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Name: 20081117_Mon_Alex
Air Date: Nov. 17, 2008
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	Engine Moving Parts.
	Keep your foot hard on the pedal Son, never mind them brakes Let it all hang out cause we got a run to make The boys are thirsty in Atlanta And their spirit checks our calendar And we'll bring it back no matter what it takes Eastbound and down, loaded up and truckin' Are we gonna do what they say can't be done?
	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.
	He does international television for, well, you name it.
	He's invented major systems used on stock markets worldwide.
	He's producing an international TV show for the BBC with Alec Baldwin.
	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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	All right, going to Max Keiser.
	Max, a lot is happening.
	The economy is worsening very quickly.
	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.
	What do you say to that?
	Well, Alex, I think if you look around the world, you're already seeing evidence of that, and I'll give you two examples.
	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.
	They're stealing salmon and farmed fish from farm fisheries.
	And you've already got this happening in the UK right now.
	People are... Gangs from the city are invading the country and stealing food.
	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.
	So in Somalia, you've got Somali pirates who are starving to death.
	They are hijacking one ship every day, on average, just for food.
	And they just grabbed a huge oil tanker today, so their targets are getting bigger.
	Exactly.
	And they're being tracked by the U.S.
	and the U.K., you know, the Navy is out there.
	But these are people who are starving to death, because all of their food supplies have been taken from them by the huge corporations.
	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.
	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?
	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.
	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.
	Uh, in the paper market to match up.
	So that could be, that's still in play.
	Remember last time I was mentioning that there could be a major event on the COMEX in December?
	Yes, you did say that, but flesh that out a bit.
	For folks that don't know what shorting is and don't know what the COMEX is, explain.
	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.
	So I'll segue into the Goldman Sachs thing.
	But a little bit about shorting, it's one of those concepts that
	People have trouble wrapping their mind around it.
	It's a little counterintuitive.
	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.
	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.
	But because the stock is now at a lower price, the amount of money it took to buy it back is less.
	You get to keep the difference.
	That's how you make money on a short sale.
	And it works on stocks, and it works on commodities, and it works on the Comex.
	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.
	They like to live in a world of infinite credit.
	So it's in their interest to try to keep those precious metals down.
	And they do this primarily by selling gold and silver short.
	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.
	The scandal, the scandal here, is something called naked short-selling.
	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.
	Well, there's no doubt they've been doing it.
	They've been doing it to stocks they recommend to people.
	Right.
	So naked short-selling is nothing more than counterfeiting.
	It's just straight out
	Counterfeiting.
	And this is now, when you, when you... I listen to your show, of course, Alex, I'm a big fan.
	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.
	Golden facts.
	Golden facts are the epicenter
	By the way, you're not joking!
	They even had a big global advisor on CNBC a few weeks ago, and he said, the Illuminati is doing this.
	So now we're starting to see that even come out, but go ahead.
	Right, I mean, there's no need to look beyond Goldman Sachs, is my point.
	You've got now Senator Inouye saying that Goldman Sachs
	He's accusing Goldman Sachs openly.
	That they're giving money from the bailout money to their friends.
	They want an investigation.
	You've got Bernie Sanders in Vermont who thinks that Goldman Sachs is a conflict of interest.
	He wants an investigation.
	Yeah, by the way, that's the AP headline.
	I'll just interrupt and back you up.
	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.
	And it's not even being denied that that's going on.
	It's also being used for bonuses.
	Go ahead.
	Yeah, Chuck Grassley, he's a senior GOP on the Senate Finance Committee.
	He just came out today, within the last two hours, and has suggested that Goldman Sachs is double-dealing.
	Goldman Sachs is a conflict of interest.
	Goldman Sachs is involved in naked short-selling.
	Goldman Sachs is at the heart of the American economic and banking collapse.
	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.
	Is that to keep it, you know, keep the conspiracy in a closed circle?
	Absolutely.
	As part of the bailout package, they slipped into the package a tax break to give the bankers $140, $150 billion tax break.
	Okay, so now it's openly being discussed that they're stealing it, and Goldman Sachs just laughs.
	Why are they so arrogant?
	Because there's been a coup d'etat.
	There's been a coup d'etat, and Hank Paulson has dictatorial powers.
	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.
	No, no, you were here.
	You were here.
	And I was saying that basically, they have achieved through this $700 billion, which became $850 billion bailout.
	It didn't matter what the number was.
	The number was arbitrary.
	The key concept was it gives them dictatorial power.
	That's the key concept.
	That is the key.
	That's right.
	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.
	They have law saying black people weren't human in this country, and we know those were bull, and they were overthrown.
	So what do we do about these arrogant criminals?
	You know, Wall Street frat guys.
	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.
	I mean, these are some arrogant little bastards.
	Well, I mean, I was on Al Jazeera yesterday morning.
	I sent you the clip.
	Yeah, we're going to play it.
	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.
	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.
	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.
