.v. max and stacy take us behind the financial headlines to find out what's really going on in the world of economics station for the kaiser report. max kaiser this is the kaiser report yet we've got all the fraud coming your way all the accounting mischief and outright criminality another day another crime stacey herbert talk to me no no no max in fact these bankers are really doing
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god's work they are perhaps infallible they can do no wrong f.c.c. staff ends probe of lehman without finding fraud this is according to bloomberg u.s. securities and exchange commission investigators have concluded their probe of possible financial fraud at lehman brothers holdings without recommending enforcement action against the firm or its former executives according to an excerpt of an internal agency memo it hasn't yet been released they haven't made their final decision but according to a memo they found no fraud yeah ok so while we do know for example dick fault that the end of each quarter when they were supposed to report their balance sheet composite. hundred fifty billion of liabilities off the balance sheet they parked it into a bank that they didn't disclose they didn't add that to their consolidated balance sheet they stated profits illegally then when the regulators requirement window
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close they put that back on the balance sheet that's called the repo want to five scam it's outright criminality. committed a massive fraud in fact the article does point out pressure on the agency the f.c.c. to punish any wrongdoing related to lehman's collapse as. after anton valukas the court appointed bankruptcy examiner found the firm misled investors with accounting gimmicks that disguised as leverage referring to this repo one five but they looked at this evidence that the bankruptcy examiner had looked at and they were like where's the for a while yeah i mean this is fantastic i mean this is the great thing about having regulators like the f.c.c. who are over charged with keeping track of your accounting fraud i mean as imagine a serial killer i suppose you know who had keeping track of his crimes best goalie you know hollywood producer who every time you murdered somebody in the street they
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would just say oh that's great for the it's not it's not a murder it's a reality t.v. show so here with the fall you're saying you're not committing fraud it's a great story on some news item but it's not fraud and so let's look at the other part of the mafia you mentioned hollywood and the entertainment industry are i ate claims it's owed seventy two trillion dollars by lime wire so there are a last year they managed to get lime wire shut down claiming that the p.d.p. network was infringing on their copyright well in a scathing ruling filed earlier this month judge kimba wood of the u.s. district court for the southern district of new york flatly rejected the industry's claims that line wire should pay up to one hundred fifty thousand dollars for each download of some eleven thousand songs included in the r i a lawsuit and award based on the our i calculations would amount to quote more money than the entire music industry has made since edison's invention of the phonograph an eight hundred
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seventy seven wood said in her ruling the absurdity of such a result requires the court to reject the music industry's argument yeah well they are. recording industry association of america or the m p a motion picture association of america they just thumbed their nose at the record their thumb the nose of the. public that they'll arrest people on the street for cop copyright fraud which is similar to wall street accounting fraud and the two overlap each other when you have a say barack obama part of the pump and dump scam for facebook he was actually promoting the pump and dump scam for facebook before it went public and of course then he's supposed to be overseeing the regulators that don't regulate and he has a lobbyist from m.p.a. giving him money to be reelected to give the hollywood industry copyrights that are completely unconstitutional completely illegal piracy is civil disobedience to attempt to restore some balance of the system but again absolutely nobody running
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the show at the top just criminals on wall street in hollywood run amok and again let's compare this you mention obama because she says if plaintiffs were able to pursue a statutory damages theory based on the number of direct infringers per work defendants damages could reach into the trillions now let's look at this case where there are i am suing line wire for seventy two trillion dollars which by the way is more than the global g.d.p. so let's look at how barack obama when presented with all of the evidence of wide scale mortgage and foreclosure fraud by all the banks the major banks in america let's see what he settled for bank settlement highlights the fed's foreclosure flop the twenty six billion dollars settlement that forty nine attorneys general rested from the big banks today is a pittance compared to the damage done but they were forced to act by inaction in washington they get twenty six billion dollars for defrauding the entire population
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making tens of thousands homeless unemployed with no future no potential and they've got twenty six billion dollars in toll but like i've been saying these politicians of america the disgraceful part of it is that they take so little money from it fraud i mean barack obama for just a couple hundred thousand dollars you can get a cold. all right reach around the constitution dominical and he starts dancing like you know what i want to hold out for a look at more obama mean this kind of describes fall well the population is free to go higher that are i a why don't you get the r i ate to go to negotiate against the banks in this case why not sue j.p. morgan for seventy two trillion you bring up an interesting point why can't the public have lobbyists i think as well the question is what exactly i mean that's what your congressperson supposed to read by the way others will be advocates for the people yet but they're gone now so how is there a mechanism maybe an online could there be some online functionality where people
