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tv   [untitled]    August 30, 2011 3:30pm-4:00pm EDT

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you know this column if you visit you go you're. welcome back here's a recap of the main stories we're covering today on our t.v. nato says it will continue its presence in libya as long as it needs to the spot also say the gadhafi regime is now thing of the past. that with revolutionary something is growing daily in syria fears are mounting that the political crisis may be spiraling into a religious one. policy didn't alert israeli defense forces reportedly prepare for an uprising have to go up tear gas and stun grenades to suffer as the u.n. vote for palestinian statehood approaches. at america to oil giant acts of mogul
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and russia's rossdale strike in storage cooperation deal paving the way for a joint oil exploration from the gulf of mexico to russia's vast arctic shelf. now it's time for the banking big shots to take cover as artie's from national group backs kaiser has them and his sights the kaiser report is up next. stacy herbert you know the global insurrection against banker occupation we've been telling you about it for months now it's coming to new york state max keiser the
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first headline reads anonymous joins hash tag occupy wall street remember we talked about this a few weeks ago this is an ad busters campaign and they're encouraging up to twenty thousand people to occupy wall street flood into lower manhattan occupy the spaces in front of the banks and now anonymous have joined right so they're going to set up tents in the square napkins or in the square or in cairo they will try to occupy wall street now we were just in new york we visited wall street there's a huge police presence there it's a highly commercialised site with a lot of outlets for big brand names now this sounds like it would be counter to those commercial interests how many hours will this tent city be allowed to exist do you think stacy herbert well that's a good point because yes wall street is surrounded by barricades already to keep people out now these protesters are suggesting that people bring barricades in
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order to keep you know themselves in so they're being kept out by the barricades that are already there almost is a very powerful organization maybe they'll have some jews will say well the protests aren't just going to be on wall street they're going to be in paris london italy and spain now still however this is why adbusters says tear succeeded in large part because the people of egypt made a straightforward ultimatum that mubarak must go so they're saying we need a simple ultimatum like this as well. they go on to say the most exciting candidate that we've heard so far is one that gets at the core of why the american political establishment is currently unworthy of being called the democracy we demand of barack obama or dean a presidential commission tasked with ending the influence money has over our representatives and washington that stinks as a marketing hook well exactly because interests where they were demanding the dictator go. the dictator in this situation are the banks they need to surround the
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new york fed which is only a few blocks away and demand the head of the new york federal reserve bank to leave and they're not going to leave until the head of the new york federal reserve bank leaves that should be the whole purpose of the occupation not to sit in front of the extract exchange and have a high falutin. sessions about a laundry list of demands that never works well ok so they're demanding barack obama ordain a presidential commission so let's look at this next headline max obama goes all out for dirty banker deal new york attorney general eric schneiderman has been removed from his leadership role and negotiating a nationwide foreclosure settlement with the banks so all forty nine states attorney generals are on. fire in the pocket of obama there saying yes we'll sign on to this agreement whereby the banks collectively will pay twenty billion dollars
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to and that any foreclosure cases against them and it seems like what schneiderman is rejecting in terms of this deal is that he's against the fact that it will basically give them immunity from all other securitization lawsuits yeah but makes me cry to witness the president of states kowtow to a bunch of bankers on wall street like this i am personally embarrassed and ashamed that of barack obama. would. sell out his people and such a shameless manner it's beyond pathetic yeah but then again max i know you have a thing about the president but the population itself lets see how many people turn out to occupy wall street to demand obama do something when in fact it's the bankers who are the ones forcing the situation they're the ones that the new york fed is the what is partly responsible for forcing schneiderman office from say the
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new york fed is the enemy along with the other central banks into the banking lobbyists and you're in charge of change is just a benign place that matches buys and sells it's not really the nexus of power that i like to think itself as being with the big american flag out front that's a tactic for diversion the new york fed is quietly in the shadows pulling the strings on obama. i do like the pakistani been quite a bit critical being at a i wouldn't be surprised to see is nose before the election start. again i call your attention to the population of america and i will say that much of the population we encounter them often online and they believe the financial crisis was caused by public sector workers or union members and their pensions a man's over fifty thousand dollars a year sort of employees so. they don't understand the figures and terms and and
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they'll think that twenty billion dollars minus will be one hundred fifty trillion they it seems like a huge amount to them so matt taibbi in this piece goes on to say to give you an indication of how absurdly small a number even twenty billion is relative to the sums of money the banks made unloading worthless sub-prime assets on foreigners pension funds and other unsuspecting suckers around the world consider this in two thousand and eight alone the state pension fund of florida all pirate self lost more than three times that amount sixty two billion dollars thanks in significant part to investments in these deadly m.b.'s these mortgage backed securities right and the bailout starting in two thousand and seven exceeded seventeen trillion dollars we find out through a freedom of information act that there was a one point two trillion dollar gift given to bankers like jamie diamond goldman sachs's blankfein just on the cost just to keep them sweet so now twenty billion
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dollars in that context is virtually the equivalent of a wad of gum stuck to the bottom of your shoe i mean by comparison i'm sure there are pimps in neighborhoods around the world that carry more in their sock. and you know i want to bring this over to more pension fund stories about this how the pension funds are being blamed for the market crash headline reads teacher pension fund joins california auditors risk list so this is the california state teachers' retirement system calipers remember they reported in march that it had seventy one percent of the assets needed to cover retirement costs for its eight hundred fifty two thousand members and family members the estimated shortfall is fifty six billion dollars but max as recently as two thousand and one they were ninety eight percent funded the article goes on to say but benefit changes and economic slumps.
