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tv   [untitled]    June 29, 2012 8:30pm-9:00pm EDT

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he dares to ask we do our t. question morning. news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are old today.
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i am max kaiser this is the kaiser report it's official the shadow banking system is now bigger than the non shadow banking system that's right it's bigger the stuff you don't see the stuff that's on regulated the stuff that's destroying the planet is now bigger many hundreds of trillions of dollars bigger than the so-called real economy this is causing huge problems and other stuff they say herbert max keiser guess what live for is back in the news this is the global benchmark interest rate upon which all interest rates are set from their credit card interest rates mortgage rate interest rates and it's in the news max just as we predicted see f.t.c. orders barclays to pay two hundred million dollars penalty for attempted manipulation of and false reporting concerning libel or in europe or benchmark interest rates
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the u.s. commodity futures trading commission issued an order today filing in settling charges against barclays the order fines that barclays attempted to manipulate made false reports concerning to global benchmark interest rates light war in europe war on numerous occasions and sometimes on a daily basis over a four year period commencing as early as two thousand and five well i think the key word there is attempted now on this show we've been reporting on this for you know more than a year it's been known that folks over at the live bore rate setting mechanism are committing fraud and finally the regulators due to the efforts of investigative journalist like here at the kaiser report they finally had a step forward and they say well they attempted to manipulate race and use the word attempted otherwise it becomes a criminal prosecution but my my question is why not why should there be a criminal prosecution. in other son max the c f t c orders barclays to pay
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a two hundred million dollars civil monetary penalty case cease and desist from further violations as charge and they're still allowed to participate in the submission of of libraries so there submitting every morning what the interest rate should be why are they involved in that now this is obviously a conspiracy the order from the c.s.t. c lays out clearly there are thousands and thousands of emails and recorded phone conversations just like this case about the big breaking scandal across america and we disappoint bond market the same thing happened here there was open conversation about i don't like those rates set higher i don't like those rates set lower and as a c.f.c. points out max they were doing this in order to make whole on their derivatives positions again this is the shadow banking system the hundreds of trillions of dollars if you think we have too big to fail banks that barclays is too big to fail for there who hundred twenty billion dollars market cap or whatever it is imagine
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the hundred and well that quadrillion dollar derivatives market barclays makes a bad bet speculating in the derivatives market like jamie dimon recently did over j.p. morgan they make a bad bet they lose some money so they go into the library market they commit acts of criminal negligence and criminal fraud to siphon off money to go into their bank account their balance sheet to paper over their other criminal activity so there's actually two crimes being committed here first they committed criminal fraud on the barclays balance sheet then they went into the library market and committed criminal fraud to cover up the criminal on their own balance sheet so see you have to see the commodity futures trading corporation which is by the way run by gary gensler a former goldman sachs guy says two wrongs make a right if you commit to greed just criminal actions then past mol fine and by the way that money will probably end up on the positive progress bank and you can
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continue doing what. you've been doing in the criminal justice system if you're involved in a conspiracy it's always worse here the c. of t.c. is noting that this conduct occurred regularly and was pervasive in addition the attempts to manipulate included barclays traders asking other banks to assist in manipulating europe or as well as barclays aiding attempts by other banks to manipulate u.s. dollar live or in europe or in addition certain barclays euro swaps traders led at the time by a senior trader coordinated with an aided and abetted traders at other banks in each other's attempts to manipulate europe or even scheming to impact europe war on key standardized dates where many derivatives contracts are settled or reset but it's racketeering they're bringing in other banks they're called looting so now you have bob diamond over apparently committing criminal fraud on his own balance sheet committing criminal fraud in the library market but that's as frederick pastas said back in the eight hundred fifty when there's plunder at the top and you
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systematically legitimize plunder as the main source of economic activity as david cameron has done in the u.k. he's told the european regulators look in the u.k. criminal plunder is the basis of our economy you can't put our bankers in jail because all we be left with are a bunch of marmite pots and some a limp dick has bends so and it filters down to the rest of society but why i put other people in jail i mean i don't understand why put anyone in jail and in the u.k. there's no standard of law there's absolutely no state of lloyd to do any criminal action you want the u.k. and he will be put in jail if you're connected if you're part of conspiracy you're part i'm up here the traders requests were frequently accepted by barclays submitters the guys who submit the rates every morning for a live board who emailed responses such as always happy to help for you anything or done for you big boy right then there's open evidence of
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criminality. yes ok that there they have renames and all renames of evidence of criminality at barclays bank and other u.k. banks and global banks the government the regulators to see if to do nothing about it and they're plunder has been institutionalized yeah and they've asked the guys not to do it again please they pay this too into the mill million dollar fine now at the time when we first covered this story max we covered the fact that at the time analysts looking at the situation people in the know were saying well the problem with this is that there's no way to determine what the costs of this crime are because we know that they've made whole on some of their bad bets but we don't know how much they defrauded the global three hundred fifty trillion dollar libeler market all the interest rates in the world many of the interest rates in the world are you are set based on these lie bore and your grades well if you apply the same standards to genocide why accuse anyone of genocide because you could say it's unclear how many people they murdered therefore they're innocent and white why