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could hire lobbyists to represent their interest in washington hire a lobbyist dot com or hire a lot was done that mean you could raise you know millions of dollars maybe crowdfunding to hire lawyers to to lobby for people in washington against the against a club to craps in washington i think that's a good idea that's a good idea now let's move on to the next headline max because we were also talking about fraudulent accounting and how it's one thing for guys with lobbyist and another thing for those many of us with no lobbyist j.p. morgan and asymmetric accounting of course asymmetry is often used when applied to terrorism you know they use asymmetric warfare and according to the wall street journal hedges are at best imperfect and when banks like j.p. morgan chase try to protect against wide ranging risk the chance for things to go awry only grows that is because so-called portfolio hedges are often less directly
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tied to specific risks increasing the chance the two sides of the trade move in unexpected ways there is also a basic flaw in the structure of the hedges banks account for derivatives involved in such strategies one way and sometimes use another method for the holdings that are being heads so even if the hedging strategies pan out long term they can. dot dot that's where the free version of the wall street journal ends so i'll fill in where it goes i think it probably is so even if the hedging strategies pan out long term they can quote take down the global economy in the meantime yeah it's very interesting actually because you imagine that j.p. morgan they've got ninety trillion derivatives. or off their balance sheet but they're you know we're all exposed to and ok so they go to the roulette wheel and they they bet on red it comes up black so they double down on their next roll and they spin the wheel and it's wrong again and they double down on that bed and
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it's wrong again and they're making they're doubling their bet every time but they call that a hedge what they call a heads is just a doubling down of a bet. which they believe is going to only have a certain limited amount of financial risk but as it turns out it has has them ninety trillion and financial risk and people say well where does that show up in our life it shows up in two ways the fed keeps interest rates near zero so that the cost of caring ninety trillion dollars in bad bets is as close to you know a minimal amount as possible and it shows up in the amount of money that's not being spent on roads not being spent on schools you know detroit half the streetlights in detroit are being shut off that's what shows up so you don't have this incredible inflation like you had in wymore republic germany in the twenty's no what you have is incredible stagnation incredible collapse of the infrastructure
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of america with one hundred million people now looking for work with some of the g twenty is highest. unemployment the worst health standards in the world so people a literally are dying in the street to support a gamble hall accts on wall street and obama thinks that's really cool so max speaking of asymmetric accounting i think that was a good excuse that now works for those with lobbyist like j.p. morgan but let's look at how it might be applied to those of us who do not have lobbyists lloyds banker accused over two point five million pound fraud a digital banking t. felt lloyds was today charged with two point five million pound fraud over allegations that she stole from her employers using false invoices jessica harper fifty from croydon is accused of carrying out the scam or working as head of fraud and security for digital banking she was arrested after detectives from the met
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economic and specialist crime unit received a tip off new customers money or accounts are believed to have been affected by the alleged fraud so here's a woman who's facing criminal. charges for stealing from her employers that did not affect any customers that did not destabilize the global economy that that did not result in taxpayers transferring money which lloyds by the way is forty one percent owned by the taxpayer and why doesn't she just claim asymmetric accounting or it's just reported one hundred five that she was engaged in well she has no advocates. arguing on our behalf down at westminster and the politicians down there are obsessed with this new flatulence club that they've got going i think we're going to cover that but there's a there's a trend we've uncovered well in fact that's the final headline here max we only have a few moments left club george osborne and the elite foreigners determining britain's
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fate so this is base you writing this based on the headline u.k. shrinks more than expected on fall in construction output so remember the u.k. retreated back into double dip recession they declined by point two percent last quarter well in fact it was point three percent and it was a blow for george osborne who has repeatedly defended his unwavering austerity drive despite its impact on growth yes and because as i mentioned they're obsessed with this flatulence quote i was told from an m.p. whose name will remain nameless but i was told my source protect my source directly mano a mano that george osborne was part of a club where you go into a dark room and try to guess the guy who was there before fart and try to guess who it is buys for the smell of his fart there is a club in london that does this i know it's true ok so these are the guys this is what they're obsessed over and meanwhile you have citizens trying to restore their
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wealth and their health and and their well being by going to the court system or by lobbying politicians because they've had their their finances their money stolen. whether it's in the u.k. with the woman you just described rahm affable customers there they want redress our facebook i.p.o. and they go to the halls of power and they're in darkened rooms smelling each other's flatulence i had no idea max that all of this was going on in those duck markets all this well that's a good point there sniffing each other's derivatives. that's brilliant. that's brilliant stacey however thanks so much for being on the kaiser report thank you max don't go away much more coming away so stay right there. religion and they. are inseparable. in light and.
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inner peace. joy.
