tv [untitled] February 3, 2011 5:30pm-6:00pm EST
as for intervening to save the financial system in two thousand and eight but then said and he referred to psychos he that the g twenty group of major connery's with sarkozy chairs this year should take a deep breath before imposing regulation jamie diamond said too much is too much not all banks are the same i just think that this constant refrain bankers bankers bankers this is unproductive and unfair people should just stop doing that yeah i don't get it j.p. morgan caught induced inducing praja allaying in the mortgage market there you go hit minimum capital reserve requirements they are involved in massive numbers of terrorist and old jamie diamond sucking the financial integrity out of the us economy what i mean i'm not as i know i don't get it you know you were caught stealing money from americans stealing money from the
globe committing acts of financial care as an end bed with a tariff we're going to enough is enough and up is not enough until you're reckoned up oh i figured jamie going up is an open jamie bonus somebody shot this guy down well. this is how president sarkozy of france responded to jamie diamond he said quote too much is too much the world was stupefied to see one of the five biggest u.s. banks collapse like a house of cards i don't contest the principle of securitization below one offshore country guaranteed seven hundred times its g.d.p. are we in the market economy or in a madhouse. so cozy is absolutely correct and i want to direct jamie diamond attention to what's happening in tunisia algeria egypt athens dublin the global interaction against banker occupation
people are angry and they've got their pitchforks they've got their torches they have historically used good things when people like jamie diamond get into the mix and deal with impunity that's wrong. is that just think this is not just psychos a this is an all the people writhing around the world the and now a congressional committee the financial crisis inquiry committee has also found these very same people guilty so the next headline is financial crisis was avoidable inquiry finds of course we all know course there was a horrible if you give a god a loaded gun to a maybe ak and you point out he kills people where there if you didn't give him a loaded gun with the bullets in it he wouldn't kill people it's affordable if you get the bankers all the free money advice or a percent interest rate whenever they make a mistake and bail them out it's aggressive people or disaster of course they're
going to commit acts of financial terrorism right there at the right there at the treasury right there in the white house they given their zero percent interest of all the money they want to commit all the acts of terrorism they want whatever they make a mistake they get billed out of court the void of all of course of the voidable going on carol how come i'm not going to the groom's going over babbitts right now taking these guys out there for a guitarist actually specifically mention low interest rates as not being the primary factor in the collapse because there are a lot more basically fried and incompetence and failure to regulate so they say they agree with sarkozy the commission that investigated the crisis castle wide net of blame faulting to let ministrations the federal reserve. and other regulators for permitting a calamitous caution shoddy mortgage lending excessive packaging and sale of loans to investors and risky bets and securities backed by the loans they said quote the greatest tragedy would be to accept the refrain that no one could have seen this
coming and it's not and could have been done if we accept this notion it will happen again remember who two people two very well respected americans warren buffett and alan greenspan both said we couldn't have seen this coming it's a complete lie many people reported on the thing that is coming and the fuel that goes into the machine a fraud the fraud committed by goldman sachs j.p. morgan interest basi royal bank of scotland all the banks in ireland fraud f.r.a. you dig committing fraud but the fuel that goes into that are keeping interest rates engineered by the red so i think ben bernanke you have to think of him as a solid and we have to think about have any other terrorist ok that's his role and of all the economy and the fact that he's allowed any any oxygen at all.