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can't some of these folks that are being put in jail for genocide use that defense this is what bob dime to say you cannot accurately determine the amount of my fraud therefore i'm innocent of that that's what he's trying to say post is two hundred million dollars fine since they're still in the slide or rigging market they're simply going to siphon that off from the library market next week to pay for the fine if they get caught again though siphon more money out well let's move on there are totally so many more crimes in the news max we're going to cover this we're going to look at the what people outside the mafia racket how much time they serve what sort of penalties they face f.b.i. sting bust twenty four trading stolen cards crime tools so this happened the exact morning that the c.f. t.c. and f.s.a. in the u.k. fined barclays two hundred million dollars max and what the f.b.i. termed the largest coordinated international law enforcement action and history directed at carving crimes authorities said the sting saved two hundred. four
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million dollars in potential fraud losses the defendants depending on their charges face prison terms ranging from five years to more than twenty five years so this is a card crime max but isn't that the same thing as what the libel rigging is because libel or rigging is rigging the interest rates upon which credit card interest rates are set so barclays is also involved in a card crime and yet do you see in the c.f. t c or the f.s.a. what announcement did you see any notice that any of these guys face any sort of criminal prosecution no lie boris like having a credit card with a three hundred trillion dollars line of credit and they commit fraud and they don't get into them they were more crimes in the news this past week max wash trading by high frequency firms said to face us scrutiny who i'm so scared about you're screwing me that's what they're saying right now high frequency trading firms are drawing scrutiny from us regulators seeking evidence that they may be
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distorting market prices by conducting transactions with themselves now i love this story because of their finally cottoned on to what we've been saying on this show again for years that was trading or high frequency trading with oneself is a way to quote stuff or manipulate price action to create what i call price propaganda and we saw this in greece in other words the far left group was about to win the election in greece due to this exact type of high frequency trading algorithmic trading quote stuffing that bloomberg is talking about fraud by rigging markets to make the price go up and down based on rigging them with high frequency trading the bank stocks in greece bumped up before the election to reach a lost and then once that was established to do price propaganda the bank stocks in greece are once again on the primary bear trend so there is being used politically so the old the old days of using political propaganda and media propaganda are finished now we have price propaganda with high frequency trading and so anybody
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who's out there thinking oh. i want to participate in the market i want to buy and sell shares i want to be a member of the you know the functioning economy robot hand beats rock paper scissors one hundred percent of the time so here's. robot hand created by ishikawa who lab at the university of tokyo he is so high speed you can't tell that the robot is cheating it only takes a single millisecond for the robot to recognize what shape your hand is in and just a few more for it to make the shape that beats you but it all happened so fast that it's more or less impossible to tell that the robot is waiting until you commit yourself before it makes its move allowing to win one hundred percent of the time now max apply this to the high frequency trading and i might add that most high frequency trading patterns we for your patent right there for my virtual specialist patent and the phrase millisecond is important here because high frequency trading is attempting to trade in incremental faster than milliseconds for the exact same
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reason when they see an order coming to the floor they do trade ahead of that order to capitalize on any price disparity that make or as a result of that order and they scalp the difference so it's siphoning money from the exchanges just like putting a tube into a gas tank and siphon gas from a neighbor's car that's illegal but goldman sachs leader lloyd blankfein would tell charlie rose when asked about goldman sachs a siphoning of high frequency trading illegal pilfering of money from the exchange for said no we're making a market that's code for i'm a shameless market manipulating law breaking larsen istic shmuck that's what that means making the market when it comes out of lloyd blankfein spyhole so one hundred percent of the time this robot beats you just like in the market one hundred percent of the time a high frequency trading algorithm is going to be any human being for big banks score perfect sixty one day run that's in two thousand and ten max despite the running on the ease in world markets for giants of american finance managed to make money from trading every single day during the first three months. the year their
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remarkable sixty one day streak is one for the record books perfect trading quarters on wall street are about as rare as perfect games in major league baseball there have only ever been nineteen perfect days in baseball but bank of america citi group goldman sachs and j.p. morgan produced the equivalent of four perfect games are in the first quarter because it is this technique of computer trading that scalps markets ahead of the other traders in the market and they steal so sandy koufax who threw a perfect game famously was high on acid i'd like to point that out and i think maybe what we should do is to get these wall street c.e.o.'s high on acid and have them traded themselves for a few days and see what happens. all right stacy ever thank so much for being on the kaiser report thank you now go away much more coming away stay right there.
