tv [untitled] June 30, 2012 3:30pm-4:00pm EDT
live from new center here in moscow this is our t. top stories now major world powers agree a transition transitional plan for syria at a crisis meeting in geneva which rejects regime change and allows syrians to decide their own political future. as the german parliament rubber stamps the euro zone's massive bailout cash disillusioned italians turn to comedians for leadership. and american troops might be out of iraq but the money is flowing in washington plans upgrades with one hundred million dollars to its baghdad embassy despite cutting a third of its diplomatic staff. well that's it for me and the news team for the
moment i'll be back with more for you in half an hour from now in the meantime the man whose love by the people but hated by the banks his max kaiser and the kaiser report. 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 live or in europe or benchmark interest rates. 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 like war in europe or 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 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 do 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. you know i'm saying max the c f t c orders barclays to pay 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 they're submitting every morning what the interest rate should be why are they involved now this is obviously a conspiracy the order from the c.f. t c lays out clearly there are thousands and thousands of e-mails and recorded phone conversations just like this case about the big breaking scandal across
america that we dissipate bomb 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 t 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 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 deposit back to practice bank and you can continue doing what. you've been doing in the criminal justice system if you're involved in a conspiracy it's always worse here at the see if t.c. is noting that this contact occurred regularly and was privy siv 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 cool looting so now you have bob diamond over barclays committing criminal fraud on his own bounty committing criminal fraud in the library market but that's as frederick pastas said back in the you know eight hundred fifty when there's plunder at the top and you 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'd 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 stand the law there's absolutely no standard 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 the conspiracy you're part i'm up here the traitors 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 then there's open evidence of 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 to insure them a 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 use are set based on these libeler and your rates 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 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 can't 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 in 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. to four 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 your scrutiny that's what they're saying right now high frequency trading firms are drawing scrutiny from us regulators seeking evidence that they may be distorting market prices by conducting transactions with them selves now i love the 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 who's out there thinking oh. no 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 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 increments faster than milliseconds for the exact same reason when they see an order coming to the floor they do trade ahead of that order to capitalize on any price bury that maker as a result of that order and they scalp the difference so it's siphoning money from the exchange is just like putting a tube into a gas tank and siphoning gas from a neighbor's car that's illegal but goldman sachs leader lloyd blankfein will tell charlie rose when asked about goldman sachs a siphoning of high frequency trading illegal pilfering of money from the exchange floor said no we're making a market that's code for i'm a shameless market manipulating lawbreaking larsen a stick schmuck 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 america finest managed to make money from trading every single day during the first three months. the year their 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 co facts 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. i say sammer thank so much for being on the kaiser report thank you doug away much more coming away stay right there. in the. world. series technology innovation all the developments from around russia we've got the future covered.
and only welcome back to the kaiser report imax keyser time now to go to boulder colorado to talk with michael kraig of liberty blitzkrieg dot com michael maybe and vacuous ated at any moment as a giant forest fire threatens to engulf his 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 was packed up and ready to roll out and then testing all right michael kroger barclays bank was just fine two hundred million dollars for rigging live or in europe bahrain it's a three hundred fifty trillion dollar market they were also asked by the c.f.c. c. to please stop doing that your thoughts yeah i mean this is this is a recurrent 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 re just more aggressive the sort of manipulation of markets and the key rates that everything else is priced that awful is because of the fact that the american. west. period was an empire that existed in the world is maintained through two things one is north or forces we know what the other is financial markets and therefore the government is more than happy to work with the financial oligarchy of the banks or whatever you want to call them to rig the markets on purpose to maintain this for a 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 increases your c slap on the wrists because the governments and the regulators do not want to go after these guys because they're doing what essentially they're being told to do so it's really about i think the key thing also is that if you read the c.r.t.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 excedrin so i mean to manipulate hundreds of trillions of dollars to get two hundred million fine it's just a joke yeah let's talk for a moment about the term moral hazard this is understood to mean that if you don't properly regulate these folks if there's no deterrent for committing this type of criminality then you risk becoming the norm in these markets and the reason i bring this up is 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 to manipulation of interest rates is causing 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. gaijin rent seeking you larson mystically siphon off cash with no cost and no risk it's ok and this gone global now the mafia fed model ben bernanke has gone global this is america get any benefit out of this no i mean us as you can see if you look at any statistics whether it's no real income which is which is not glue gun 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 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 d.
tiny it's not even one percent point zero zero one percent of financial oligarchy stuff 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 all right michael kroger let's talk about another f.c.c. investigation they're looking into wasse trains high frequency trading and high frequency trades now i work on wall street myself for many years as you have and we know that a wash trade is basically fading with theirself to manipulate prices up or down and now suddenly bloomberg has 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. 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 sell side a lot of friends and a lot of contacts still there 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 he's 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 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. in c. 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 never go to jail they have guns to each other's heads they probably a blackmail on each other too you know that wouldn't barrus album so you know they were going together and that's what we have here and so there's nothing for us to do it this way except for trying to live our lives try to do the right thing and then just wait for this thing to blow up which it will do right now to cover up all those fraud and the central banks are engaged and financial repression they're replacing populations around the world the european central bank is now considering a negative interest rate policy or near to replace what we have come to know as zero the zero interest rate policies and of course this is not only penalizing same
hours the people who are the backbone of the capitalist system but it goes beyond just penalize them as 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 the 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 have to credit card rates recently right they're not zero percent you know they're double digits tied up 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 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 or really available to people that want to go out there and start a speculative or 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'm 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 and grace i have no access to credit and no access certainly to cheap credit a so and then and the 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 there a percentage of straight and what's to maraud and pillage greece but the people locals don't want any access to any rate of any credit exactly and that's why you're seeing. locally as you mentioned this is a global phenomenon now and you're seeing 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 true financial crisis. so you know not only are we not dealing with what caused 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 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 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 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 u.s. 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 pot. 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 fear it 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 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 passively again thinking that you know i don't something's wrong but hey you know the markets aren't saying anything so. my view is that it's going to take . considerable more 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 wake up all right michael kroger of time thanks so much for being on the casa report expects always fun all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thing my guest michael krieger want to send me an e-mail please do so kaiser reported r t t v dot are you until next time x. guys are saying buy up.