Alex Jones Show - November 17, 2008


20081117_Mon_Alex


Episode Stats

Length

1 hour and 28 minutes

Words per Minute

172.07162

Word Count

15,214

Sentence Count

1,144

Misogynist Sentences

4

Hate Speech Sentences

10


Summary

Max Keiser talks about what is happening around the world and why we should all be worried about it. He talks about how food is running out and how we need to prepare for war in the streets within 2-3 years.


Transcript

00:00:00.000 Engine moving parts.
00:00:47.000 We've got a long way to go And a short time to get there For the next 50 minutes or so, we're going to open the phones up and let you talk to Max Keiser.
00:01:02.000 He does international television for, well, you name it.
00:01:06.000 He's invented major systems used on stock markets worldwide.
00:01:11.000 He's producing an international TV show for the BBC with Alec Baldwin.
00:01:17.000 Just check out his website, maxkeiser.com, because the guy is doing too much to ever tell you about it all.
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00:03:41.000 All right, going to Max Keiser.
00:03:44.000 Max, a lot is happening.
00:03:45.000 The economy is worsening very quickly.
00:03:48.000 I had Gerald Cilente on last hour, and he's talking about war in the streets within two to three years, and we'll have bank runs in February.
00:03:59.000 What do you say to that?
00:04:01.000 Well, Alex, I think if you look around the world, you're already seeing evidence of that, and I'll give you two examples.
00:04:07.000 It was reported today in the independent newspaper in the United Kingdom that gangs from the city are invading the country, and they're stealing livestock from people's farms.
00:04:17.000 They're stealing salmon and farmed fish from farm fisheries.
00:04:22.000 And you've already got this happening in the UK right now.
00:04:25.000 People are... Gangs from the city are invading the country and stealing food.
00:04:30.000 If you look at the global picture, you see that around the world, you know, the corporations have taken over all the fishing rights around the world.
00:04:40.000 So in Somalia, you've got Somali pirates who are starving to death.
00:04:45.000 They are hijacking one ship every day, on average, just for food.
00:04:50.000 And they just grabbed a huge oil tanker today, so their targets are getting bigger.
00:04:55.000 Exactly.
00:04:56.000 And they're being tracked by the U.S.
00:04:57.000 and the U.K., you know, the Navy is out there.
00:05:00.000 But these are people who are starving to death, because all of their food supplies have been taken from them by the huge corporations.
00:05:07.000 So this is what's happening on the fringe of the, you know, if you're in the United States, and your view is that, you know, these other areas are on the periphery of the biggest economy in the world, the so-called the U.S., you can see the trends developing on the fringe, on the periphery, And I think they're heading toward the U.S., but you see it already right now happening around the world.
00:05:33.000 Max, again, for folks that don't know who you are, tell us a little bit about yourself and then currently what you're most focused on and what you think is most important in the world right now, and then trends that you see going into the mid-term and long-term, how bad do you think it's really going to get?
00:05:51.000 Well, just to follow up on a couple of things from when we spoke last time, you know, we were talking about the gold market, we were talking about Comex, and the fact that Comex is short gold that they can't deliver, and that some people are out there trying to organize a raid on the Comex.
00:06:05.000 I was talking to some folks today in Canada, apparently Eric Sprott of Sprott Asset Management is going to try to take physical delivery of a huge precious metal position on the Comex this December to try to force the price from the physical.
00:06:21.000 Uh, in the paper market to match up.
00:06:24.000 So that could be, that's still in play.
00:06:26.000 Remember last time I was mentioning that there could be a major event on the COMEX in December?
00:06:30.000 Yes, you did say that, but flesh that out a bit.
00:06:32.000 For folks that don't know what shorting is and don't know what the COMEX is, explain.
00:06:37.000 Okay, well shorting is actually something that's come up in a couple of the big stories today, and it relates directly to Goldman Sachs as well.
00:06:45.000 So I'll segue into the Goldman Sachs thing.
00:06:47.000 But a little bit about shorting, it's one of those concepts that People have trouble wrapping their mind around it.
00:06:53.000 It's a little counterintuitive.
00:06:55.000 But, you know, if I can break it down as simply, is, you know, people are familiar with the idea of borrowing money to buy a stock, and if the stock goes up, they sell it for a profit, and they pay back their loan.
00:07:07.000 When you're selling short stock, you're borrowing stock, and you're selling that stock, and you're hoping that the price goes down, and after the price goes down, you buy back your stock at the lower price, And you return it to where you borrowed it from.
00:07:24.000 But because the stock is now at a lower price, the amount of money it took to buy it back is less.
00:07:29.000 You get to keep the difference.
00:07:30.000 That's how you make money on a short sale.
00:07:32.000 And it works on stocks, and it works on commodities, and it works on the Comex.
00:07:36.000 And the Comexes were all the biggest precious metal futures operation in the world, and as has been pointed out by numerous guests on your show, The big bankers in the world who love the idea of fractional reserve banking, and love the idea of infinite credit, they hate gold, they hate precious metals, because it's a limited supply, and they don't like to live in a world of limits.
00:07:56.000 They like to live in a world of infinite credit.
00:07:58.000 So it's in their interest to try to keep those precious metals down.
00:08:02.000 And they do this primarily by selling gold and silver short.
00:08:06.000 They're selling gold and silver contracts that they do not own, and they borrow for the most part, and they do this with broad money, and they can borrow money Quite cheaply.
00:08:15.000 The scandal, the scandal here, is something called naked short-selling.
00:08:20.000 And naked short-selling applies both to the comics, in my opinion, and to what Golden Facts has been doing, which is the opinion now of Bloomberg and the Wall Street Journal and, you know, observers around the world.
00:08:34.000 Well, there's no doubt they've been doing it.
00:08:36.000 They've been doing it to stocks they recommend to people.
00:08:40.000 Right.
00:08:40.000 So naked short-selling is nothing more than counterfeiting.
00:08:43.000 It's just straight out Counterfeiting.
00:08:45.000 And this is now, when you, when you... I listen to your show, of course, Alex, I'm a big fan.
00:08:49.000 And when you talk about the Illuminati and the globalists and the New World Order, you can condense all those terms into basically two words.
00:08:58.000 Golden facts.
00:09:00.000 Golden facts are the epicenter By the way, you're not joking!
00:09:05.000 They even had a big global advisor on CNBC a few weeks ago, and he said, the Illuminati is doing this.
00:09:13.000 So now we're starting to see that even come out, but go ahead.
00:09:17.000 Right, I mean, there's no need to look beyond Goldman Sachs, is my point.
00:09:24.000 You've got now Senator Inouye saying that Goldman Sachs He's accusing Goldman Sachs openly.
00:09:33.000 That they're giving money from the bailout money to their friends.
00:09:37.000 They want an investigation.
00:09:38.000 You've got Bernie Sanders in Vermont who thinks that Goldman Sachs is a conflict of interest.
00:09:42.000 He wants an investigation.
00:09:44.000 Yeah, by the way, that's the AP headline.
00:09:46.000 I'll just interrupt and back you up.
00:09:48.000 It's that a Senator Inhofe from Oklahoma, a very powerful Republican Senator, is saying that they're giving it to their friends and others.
00:09:56.000 And it's not even being denied that that's going on.
00:09:59.000 It's also being used for bonuses.
00:10:00.000 Go ahead.
00:10:01.000 Yeah, Chuck Grassley, he's a senior GOP on the Senate Finance Committee.
00:10:06.000 He just came out today, within the last two hours, and has suggested that Goldman Sachs is double-dealing.
00:10:11.000 Goldman Sachs is a conflict of interest.
00:10:13.000 Goldman Sachs is involved in naked short-selling.
00:10:15.000 Goldman Sachs is at the heart of the American economic and banking collapse.
00:10:20.000 Is that why they're keeping... I mean, it was Goldman Sachs guys in the 90s that changed all the rules, and in the 2000s with Bush, and now you notice it's an inner group of Goldman Sachs running the bailout, running Treasury, running the Fed, and that they're bringing more Goldman Sachs people now into it as well.
00:10:36.000 Is that to keep it, you know, keep the conspiracy in a closed circle?
00:10:41.000 As part of the bailout package, they slipped into the package a tax break to give the bankers $140, $150 billion tax break.
00:10:41.000 Absolutely.
00:10:49.000 Okay, so now it's openly being discussed that they're stealing it, and Goldman Sachs just laughs.
00:10:56.000 Why are they so arrogant?
00:10:58.000 Because there's been a coup d'etat.
00:11:01.000 There's been a coup d'etat, and Hank Paulson has dictatorial powers.
00:11:05.000 When I was on your show last time, I believe it was... When I was on your show last time, I might have been on another network.
00:11:10.000 No, no, you were here.
00:11:11.000 You were here.
00:11:12.000 And I was saying that basically, they have achieved through this $700 billion, which became $850 billion bailout.
00:11:20.000 It didn't matter what the number was.
00:11:21.000 The number was arbitrary.
00:11:22.000 The key concept was it gives them dictatorial power.
00:11:25.000 That's the key concept.
00:11:26.000 That is the key.
00:11:27.000 That's right.
00:11:28.000 They have dictatorial powers, and they are literally having sconfed themselves But just because they say they're God, and just because they say they can barbecue children on their front porch, doesn't mean they can.
00:11:44.000 They have law saying black people weren't human in this country, and we know those were bull, and they were overthrown.
00:11:48.000 So what do we do about these arrogant criminals?
00:11:52.000 You know, Wall Street frat guys.
00:11:54.000 I'm not bashing Yalies and people, but that's... I mean, it's that arrogant... I mean, watching Kashkari with the smart mouth comments, you know, the glare last week.
00:12:03.000 I mean, these are some arrogant little bastards.
00:12:06.000 Well, I mean, I was on Al Jazeera yesterday morning.
00:12:09.000 I sent you the clip.
00:12:11.000 Yeah, we're going to play it.
00:12:14.000 And, you know, I used some language that I'm not sure Americans have heard in this context, but You know, the point is that these guys have, as you point out, I mean, they are literally, they've pulled down their pants and are literally giving a golden shower into the face of 300 million Americans.
00:12:38.000 And unless you are into golden showers, unless you are into FNM, unless you enjoy that kind of thing, I would suggest that you begin to, you know, take some steps.
