morgan's london whale nor was it j.p. morgan's derivatives book its manipulation of the energy markets or its bogus mortgage backed securities this was a whole different ball of wet wipes and lard this was. burke tell us more stacey yes max this is fat bergen it was lurking in the sewage system here we're going to use this as a metaphor for the global fat burger fraud going on around the world so first let's look at this thing that was in the sewage system here blimey it's slimy meat fat bird london sixteen point five ton confluence of wet wipes in lard the thirty three thousand pound berg came from modest beginnings flush wet wipes and food waste created from brits pouring grease and fatty foods damage drene fat bird creation is a vicious cycle thames water media relations manager simon evidence told henry gibraltar of cities fact clings to wipes wipes cling to the fat oh right it's big as two of these huge london buses and they noticed it because the water in the toilet started backing up so this is analogous to the deb

system or in this case the lard and wet wipes fat confluence concentration at the center of the of the london toilet system the sewer system. a lot of the similar influences well the london sewer system is one of the oldest in the world and it's and it still is the same exact victorian sewage system that worked beautifully for one hundred years and then modern technology of wet wipes and lard. everybody eating out fast food convenience is advancement of society has created these confluence of lard and these giant birds in there and the same thing with the global financial system which worked fine until we had this creation of derivatives which allowed for not only debt to build up but also fraud to build up because you could hide it all behind you know the wet wipes that made it look like it was you know it cleaned it up and made it look clean but it was creating disasters elsewhere and we didn't see it by the way that berger fraud only when the it started backing up the global financial system ok so the wet wipes and the derivatives market are meant to clean up balance sheets of banks like j

mayor of london you'll be my finance economic czar will be sitting here and they'll be jumping in the river on the other side odds of you becoming marilyn unthawed favorite it was not only was it clear like the one twenty five to one it isn't a mysterious blank spot at the bottom where the possibility of running under labor says that the market will be void if on the labor candidate which is and goes a lot of interesting speculation but the other government party the liberal democrats are sixty six to one so i've clearly got a better chance than them if i decide to run but if i did part of the manifesto would be to clean up this place over the river which is a nest of malfeasance and wear white collar criminals sworn around and lamborghinis on their big bonuses pursuing all sorts of financial model practice which has brought the country to the rock to the edge of ruin and not just this country but on the gadhafi point say for the slum of gadhafi the favorite son of the late dictator was ensconced here in london he was in and out of number ten downing street mr blair even helped him wi

on the way here because in a famous london tourist attraction there is on be something out flaws basically that's a perfect metaphor for what's happening in the press and the political process in this country the moment well yeah i mean if there's a recovery then they would raise interest rates immediately yes because the rise in real estate prices and stock prices has come by draining the accounts of savers by transferring by some estimates over two hundred fifty billion pounds from pensioners and savers and giving it to real estate speculators and highly leveraged stock market speculators i don't think we've ever in this country got away from the fact we all got away from the idea that house prices inversely proportional to a well functioning economy we still think britain britain generally also need the baby boom generation have funded everything of escalating house prices and a few of the more large souls think well this isn't a sustainable and b you know no way to run an economy but the press don't want to hit that because they sell an awful lot of advertising space to the far sector

it's producer in practice and what you're seeing at the moment is people farming out the laundry to london because it's they're still got an empire state of mind that i can live for i can get a free lunch from somebody else and get away with it the laws are very permissive for fraud yeah were it's good because what happens in a rent seeking economy or a want to society is government gets captured by the rent seekers so you look at george osborne now the u.k. chancellor and he can't make me i don't think he would anyway but i don't but he can't make meaningful leadership decisions because he's being told what to do who bought the fire sector so they are insurance and real estate and they're the rent seeking they're the rent seeking factors if you like but when they can just basically have the predators are ripping everybody else extracting real value from the real economy it will risk when it is likely zero risk they're not taking their portrayed as entrepreneurs who are risk taking oh no no here's what you want to risk here's the key point why on the entrepreneurs up in arms why only entre