balik and for coal it is absolutely correct although i would go a lot farther of course i'm proud to have experience with these things go on wikipedia and look up french revolution. well the majority report finds fault with two fed chairman alan greenspan and ben bernanke. in particular it criticizes mr greenspan for advocating deregulation and cites a pivotal failure to stem the flow of toxic mortgages under his leadership is a prime example of negligence so we can now say you know alan greenspan is always on the news lately he's always appearing in the mainstream media in america telling americans like basically white washing his own record and saying. he's somehow considered still an expert on how to run an economy and his opinion is sought so now we must say that they must fully disclose and reveal that this man has been found guilty of negligence and incompetence. needs a warning label like cigarettes you know cigarettes and says cigarettes can cause
cancer then you know pictures of people rotting lungs whenever greenspan appears on t.v. made his claim or this man is a terrorist whatever he says alive pathological liar so is jamie dimon to me jamie diamond j.p. morgan all the act with which they made during the crisis they're there is possible for tens of thousands of projects on mortgages that they probably induce praja only repackaged securities and then are fraudulently foreclosing on it's a trifecta of fraud this guy would get arrested go to the bathroom jamie diamond blows no doubt committing a crime he makes don't belong here look like mother teresa actually here that there are several bathrooms in brooklyn in public at bathrooms where they say crass j.p. morgan by silver oh well it's a global campaign if you listen to me if you weren't an easier i doubt you're an algerian you're a study arabia you're an egypt you're an app and you're and what's in the max right now stop if you're in the airport stop listen to me right now by silver and craft a p. morgan that's the only way to go think of that like a vampire and you got to drive that sober stake through their heart there are short
billions of contracts with over their balance sheets at risk the more silver take off the balance sheet the greater the probability they'll go bankrupt and then we're down to one terrorist in the world you've got to do it well the financial crisis inquiry committee also found one thing that you've often topped about as well as they also blame the decision in two thousand to shield the exotic financial instruments known as over the counter derivatives regulation during the last year of president clinton's term and they call it specifically a key turning point in the march toward financial crisis and this is something that you've mentioned several times before well that's what i flipped on my issue on box office futures contract. if you recall and this is why we shut down cantor exchange with the cantor exchange my counterparts carol we did our lobbying campaign on the show we shut out of tire and change down so we've had great experience on this show katter fitzgerald we shut them down can our exchange because a two thousand law you know i can vetted it but two thousand law came along and it
opened the door for a massive speculation and i didn't think the candidates carol was good responsiblity use my technology in this marketplace so i shut him down we're going to shut down european morgan it's not that hard to do we've got a great track record you the people that i'm tony the vulnerability the key vulnerability and this is how you take down a giant you find that vulnerability and you go in there hard in j.p. morgan's case their shorts over that's their vulnerability you hit them there really hard and they will go down like a sack up so let's move on to the next headline because all of this affects the u.s. dollar of course which underpins is that unit of fraud upon which all of this fraud is built richard russell get out of your dollar assets now richard russell is advice and swap your dollars for physical gold or c.e.f. or g.l.d. or s. you know well in other words juist china and russia and many other nations are now doing get out of your dollar assets totally agree. this is because of ben
bernanke still in charge of the federal reserve bank and the inflation that we see in the next headline interactive map of recent food riots and price hikes this is from zero hedge they show an interactive map disclosing all the recent documentary price hikes price protests riots see there are up to in all over the world at the edge of the american empire oh yeah this is this is funny if they think because of the business insider today that headline saying the reason people are erupting in north africa is because they're inspired by the liberation of iraq. no you spinmeister ing apologetic morons the people don't want to end up like iraq half a million dead civilians of america drive thru if they are not a country of energy part of the reason why i believe that these rights are up to us not only the insulation but also the fact that the us empire is crumbling and just like with what happened with rome and the collapse of the roman empire the barbarians were at the gate once they sensed that the empire was vulnerable and no
longer able to maintain its empire and outposts of empire and would have to find a headlines just to show that kind of ridiculousness and. trying to banana republic america has become. a rubber duck this is the drug enforcement agency which is of course a crucial part of empire is this war on drugs is just like the war on terrorism way to defraud the american population but they're selling this bizarre rubber duck with big fat red lips to finance that i don't know some contractor is probably down in virginia somewhere but i think the people who run the v.a. are a lot of thing after the village people if you remember that. the disco group from awhile ago the thing like they have a a leather fetish at the da has looked like. and also you know part of this whole. sort of collapsing state cash
strapped burg in new jersey to fight you know with pickle juice yes apparently bergen new jersey cannot afford salt to salt their roads so they're turning to pickle juice the brine cost just seven cents a gallon compared to sixty three dollars a tonne for salt so bergen county has already used up three million of its four million dollars snoop legit well things you never let me warn you never eat grains no. oh ok that's going to do it for this action portion in addition to first half of the kaiser report don't go away much more coming your way they are right there.