00:12:48.000 I mean, this is so I mean, I've been a observer for markets for 25 years, and I have seen examples of egregious electronic feeding, as we used to do.
00:13:03.000 I mean, I was working on Wall Street in the 1980s.
00:13:06.000 I know many, many of the tricks that one can use in the bank to transfer wealth.
00:13:11.000 Electronic pickpocketing, we used to call it.
00:13:13.000 It's just electronically transferring wealth from the customers to the bankers.
00:13:17.000 That's all pretty much the job entails.
00:13:20.000 The techniques are pretty standard.
00:13:22.000 And the beautiful thing about it, Alex, if you ever worked on Wall Street, is that typically when, you know, the management comes around and says, unless you're being sued, you're not really doing your job.
00:13:32.000 We've got plenty of lawyers.
00:13:34.000 Just keep racking up the commissions.
00:13:36.000 We've got lawyers.
00:13:37.000 Just keep racking up the commissions.
00:13:38.000 And the beautiful thing about it is that if, in fact, it ever gets to the point where there's a serious problem, two things.
00:13:46.000 When you sign a new customer account, it forces you to go to arbitration.
00:13:49.000 Well, the people that steal and cheat and make the most money, they get promoted.
00:13:53.000 They go, wow, you've been indicted.
00:13:54.000 As soon as our lawyers fix this, you're going to be going up to vice president.
00:13:58.000 It shows initiative.
00:14:01.000 It shows initiative.
00:14:01.000 Or, they simply change the law.
00:14:05.000 They simply change the law.
00:14:06.000 The FCC is overworked and understaffed on purpose.
00:14:11.000 If they ever get to it, things get really tight.
00:14:14.000 Here's an example.
00:14:15.000 Under Bush, and this is all over the news, over 90% of the corporate white-collar crime investigators were pulled off and they weren't put on anti-terror.
00:14:24.000 If you read deeply, they were put on mom-and-pops.
00:14:27.000 So what happens is big, too-large-to-fail groups can steal, kill, Halliburton can run white slavery camps, it can be in mainstream news, nothing happens to them, but then a pet store owner A guy that owns a used car lot, a dentist, somebody who has a hamburger place.
00:14:44.000 The IRS will rake them over the coals for no reason.
00:14:47.000 Go ahead.
00:14:49.000 Yeah, and you know, they just change the laws basically to suit what is for their convenience.
00:14:57.000 Bankers are routinely, are constantly changing the laws, changing the products.
00:15:01.000 You know, it's like a three-card Monty game in the city.
00:15:04.000 You know, you see these guys, they're playing three-card Monty.
00:15:07.000 And the cops show up, they can fold up in five seconds, and five minutes later they shut up across the street.
00:15:11.000 So if they just go from scam to scam to scam, it's basically the same scam, but...
00:15:18.000 So where is this going?
00:15:19.000 I mean, the whole culture is going into total corruption, governments expanding, governments feeding, you know, no different from administration to administration.
00:15:27.000 How bad is it going to get when the immovable object meets the unstoppable force?
00:15:32.000 What is going to happen?
00:15:33.000 A lot of trends, projectors, a lot of experts who've been writing the past are saying it's going to end up war on the streets.
00:15:42.000 There's also another thing going on, which is I call the sixes versus the nines.
00:15:47.000 This is the people with six zeros in their net worth, the millionaires, versus people with nine zeros in their net worth, the billionaires.
00:15:54.000 Because after 9-11, when they dropped interest rates down to 1%, they screwed up the economy so badly that now, seven, eight years later, the system is so badly screwed up that you've got wars broken out between the billionaires and the millionaires.
00:16:09.000 So even a millionaire is like $5, $10, $15 million.
00:16:12.000 People who thought they were wealthy a couple of years ago are getting squeezed due to the global credit collapse.
00:16:18.000 So you're seeing like, for example, Goldman Sachs is at war with its own customers.
00:16:23.000 And this was today in today's Bloomberg.
00:16:24.000 Here's an example of this.
00:16:25.000 Goldman was targeted by investor complaints of naked short selling.
00:16:31.000 Investors in a $591 billion high-yield, high-risk loan market are accusing Goldman of naked short-selling to profit from record price declines.
00:16:38.000 At least two fund managers complained that they were victimized by Goldman, for whom they were doing business with.
00:16:45.000 So you've got wars broken out between the millionaires and the billionaires.
00:16:48.000 And they're pushing each other using these credit derivative products and other financial forms.
00:16:52.000 So this is only going to get worse.
00:16:54.000 And then also you hear blue collar folks say, I don't care, I don't own stock, I don't care about some millionaire.
00:16:59.000 They're the ones that buy the products at your shops.
00:16:59.000 Well you better.
00:17:02.000 They're the ones that spend money in the economy.
00:17:04.000 Not the billionaires.
00:17:05.000 They all hoard it on average.
00:17:06.000 It's the millionaires that actually are funding the general public.
00:17:10.000 And so what happens when the IRS is going to scalp the millionaires?
00:17:14.000 What's going to happen?
00:17:15.000 Well, the problem is that the global credit system is so bad screwed.
00:17:21.000 You look at what's called the Baltic Dry Index, which tracks the global shipping industry.
00:17:26.000 Four months ago, it cost something like $150,000 to send a ship from China to America.
00:17:32.000 The price has dropped down to $4,000.
00:17:33.000 It's down something like 98.5%.
00:17:36.000 There's literally stockpiles of grain stacked up in the port.
00:17:41.000 Because all global shipping has come to a halt.
00:17:43.000 Because no one can get a letter of credit to send a ship from point A to point B. Exactly!
00:17:47.000 And Ford and GM can't get letters for the insurance for the parts manufacturers.
00:17:54.000 The insurance on the subcontractors that sell them the parts.
00:17:58.000 So they're coming to an end.
00:17:59.000 Max Keiser, let's talk about it when we get back.
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00:19:01.000 Today, unlike any other in the long course of American history, a terrorist act of war against this country.
00:19:08.000 The enemy struck America on September 11th.
00:19:11.000 But who is the enemy?
00:19:12.000 Bin Laden.
00:19:13.000 This is his M.O.
00:19:14.000 We have to look to the Middle East.
00:19:15.000 We have to look to Osama Bin Laden.
00:19:17.000 Fabled Enemies is the first 9-11 film to take a close look at the terrorist ties to intelligence networks inside the United States.
00:19:24.000 Some U.S.
00:19:25.000 investigators believe that there are Israelis again very much engaged in spying in and on the U.S.
00:19:31.000 I'm aware that some Israeli citizens have been detained.
00:19:35.000 Bin Laden's connections to the CIA, the hijackers' ties to the FBI, the Saudi Arabian connection, the Israeli Intelligence Network, Warnings and War Games, the shadow government, and much, much more.
00:19:45.000 Fabled Enemies.
00:19:46.000 Get the DVD at Infowars.com or see it in super high quality, along with hundreds of other titles at PrisonPlanet.tv.
00:19:54.000 Either you are with us or you are with the terrorists.
00:19:58.000 Alex Jones here with a question.
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00:21:08.000 Let's go ahead and play that CNBC clip with one of the bigwigs on TV saying, yeah, it's the Illuminati.
00:21:15.000 Here it is.
00:21:17.000 At least you're getting back to the point where you can start to look at fundamentals and that's good news.
00:21:22.000 What happened?
00:21:24.000 I think you're in a liquidation phase.
00:21:26.000 I think Kirsten had it exactly right.
00:21:28.000 I think there's a bunch of wrong-footed moves by Hank Paulson and the Illuminati of the country, if you will, and I think we're paying for it right now.
00:21:39.000 We've always, for the last hundred years at least, had a very corrupt Wall Street elite that is engaged in some crime and some skimming and some manipulation, but, you know, is more boss hog-like.
00:21:49.000 This is so virulent, this is so out in the open, they're blowing their whole game.
00:21:55.000 Is it because the elite knows the dollar's dead and they're bringing us into a new world monetary system that they're just going for broke?
00:22:01.000 I mean, why?
00:22:03.000 I've never seen, and I've studied a lot of history, so have you, So, such open arrogance.
00:22:07.000 I mean, that level of chutzpah or arrogance, bravado, kind of shakes me up.
00:22:15.000 Because, I mean, if they'll steal five trillion bucks in a month right in front of you and laugh at you, what are they planning next, Max Keiser?
00:22:26.000 Yeah, well, clearly the U.S.
00:22:30.000 dollar is an endangered species.
00:22:34.000 As such.
00:22:35.000 And I think a devaluation is all but certain.
00:22:40.000 And the question is, there'll be a global devaluation of all the major currencies, and then a revaluation upward for the price of gold.
00:22:52.000 This is exactly what happened in the 1930s.
00:22:56.000 And to discourage profiteering on the gold side, You might see my friend Eric Jansen over at itulip.com thinks that they'll impose like a 90% capital gains tax on gold ownership at that point.
00:23:11.000 So gold, as you know, I'm a big believer in gold and I think you have to own gold as a core investment.
00:23:17.000 I think you need it to protect yourself.
00:23:18.000 But it's not as if the government cannot implement strategies to upset the gold-owning... Yeah, they won't do a 1933 War Powers Act gold confiscation.
00:23:31.000 They'll just slap a 50, 60, 70, 80, 90 percent capital gains tax on it.
00:23:36.000 And folks are like, well, then I better not do that.
00:23:38.000 Well, that's better than just having them devalue it in the bank or have bank holidays.
00:23:41.000 I mean, these people... Yeah, you got it.
00:23:44.000 Yeah, you gotta have a, you know, a strategy.
00:23:46.000 You know, you really have to get a defensive position because I think what these guys are telegraphing is, you know, it's so easy for them to steal so much money these days, I think, that they're telling you that they're coming and they want you to, you know, get in shape and work out and prepare yourself because they want a good fight.
00:24:06.000 You know, it's like those movies you see sometimes where the sadistic millionaire sets the humans out and goes hunts the humans.
00:24:14.000 But he lets them get a head start, because he wants to give himself a little bit of a sport.
00:24:18.000 And I think what these guys like Cash Carrier are telling the American people is, get ready now, because we're coming.
00:24:23.000 Because he knows, he's got the SWAT teams, he's got the military, I mean he's got it all, and he wants you to know, we're going to rape you good!
00:24:31.000 Get ready!
00:24:32.000 We'll give you a head start, and you know, because we want to make this fun for us!
00:24:37.000 Yeah, the destruction of America is so much fun.
00:24:42.000 That's the message that he's saying.