and the london school of economics became for a brief and inglorious period the libyan school of economics when safe was ensconced there and giving them money even the green room in the london school of economics was effectively inspired by him this grisly story of the blair and the gaddafi this will be an important centerpiece of the documentary the making the killing of tony blair and if they can participate in funding at being a part of it on kickstarter dot of dot com look at george galloway thanks mike i think being on the kaiser you max thanks always. all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey i read like to thank our guest george galloway if you'd like to get in touch tweet us at kaiser report until next time ask others and. that was the new alert animation scripts scare me a little bit. there is breaking news tonight and we are continuing to follow the breaking news maybe ill alexander's family cry tears and so why it great things out there that had gathered at a court of law found online this is a story made for a movie is p

and the london school of economics became for a brief and inglorious period the libyan school of economics when safe was and sconce there and giving them money even the green room in the london school of economics was effectively inspired by him this grisly story of the blair and the gaddafi this will be an important centerpiece of the documentary the making the killing of tony blair and if they can participate in funding at being a part of it on kickstarter dot dot dot com look at george galloway thanks mike i think being on the kaiser thank you max thanks always. all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey i read like to thank our guest george galloway if you'd like to get in touch tweet us at kaiser report until next time ask. me in cuba is not a failure of the cuban people it's a failure of sidel castro look. when a sunday shows the taj back by the officials both hostility and suspicion encouraged by the government these operations against cuba were known to the attorney general of the united states the president united states him

they just need to review the economic ups and downs in the final months day the london new york sang i and the rest because i think the case it will be everything we call today. welcome back to the kaiser report imax guys are timed out of turn to iona big young money blog dot co dot u.k. i don't know if the first up we've been talking about the u.s. student debt problems how about the u.k. what's happening there well the u.k. has a very similar problem i think in times of a whole generation at risk of being put off going tina vassie and we can see obviously what the inside that that would be i personally think that if it helps young people to think more about what they're actually getting a vast sea and it prevents degree inflation from getting even more out of control then it will have an unintentional benefit actually because i think that the governments prior to this one have been very keen on promoting university as the be all mental for a lot of young people and we know that it is and we know that there are other options that we know that there prentiss ships that there's vocati

trading strategy from london and julian grew a low level trader responsible for recording the value of the soured bets could ultimately be extradited under an agreement with british authorities. so but the spanish guy. who is was the head of this department he was actually bruno axels boss he i doubt will actually see any time because he is very clear in all the e-mails that have emerged that he was saying whatever you do as you try to own wind all these bets because you know at one point i g i g index was basically j.p. morgan owned fifty percent of the one side of the contracts so he said whatever you do don't lose money and they would suggest ways of unwinding the trade no you can't lose money you can't lose money so they took it upon themselves i think these junior people to break the law right so the toilets are backing up and so they try to go after a low hanging a minor guy which is like a plunger. trying to solve this problem but at the core of the problem is this multi hundred ton fat burger of nonsensical derivatives concentration that's at the core destroying the global f

we have minimum wage there is the argument that here in london where the cost of living is so much higher there ought to be a london living wage and i grieve with that because whilst you've got caps wages which is what we've got at the moment you are inhibiting people from saving and then you've got a generation not able to get on the high thing. because high prices just keep going up and up and what also super ogram the zero hours work is not just slave labor well i thought it was some of it there i was contract zero hours contract this allows corporations do precisely have people working for nothing it just is part of a general movement i think on the part of companies to. office less rights i guess to our kids and i feel like they're being attacked by a certain entrenched class of kleptocrats no i just think that young people don't always figure in their analysis of what's wrong with the economy and that's what's wrong we need people who are on television in newspapers in blogs arguing the case be young people a lot more if we're going to have more balance in economic decision making o