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you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm sorry welcome to the big picture. the official location. i pod touch from the top story. on the. video on demand. an r.s.s. feed now in the palm of your. question on the dot com.
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welcome back to the kaiser report imax kaiser time now to go to boulder colorado to talk with michael craig of liberty let's create dot com michael maybe evacuated at any moment as a giant forest fire threatens to engulf is area of this city michael krieger welcome to the kaiser report thank you so much for having max and yes it's true i want to create accusation notice all my important stuff is packed up and ready to roll but i mean fantastic all right michael kroger barclays back. it was just fine two hundred million dollars for rigging live are in europe bahrain it's a three hundred fifty trillion dollar market they were also asked by the c.f.c. sea to please stop doing that your thoughts yeah i mean this is this is
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a recurring theme and i think there's there are two are two key things to do understand and notice with regard to the story the first is that the reason why this is so pervasive and becoming more pervasive by the day and work reaches and more aggressive as far as manipulation of markets and the key rates that everything else is priced that are offered is because of the fact that the american anglo western imperialism empire that exists today in the world is maintained through two things one is north a force as we know it the other is financial markets and therefore the government is more than happy to work with the financial oligarchy of the banks there's whatever you want to call them to rig the markets on purpose to maintain this aura of financial stability financial strength to go on to continue to dominate essentially the rest of the world and get them to do what they want so that's why you're seeing all this stuff you're seeing it increased and you see slap on the wrists because the governments and the regulators do not want to go after these
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guys because they're doing what essentially they're being told to do so so that's really it but i think the key thing also is that if you read the history of the c. press release they're sort of trying to make it seem like they're doing a good job two hundred million i mean even the director of enforcement to see if you see admits that you know the library that they were manipulating is used to price hundreds of trillions in swaps derivatives except for a so i mean to manipulate hundreds of trillions of dollars to get two hundred million fine it's just a joke i had last thought for a moment about the term moral hazard this is understood to mean that if you doubt properly regulate this there's no deterrent for committing this type of criminality then you risk becoming the norm in these markets and there is not bring us up. because over the past few years we've heard ron paul and others in america go after the fed and talk about how the fed's manipulation of interest rates is causing
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economic harm in america and by extension to the rest of the world now the moral hazard here is that the fed's model of manipulating interest rates and causing wide scale economic distress has gone global so now i see the library folks in london are doing the same thing bernanke he does of people in europe people in south america people around the world have picked up on this idea that if you manipulate rates you can gauge in rent seeking you larson mystically siphon off cash with no cost and no risk it's ok and that's gone global now the mafia fed model of ben bernanke has gone global there's america get any benefit out of this no he does as you can see if you look at any statistics whether it's no real income which is which is not gone up for decades in the united states you know the middle class disappearing basically before very eyes in the united states the argument from the establishment would be that you know we're benefiting because we're maintaining our
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status in the world but the facts on the ground don't justify and live up to that to that propaganda because what you really see is this is the deep tiny it's not even one percent point zero zero one percent of financial oligarchy c.e.o.'s of multinational corporations and politicians in washington d.c. if it's a very small group of people it benefits them because it keeps them in power while hollows out the american economy destroys the middle class makes people not want to invest or do anything right why would you want to create a business why would you want to invest capital why would you want to do anything if you know that your government's criminal the answer is you wouldn't and that's why we're not seeing that happen right michael kroger let's talk about another f.c.c. investigation they're looking into wash trades i frequency trading and high. frequency trades now i worked on wall street myself for many years as you have and we know that a watch trade is basically fanning with yourself to manipulate prices up or down and now suddenly bloomberg has
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a story saying yeah you know what. it is systemic it's endemic it's eighty five percent of the trades on the new york stock exchange are computer driven algorithmic trading and most of those are washed trades quote stuffing high frequency trading purely for the benefit of that one tenth of one percent you're talking about and to the detriment of these markets right these markets are suffering as a result of all this fraudulent beheading and yes yeah no absolutely i mean i still you know despite the fact that i bash a lot of wall street all the time now i'm still very connected into that world with people whether it's on the you know the buy side or the sell side a lot of friends a lot of contacts to where i had this conversation before i got on online with you with somebody who works at a brokerage and he's just saying you know he's teasing he's lamenting the fact out how the markets are rigged out it's manipulated how no one believes in it how everyone just sitting there you know saying this is a waste of time what can we do and and that's really the truth and and so i guess
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the markets are being destroyed and the economy and the real economy is being destroyed so we're sensually seeing the destruction of the entire what was left of the free market system and markets themselves because of the computers dominant because of the lack of the f.c.c. the city of d.c. or any of these regulatory bodies to do anything and the fact that the truth of the matter it's becoming clear to everybody is that the government and the financial oligarchy are working hand in hand that's why don't you never go to jail they have guns to each other's heads they probably have blackmail on each other to you know that wouldn't paris album so you know they were going together and that's what we have here and so there's nothing for us to do at this point so for try to live our lives try to do the right thing and then just wait for this thing to blow up which . it will it right now to cover up all those fraud and the central banks are engaged in financial repression they're replacing populations around the world the