00:24:44.000 I mean, obviously, the fact that the American so-called democracy is toothless in the face of what is obvious tyranny is quite shocking at this point in the country's history.
00:24:57.000 But Max, as you know, Obama will save us.
00:25:01.000 Well, you know, my last time on your show, I'm not hitting the You know, anti-Obama button.
00:25:09.000 I'm holding back on my opinion.
00:25:12.000 I'm going to give the guy a few months in office and then see what happens.
00:25:19.000 You know, I do think that... No, I understand, but I mean, the guy's a puppet.
00:25:22.000 I mean, if he didn't do what they told him, he'd, you know, he'd get a Dealey Plaza visit from the Secret Service instead of guarding him, so we all know that.
00:25:29.000 My whole point is, all these Obamanoids are in for a rude awakening, because there's no course changes here.
00:25:35.000 It's full-scale raping.
00:25:37.000 We'll be right back with Max Keiser in 60 seconds.
00:25:39.000 Stay with us, your call's straight ahead.
00:25:40.000 Thank you for listening to GCN.
00:25:46.000 Yeah, go ahead and leave this on air.
00:25:49.000 We've been live at PrisonPlanet.tv for 30 minutes and I want all the PrisonPlanet.tv listeners out there to be able to tune in and even hear the behind the scenes.
00:25:56.000 John, give me a new call list so I don't get any of these mixed up.
00:26:00.000 Please.
00:26:01.000 I'll type that right now.
00:26:02.000 1-800-259-9231.
00:26:02.000 Okay, thank you, sir.
00:26:05.000 Phone calls for Max Kaiser.
00:26:07.000 Again, for people out there listening, we're not on the AM and FM dial or shortwave or satellite right now.
00:26:13.000 This is prisonplanet.tv viewers and infowars.com, exclusive audio stream listeners.
00:26:17.000 And coming up in about 20 minutes after Max Kaiser leaves us, we boil down from four hours of testimony by the arrogant Kashkari.
00:26:27.000 And by arrogant, oh, thank you.
00:26:29.000 I respect you.
00:26:30.000 Sir, I'm working so hard.
00:26:32.000 But he was just looking at them and the body language was smiling and smirking and just, I don't care.
00:26:36.000 You're a slave.
00:26:37.000 I own you.
00:26:38.000 We boiled it down to the most powerful 30 minutes of four hours.
00:26:43.000 And believe me, it was difficult to cut it down to this because there's so much good stuff there.
00:26:46.000 We've cut out a few of his answers because he kept repeating the same thing over and over again.
00:26:50.000 That's coming up in 20 minutes after Max Keiser leaves us right now.
00:26:53.000 We're going to be taking your phone calls and a host of issues with our guest, Max Keiser.
00:26:59.000 So stay with us, ladies and gentlemen.
00:27:01.000 Here we go.
00:27:11.000 Our guest is Max Kaiser.
00:27:20.000 For the next 20 minutes, Really appreciate him joining us.
00:27:24.000 I want to go ahead and go to your phone calls here in this segment and the next.
00:27:27.000 Mike, David, Kevin, Daniel and many others holding around the country and the world.
00:27:31.000 Don't forget to join us 1-800-259-9231.
00:27:32.000 I do want to squeeze a lot of calls in this.
00:27:37.000 Just have your question or comment ready so we can get to the next person.
00:27:43.000 Any other points you haven't gotten to?
00:27:44.000 I mean, you were talking about the ships aren't moving, 98% reduction, because no one has money or has the credit to even ship the products.
00:27:52.000 Same thing with Ford and GM saying that they can't even get the insurance ratings to have their parts suppliers overseas, these aren't American companies, to ship over here.
00:28:02.000 I mean, it looks like the economy is dead, but the brain's still going to get oxygen for a few minutes, maybe six months more, but it looks like the economy has just come to a standstill.
00:28:14.000 Yeah, it's a zombie.
00:28:16.000 And if you look at countries around the world, it's already happening.
00:28:18.000 Obviously in Iceland, the entire economy, because of banking tricks that went bad, the entire economy went offline.
00:28:27.000 The corona, the Icelandic corona became worthless, and their own life support system from the IMF.
00:28:32.000 30% of the population is trying to emigrate out of Iceland today.
00:28:35.000 30%.
00:28:36.000 Imagine in America, that would be 100 million people.
00:28:39.000 And by the way, Iceland was a wondrous first world nation.
00:28:42.000 Iceland six months ago was considered to be, you know, exactly an example of the New World Order, if you will, to put it into your terms.
00:28:51.000 You know, a shining example of banking as arbitrage of all the banking products that would make everybody rich.
00:28:58.000 No one could immigrate there.
00:28:59.000 I mean, even if you had ten million bucks, it was harder to get into than New Zealand.
00:29:04.000 Yeah, and the whole thing went offline in a matter of weeks.
00:29:08.000 All the savings in the UK, people put their savings in Iceland because they were getting 6 or 7%.
00:29:14.000 All those savings evaporated in one day.
00:29:16.000 The UK government paid off those savers in the UK.
00:29:20.000 Now they're suing Iceland to get the money, as are other countries in Europe and around the world.
00:29:25.000 And by the way, there's not even food on most of the store shelves in Iceland.
00:29:29.000 Just like Argentina, folks, because these bankers can't help it.
00:29:29.000 That's right.
00:29:33.000 You turn the back, they have to stick it in you.
00:29:36.000 It's like a psycho that has to kidnap little kids and kill them.
00:29:39.000 I mean, they just gotta do it.
00:29:41.000 Max?
00:29:42.000 Also, on the gold front, you saw over the weekend that the finance minister in Iran has now officially come out and said that they're moving Most of their 120 billion dollar reserves into gold bullion.
00:29:54.000 That's right, London Guardian, Iran switches reserve to gold report, and that's happening all over the world right now.
00:29:59.000 Central South America moving off the dollar.
00:30:02.000 Meanwhile, the American yuppies are watching football, acting tough, they're delusional, they're stomping around, drinking Kool-Aid.
00:30:09.000 What is going to happen when the American people find out just how bad they've been set up?
00:30:14.000 That's right, Sweeney Todd, the demon barber of Fleet Street.
00:30:18.000 I think I see a lot of yuppie burgers being served at various outlets.
00:30:26.000 In fact, give me the document, Cam.
00:30:26.000 I agree.
00:30:28.000 I want to show folks this London Guardian article.
00:30:30.000 I'm not going to play my video from yesterday.
00:30:30.000 I ran switches.
00:30:33.000 It might be too hot for your show, Alex.
00:30:35.000 No, it's not that.
00:30:36.000 The audio is distorted, but we are going to play it.
00:30:39.000 I just wanted him to... It's a little overdriven, but it's great from what this... Oh, overdriven!
00:30:44.000 Oh, that is code word!
00:30:45.000 That's a code word!
00:30:46.000 I wouldn't expect that from Al Jazeera!
00:30:48.000 Overdriven!
00:30:48.000 No, no, no, no, no!
00:30:49.000 This is from Al Jazeera!
00:30:52.000 This is when you were on Al Jazeera.
00:30:54.000 And, of course, you have a TV show on Al Jazeera, which is, by the way, people say, Al Jazeera, that's Saudi Arabia or whatever.
00:31:00.000 No, folks, this is based out of England.
00:31:02.000 It's like their World Service.
00:31:03.000 Al Jazeera is in Qatar, which has the biggest military base of America outside of the United States.
00:31:08.000 Qatar, Qatar.
00:31:09.000 Qatar, which is where Al Jazeera is, America's ally.
00:31:11.000 Qatar or whatever.
00:31:13.000 I'm always saying it wrong.
00:31:14.000 Okay.
00:31:14.000 Now, you also have... Potato, potato.
00:31:16.000 I should remind you, on November 28th, Alex, it looks like the first episode of The Oracle is going to be on BBC World.
00:31:23.000 And last time I was on your show, I said I was going to invite you.
00:31:27.000 If, in fact, we do the November 28th premiere show on BBC World, it goes out to 180 million people.
00:31:33.000 Max Keiser presents The Oracle.
00:31:35.000 I think I got it hooked up.
00:31:37.000 I can bring you in a satellite, do a little, you know, three or four minute interview.
00:31:40.000 I want it!
00:31:41.000 Let's do it!
00:31:41.000 Please put me on the Oracle, produced by Max Keiser and Alec Baldwin.
00:31:45.000 I couldn't think of anything more exciting.
00:31:47.000 But stay there.
00:31:48.000 By the way, I forgot about your clip.
00:31:50.000 And I'm not afraid to play your clip, but that's a great way to build it up.
00:31:54.000 Max Keiser.
00:31:54.000 MaxKeiser.com.
00:31:56.000 Your phone call straight ahead with our guest.
00:31:57.000 Stay with us.
00:32:01.000 More than 700 chemicals... Now we're going to keep talking.
00:32:04.000 Let me go ahead and talk to Keiser.
00:32:05.000 Hey, Max?
00:32:07.000 Yeah?
00:32:07.000 Yeah, we're on the internet now.
00:32:09.000 No, no, we will come back and play that clip.
00:32:11.000 What, it's about three and a half minutes long?
00:32:13.000 Yeah, not even.
00:32:14.000 It's like three.
00:32:15.000 Two and a half.
00:32:16.000 Let me bring the culprit in.
00:32:18.000 John, we are not making this up.
00:32:20.000 John, it was telling me it was distorted, but I still said we're going to play it.
00:32:22.000 Right, John?
00:32:24.000 Yes, sir.
00:32:24.000 You asked if I had it.
00:32:25.000 I said yes, and I told them that it was a little distorted, but we can definitely play it.
00:32:31.000 315.
00:32:32.000 But that's just whoever loaded it up.
00:32:34.000 Whoever uploaded it.
00:32:35.000 Whoever uploaded it up on there.
00:32:36.000 Well, let's do that.
00:32:37.000 Alex, I don't come in until 35 seconds.
00:32:41.000 So the first 35 seconds you can eliminate.
00:32:43.000 Yeah, it's no big deal.
00:32:44.000 Yeah, go ahead and eliminate and just cut right to Kaiser.
00:32:47.000 Well, you know what?
00:32:47.000 People won't know what it is.
00:32:48.000 Just play the whole thing.
00:32:49.000 Come in with it and play the music and we'll go back to Max Kaiser.
00:32:52.000 And Max, I love having you on.
00:32:53.000 I really appreciate you.
00:32:54.000 And yes, I want to come on your BBC TV show.
00:33:00.000 Yeah, you know, when I was doing my Al Jazeera films two years ago, Alex, not a single media outlet in America would even talk to me.
00:33:09.000 Well, we are, of course, just Alternative Radio, only on about 70 stations, but we are really honored to have you here.
00:33:16.000 I mean, the info you're putting out, the info I'm putting out, I'm telling the audience this, is just getting hotter and hotter.
00:33:22.000 And so that's the exciting thing, is that the bankers think they're getting away with this.
00:33:26.000 I don't think in the final equation they're going to get away with it.
00:33:28.000 What do you say, Max?
00:33:31.000 Well, as long as there's a spirit of freedom burning in the hearts of Americans, then the bankers are going to have trouble.
00:33:37.000 We only have about a minute left before we come back to the full audience, but behind the scenes, tell folks about the specific stock market system that you're the inventor of, because I find that to be intriguing.
00:33:48.000 The virtual specialist technology is a technology that allows for a virtual currency to trade on an exchange, and you can trade virtual securities.