	I mean, I was working on Wall Street in the 1980s.
	I know many, many of the tricks that one can use in the bank to transfer wealth.
	Electronic pickpocketing, we used to call it.
	It's just electronically transferring wealth from the customers to the bankers.
	That's all pretty much the job entails.
	The techniques are pretty standard.
	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.
	We've got plenty of lawyers.
	Just keep racking up the commissions.
	We've got lawyers.
	Just keep racking up the commissions.
	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.
	When you sign a new customer account, it forces you to go to arbitration.
	Well, the people that steal and cheat and make the most money, they get promoted.
	They go, wow, you've been indicted.
	As soon as our lawyers fix this, you're going to be going up to vice president.
	It shows initiative.
	It shows initiative.
	Or, they simply change the law.
	They simply change the law.
	The FCC is overworked and understaffed on purpose.
	If they ever get to it, things get really tight.
	Here's an example.
	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.
	If you read deeply, they were put on mom-and-pops.
	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.
	The IRS will rake them over the coals for no reason.
	Go ahead.
	Yeah, and you know, they just change the laws basically to suit what is for their convenience.
	Bankers are routinely, are constantly changing the laws, changing the products.
	You know, it's like a three-card Monty game in the city.
	You know, you see these guys, they're playing three-card Monty.
	And the cops show up, they can fold up in five seconds, and five minutes later they shut up across the street.
	So if they just go from scam to scam to scam, it's basically the same scam, but...
	So where is this going?
	I mean, the whole culture is going into total corruption, governments expanding, governments feeding, you know, no different from administration to administration.
	How bad is it going to get when the immovable object meets the unstoppable force?
	What is going to happen?
	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.
	There's also another thing going on, which is I call the sixes versus the nines.
	This is the people with six zeros in their net worth, the millionaires, versus people with nine zeros in their net worth, the billionaires.
	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.
	So even a millionaire is like $5, $10, $15 million.
	People who thought they were wealthy a couple of years ago are getting squeezed due to the global credit collapse.
	So you're seeing like, for example, Goldman Sachs is at war with its own customers.
	And this was today in today's Bloomberg.
	Here's an example of this.
	Goldman was targeted by investor complaints of naked short selling.
	Investors in a $591 billion high-yield, high-risk loan market are accusing Goldman of naked short-selling to profit from record price declines.
	At least two fund managers complained that they were victimized by Goldman, for whom they were doing business with.
	So you've got wars broken out between the millionaires and the billionaires.
	And they're pushing each other using these credit derivative products and other financial forms.
	So this is only going to get worse.
	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.
	Well you better.
	They're the ones that buy the products at your shops.
	They're the ones that spend money in the economy.
	Not the billionaires.
	They all hoard it on average.
	It's the millionaires that actually are funding the general public.
	And so what happens when the IRS is going to scalp the millionaires?
	What's going to happen?
	Well, the problem is that the global credit system is so bad screwed.
	You look at what's called the Baltic Dry Index, which tracks the global shipping industry.
	Four months ago, it cost something like $150,000 to send a ship from China to America.
	The price has dropped down to $4,000.
	It's down something like 98.5%.
	There's literally stockpiles of grain stacked up in the port.
	Because all global shipping has come to a halt.
	Because no one can get a letter of credit to send a ship from point A to point B. Exactly!
	And Ford and GM can't get letters for the insurance for the parts manufacturers.
	The insurance on the subcontractors that sell them the parts.
	So they're coming to an end.
	Max Keiser, let's talk about it when we get back.
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	Today, unlike any other in the long course of American history, a terrorist act of war against this country.
	The enemy struck America on September 11th.
	But who is the enemy?
	Bin Laden.
	This is his M.O.
	We have to look to the Middle East.
	We have to look to Osama Bin Laden.
	Fabled Enemies is the first 9-11 film to take a close look at the terrorist ties to intelligence networks inside the United States.
	Some U.S.
	investigators believe that there are Israelis again very much engaged in spying in and on the U.S.
	I'm aware that some Israeli citizens have been detained.
	Either you are with us, or you are with the terrorists.
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	Hey, I want you to play the Illuminati clip first.
	Let's go ahead and play that CNBC clip with one of the bigwigs on TV saying, yeah, it's the Illuminati.
	Here it is.
	At least you're getting back to the point where you can start to look at fundamentals and that's good news.
	What happened?
	I think you're in a liquidation phase.
	I think Kirsten had it exactly right.
	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.
	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.
	This is so virulent, this is so out in the open, they're blowing their whole game.
	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?
	I mean, why?
	I've never seen, and I've studied a lot of history, so have you,
	So, such open arrogance.
	I mean, that level of chutzpah or arrogance, bravado, kind of shakes me up.
	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?
	Yeah, well, clearly the U.S.
	dollar is an endangered species.
	As such.
	And I think a devaluation is all but certain.
	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.
	This is exactly what happened in the 1930s.
	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.