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that her asset values have reduced that number so they're down now to seventy one percent covered so they're going out on an economic slump not financial fraud not banks or fraud so people read this in the mainstream media and they say oh it's an economic slump that's why these pensions are underfunded now and it has nothing to do with any fraudulent selling of mortgage backed securities to them. talking about for many many months of years these pension accounts are where bankers go to unload toxic securities that's been the story for many many years member robert citroen who is running the municipality in orange county california when he bought one hundred billion dollars of toxic securities and blew up that county and because of pension fund managers and calipers i know from personal experience that people run calipers are literally almost on the verge of being brain damaged they're so incapable and competent in what they do they would buy anything these pension fund
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managers and helpers is one of the worst i mean they're they're they're like a little you know just a little copy max they're my next headline so let's move on to show you just how bad calipers were in particular this is a flashback to june first two thousand and seven banks sell toxic waste to calcareous texas teachers fund and remember the importance of this story is barack obama has now and the new york fed have forced eric schneiderman off this foreclosure settlement case because they don't want anybody to look at these securitizations they're saying we need to move on let's just pay twenty billion bucks and move on bear stearns and company the fifth largest u.s. securities firm is hawking the riskiest portions of collateralized debt obligations to public pension funds so this is the media this is bloomberg news reporting in two thousand and seven calling it toxic waste they went to calipers they went to the pension fund managers from texas for new mexico and said why are you buying this toxic waste and they were who were in vegas and this woman gee. tracker from
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bear stearns is pictured in a sonnet she has a great pitch. between martinis. it is just amazing because teachers who will willingly take jobs that don't pay as much as a hedge fund manager because they see purpose in their life they want to add something to society unlike a hedge fund manager which is just raping society so not only do they underpay the teachers then in their pension accounts they let the hedge funds willy nilly have access to those funds and dump all their losing bets now remember bear stearns of course blew up that was the beginning of the financial catastrophe in two thousand and seven march two thousand and seven so bloomberg goes on to say that gene fleischaker was pitching fifty peple public pension fund managers and she told them that they could get twenty percent return on the bottom level of a c.d.o. the bottom of the equity traunch blows up one hundred percent when the c.d.o. blows out she said it has a very high cash feel to it i think
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a lot of people are confused about what this product is and how it works well of course if. it turns out everybody was but she started to say that was a positive but people are confused and that's why they should buy it but inflation is running at two percent at best enter environment of falling stocks and economics . and these numb nuts in the audience in vegas have sauced on pepper martinis are told if they can get a tory person on the wrist list almost deal brought to you by their friends found there at the wall street banks and did buy into it i mean i don't know it's this way about these people maybe the teacher shouldn't get any money but i have something to say here max because flight tracker according to this article told the public pension managers that a c b o is like a financial institution both have strict oversight she says the outside agencies
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that oversee these struck. are the rating agencies comparing them with the federal deposit insurance corporation and the o.c.c. which regulates banks again barack obama saying let's pay twenty billion dollars shut down all investigations of the securitization fraud here we have a two thousand and seven open fraud happening where this woman is telling these pension fund managers that it's risk free it's like the f.d.i.c you can't lose and they're like whooping it up in vegas spending our pension fund money on these collateralized debt obligations that have now blown up and barack obama's trying to say you can't look at them ever well c.d.'s are like an institution a mental institution anybody who buys these things clearly is being told i mean it should be a crime and of course the rating agencies gave the studios aaa ratings because as we now know they're completely conflicted they take money from the banks they're supposed to be rating so there's a natural conflict of interest there it's fraud moody's s. and p.