00:34:00.000 And the valuation is tied to something intangible, like awareness.
00:34:05.000 So in the Hollywood Stock Exchange, depending on what people's awareness is of a movie that's going to come out in six months or a year, their trading, buying and selling those securities creates a need to match those orders.
00:34:18.000 And to match those orders in a way where all prices over all securities, the price is consistent, there's price parity.
00:34:24.000 So in the system, the virtual specialist technology is a virtual economy that Prices, thousands of securities simultaneously, within an environment where there is no hard assets, like the New York Stock Exchange, there's still earnings that are tied to profits and cash, etc.
00:34:39.000 This is based entirely on people's awareness, but you still have price parity, so it's a completely fair system within the economy.
00:34:48.000 So that system was sold to Cantor Fitzgerald, who moved the technology to the top floor of the World Trade Towers, Stay there!
00:34:57.000 Stay there!
00:34:59.000 We're about to go live.
00:35:00.000 We'll finish that story.
00:35:01.000 Here we go.
00:35:04.000 It's very precise.
00:35:05.000 This is a very complicated problem and we cannot fix it without some international rules.
00:35:14.000 Notably absent from the summit's final statement, any detailed plan to help troubled homeowners or struggling workers in the developing world.
00:35:21.000 That wasn't expected.
00:35:23.000 But with economists projecting a global recession that could last upwards of two years, one might be justified in asking whether these leaders really feel the urgency of the situation.
00:35:33.000 Rosalind Horton, Al Jazeera, Washington.
00:35:36.000 Well, let's get a European perspective on all of that.
00:35:39.000 Max Keiser is a financial commentator based in Paris and joins us live.
00:35:42.000 Max, positive words there from the world leaders.
00:35:45.000 Will the financial markets be cheering on Monday morning?
00:35:50.000 No.
00:35:51.000 Bush misspoke.
00:35:52.000 He said that the world's economies were hit hard.
00:35:54.000 That's not true.
00:35:55.000 The world's counterfeiting schemes were hit hard.
00:35:59.000 The bond counterfeiting schemes from Wall Street and the City of London were hit hard.
00:36:04.000 The counterfeiting schemes have been exposed.
00:36:07.000 And the problem is that these G20 nations are not willing to get rid of the scoundrels and the criminals who are running the banks and putting in fraudulent, faulty economy.
00:36:19.000 Somebody should issue a frock-rock against Hank Paulson.
00:36:22.000 Someone should issue a frock-rock against Hank Paulson because he's an infidel.
00:36:26.000 This is the Constitution of the United States.
00:36:29.000 He's not obeying the spirit of the Constitution.
00:36:31.000 He's issuing counterfeit money, counterfeit bonds.
00:36:35.000 That's why the global economy is in such a sad shape.
00:36:38.000 The man is a financial terrorist.
00:36:41.000 The hyperbole aside... That's the reality of the situation.
00:36:44.000 That's not the hyperbole.
00:36:45.000 That's not the hyperbole.
00:36:47.000 That's the reality of the situation.
00:36:48.000 That's the reality of the situation.
00:36:50.000 So the solution is what?
00:36:51.000 The solution is what?
00:36:54.000 You have to go into a court of law and take Hank Paulson and Goldman Sachs up for financial terrorism, put them in jail.
00:37:04.000 This is counterfeiting.
00:37:05.000 They're issuing bonds that are absolutely non-collateralized.
00:37:08.000 There's $500 trillion in licenses with no collateral.
00:37:11.000 That may be one response to Hank Paulson, but as far as the international global economy is concerned, we have matters like, should the IMF be reformed?
00:37:19.000 Should countries like China and India have a bigger say in regulation and moderation of the global markets?
00:37:25.000 Did any of these get addressed, and are these the way forward?
00:37:30.000 China, India, Europe, all the banks own Structured financial products sold to them from Wall Street.
00:37:38.000 These are all counterfeit bonds that are exploding.
00:37:40.000 They're worth zero.
00:37:41.000 For example, they have no way of selling these bonds because they have zero value.
00:37:46.000 As a result, they dump oil.
00:37:49.000 And oil, because they're dumping oil to pay for these fraudulent bonds, the price of oil has dropped and these developing nations are suffering.
00:37:56.000 because of this counterfeiting scheme that has zero value.
00:37:59.000 Bush is completely incorrect when he says the global economy is suffering.
00:38:03.000 It's the global counterfeiting scheme that's suffering.
00:38:05.000 These guys are criminals.
00:38:07.000 There should be a fought while against these guys.
00:38:09.000 He's an infidel.
00:38:10.000 Hank Carlson, his head should be bouncing down the Capitol steps.
00:38:13.000 I'm sorry, but that's the reality of the situation.
00:38:16.000 Big Brother.
00:38:18.000 Mainstream media.
00:38:20.000 Government cover-ups.
00:38:21.000 You want answers?
00:38:23.000 Well, so does he.
00:38:25.000 He's Alex Jones on the GCN Radio Network.
00:38:29.000 And now, live from Austin, Texas, Alex Jones.
00:38:33.000 Well, he was speaking, I guess, to the Arabic audience there, though.
00:38:37.000 It's big worldwide.
00:38:38.000 Talking about Fadawas.
00:38:40.000 But no, Ron Paul said here about a month and a half ago they should all be arrested.
00:38:43.000 They are criminals.
00:38:44.000 But they know that they're doing it out in the open, too big to fail, too big to be criminals.
00:38:50.000 Well, either they fall or we fall.
00:38:54.000 Max Keiser, I hadn't seen that clip.
00:38:56.000 I just knew you'd sent it, and so I'd sent it on to the network.
00:38:59.000 Actually, my producer had.
00:38:59.000 Now I know why you wanted it played.
00:39:01.000 That is some powerful stuff.
00:39:02.000 You know, when I go on Al Jazeera or Press TV or BBC or Russia Today.
00:39:10.000 I thought I was getting hardcore on these channels.
00:39:12.000 My God, Max Keiser's like the gold standard of in-the-face, telling-the-truth boldness.
00:39:18.000 I'm actually being put to shame here.
00:39:21.000 I wonder if they'll let me get that wild on there.
00:39:24.000 Well, I want you on the Oracle, Alex.
00:39:28.000 Well, I guess you and Alec Baldwin are the producers of it.
00:39:31.000 You think nobody will get upset if I go on there yelling and screaming, or is this going to be live?
00:39:35.000 This show is going to rip the ball, you know, the cover off the ball.
00:39:40.000 This is going to be the most watched television show in the world.
00:39:43.000 We're going to have 100 million viewers.
00:39:44.000 It goes out to 180 million households.
00:39:47.000 A half-hour show every Friday night.
00:39:49.000 We're going to be talking about all the global banking conspiracies and everything else that people are dying to know about, but they're not being told.
00:39:55.000 Because the mainstream press, even Al Jazeera, is too timid.
00:39:58.000 So Alec Baldwin is into all this stuff.
00:40:01.000 Yeah, he's my co-producer.
00:40:02.000 I've known him for 30 years.
00:40:04.000 And we've been friends for a long, long time.
00:40:07.000 And, you know, we're gonna have a blast.
00:40:09.000 He's gonna be a guest.
00:40:11.000 His friends are gonna be guests.
00:40:12.000 We've got a satellite hookup.
00:40:14.000 November 28th, we're hopefully going to get the first show on the air on BBC World.
00:40:18.000 Well, hey, count me in.
00:40:19.000 You just have the producers or the people doing the legwork tell me where to be, what satellite feed, and hell, if you can't even get a satellite feed in Austin, which I'm sure you'll be able to, it was hard on election day for some other stations I was on, I'll go wherever I need to be to be on that.
00:40:34.000 Yeah, that's cool.
00:40:34.000 I mean, you know, the use of the word FOTWEB, for example, All that means is edict or fiat.
00:40:41.000 I'm saying arrest them.
00:40:41.000 No, I understand.
00:40:43.000 Guilty, guilty, guilty!
00:40:44.000 Go ahead.
00:40:46.000 Hank Paulson and Ben Bernanke issue a FOFLA every day.
00:40:49.000 It's called the U.S.
00:40:50.000 dollar by fiat.
00:40:52.000 The U.S.
00:40:52.000 dollar only has value by Hank Paulson and Ben Bernanke's FOFLA.
00:40:57.000 By the way, you're right about the stock market going down.
00:40:59.000 It's down 85 points today.
00:41:01.000 How far is it going to go down by next February?
00:41:05.000 Well, it's going to go a lot lower in the stock market, because earnings for these companies are going to collapse.
00:41:10.000 Obviously, unemployment is skyrocketing.
00:41:12.000 Citibank just announced 50,000 layoffs.
00:41:14.000 The auto industry is going to collapse.
00:41:16.000 I'm not in favor of bailing out the auto industry.
00:41:18.000 I think it's a farce.
00:41:19.000 Unemployment is going to go to 10%, 11%, 12% at a minimum.
00:41:23.000 And the earnings are going to collapse.
00:41:25.000 These companies are going to trade down.
00:41:28.000 The average yield in a bear market gets to 6% or 7%, which means you're talking $3,000 on the Dow Jones.
00:41:38.000 You know, I want to jam in a few calls.
00:41:38.000 Doesn't look good.
00:41:40.000 The interview's almost over.
00:41:41.000 Time just flies, as I promised to play these highlights of the amazing Kashkari committee hearings last Friday.
00:41:50.000 But I want to go to Mike, David, Kevin, Daniel, Rob.
00:41:52.000 Guys, just ask one question of Kaiser quickly, please, because I want to get you on.
00:41:56.000 Mike, in California, you're on the air.
00:41:57.000 Go ahead.
00:41:58.000 Only one question, huh?
00:42:01.000 Go ahead.
00:42:02.000 Only one question, Alex?
00:42:04.000 Oh, man.
00:42:06.000 Um, let me pick my best one.
00:42:09.000 Just ask them all over to spend time and figure out which one to ask.
00:42:12.000 Go ahead.
00:42:14.000 Sorry about that, Alex.
00:42:15.000 No, no, don't be sorry.
00:42:16.000 I'm sorry I don't have enough time.
00:42:18.000 Hell, hell, I'll just skip playing the Clemson plan tomorrow.
00:42:21.000 We've got plenty of time.
00:42:22.000 Go ahead.
00:42:22.000 Yeah, just sit back and hear the questions.
00:42:26.000 Alright, well, okay, with the fires occurring in California, and all these people losing their homes and whatnot, will their insurance companies be able to cover them?
00:42:37.000 Oh, no.
00:42:38.000 I mean, in the short term, perhaps.
00:42:39.000 But look, the insurance companies are, part and parcel of this global credit crunch.
00:42:45.000 They're running out of money.
00:42:46.000 Even Warren Buffett, you know, his stock is down 50% this year.
00:42:48.000 He's a big insurer.
00:42:49.000 Look, what happened is they took the cop tuitions, the police, the teacher, retirement funds.
00:42:57.000 It was all invested in derivatives.
00:42:58.000 The bankers stole it all.
00:43:01.000 Yeah, or, you know, the thing is that if, in fact, by some stroke of luck, you do get some insurance money on this disaster, your rates are going to be skyrocketed the next quarter, so you won't be able to afford insurance anymore going forward.
00:43:13.000 Just like in Katrina disaster, everyone can't afford flood insurance in New Orleans anymore.