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there hasn't been easy yet. it is to get the maximum political impact. the source material is for helps keep journalism. we want to present. something you know. i am x.-prize or welcome back to the kaiser report time to go to london and speak with jan skiles of the real asked dot co dot u.k. jan welcome to the kaiser report thank you for having me all right jeff skiles you
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are running a campaign to buy britain's gold back now first for those that don't know tell us about how britain came to sell half of its gold supply and who sold it why and how say between one thousand nine hundred ninety thousand and two gordon brown and the treasury made the decision that they were going to sell half of britain's gold reserves to reduce a smaller amount but then they decided it would be about three hundred ninety five tonnes every series is seventeen and they auctioned off the gold price all of which was the market was the teeth and that she it was sold at the lowest price in a twenty year price of two hundred seventy five dollars an ounce was achieved and the reason for selling it apparently was because they wanted to decrease the risk that gold is placing on airport and they wanted to reduce them to twenty percent and they wanted to buy forty percent of your a's four dollars and twenty percent yen with their profits from their gold sales now this was done as you mentioned
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over seventeen options under gordon brown yeah and turned out to be the lowest price of gold for decades and that prices down referred to as brown. bottom because almost immediately the price started going up and as never looked back so let's talk is that he hasn't yet and the auctions themselves were done in such a ham fisted way that traders rebel to pick off these trades if they came through in front run these trades and make it even worse for britain correct correct and if it is labeled as the west trade of the decade and you know famously what jen decided to report now is that if that gold was so today then we would have it would be worth thirty billion rather than i think the three or four billion it was sold for in the first place and in fact the current government we have george osborne mentioned in a speech back in march you know it's still an issue he was saying that you know our gold reserves would be worth five times more what they are if they hadn't been sold back between one thousand two thousand and two and the point is this campaign is
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not so much to focus on the government buying back this gold but to get the people of britain to realise that they should have their own gold reserves because now britain is weaker is a nation because we have won the gold reserves in the world per capita you mentioned savings and of course people don't equate gold with savings these days they they considered a risky commodity and that was in fact what i think gordon brown was saying is that this is a risky commodity and he was more interested in government paper bombs and yet now it appears as government bonds paying virtually zero percent interest and not even keeping up with inflation whereas gold has outperformed inflation so did gordon brown got a completely wrong but i think so i think like i just said he wanted to buy with the money that he made from the gold sales he wanted to buy paper money he wanted to buy year eighty one to buy dollars anyone to buy yen well let's just take the
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year is an example yesterday just fell to an all time low and so i think that's the first example we all know what's happening in europe that is in the euro saying that that's not a great place to be investing at the moment and you know. to be fair we can see that investors are treating britain is a safe haven because they think our accounts and our banking system is safe but it's all just a big fast being paid out by the british government and without worrying about international investors i'm worried about the british savers and they're looking at their accounts and they just think all they don't really know what to do so i just keep it in the count because i trust that and i know what the savings are and you know i don't have to worry about the international markets and they're not worrying about the fact how what the impact of inflation is on their accounts or not worrying about the impact of the low interest so having but they don't realise that year after year millions if not billions are stolen from pensions and save it is through inflation and low interest rates and like you just said you know gold is proving gordon brown wrong and it's just rocketed and never looked back since the gold price in gold is consistently maintained its value whereas the pound has lost
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ninety percent of its value since one nine hundred sixty seven which means three generations of savers have effectively been stolen from by by monetary policy and so i think savers they might look at gold as particularly risky assets but let's look at the paper money which is you know played with and by governments and no one really knows what they're supposed to be doing with it surely that's a much riskier assets which has proven itself time and time again to not be particularly trustworthy ok so just to fill in a piece of information the euro sitting a new low for the year. previously had a all time low during another period of time but it means for this year it's trading down we get the point it's getting a lot for the year yeah and all these currencies last year every single currency in the world traded down against gold but jan why is it that when i turn on the mainstream media in the u.k. . b.b.c. other news outlets they never refer to gold as a savings instrument even though for five thousand years it's been the only savings
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instrument that has worked i think this is just this kind of myth their government and possibly even the mainstream media keep trying to to feed to the city. since and the international investors and community that we're actually doing pretty well and so why would we said we want to panic everyone is thinking that the pounds not doing well tell the truth about it and i think it's good i recently wrote that there are all these sound bites which the government coming out about that you know we're really pushing a stereotype and we're doing quite well and g.d.p. will recover and so people some reason still think the politicians will do a good job and politicians are going to tell people to turn around buy gold because then we have a confidence of the left in the british pound which is the moment for some reason the international markets are so trusting i suspect that's because they think we have the ability to print our own money which we do but that in itself is a reason for people not to trust the pound anymore and turned to gold but it wouldn't benefit the government in any way for the media in any way to tell us to