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european central bank is not considering a negative interest rate policy or nerve to replace what we have come to know as zero the zero interest rate policies and of course this is not only penalizing savers the people who are the backbone of the capitalist system but it goes beyond just penalizing these people it's aggressively almost you could say financially torturing them with negative interest rates in other words you have to pay the bank to hold onto your money how does that how do they get away with this michael green well i mean it's interesting you bring up this point in general because it's not just the savers are getting the short which of course they are and they're being forced into other assets precious metals commodities equities in some cases but but on the others side of the equation what about the people that have no money you know if you look at the credit card rates right they're not zero percent you know they're double digits high double digit percentage so the poor that are that are trying to borrow in that capacity or have very high interest rates now if if if if
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if we're talking about a new item that the government wants you to buy like a new car or a new home then you could pretty much get pretty low rates but again the key is low interest rates aren't really available to people that want to go out there and start a speculative be an entrepreneur or a business like that on the low interest rates are available with leverage to the financial oligarchs to engage in rent seeking and leverage speculation right let's look at let's take a country like greece for a second if i am wall street bank of goldman are j.p. morgan i have virtually unlimited access to virtually zero percent interest to do a leveraged buyout of that country to a low that country up with a debt. wait till it goes bankrupt and then i've got the asked us to sell to pay back the loan that i made and i keep the difference but if i'm a an entrepreneur in greece i have no access to credit and no access certainly to
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cheap credit so and they and their regulators and our politicians are telling us that there is somehow a problem like the greeks are paying taxes or the greeks are lazy they never point out the fact that the oligarchs have access to this is zero percent interest rate in which to maraud and pillage greece but the people locals don't want it any access to any rate of any credit exactly and that's why you're seeing globally as you mentioned this is a global phenomenon now and you seen the big companies get bigger and as you know you know the percentage of assets that the top five banks in the united states have today as in relation to g.d.p. it's much higher than it was a street financial crisis. so you know not only are we not dealing with what caused in the first place we're actually doubling down on on the prior policies and we're allowing the people who perpetrated it all to become more bid to become bigger more powerful more dominant and more in control of the political economy in the united states and you know again clearly this is this is
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a game plan and they're not going to give up on their own and you don't just need to fall apart essentially like the soviet union which i fully expected to now matt taibbi recently penned a piece for rolling stone magazine about the decades long rigging of the municipal financial market by a handful of big banks including j.p. morgan goldman sachs bank of america your thoughts yeah i didn't read his article but of course we know about jefferson county and alabama and how they went in there but they didn't know what goldman sachs what it did with greece again it goes back to the same strategy playbook that we discussed earlier which is you go in to a community and in this this game is as old as humanity itself as old as civilization or money systems are you go and you load you load your enemy up with that and then you strangle it and then you make them do what you want and that war you just buy their assets on the cheap i mean that's that's what's going on and you
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know i was reading about this few years ago talking about how the u.s. debt is illegitimate right this debt was forced upon us to bail out the banks which caused the crisis in the first place so at some point humanity and whether it's greece or here ira or whatever needs to step up to the plate and say no i did not voluntary accept the stat we need to write this stuff off period now the popular dissent in the us is burning nonexistent against this type of loan sharking predatory finance and financial terrorism in america and what kind of pressure do you think might evolve at some point or is the pa. elation like any community that's being terrorized by the mafia loan sharking they're simply too afraid to the same thing i don't think it's fair at all actually i think it's completely disneyland mentality and i think that what the what the fed the u.s. government has been very very good at doing ever since occupy wall street but it's
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no coincidence as we discussed that when that movement started that was sort of when gold was peaking markets were crashing ever since that came onto the scene they've been very good at sort of making things look better right so gold is down markets are up the people have been lulled into a sense of passive eighty eight again thinking that you know i know something's wrong but hey you know the markets aren't saying anything so. my view is that it's going to take. war pain on the streets to the middle class to the maybe a recession will do it to wake up the next group my guess would be close to the election as we see a recession. we will have chaos again in the markets and that will cause people to we are all right michael greger right of time thanks so much for being on the guy's a report that's always fun all right that's going to do it for this edition of the
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kaiser report with me max kaiser and stacy herbert our thing my guest michael krieger going to send me an e-mail please just authorize a reported r t t v dot ru until next time thanks guys are saying. there hasn't been anything good on t.v. . it is to get the maximum political impact. the full source material is what helps keep journalism on the we. we want to present. something else. you.
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