00:43:19.000 The rates were jacked up.
00:43:20.000 So the rates for insurance are going to go a lot higher with every single one of these disasters.
00:43:25.000 So the insurance industry, which is the backbone of capitalism, is going out of business.
00:43:29.000 Yeah, look, down the road, folks, you're not getting your Social Security, you're not getting your insurance.
00:43:34.000 All you're getting is a forced labor camp, unless we throw these people out.
00:43:38.000 Mike, anything else?
00:43:40.000 Okay, I guess I'll ask this question for you, because I want to try to squeeze in some for both.
00:43:45.000 For you, Alex, do you think that it would be easy for the police state to confiscate guns from people, as it was for them in New Orleans?
00:43:55.000 No, because they had a... Well, I mean, listen, I'm going to let you go.
00:43:58.000 I appreciate the call, Mike.
00:43:59.000 You can call back later with other calls if you want tomorrow or so.
00:44:02.000 That was an isolated incident.
00:44:03.000 They had the cover of the disaster to do it.
00:44:05.000 It was a beta test, a laboratory test, to see if they could do it and how it would sell to the public.
00:44:10.000 It didn't go well for them.
00:44:11.000 They're just going to do stuff like turn the money off, let everybody riot, then the public will beg to turn their guns in.
00:44:17.000 Max Keiser?
00:44:19.000 Yeah, agreed.
00:44:19.000 I have an idea for America, okay?
00:44:22.000 Start a new 12-step program.
00:44:24.000 It's called Goldman Sachs Anonymous.
00:44:27.000 Everyone gets together in a church basement, and they go the 12 steps of Goldman Sachs Anonymous, then we are powerless over Goldman Sachs.
00:44:35.000 Now, it sounds a bit glib, but on the other hand, it's a way for people to reach out to their neighbor, because one thing that's going to get people through this crisis is it's going to be neighbor to neighbor.
00:44:44.000 So, get to know your neighbors.
00:44:45.000 Get to know the people around you, because that's going to be key to your survival, I think.
00:44:51.000 And, I mean, it could bring people together, unfortunately, in a crisis, but generally that's what happens.
00:44:56.000 Absolutely.
00:44:56.000 Let's go to one more caller here.
00:44:59.000 David in Michigan.
00:45:00.000 You're on the air with Max Keiser.
00:45:02.000 Great discussion, guys.
00:45:03.000 One question, I'll be brief with it.
00:45:05.000 Because China owns so much of our treasury bills, the trade deficit is so high, what role do you think that China's going to play in this post-economic meltdown?
00:45:15.000 I mean, Alex, you know as well as I do that this country is New World Order's dream.
00:45:19.000 They'd love to run every country like this.
00:45:21.000 I mean, after all of a sudden, Donald Trump, are we going to be slaves to the Chinese Empire?
00:45:25.000 I think this is going to hurt the Chinese as well.
00:45:27.000 I think they're going to have their hands full there.
00:45:28.000 I mean, most economists say if China ever gets down to 7% unemployment, they'd melt down.
00:45:36.000 Or if their growth drops to 6%, they're dead meat.
00:45:39.000 Max Keiser?
00:45:41.000 Who took the Bank of China public two years ago on the biggest IPO in the history of the world?
00:45:47.000 Answer?
00:45:48.000 Goldman Sachs.
00:45:50.000 Okay, Goldman Sachs.
00:45:51.000 Hank Paulson is there.
00:45:52.000 He made something like 14 trips to China during his last year at Goldman Sachs.
00:45:56.000 He is completely in China's pocket.
00:45:58.000 That's right.
00:45:59.000 He was the Goldman Sachs guy.
00:46:00.000 That was his first big job there decades ago, was Goldman Sachs' minion in China.
00:46:05.000 You know, his first big job was he was working for Richard Nixon in Washington.
00:46:10.000 And he was definitely with China.
00:46:12.000 They've got that huge IPO.
00:46:14.000 And, you know, I think that China has said that they're transitioning out of dollars into gold as well.
00:46:21.000 They have to be careful because they... Well, Cheney got out of dollars two years ago.
00:46:25.000 I mean, everybody's moving to Dubai, I guess.
00:46:28.000 Why is Dubai, Max, the place to be for the elites?
00:46:31.000 No extradition law.
00:46:34.000 There goes your answer.
00:46:35.000 You know, we're going to talk behind scenes just for the internet audience and then let Max Keiser go because I've got to air at least most of this 30 minutes and tomorrow I'll air more and comment on it.
00:46:43.000 But I promised I had people come in and edit this four hours down to 30 minutes so that is coming up.
00:46:47.000 So we appreciate Max Keiser joining us, MaxKeiser.com.
00:46:50.000 That's it for the full interview.
00:46:51.000 We'll talk for four minutes behind the scenes and come out with the audio clip.
00:46:55.000 Here we go.
00:46:58.000 Okay, Max, again, let's take a few more calls here.
00:47:01.000 Kevin, in New York.
00:47:02.000 Kevin, you're on the air with Max Keiser.
00:47:04.000 Go ahead.
00:47:08.000 Come on, Kevin.
00:47:09.000 Earth to Kevin.
00:47:11.000 Yes.
00:47:11.000 Go ahead, you're on the air.
00:47:13.000 This is with regards to the conversation they had with Valente a little earlier ago and how the government is consolidating and the command and control type thing.
00:47:24.000 And I'd just like to reference that in terms of a new article by Naomi Klein in Rolling Stone, in the New Chalk, and she refers to the Bank of New York Mellon as being the kind of general contractor for the bailout.
00:47:36.000 So, you know, just two images here.
00:47:39.000 One is that the government is consolidating the corporations, and the other is that the corporations are consolidating or privatizing the government.
00:47:46.000 And your comments, and I'll take them off air.
00:47:48.000 It's just a mass raping.
00:47:50.000 I mean, government, corporations at the top, it's all one animal, and it's just total booty.
00:47:56.000 It's total just grabbing, stealing, gobbling, laughing, giggling.
00:48:00.000 It's just Nero-esque insanity.
00:48:02.000 Max Keiser?
00:48:04.000 Well, it's balance sheet consolidation, you know.
00:48:06.000 For example, when Bear Stearns blew up, the fact is that Bear Stearns wasn't the problem case.
00:48:12.000 J.P.
00:48:12.000 Morgan was the problem.
00:48:14.000 J.P.
00:48:14.000 Morgan had unbelievable amounts of Derivative contracts with no counterparty able to satisfy.
00:48:20.000 And so what they did was they blew up Bear Stearns to get rid of the counterparty that can make claims against J.P.
00:48:26.000 Morgan.
00:48:27.000 Morgan assassinated Bear Stearns for their own good.
00:48:27.000 J.P.
00:48:31.000 That company was assassinated.
00:48:33.000 That's what a lot of experts... You see a lot of this consolidation of balance sheets in the banking industry.
00:48:38.000 So Bank A goes to Bank B and says, oh, we've got these risks, you've got those risks, these assets.
00:48:43.000 You know, when I was working on Wall Street, we used to do a thing called swapping dead books.
00:48:46.000 So, if I'm a broker and I work in one brokerage firm, and I've blown up a lot of customers, I can go across the street to the broker of the other brokerage firm who's blown up a lot of customers, and we swap each other's blown-up customers.
00:48:57.000 Then I call up his blown-up customers and I say, hey, you know, I got a great stock tip for you.
00:49:01.000 I already know his name, his brokerage account, his social security number, and I know what stocks he's owned, and I know how much he's lost.
00:49:08.000 And I can just put into my pitch, well, I think you could make X amount of money, and I hope you didn't buy this other stock last year.
00:49:13.000 That was last year's loser.
00:49:15.000 And meanwhile, this broker who I swapped dead books is doing the same thing at his firm.
00:49:19.000 So now you're seeing banks do that with each other.
00:49:21.000 They're swapping each other's dead clients and dead bonds for fees, and it's just another chapter in this huge Ponzi scheme.
00:49:29.000 And the government's going to come out and scalp the public to feed it to the bankers who sit there like 800-pound children gobbling our society.
00:49:37.000 Daniel in Texas, last caller for Max Keiser.
00:49:44.000 These callers are really taking their time today.
00:49:46.000 Daniel, go ahead.
00:49:47.000 They're in shock!
00:49:50.000 I would like to ask Mike Kaiser, why are the guys trying to destroy the middle class and at the same time trying to give us this massive superhighway?
00:49:59.000 Who's going to be buying all the goods that they ship in?
00:50:02.000 Well, after they consolidate everything, they'll start the economy back over again.
00:50:07.000 They want to tax all the roads and those will be multinational corridors, Mr. Kaiser.
00:50:12.000 Right, but the toll booths on those roads are not going to be owned by Americans.
00:50:15.000 And Americans spent generations building an infrastructure, roads, bridges, and tunnels.
00:50:19.000 And they should get the fees on the tollbooths, but those tollbooths are being sold to our foreign creditors in China.
00:50:25.000 Hey, we're out of time, Daniel, and I'm sorry to Rob and George and everybody else.
00:50:28.000 Call back next time Kaiser's on.
00:50:30.000 You'll go to the head of the line.
00:50:31.000 MaxKaiser.com.
00:50:35.000 I want to really thank you for having me on the show, and you've got my office number or Trey's email if you want me on that 28th.
00:50:42.000 And if I can't make it for that, or if you can't have me on then, I'll be glad to come on to the second one or whatever.
00:50:47.000 And thanks for spending time with us, Max.
00:50:50.000 Thanks Alex, great show.
00:50:51.000 Appreciate you coming on.
00:50:52.000 MaxKaiser.com, take care.
00:50:55.000 Alright, there goes Max Kaiser from Paris, where my wife wants to move, where we never will move.
00:51:00.000 Alright, here we go.
00:51:05.000 Okay, we're going to go ahead and go for this segment for the rest of the show, with 30 minutes.
00:51:12.000 We may not even get to all of this.
00:51:15.000 Yeah, I really should just play this tomorrow and then stop and comment on it, because there's so many facets to it.
00:51:20.000 But this is Kashkari being grilled.
00:51:24.000 This is only 30 minutes of four hours of the hearings last Friday.
00:51:27.000 Tomorrow I'm going to play some more of this in the end of it, and then comment more on it.
00:51:31.000 But here it is, ladies and gentlemen, so stay with us.
00:51:35.000 Now, I heard your testimony, and I have to say that I'm a little bit surprised because
00:51:45.000 It appears that testimony was prepared before Mr. Paulson's statement about the purposes of the Troubled Asset Relief Program and the Secretary's decision not to purchase mortgage assets through his decision.
00:52:07.000 Hasn't Treasury rendered obsolete entire sections of the Emergency Economic Stabilization Act Because there was no question about congressional intention that Treasury use an asset purchase program to mitigate foreclosures.
00:52:25.000 Do you have a response to that?
00:52:27.000 We worked very hard with both houses of Congress to design the legislation to provide a lot of flexibility.
00:52:34.000 And we and the other regulators are using every tool at our disposal to get at this problem.