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and fitch commit fraud they commit fraud f r a d that no one's going to call up and say hey max don't call us fraudulent peddlers of fraud or securities because they have to prove that they were selling fraudulent securities and that if you haven't got that call yet come on the show it's total fraud the fact that they even have a license to operate in america shows that america is become one big cluster well the important thing back since this was in two thousand and seven it's openly reported and bloomberg news barack obama eric schneiderman all the attorney generals who are who are demanding that eric schneiderman make a deal with these banks to give them immunity from all of this fraud they're saying that they want to move on a twenty billion dollars which is not even half of what they collected in bonuses christmas bonuses last year and now all across america you're seeing austerity measures imposed and a lot of the population commanding it that is these pension funds that they're underfunded now it's the reason why they're underfunded is. because they've made
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too many promises when in fact they've been too much has been stolen from them and this is the fact this is the truth we've reported on this for years now i mean next time i'm in vegas i'm going to stop some teacher on the street punch him in the mouth really hard steel all their money and then out on a rocket away toss them a nickel the same thing and i'll be like thank you. all right stacey everyone thanks so much for being on the kaiser report thank you max don't go away much more coming your way stay right there. wealthy british science. market. find out what's really happening to the global economy for a no holds barred look at the global financial headlines two kinds of reports. hungry for the flu we've got. the biggest issues good human voice face to face
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with the news makers. welcome back to the kaiser report max kaiser time now to go to shanghai and talk with daniel collins he's the founder and chief investment officer of tiger health capital management he also wrote a recent article titled rising chinese redback could overtake the based greenback good money printing in the u.s. speed the rise of the chinese currency then calls welcome to the kaiser report. good to be here all right dan tell us about the red back and as it got it over take the u.s. dollar and if so when your article i wrote really talked about. you know as we've seen continuous money printing expression to the last few years the world really looking for a new store of value. is everybody knows china is also trying to limit its
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increasing dollar reserves and they really have a three phase strategy to internationalize the rim and be starting with making it a international trade currency it's anybody's been to hong kong recently has seen that the renminbi the deposits in hong kong this year will rise roughly three hundred percent to go over one billion u.s. dollar china's also same currency swap agreements with over fifteen countries this is really the first step of trying to internationalize the renminbi the trade numbers that have come out this year chill the international trade which it was in renminbi last year was about less than one percent this year will be roughly seven percent so what china's basically trying to do is turn most of their contracts into renminbi as opposed to dollars ok let's talk about what happens when china
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south some stuff to america it ends up a wal-mart. they use the dollars however china to make sure that these dollars tell inflate their currency impact on they end up printing r r a baker act to sterilize this transaction to some degree can you walk us through because another worth time is printing a lot of r. and b. as part of that relationship what the us they're the biggest exporter us of the biggest consumer yeah absolutely what happens basically is a trainee's factory near a company will export something to near example walmart the company here in china will receive u.s. dollars those dollars then go back to a bank in china in or converted back into rim and be. china then takes us dollars and in the past few years past decade really has been buying u.s. treasuries with it. and that's really as you're exactly right china has to.
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renminbi to soak up those dollars and that's what's really led to the high inflation here in china own you know official inflation region china are five to six percent but most people here will tell you there are closer to ten percent. so in a rising room in b. is going to help the inflation problem in china and i think go the central bank here in china finally is coming to a conclusion as well how do you know one of the biggest problems with the u.s. dollar of course is that the u.s. instead of dealing with their banker corruption problem they're simply printing more dollars to end the hopes that by bailing out the creditors during the last five year mortgage fraud that somehow the growth engine will start up at some point and what we're seeing is of course the exact opposite they're just exacerbating the problem so that's a problem with the u.s. dollar as a reserve currency but about china is also printing up lots of arm day this kind of undermines undercuts the redback as
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a reserve currency going forward isn't that the case or how are they expressing that yes absolutely and i think that's why we've seen some recent so recent in the renminbi. increase this year i think we will continue to see an increase much faster we won't see any one time appreciation but we will see much faster appreciate an appreciation of the room and be once the currency in these contracts especially with emerging markets traders thought this is really to get the rim in be internationalized first in the emerging markets we see some central banks like malaysia are now holding rim and b. so as a really becomes convertible a china will no longer need these dollars and they will therefore they won't need to buy so many treasuries ok so on the road toward the redback becoming dominant rover's of currency first they have to own a wind a lot of the dollar based currency transactions around the world save talked about a couple they're doing currency swaps of big trading partners like iran. china
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brazil these countries go take on here its r. and b. and in exchange china takes on here portions of their currency so and deals come up going forward they can use some currency other than the u.s. dollar and additionally they're allowing they are a bigger appreciate now this would give consumers in china a greater purchasing power at the expense of that big export engine so is the in the mind of the people's bank of china are they thinking of making this calculation as to well if we let the r. and b. rise we're going to cut our exports however we are giving greater purchasing power to our own emerging middle class is are they ready to make that move if i believe there is no they have no other choice the only other option is to continue to work twelve hours a day in a factory products to united states in printed dollars with the so you know that means we'll ship the containers off and dump them in the ocean and you have now
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come to that conclusion and absolutely last twenty years china has exported be felician in consumer goods the next ten twenty years we're going to see massive inflation in consumer goods as a remedy rises china needs to resume living standards here you know they're in an increase the stronger rim and b. is going to do that right so people who shop at wal-mart again start with a lot of tiny's made goods it's a bit of a poisoned chalice because the people in the us and cutting their own way to negotiate their own wage growth and their ability to collectively bargain for increased wages in such time as prices bottom out then they start to go up and down the workers in the u.s. can't even get the cheap goods anymore and they have no wages so that'll be a big big fun for them to make that discovery someday in the very near future and the chinese rating agency day gong was the first to downgrade the u.s. debt before s. and p. famously downgraded u.s.