i wish it was the same much. more the rise of in the middle east with the spectacular changes occurring in egypt what will become of the israeli egyptian peace treaty negotiations. welcome back to the kaiser report imax guys are time now to go to sandeep jaitley brilliant bassist dot com sandeep welcome to the kaiser report thanks very much max all right sandy is generally first let's talk about the gold standard there have been several high profile calls for a return to the gold standard could it solve the world's financial crisis it can solve the world financial crisis but it can only solve the financial crisis if it's clearing mechanism is introduced at the same time all right hold on
a second that sounds technical what is a clearing mechanism well the clearing mechanism x. is basically the real bills market that's associated with the gold star the gold coin standard and the two run together at the same time basically a real bill is is what a bank notes was it wasn't a receipt for gold in the warehouse it represented gold on the moon and gold on the move has a different value to gold just sitting and in bank vaults so you know you can't have a gold standard without its clearing mechanism and the clearing mechanism was the precursor to the collapse of the gold standard the clearing mechanism was cancelled first so this is an important thing to remember you have to have the clearing mechanism as well as the gold standard talking about the gold standard of course is considered by most to be a right wing issue what progressive would look for
a gold standard. i think you can look at it from both a right wing and the left wing perspective and i think the sort of hard left wingers as well would appreciate a return to honest money so i think sort of in europe you'd probably find that it's a more liberal element that supports the gold standard the right and the left you know both look at gold in terms of freedom you know and they're both looking at it correctly whichever star whichever side of the line that you stand on. so you know gold is a political you know it's a universally accepted medium for some reason. let's make the most of it regardless of our political persuasion right well i guess people would argue that the war is the you know on the left or the progressives who are against the wars and they're against a lot of what's going on in the corporate sphere. where the point is that gold is
a checks and balance on all of the money creation and the corruption that comes in government so it's to me it seems remarkable that you don't have more on the left or more the progressives are going for a gold standard another technical point which is in the market right now people talk about gold and the price of gold and they mention backwardation ok backwardation what is it back today sion is basically when the spot price trades at a premium to the next futures month the next octave futures money on the on the on the exchanges. so basically anyone that has has this stuff whatever it is this embark with ocean they can they can sell it for a premium in the stock market and replace it with a futures contract at a discount. now this shouldn't really happen in the monetary
metals gold and silver. century because there's there is so so much of it around. so these metals should never go into back with because effectively it implies that there is a shortage of the metal or there's a shortage for trading purposes ok so in other words if you look at the way the prices are occurring in the theatres markets and the futures markets are broken down into three six nine months forward contracts you know options and futures well well the futures contracts most of the exchange traded ones in the forward longs done on the l b those are the bespoke one three six twelve months contracts ok and the idea is that you are willing to pay more for time time has value and so the price typically is higher so when you see the price for the short term higher it means that there's a tremendous urgency to buy the metals now they're willing to pay up yes right now
this urgency seems to conflict with a lot of what's happening in the press that comes out of wall street there suggesting that there is plenty of silver and gold that the campaign around the world to buy a lot of silver is not having an effect and draining those gold stocks and silver stocks and if you look at the market itself it suggests that we're talking about possibly shortages in terms of availability for bullion gold and silver particularly silver do you see the shortages were they show up well pedantically max they're right of course there is no shortage of gold or silver because it's still there you know it's not like it disappears into a black hole and you know it's converted into energy so there right there is no shortage of physical gold and silver but the point is that you know there is a there is a lending market max behind the physical bullion markets and that lending market is
tightly knit suited to the way that the futures market operates as well there's no shortage. except at that price in other words yes price discovery mechanism yes and yes and the price will go higher so there you have silver which made a new high going into last year rocking thirty one dollars an ounce and now it hits a downdraft and there's a lot of supply coming into the market but there's the futures markets aren't backwardation which implies that there's actually tremendous demand for that price absolutely is there what's your take on this idea that the futures market is being flooded with a lot of paper so over a lot of that is being sold they get into the market that doesn't even have any well i'm sure that there is an element of truth and you know i wouldn't be so naive as to deny that but you have to remember that the bankers are a very cautious people you know they tend to hedge their books you know so what happens in
a futures market typically is someone might buy physical. gold or silver and sell forward all the future to earn a little premium to carry the bullion and basically if you comment if you can't get a premium to carry bullion which you can't with silver at the moment it basically means that you have to lend it out in order to cover your overheads as a warehouseman someone who just stores gold and silver. now if you have to lend it out you know in order to make a living basically first of all if someone audited your accounts they would see no bullion in your warehouse because you lent it out and they'll see that you're short of futures contract and they'll think that you're being a little illegitimate but you're not because one is over the counter and one is on a on a regulated exchange you know but the books balance when the chief financial officer goes home home for the ok protective points or not you say number one is that what