00:52:40.000 Stabilizing the financial system as well as helping homeowners.
00:52:44.000 And Secretary Paulson and Chairman Bernanke and Treasury, we have been looking at how do we deploy these resources to first stabilize the system so that we can get credit flowing to the entire economy, to our communities.
00:52:56.000 And so Secretary Paulson made the determination that the best way to get at this problem, given how rapidly markets were deteriorating, was to lead with capital.
00:53:05.000 But that doesn't mean that we don't care about other aspects that are very, very important.
00:53:10.000 We're trying to use the right tool to solve the right problem.
00:53:12.000 Well, it would appear, Mr. Kashkari, that Secretary Paulson has gutted Section 109 of the Act, which requires Treasury to undertake specified steps to mitigate foreclosures with respect to the mortgages it acquires, including working with other federal regulators to directly identify troubled assets to acquire to further loan modification efforts.
00:53:39.000 How do you reconcile this policy reversal with Congress's expectations laid out in the statute?
00:53:46.000 Congressman, there are other sections of the Act, as an example, that direct other government agencies, whether it's FHFA in its conservatorship of the GSEs, FHA, the Federal Reserve, to the extent that they own or control mortgages to take action.
00:54:02.000 So let me give you an example, Congressman, because this point is very important.
00:54:05.000 If we had spent all 700 billion dollars buying loans, that would be around three million loans or so, depending on the value of the loans, but around three million, three and a half million.
00:54:17.000 Instead, if you look at the actions that we took on Tuesday, by using the GSEs to now set a new industry standard for loan servicing, when the GSE set a standard, other servicers around the country use that standard, whether it's for GSE loans or for other loans, those actions and that protocol It has the ability to influence servicing for almost every loan in America.
00:54:40.000 There are 55 million residential mortgages in America.
00:54:43.000 It could touch 3 million or 55.
00:54:45.000 Sir, it has the ability, but the problem is that Treasury, by taking this action that de-emphasizes loan modification, has essentially sent a signal to all the banks that this isn't particularly what you're concerned about.
00:54:59.000 I mean, even though you may maintain, oh, this is in there.
00:55:02.000 I've got the act.
00:55:03.000 Here's the purposes.
00:55:04.000 I want to spell them out.
00:55:05.000 The purposes of the act are, and number two, to ensure that such authority and facilities are used in a manner that protects home values.
00:55:13.000 And then it goes on to section B, preserves home ownership.
00:55:18.000 Now the Treasury just basically cut that out of the bill.
00:55:22.000 And what we have here is a situation where banks are hoarding the money, That they're getting from the TARP.
00:55:32.000 They're using the money to purchase other bags.
00:55:35.000 We still have a credit freeze.
00:55:36.000 I'm looking at your testimony.
00:55:37.000 You're saying credit markets were largely frozen, denying financial institutions, businesses, consumers access to vital funding and credit.
00:55:45.000 Financial institutions were under extreme pressure.
00:55:49.000 Investor confidence in our system was dangerously low.
00:55:52.000 Hello?
00:55:53.000 Are we in a different universe here?
00:55:54.000 The same situation prevails today!
00:55:58.000 And yet, your testimony Acts as though, well, you know, we're just merrily skipping along our way here.
00:56:04.000 We've got millions of people threatened with losing their homes.
00:56:08.000 And the underlying problem is that banks are now increasing their interest rates in order to get more customers.
00:56:14.000 Think about this now.
00:56:15.000 It's counterintuitive to your troubled asset relief program.
00:56:19.000 You're now saying we're going to put the money into the banks.
00:56:23.000 Into these financial institutions.
00:56:25.000 Shore up finance capital.
00:56:27.000 Well, finance capital now is seeing that the only way they can survive is to start to raise their interest rates and give away some of the money that the government's giving to them.
00:56:36.000 At the same time, you're picking winners and losers.
00:56:39.000 How do you reconcile these policy reversals?
00:56:44.000 And why won't Treasury act swiftly and forcefully to maximize the system?
00:56:51.000 We're on the march.
00:56:52.000 The empire's on the run.
00:56:55.000 Alex Jones and the GCN Radio Network.
00:57:02.000 Hello, I'm Steve Schenck.
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01:00:00.000 I'm going to chase the sky forever With the woman and the stallion and the wind
01:00:25.000 And the sun is gonna burn into a cinder Amen.
01:00:33.000 At the same time, you're picking winners and losers.
01:00:36.000 How do you reconcile these policy reversals?
01:00:41.000 And why won't Treasury act swiftly and forcefully to maximize assistance to homeowners under TARP and play a significant role in modification of home loans at risk of imminent default?
01:00:53.000 Why not?
01:00:54.000 Congressman, I personally have spent most of the past year and a half focused on ways to try to reach and help homeowners.
01:01:01.000 That's been my That's the primary focus within Treasury.
01:01:06.000 Hasn't the Secretary listened to you?
01:01:09.000 Do you feel frustrated that your position isn't being vindicated?
01:01:13.000 Congressman, the Secretary is passionate about this as well.
01:01:16.000 Passionate about what?
01:01:18.000 Helping homeowners, Congressman.
01:01:21.000 He is?
01:01:21.000 Where?
01:01:22.000 What country?
01:01:23.000 Congressman, we are using all the tools available to the federal government to get at the credit crisis and try to help homeowners.
01:01:30.000 Let me give you an example, please.
01:01:32.000 We have different tools.
01:01:34.000 Mr. Kashkari, I really respect you being here, but I'm looking at a bill, section 109, that spells all this out.
01:01:40.000 The Secretary just essentially took some scissors and cut it out and threw it away.
01:01:46.000 Now, you know, maybe this is just some kind of a game to some people in the administration.
01:01:49.000 They're on their way out of office and they just feel they can do whatever they want, pick winners and losers in the market.
01:01:54.000 We've got millions of people losing their homes.
01:01:55.000 Mr. Issa came to my district And saw some of our old neighborhoods, how they're just falling apart.
01:02:02.000 And we've got people that are holding on, hoping against hope that somebody's going to help them.
01:02:06.000 We've got millions of people in foreclosure and, if I read it right Mr. Issa, in California there are millions more at risk of foreclosure with these jumble mortgages and the Alt-A mortgages in 2009 and 2010.
01:02:18.000 And all of a sudden the Treasury sent a signal to the banks, forget about it!
01:02:22.000 We're going to give you the money that you want and you do what you want with it.
01:02:25.000 Unless you directed Specifically, it's not going to happen.
01:02:29.000 So tell me again, why isn't it happening?
01:02:33.000 Not how passionate the Treasury Secretary is.
01:02:37.000 Congressman, I believe it is happening.
01:02:38.000 If you'll permit me, I'll walk you through.
01:02:40.000 Please go ahead.
01:02:42.000 The four banking regulators, the Treasury is not a regulatory agency.
01:02:45.000 The banking regulators supervise the banks that are getting this capital.
01:02:50.000 The four banking regulators put out a joint statement that's going to govern how they supervise these banks.
01:02:55.000 One of the things that they're going to be looking very closely at and watching Not just executive compensation, not just dividend policies, making sure lending is getting out there in our communities, and foreclosure mitigation efforts.
01:03:06.000 The banking regulators are the supervisors of these institutions, and they've now put out a joint statement saying exactly what they're going to be looking at in their supervisory capacity.
01:03:15.000 There is no one better positioned in the country than the banking regulators to do that.
01:03:20.000 Treasury's not in a position to do that, but the bank and regulators absolutely are.
01:03:23.000 We've done numerous, had numerous initiatives to try to get at the root of this problem.
01:03:27.000 But the most important benefit, Congressman, for homeowners is that we didn't allow the financial system to collapse.
01:03:32.000 Imagine how many foreclosures we would have If the banking system had collapsed and mortgage finance was not available to our homeowners.
01:03:39.000 That's the biggest benefit that we've been able to achieve.
01:03:42.000 Chairman, we are not out of the woods yet, and I didn't mean to suggest that in my testimony, but I can walk through numerous statistics looking at the beginning of a healing credit market, which is the first step to getting through this problem.
01:03:52.000 Well, maybe, you know, see again, this might be a philosophical divide here.
01:03:58.000 Because on one hand, the Bush administration and Treasury seems to indicate that Uh, the trickle-down effect, give the money to banks and they're going to loosen up money and credit and they're going to start to flow and people are going to be protected.
01:04:09.000 On the other hand, there's another model which says, create a system where you, where you get pools of mortgage-backed securities the government takes control over and you direct loan modification, you know, lowering interest, lowering principal, extending the terms of payments to keep people in their home.
01:04:26.000 One model may keep several big banks afloat, But risk millions of people losing their home anyway, and the other model keeps people in their homes.
01:04:35.000 See, you're talking about an IFCOM model that's based on the charitable sentiments, seemingly, of major Wall Street banks.
01:04:44.000 But the truth of the matter is, if you don't get the money into the grassroots and help on loan modification, the banks aren't going to get their money to begin at the end anyhow, because, you know, one model percolates up.
01:04:55.000 Money goes to the banks, help move money on Wall Street.
01:04:57.000 The other one, you have this idea of some kind of trickle down.
01:05:00.000 A trickle never gets down.
01:05:01.000 Everybody understands that.
01:05:02.000 And yet Treasury seems to cling to this notion that if only, you know, the regulators now do their job.
01:05:10.000 Are you kidding me?
01:05:11.000 I mean, regulators...
01:05:13.000 Look, Treasury's been given almost omnipotent power here.
01:05:17.000 And you have, unfortunately, you know, not exercised in the interest of homeowners.
01:05:22.000 Do you believe that Congress would have passed the EESA if it understood that none of the TARP funds would have been earmarked for asset purchase and subsequent mortgage loan modifications?
01:05:32.000 I mean, this looks like classic bait-and-switch, Mr. Issa.
01:05:37.000 Thank you, Mr. Chairman.
01:05:37.000 Mr. Kashkari, I appreciate that you were in on those negotiations with leadership.