control humans with a recycling bin this recycling bin is following you recycling bins in the city of london are monitoring the phones of passer by so advertisers can target messages that people whom the bins recognise so since the story broke in the independent they've now changes to the city of london has asked them to stop monitoring it but this is the trend this is what is happening and by the way it's too late for the two million phones that have already been tracked in the first month after installing the trackers renu said it picked up over a million unique devices on july sixth a record day it's been identified one hundred six thousand six hundred twenty nine . people taking note of their presence nine hundred forty six thousand and sixteen times according to the company in addition to the satellites being able to track people and track people's cell phone they now have these trackers and stalled in bins or or wastebaskets garbage baskets on the street that contract people's phones and then target them for advertising and things like this and so you've got now in that you've got thes

banks of london over a cauldron of derivatives trying to raise the spirit of some animal spirits to try to justify how they've been defrauding the public on a minute by minute basis well in france remember there were riots a few years ago what sarkozy said reason to get the record high that's the blast away those the bad guys from the system the troublemakers well here we see this thing that has happened over and over every time they commit fraud every time some of their white white wet wipes you know wrapped in wrapping the turds of their financial derivatives get found out they get deferred prosecution agreements they don't get blasted away and instead we get this giant fat bird builds up because their wet wipes of these derivatives that surround the excrement. they attract all the fraud to it it tracks everything it tracks the good money and the good savings actually in the world economy too and it builds up into a giant fat berg

this is what we're going to see in the inflation deflation debate as captured in these headlines today london housing market races ahead house prices in the capital rose eight point one percent in the year to june raising fears that the help to buy scheme is fueling a new property bubble i might add that kaiser report where the very first to say this that this was a ponzi scheme will lead to add of control inflation and this is what is happening is eight point one percent rise in house prices here in london across the u.k. however prices are also rising and everybody is blaming the help to buy scheme right well it's important to understand that the government reports two point eight percent as the inflation inflation number this and they say for mitigating and because they look at a basket of stuff and they cherry pick what's in that basket to make it look like there's a low inflation big why because their response bill for paying interest on things like retirement benefits etc so there you have it they're interested in misstating inflation and they do mistake inflation and they don't put stu

bill in pounds why is it again this is interest rate apartheid why did the scroungers in the city of london get to have this option of money at a half a percent whereas everyone else is paying these extraordinary rates and they don't have their relation was the bank of england only serving a few people why isn't serving the country as a whole what exactly what we go with the whole buying bejar is we nationalized the debts and privatized the profits as a safe seats are the socialism for the rate to its corporate welfare which are everywhere you put it but when ordinary people get into a situation of working people or people who are employed or disabled people have hope that benefits taken away when they are fools into such a state where they can no longer afford to pay the bills with rents which are out of control and if you prices food prices which are above even the rate of inflation in this country then of course they can go cap in hand to the government and be expected to buy over our instead they have to go to an unregulated. legal loan shark sector to make ends meet and face interest r

company at the time he said from our point of view it's open to everybody everyone can buy that data london is the most heavily surveillance city in the world as long as we don't add a name and home address is legal. right well it gets back to what we've been saying on the show for a while which is all the technology that goes with the casino industry these behavioral economics of surveillance and frequent casino use cards you know whether it's tesco their frequent shopping cards or being surveyed on buy or garbage bin by companies that look at your data from their phone they are in the business of behaviorally influencing you and modifying your behavior so that you do things that are not in your best interest like rack up debts with a payday loan eat stuff that's going to make you fat obese and cost a lot of money to bail out from the health system and cause the houses to be privatized do all kinds of things that are not in your interest but in the interest of those who are mastering the database of course all that information collected by these bins will be put into one master database an