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debt. do you see china moving away or moving toward an additional downgrade staying ahead of the curve is this part of the strategy to move to get the world on to the redback off the greenback yeah the chinese reading reading do you concede obviously a lot more honest in even s. and p. and moody's you know i give s. and p. credit for stating the obvious that the world's largest debtor has a aaa credit rating it makes absolutely no sense. on the other hand china's credit is rated far far below that of the united states you are the world's largest creditor nation so. these really the agencies just like the subprime mortgage issue they have to get more realistic in it and start reading things correctly i don't think china is using. these doggone as a policy tool i think they're just. reading known what the you know on beast on the numbers basically are we have a guest often jim records who's coming out with a book currency wars in
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a very near future the title says that all of the countries are fighting a war using currency and we know that relations between china and the u.s. are beginning to get a bit strained but china is up upping their military presence there upping their stealth jet fighter technology etc so currency wars would seem perfectly in keeping with the idea of pay back on rating agency would a little size that decision somewhat because the world war three wrong gave with it now is a currency war so. is there this type of talk inside china here in shanghai to people see this as an emerging currency war to the is this type of language at all you're you're right there in shanghai is this what's going on i don't see many people talking of the currency wars is actually the political it's becoming more of a political issue here to keep the renminbi low indeed keep. the united states in
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have them print them that's what's finally catching people's notice here and why are we are we working the twelve hours a day in the factories and should be shipping products over united states and just have them print money though obviously the u.s. is you know western world is in a position financially where they have no choice but to keep printing obviously they do have a choice but it would require more of fortitude in our politicians seem to short this point so i personally expect a lot more printing of dollars and we see that going on in japan in europe in united states oh you know the country should stay out of the currency war more what's the focus on precious metals and productive capacity in engine here and in education are going to end up on top i just saw a report on t.v. recently talking about in china approximately one hundred million consumers have credit cards of a population that last i checked one point two one point three billion so credit
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cards are almost nonexistent in china compared to a country like the u.s. or britain or western europe is this something that the chinese population is going to readily take to because you need the middle class to start using credit cards quite aggressively if you're going to build that consumer led model based on a rising r. and b. and also talk a little bit if you can about the fact that correct me if i'm wrong but in the u.s. you have most of that millions of homes are in negative negative equity people don't own any equity in their homes or is in china virtually all the homes that are own are one hundred percent own there's very little that attacks of those homes again a source of buying power if leveraged so how does leverage factor into this are the chinese ready to shop until they drop the chinese consumer i believe it's kind of a misconception that china is not a consumer oh you know china this year will purchase. twenty one twenty two million
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vehicles compare that united states would be roughly eleven or twelve million vehicles china is the world's largest luxury goods market so there isn't a mass of consumerism going on here and it's specially in the chair one city's zero with regard to credit cards there they are becoming a lot more popular if you see you know the major cities most transactions no curfew credit cards and those will be continue to roll out in the tier two interior three cities in the united states we also have a misconception that train is more heavily dependent on exports than they are in reality the the major market years domestic and more and more exports are focusing more on the local domestic market and will start to wait walk away from the export market thanks in many product lines here you can get a higher price certainly in china than you can get export all right dan collins we've run out of time thanks so much for being on the kaiser report thanks max all right that's going to do it for this edition of the kaiser report with
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a max keiser stay here at our thank my guests and collins if want to send me an e-mail please do so because the reported are to. argue until i sign this and i scatter something high elf.
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