01:05:46.000 The majority of Republicans voted against it once and twice.
01:05:51.000 Mr. Kucinich wasn't in the meeting where Secretary Paulson came in with the Vice President and Fed Chairman Bernanke.
01:05:58.000 And made all these assurances that there was absolutely a critical, immediate need to get rid of the corrosive derivative products.
01:06:09.000 You know, all the different names for this, you know, ubiquitous, you know, uh, sub S retraded credit default swap, blah, blah, blah, blah.
01:06:19.000 Okay.
01:06:20.000 But they, they talked about them as though they knew what the hell they were.
01:06:25.000 You got the money and you immediately said, what items?
01:06:30.000 What auction?
01:06:32.000 Would you please respond to under oath?
01:06:36.000 When did you go from what you told members of Congress in open and closed sessions was the absolute reason to have this money immediately to buy a specific group of assets, about $350 billion in the U.S., about $350 billion held by other countries and other funds outside the U.S.?
01:06:56.000 Those assets were what you said was locking up and destroying the market.
01:07:01.000 When did you first hear that that money was not going to be spent that way?
01:07:06.000 Congressman, the day on October 3rd, the day that the Congress passed and the President signed the legislation, we immediately created several policy teams developing asset purchase programs, all the details, both mortgage-backed security... Now, that wasn't the question.
01:07:22.000 No, I'm... I want to know the time and date because I want to know whether Congress was lied to or whether there was a team all along that had an alternate, one or more people, that had an alternate idea of how this money would be spent.
01:07:37.000 Congressman, forgive me, on October 3rd, we created a team.
01:07:41.000 No, no, that's not answering the question.
01:07:43.000 And here's the reason I'm asking a very directed question.
01:07:46.000 You can create the team, you can put together all that.
01:07:49.000 You know, look, people, you know, Circuit City, and I sold them for 20 plus years, so I'm very sensitive to the trouble they're in.
01:07:58.000 Circuit City announced that they were closing 155 stores and began that process.
01:08:02.000 They never announced they were filing Chapter 11.
01:08:05.000 But all of us looked and said, look, they're not going to renegotiate walking away from 155 leases without a bankruptcy.
01:08:12.000 So in our minds, we knew, you know, it's a question of time.
01:08:15.000 Well, they don't tell you one thing, they do tell you another.
01:08:19.000 You never, in any good faith, explained why You formed these organizations and now you say it's hopeless and impossible to buy these products that were the entire reason.
01:08:31.000 You can't have the success for doing something different than you said without explaining why you didn't buy one of those assets.
01:08:38.000 And when did somebody figure out, by date, When did you first learn that we were not going to buy these assets because we couldn't value them properly?
01:08:47.000 First of all, Congressman, it's not a question of our ability to value them.
01:08:52.000 The decision was made by Secretary Paulson very recently, as early as earlier this week, late last week.
01:08:59.000 Secondly, it has been said that your purchases of $250 billion plus of preferred stock Is at a price that would not be market competitive, meaning you paid too much.
01:09:16.000 Tell me why I'm to believe for a minute that those preferred stocks that you bought, you could resell today for anything close.
01:09:26.000 Remember, the market has improved.
01:09:27.000 You've said that.
01:09:29.000 Tell me what the profit would be on those preferred stocks if you began putting even $1 of them into the market today.
01:09:36.000 Congressman, I don't know what the price would be.
01:09:38.000 Okay, well, you're from Goldman Sachs.
01:09:40.000 I used to work there.
01:09:41.000 Okay, well, I'm from Directed Electronics.
01:09:44.000 You're from your last job.
01:09:47.000 If you tell me that you've improved the market, then by definition, those assets, if bought at par, have appreciated.
01:09:55.000 Isn't that true?
01:09:57.000 Well, there are many, again with deep respect, Congressman, there are many different markets.
01:10:01.000 There's the equity market, there's the credit markets.
01:10:03.000 I think there are strong signs.
01:10:04.000 I can walk you through data showing the credit markets improving.
01:10:07.000 The equity markets, we purchase equity.
01:10:10.000 You purchased a debt instrument.
01:10:12.000 Well, it's tier one capital, Congressman.
01:10:15.000 You know, we can go ring around the rosy here, but you're here today because Congress is feeling that you You've played a bait-and-switch game, and you're not convincing anyone that you haven't.
01:10:26.000 But let's just try to go to the fundamentals.
01:10:29.000 You bought preferred stock.
01:10:31.000 Preferred stock is a dead instrument.
01:10:31.000 Yes, sir.
01:10:33.000 You're capitalizing the company, but you're capitalizing with a dead instrument.
01:10:37.000 Those instruments trade.
01:10:39.000 I have BB&T.
01:10:40.000 I have a number of dead instruments of that sort.
01:10:47.000 They have, in fact, appreciated from the time you bought till today.
01:10:52.000 In various portfolios.
01:10:54.000 So I'm looking at those and I'm following a lot more of those kinds of instruments.
01:10:59.000 They have appreciated.
01:11:00.000 So my question to you today, under oath, as someone who should know about this is, are your purchases above par today in your opinion?
01:11:12.000 Candidly, Congressman, I don't know.
01:11:13.000 We have independent valuation firms that are going to provide regular reporting on the current valuations.
01:11:18.000 Regular reporting starting when?
01:11:20.000 You're here today.
01:11:20.000 Do you have any regular reporting from the day you bought them until today?
01:11:24.000 We've published the reports to the Treasury website within 48 hours of completing the transactions on the terms, and then we're, right now we're in the process, just yesterday, the equity asset manager solicitations concluded, and we've received I think hundreds of proposals.
01:11:39.000 We'll be engaging the equity asset managers Who will be providing us the valuation services and the reporting to the Congress on a go-forward basis?
01:11:46.000 Well, wouldn't it be reasonable for us to believe here today that if, in fact, you have improved the market, that those assets that you purchase, we'll call them equities since they're a hybrid, have appreciated?
01:12:03.000 I think they'd be reasonable relative to the day that we bought them.
01:12:06.000 So if we find out on the next report, which I hope is forthcoming and we will be looking for it, that they are below par, then in fact you paid too much, right?
01:12:17.000 Well, again, it depends, Congressman, what our objective was.
01:12:20.000 Our objective was to create a program that would encourage Thousands of banks across our country to voluntarily apply and to use the capital.
01:12:29.000 And so we intentionally made it attractive for them to want to apply.
01:12:32.000 So you believe here today that you had authority to subsidize banks, including providing them this capital at a below par, a below fair market of a market that should have existed but didn't exist.
01:12:46.000 Well, Congressman, as you know, the market when we did this There was no market.
01:12:51.000 Most banks couldn't raise private capital.
01:12:54.000 But we're in a better market today.
01:12:56.000 One of the reasons for the question is you've thrown $350 billion, including AIG and so on, out there.
01:13:02.000 You're coming back for another $350 billion.
01:13:05.000 If in fact what we discover, and I believe here today, Is that your $350 billion, and let's just look at $250 billion, we'll leave AIG, which is a whole other can of worms, aside.
01:13:18.000 If that money, in fact, is a subsidy arriving at a price below the fair market price, thus causing banks to choose you, including banks in my district, choose you instead of other capital, all you've really done is give them a discount capital.
01:13:34.000 Now, the reason I ask that is, how large is the capital base necessary for the banking industry in America?
01:13:40.000 Do you have any idea?
01:13:43.000 Isn't it about 55 trillion, plus or minus?
01:13:46.000 In terms of assets or capital?
01:13:48.000 The size of the market, if you will.
01:13:51.000 That sounds about right.
01:13:53.000 So you'd have to put several trillion dollars in to be the owner, if you will, of that base, even with the multiple.
01:14:03.000 So the reason I'm asking all this, and I know I've got to yield back, I've extended my time and just follow up one last time, if all you're doing is moving
01:14:14.000 Your money in at a discount to banks and entities like American Express and GMAC and everybody else who's rushing to become a bank holding company today as a result of this deal, then at the end of the day we will have bought stock at too high a price or debt at too low an interest rate, however you want to look at these preferred instruments, and we will have moved people to other capital
01:14:39.000 where they can get the returns they want because you're competing at a price that the market wouldn't accept the loans.
01:14:45.000 You're giving them a deal that distorts the market.
01:14:47.000 Isn't that true based on your background at Goldman?
01:14:49.000 Well, Congressman, when you have a market that is dysfunctional, any deal that we would put in because we'd be the only provider of capital would by definition be better than the non-available capital in the middle of a crisis.
01:15:01.000 So yes, we did offer attractive terms to stabilize the market.
01:15:04.000 Mr. Chairman, I might note that Warren Buffett weighed into this with billions of dollars.
01:15:09.000 Wells did a deal.
01:15:11.000 There have been dollars done.
01:15:13.000 But those dollars, I believe, are not coming in until the United States quits subsidizing in competition to private sector dollars that would ask for a better return, and undoubtedly would say that dividends and excess compensation would have to be curtailed until they were getting their returns.
01:15:34.000 I thank the gentleman, and there was a reason why I I voted with the gentleman twice on this same question, the bailout.
01:15:44.000 We now recognize for a period of ten minutes, Mr. Cummings of Maryland.
01:15:48.000 Mr. Cummings, you can proceed with your question.
01:15:50.000 Thank you very much, Mr. Chairman.
01:15:52.000 Mr. Kush, Kerry, I must say that as I have sat here listening to your answers, I have been disappointed.
01:16:04.000 I think that You have kind of skipped around the issues here and I say that because when I saw pictures of you, I thought, you know, I said this looks like a guy that'll be a straight shooter.
01:16:20.000 So I'm going to ask you some questions, sir.
01:16:24.000 And I don't say that trying to embarrass you.
01:16:26.000 I say it because life is short and I don't have time to hearing around the rosy answers.
01:16:35.000 Let me go back to something that the Chairman said.
01:16:37.000 He talked about how, whether you understood that when foreclosures take place, he said, he asked you, did you realize that it also affects the housing in the communities?