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stop buying gold and i think as well you know a while back some of the very mention said gold was an investment fund civilized people still the opinion that individuals have but it's not that long ago in history that our grandparents or great grandparents remember gold and it's still precious and just jump on to another point the reason we started by britain's gold back was i notice that when i told people what i did when i worked for gold investment company was everyone went oh and i don't think we've got gold left in will because gordon brown sold it all and they might not know about the low price of them i know about the high price now but what they do know is something inside them is their gold is precious and that is what holds its value and everyone should have a piece of gold and they know that inside them but they're not doing enough about it at the moment and i think the government know that and i think the media know that but it doesn't do them any favors in the short term to shout about. the book gold buyers are on civilised of course from charlie munger department of warren buffett who is a recipient of corporate welfare and political welfare in the form of bailouts
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from the government in the united states that has effectively debased the value of the dollar so basically talking his words you know. talking is a book he's talking his own interests and pretending as though he's making a public service announcement now the government the u.k. will argue that the paper market the bond markets are so especially since the u.k. economy will come rip roaring back and start to grow again do you see any evidence of the u.k. economy growing at this point unless evidence is what the politicians themselves are saying and for to possibly the media and as we all know you know we should never really trust what the majority of politicians say that now i don't see any evidence at all i think it was just yesterday that once again we saw another vision of the contraction in g.d.p. i think it is reduced twenty percent it's actually contracted by no point three percent construction industry output is down i think by four point eight percent
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and we keep just being fed this line by the british government and this i think it's a fact we have it came to power that we need a stereotype and we can be good about this and the markets like this because i think we're being sensible and again you know if we might print our own money again and in fact the u.k. government has got a higher government debt than the last u.k. government so we're not seeing any evidence this is a tool and the deficit is still bigger than ever and we are we remain the most highly leveraged nation western nation and so i'm not desperate to any evidence that this is where it's coming from now the u.k. as you just mentioned they just announced that a double dip recession is basically playing out right now and you call this you have a phrase for it fool britannia of course a play on the tony blair iraq cool britannia but tell us about britannia so tell us why just been a leading to earlier on in there you know the u.k. bond market actually doing very well compared to the european bond market and this
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is because they for some reason but i suppose because europe is the euro zone is just just a crisis point and no one is desperate short's do very different messages coming out for greece to leave is it not. for greece to leave and so best is our effect for using britain as a safe haven and perhaps compared to the year is it can be viewed as a safe haven in the short term but we should enjoy this for too long because you know this famous phrase is just the kick the can is just been kicked down the road and it won't be long until they can come past our house and see just quite how bad things are and like i said the government is just pushing these are staring to measures and because the bank of england keep alluding to the fact that they they are more open to other measures money printing then perhaps the markets have more faith in what we're doing and also the government has already monetize such a huge proportion of their debt we're actually doing huge amount more than perhaps the us are and so that's why they're turning to the u.k. market so finally jan let's talk turkey and it's gold is the world ready for
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a gold turkey well i'm not sure that they are particularly you know they're trading with iran and that's where the majority of their gold going so i'm not sure if the you know maybe the u.s. and the rest of the western world are particularly happy with them and i don't think they are they are ready for gold taking i don't think they realize just how much this country a lot like in general and china really believe in gold and put a lot of their faith in gold and turkey's recent economic history is really quite worrying and has some similarities with the u.k. but in turkey they know what to do about it this you know the general public as a whole they're invested within homes the world gold council estimate they have around five thousand tons which is about three thousand three and a half thousand more than their own central bank does and that's more than germany central bank does in gold so they're absolutely prepared for it so the world might not be fed for gold but they they are you know and turkey's central bank have clocks on to this and they have this huge current account deficit moment so they're saying to people you know why don't you want to use gold as collateral and start
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you know putting in the bank investing in the banks and their heads cleverly said the other day how what a clever way to try and spin gold confiscation and then also on the other side of that the central bank of also the. commercial banks and they can start using i think up to twenty percent of gold is their reserves and say their acceptance of gold is just growing whether it's for the right reasons on the government central bank side you know these debatable but the population belief in gold is significant and it is something that we really need to pay attention to and learn from and you know there was a great groff in the recent well gold council report of the first quarter of this year which showed that there's actually a change in the demand from turkey and once upon a time they had a greater demand for jewelry. perhaps bars and coins and now this is changing and the amount of jewelry that they're investing in is reduces the gold price going up but it's actually increased footballers in coins as the gold price has gone up so that they perhaps saying it is more of an investment opportunity than maybe a sign of wealth all right jeff skiles of the real asset dot co dot u.k.
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we're out of time thanks for being on the kaiser report thank you for having me and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert our thank my guests jan squirrel's of the real ask dot co dot u.k. going to send me an e-mail please do so at kaiser report at r t t v are you intellects timex guys are saying you know.


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