we find is that the amount of leasing and shorting and futures trading is an access of the actual physical stock over a girl so to say you know you're making a little income on yourself or it is a bit of a specious argument because what we're saying is ten times twenty times being. in the paper market versus the physical market well this is the thing though max i mean so the consequence of that is if if you see for example that there's any let's say there's there's five hundred ounces of futures outstanding i'm using broad numbers here and only ten ounces of silver at the exchange you have to say to yourself well let's let's call let's let's see what we can do let's let's see if we all call for delivery can that silver come that gold that is kept on least that's been lent out can it be called back quickly in time you know can i go to the lending market and borrow gold can i borrow silver in order to satisfy. people who
are redeeming futures and if they go to the lending market and they bid up interest rates well above paperweights that's what causes backwardation and it basically implies that there's a shortage of people who are willing to hand over the silver to either lend it out or be sell it ok now i understand it's an anomaly in the market backward as i think is asian and you end up with this. but what you're saying is that this anomaly is occurring more frequently absolute and that would imply a certain tightness in the server market plus you made a statement that bankers are cautious but you know i would argue with that because they're not cautious with other people's money taxpayer money or somebody else's money they're cautious with only their own money and they want to get the trouble they get bailed out by the government for the most part that they own so that you know that's a bit of a mr mr interesting i don't qualify that's the bankers i've. got about two minutes
and i want to talk about something that i think it doesn't get enough attention i heard you speak yesterday and you are got a good handle on an austrian school of economics sandeep gamely what is the austrian school the austrian school is is the school of call manga now look like von mieses we've all heard of he was a second generation student of call manga but calming was the founder of the austrian school and he founded it on only one axiom and that axiom is the value does not exist outside of mankind's consciousness so so basically all other forms of economics classical neoclassical economics ascribe value to something else other than the human mind so this concept gave birth to marginal utility you know which i'm sure many people are familiar with it's the border use of something that the term and its value and the the economics of border use is the is the austrian
school ok now. consciousness is where the axiom upon which the economics of man and the austrian school rotate now this implies a high degree of subject of a and in the austrian school because they take into the psychological mass psychology it's almost freud in me freud meets you know you know that's the point is because these other schools of economic. they tend to approach economics empirically but what we've discovered is that it's completely irrational especially with the behavioral doesn't the behavioral economics model has come out in the last couple of years and one of the couple of nobel prizes does not completely legitimize and emphasize the school of offering that you're talking about it does but but but max you know you have to i'm a mathematician and it's taken me quite a while to realize that most of the equations all of the equations in the a classical economics are rubbish the vacuous you know the differential equations
describe nothing you know. economics is not about mathematics it's about the human being math is just a language you know if you have no philosophy then it's useless and they have no philosophy right and in two thousand and eight crash these banks said that well our quantitative analysis was wrong and the risk that we thought we were had hedge it didn't work out and what we're saying what the austrian school would say is that that was a baked into the cake from the beginning because i'm in some impossible to come up with a mathematical formula to to quantify and predict the machinations of the collective unconscious effect of absolutely max and it's obvious to me but it's obviously not obvious to the. right ok well that's all that's not what we have actually and i want to have you back on again soon to get into this a little more because i think that with ron paul now slated to be the inquisitor or grilling ben bernanke he on his irresponsible flagrantly by destroying the us the
global economy we're going to need your insides to going forward anyway thanks for being on the show sandeep just least that's my all right now going to for this edition of the kaiser report me max kaiser and safe here in my guest sandy daly his web site is a c was his web site it's called billion basis dot com if you don't understand something go to that website and check it out if you want to send me an e-mail please at kaiser report an r t t v that or you until next time this is my kind of thing by elf.
episode. in a free flight. egyptian president hosni mubarak says he's fed up with being in power but won't leave office for fear of chaos a state many say his country is already in has huge crowds remain on the streets and violent clashes continue. meanwhile in britain we investigate links between radical groups and the opposition in egypt as protests in the u.k. are used by an islamized organization and in many other countries to promote its own cause its. president dmitri medvedev welcomes progress into the moscow airport attack investigation but slams officials for earlier announcing that the case was solved.
two am in moscow i match reza good to have you with us here on r t our top story egypt's leader hosni mubarak says he's fed up with being president and would like to leave office but can't for fear that the country would sink into chaos his sentiment was echoed by egypt's vice president who urged protesters who filled the streets for more than a week to go home as their demands were being answered. this follows a wave of deadly violence between opponents and supporters of president mubarak five people have been reportedly shot in cairo's tahrir square before dawn on thursday around three hundred people are thought to have died in a week of riots reports say the egyptian army which had previously not intervened in the clashes has attempted to separate pro and anti mubarak demonstrators party's policy or has the latest from cairo. the anger the frustration the defiance continues to intensify intent here square there has been a curfew imposed off of the next twenty four hours and the government has about departure fly a day that.