01:16:52.000 In other words, you sell a foreclosed house, it's lower price, price value goes down.
01:16:58.000 Let me ask you this follow-up question to that.
01:17:00.000 You also understand That when price value goes down, local government is affected because it's based upon the tax dollars are based on that.
01:17:11.000 And it just goes on and on and on.
01:17:13.000 So it's a very serious problem that we are dealing with here.
01:17:18.000 Do you, and I guess what I'm, I always, every time I sit in these hearings, I always try to put myself in the position of my constituents who are watching this.
01:17:30.000 Because when I come home, hopefully I'll get home about 3 o'clock today, I live in the inner city of Baltimore, and believe me, when I go to the supermarket tonight, when I go take my daughter to the movies this evening, I promise you people are going to ask me about you.
01:17:47.000 And what they're going to say is, Cummings, we watched the hearing, we heard that guy, Cash Carey, but I'm losing my house today.
01:18:01.000 And they're going to ask the question.
01:18:02.000 They're going to say, well, we heard about the Citigroup thing where I've got to be three months behind before I can get help.
01:18:11.000 And we heard that guy, Kashkari.
01:18:12.000 We know he's in charge of the $700 billion.
01:18:15.000 What can he tell me today?
01:18:18.000 I do not want a handout.
01:18:20.000 I just want a hand.
01:18:22.000 I want to pay my mortgage.
01:18:23.000 I just need a little help because this Bush administration And his policies has put me in a position where I don't have a job.
01:18:34.000 Or I'm now working a part-time job.
01:18:38.000 Help me, did I miss something, Cummings?
01:18:41.000 What can Mr. Kashkari, did he say something to help me know how I can help my family?
01:18:48.000 That's what they're asking.
01:18:49.000 They are in pain.
01:18:51.000 Now I'm giving you your, you're on TV.
01:18:54.000 You're the man.
01:18:55.000 I don't know how much we're paying you, but you're our employee.
01:19:01.000 And I'm asking you to look in the camera, somebody back here, and tell those people what you are doing.
01:19:06.000 They hear about the bailouts of Wall Street.
01:19:10.000 They hear that their tax dollars are being paid to AIG and these people going on these junkets and all that.
01:19:16.000 They hear all of that.
01:19:19.000 But they feel like it's ring around the rosy.
01:19:21.000 They hear a lot of nice talk, But they're still being put out of their houses.
01:19:27.000 They hear Paulson get up and talk about all this wonderful stuff, but they still are worried about whether they're going to come home and all of their furniture is going to be on the street.
01:19:38.000 Those are the people that I represent.
01:19:41.000 So I'm begging you to please tell me exactly what is being done.
01:19:47.000 And then I want you to do something else.
01:19:50.000 With Fannie Mae, Announcing Monday that it had lost twenty nine billion dollars and you talked about all the wonderful things that Fannie Mae is going to do.
01:19:59.000 I'm wondering how that affects, I know we got a hundred billion that can go into their coffers, but how does that affect them helping that guy that I just talked about?
01:20:11.000 And I'm saying, I mean I hear you guys talk about the urgency of the market and all of that, but Something tells me that you need, and I think this is where the Chairman is coming from, you know, we can fix Wall Street, but it seems like there's a bucket down there at the bottom.
01:20:31.000 These people that are being thrown out of their houses, it's like a bucket with a hole in it.
01:20:35.000 So whatever you do for Wall Street, if you're not saving these mortgages and helping people stay afloat, and by the way, saving some pain, I mean, it makes no sense.
01:20:45.000 And so, help me with that.
01:20:47.000 Because my people don't believe that you all care about them.
01:20:52.000 And I hate to tell you that, but they don't.
01:20:55.000 And they're angry.
01:20:58.000 Let me say two things, please.
01:20:59.000 Alright folks, we just rolled through the breaks for the InfoWars.com and PrisonPlanet.tv viewers.
01:21:11.000 But, uh, this will go about a minute or two over.
01:21:13.000 When the radio show ends, on the internet only, we'll finish up the clip with a percentage.
01:21:19.000 There's even more I'm going to play tomorrow, and then we'll be able to take your calls on it and comment.
01:21:23.000 One thing I keep forgetting to plug, um...
01:21:26.000 PrisonPlanet.tv for this month into December.
01:21:30.000 You can get five months free right now at PrisonPlanet.tv.
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01:21:42.000 And it's all in high quality at PrisonPlanet.tv.
01:21:45.000 You can then burn it to disk and give it to friends, family, and neighbors.
01:21:48.000 People are really waking up right now.
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01:21:58.000 So don't forget PrisonPlanet.tv and give it as a gift.
01:22:01.000 Give them a PrisonPlanet.tv membership.
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01:22:17.000 But that said, let's go back to the hearing, and then when it's over, rebroadcast will start at InfoWars.com.
01:22:23.000 With Max Keiser today, we also had Gerald Salente, it was amazing on.
01:22:28.000 So that's all coming up in the refeeds at InfoWars.com.
01:22:32.000 But we're going to go out of the show with the clip and into overdrive for the InfoWars.com listeners.
01:22:38.000 Here we go.
01:22:40.000 Let me say two things, please.
01:22:42.000 One, the legislation that we asked for, We asked for it to try to stabilize and prevent a complete financial collapse of our financial system.
01:22:53.000 And that was not to help Wall Street.
01:22:55.000 That was to help every American.
01:22:57.000 Please, sir.
01:22:58.000 No, let me tell you something.
01:23:00.000 I understand that.
01:23:01.000 That's why I voted for it.
01:23:02.000 Yes, sir.
01:23:03.000 But let me tell you, when we gave them money, when we gave the banks money, they still weren't loaning any money.
01:23:09.000 Let's talk about that, because we are passionate about getting the banks to loan money in our communities to help our small businesses and to help our homeowners.
01:23:17.000 First of all, we allocated $250 billion for banks of all sizes across the country, and just about half the money is out the door today.
01:23:26.000 I think we're going to approve another 20 banks today, large and small, across the country.
01:23:30.000 Potentially thousands of banks are applying, and it's going to take a few months to process the thousands of transactions to get the money out the door.
01:23:37.000 So we're working as fast as we can.
01:23:39.000 We're working around the clock to process all these to get the money in our community banks.
01:23:44.000 It's not a stimulus.
01:23:45.000 It's not an economic growth plan.
01:23:48.000 It is an economic stabilization plan to stabilize the financial system.
01:23:51.000 And so I just want to respectfully set expectations that we are trying to use these resources to stabilize the system for every American.
01:23:59.000 But we also have real economic challenges that we all need to work through.
01:24:02.000 Mr. Kashkari, in the neighborhood I grew up in, in the inner city of Baltimore, one of the things that you tried to do was make sure that you were not considered a chump.
01:24:15.000 And what chump meant was that you didn't want people to see you as just somebody they could get over on. .
01:24:27.000 And I'm just wondering how you feel about an AIG giving 503 million dollars worth of bonuses out of one hand And accepting $154 billion from hard-working taxpayers.
01:24:54.000 You know, because I'm trying to get, I'm trying to make sure you get it.
01:24:58.000 You know?
01:24:58.000 I mean, and you know what, what really bothers me?
01:25:04.000 Is because all these other people who are lined up.
01:25:08.000 They say, well, is Kashkari a chump?
01:25:15.000 We can just go in there, and I'm not saying they are, I don't know.
01:25:20.000 We can go in there, we'll get some money, and you know what AIG did?
01:25:24.000 They even will tell you they're coming back for some more.
01:25:29.000 And they have the nerve, the nerve, to grant some 503 million dollars worth of bonuses.
01:25:41.000 I'm just wondering, do you all say to yourself, boy this doesn't look too good.
01:25:46.000 And I'm wondering about them, if it was strictly from a PR standpoint, and I know nothing about PR, but one thing I do know, I wouldn't want to be asking my friend for some money to help me stay afloat, and if I didn't get the money I'd be out of business, and then for my friend I say, okay, I'm really struggling.
01:26:06.000 Then my friend, who can barely afford to go to McDonald's, then walks around and sees me in a restaurant costing $150 a meal.
01:26:18.000 There's absolutely something wrong with that picture.
01:26:20.000 And so I wonder, do you all, I mean, does that go through your head?
01:26:25.000 Or is it just me?
01:26:26.000 Am I missing something?
01:26:28.000 No, Congressman, I saw the same images that you saw of the parties, and I share your frustration with that.
01:26:35.000 What about the $503 million worth of bonuses?
01:26:40.000 Let's talk about that, because I heard about that this morning, I think as you did, in the paper, and I asked my colleagues to check on it.
01:26:46.000 I said, what is this?
01:26:47.000 Because I was outraged when I saw the headlines.
01:26:49.000 What was explained to me is that this was money, apparently, and I'm not defending it, but this is money that had already been paid to employees that were set aside in a separate fund that they would get if they left AIG.
01:27:03.000 And we need AIG to keep running as a company so that it can sell off its assets and pay back the taxpayers.
01:27:09.000 And so from what's been explained to me is that this money that had already been paid but set aside to the employees was now released so that the employees did not have an incentive to quit.
01:27:20.000 Because we need them to keep working so that they can sell off the assets and pay back the taxpayers.
01:27:25.000 We need them to keep working, but guess what?
01:27:29.000 There are a whole lot of people that can replace them because there are so many people losing their jobs.
01:27:34.000 This is an employer's market today.
01:27:36.000 That's true, sir.
01:27:37.000 Come on now.
01:27:38.000 There are people, I guarantee you, there are people who are lined up saying, please quit.
01:27:44.000 So I can get a job!
01:27:45.000 If I may take the prerogative as chair to say, I don't think anyone questions Mr. Kashkari that you're working hard.
01:27:58.000 Our question is who you're working for.
01:28:02.000 Alright folks, that is it for this transmission.
01:28:05.000 Again, rebroadcast starts now with Gerald Cilente, Max Keiser, and many others on the internet at InfoWars.com and PrisonPlanet.tv on those exclusive streams.
01:28:14.000 We'll be back on the AM and FM dial on stations as they rear across the country, and back live tomorrow 11am to 3pm with other big guests, your calls, and important news.
01:28:22.000 I'm Alex Jones signing off.
01:28:23.000 Great job with the crew and the sponsors.