no credit for that so you have to add on a new piece here and this is just the morning and later the london whale struthers the the bubble of the rain is based on so use a crude you hear the old loot is either going to get all that money and they're going to replace it on their balance sheet and there's just a gunman because you for wall street because you have a good store goes through the phone up to stocks you were going to sixty billion and money it's a perfectly sound institution there's nothing risky about j.p. morgan's balance sheet is very sound you can tell just by looking at the bellows there's no risk here there's no problems there. that's well so these bank lobbyists have been of course they own the congress now this is by the way one of the reasons why teddy roosevelt went after the trusts he thought they had too much power over politicians and he also thought the wealth and income gap was very dangerous and he was afraid of revolution so this is why he went after these trusts and bust them up we have a very remarkably similar situation now in america with the wealth and income

s use we'll look at the plight of jobless young brits two years after violent riots rocked london and other parts of the country. and russia's top court cuts the prison term for former oil tycoon mikhail khodorkovsky he'll walk free in a year istanbul. is two pm in moscow you were.

phrase of interest rate apartheid in other words if you are a friend of the insiders in the city of london you can borrow money at half a percent or one percent if you're just a working stiff here in the u.k. you end up on a credit card which is double digit interest rates or you go to a payday loan words up to. as you just said five thousand percent annualized interest rates so it's discrimination through interest rates that discrimination is illegal in this country you can't discriminate based on sex you can't discriminate based on color why is it possible therefore to discriminate based on interest rates how they get away with that is that a human rights issue is does that as a read of as a british citizen make you a bit sick and. it certainly comes back to our earlier which is about fairness and it doesn't just happen in banking the money you know if you want to pay cattle it tricity me to pay more for your gas electricity and some going to direct debit and those who poor tend to pay more for their services and as we know those who are more money seem to spend less and less and less so

than the unionized labor should have access to the fed just as easily as wall street or the city of london why don't they why can't they organize a two trillion dollar loan a dear zero percent interest to pay themselves double or triple or quadruple the only thing that would happen is that the economy as we know it would be less reliant on speculation and. more reliant on manufacturing you'd see more businesses started up you'd see more manufacturing in the u.k. it's bigger export markets and now you mentioned zero percent interest rates reserve policy and that is feeding the tapeworm over here on the other side the real economy is being starved the savers and the workers and we have zero in their headline nick clegg business department will investigate zero hours contracts deputy prime minister resists concerns about contracts used by buckingham palace sports direct intake galleries so ninety percent of sports direct workers here in the u.k. and three hundred fifty summer employees at buckingham palace are in zero hours contracts this is they aren't guaranteed any labor but they actually

party this geographical apartheid here in in britain you know if you're from the north or you're from london there's housing apart tate's there's all kinds of polarization and. and that's a pothead combined with debt is is really making it really hard for people to organize so we know there's always been class struggle but what people don't understand is that there's also a new way to enforce this class struggle using interest rates which they don't appreciate they think it's a good idea that i can borrow money at five thousand percent a year and they don't see how that plays into their overall being subjected to the pressures of an organized criminal syndicate of bankers and politicians speaking of criminals george osborne has helped to buy scheme is this some called it's a politically ingenious way to buy the next election but economically it's sucks no absolutely i could to help to buy votes right here well said thank you for being on the kaiser report q x and that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert like to thank our guest and pat

cameras for citizens something like we are more in london than anywhere else in the world yet for every time there's at least one or two cameras it is growing exponentially so they give that up in exchange for lower rates and a housing bubble that's always always without fail crashes well one of the biggest the biggest most economic crashes the crash of two thousand and eight was driven by a real estate bubble its real estate bubbles create more problems than they cure the other problem we have is planning restrictions nobody can build anything in this country i mean they can it's not as simple but it's just so onerous to try and buy land and get planning permission despite the fact the most land isn't built on it again it means that everyone's trying to buy this this tiny pool of land you know there's a tiny pool of houses and everyone's trying to buy those houses rather than you know the market being freed up the actually what we need is a land tax to give you no land tax that doesn't sound very tory friendly. i don't know we need a land tax so that unused land passes to people who ar