	So gold, as you know, I'm a big believer in gold and I think you have to own gold as a core investment.
	I think you need it to protect yourself.
	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.
	They'll just slap a 50, 60, 70, 80, 90 percent capital gains tax on it.
	And folks are like, well, then I better not do that.
	Well, that's better than just having them devalue it in the bank or have bank holidays.
	I mean, these people... Yeah, you got it.
	Yeah, you gotta have a, you know, a strategy.
	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.
	You know, it's like those movies you see sometimes where the sadistic millionaire sets the humans out and goes hunts the humans.
	But he lets them get a head start, because he wants to give himself a little bit of a sport.
	And I think what these guys like Cash Carrier are telling the American people is, get ready now, because we're coming.
	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!
	Get ready!
	We'll give you a head start, and you know, because we want to make this fun for us!
	Yeah, the destruction of America is so much fun.
	That's the message that he's saying.
	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.
	But Max, as you know, Obama will save us.
	Well, you know, my last time on your show, I'm not hitting the
	You know, anti-Obama button.
	I'm holding back on my opinion.
	I'm going to give the guy a few months in office and then see what happens.
	You know, I do think that... No, I understand, but I mean, the guy's a puppet.
	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.
	My whole point is, all these Obamanoids are in for a rude awakening, because there's no course changes here.
	It's full-scale raping.
	We'll be right back with Max Keiser in 60 seconds.
	Stay with us, your call's straight ahead.
	Thank you for listening to GCN.
	Yeah, go ahead and leave this on air.
	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.
	John, give me a new call list so I don't get any of these mixed up.
	Yeah, I'll type that right now.
	And coming up in about 20 minutes after Max Keiser leaves us, we boil down from four hours of testimony by the arrogant Kashkari, and by arrogant, oh, thank you, I respect you, oh, sir, I'm working so hard, but he was just looking at him and the body language was smiling and smirking and just, I don't care, you're a slave, I own you.
	We boiled it down to the most powerful 30 minutes of four hours.
	And believe me, it was difficult to cut it down to this because there's so much good stuff there.
	We've cut out a few of his answers because he kept repeating the same thing over and over again.
	That's coming up in 20 minutes after Max Keiser leaves us right now.
	We're going to be taking your phone calls and a host of issues with our guest, Max Keiser.
	So stay with us, ladies and gentlemen.
	Here we go.
	Yeah.
	Our guest is Max Keiser for the next 20 minutes.
	Really appreciate him joining us.
	I want to go ahead and go to your phone calls here in this segment and the next.
	Mike, David, Kevin, Daniel and many others holding around the country and the world.
	Don't forget to join us 1-800-259-9231.
	I do want to squeeze a lot of calls in this.
	Just have your question or comment ready so we can get to the next person.
	Any other points you haven't gotten to?
	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.
	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.
	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.
	Yeah, it's a zombie.
	And if you look at countries around the world, it's already happening.
	Obviously in Iceland, the entire economy, because of banking tricks that went bad, the entire economy went offline.
	The corona, the Icelandic corona became worthless, and their own life support system from the IMF.
	30% of the population is trying to emigrate out of Iceland today.
	30%.
	Imagine in America, that would be 100 million people.
	And by the way, Iceland was a wondrous first world nation.
	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.
	You know, a shining example of banking as arbitrage of all the banking products that would make everybody rich.
	No one could immigrate there.
	I mean, even if you had ten million bucks, it was harder to get into than New Zealand.
	Yeah, and the whole thing went offline in a matter of weeks.
	All the savings in the UK, people put their savings in Iceland because they were getting 6 or 7%.
	All those savings evaporated in one day.
	The UK government paid off those savers in the UK.
	Now they're suing Iceland to get the money, as are other countries in Europe and around the world.
	And by the way, there's not even food on most of the store shelves in Iceland.
	That's right.
	Just like Argentina, folks, because these bankers can't help it.
	You turn the back, they have to stick it in you.
	It's like a psycho that has to kidnap little kids and kill them.
	I mean, they just gotta do it.
	Max?
	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.
	That's right, London Guardian, Iran switches reserve to gold report, and that's happening all over the world right now.
	Central South America moving off the dollar.
	Meanwhile, the American yuppies are watching football, acting tough, they're delusional, they're stomping around, drinking Kool-Aid.
	What is going to happen when the American people find out just how bad they've been set up?
	That's right, Sweeney Todd, the demon barber of Fleet Street.
	I think I see a lot of yuppie burgers being served at various outlets.
	I agree.
	In fact, give me the document, Cam.
	I want to show folks this London Guardian article.
	I ran switches.
	I'm not going to play my video from yesterday.
	It might be too hot for your show, Alex.
	No, it's not that.
	The audio is distorted, but we are going to play it.
	I just wanted him to... It's a little overdriven, but it's great from what this... Oh, overdriven!
	Oh, that is code word!
	That's a code word!
	I wouldn't expect that from Al Jazeera!
	No, no, no, no, no!
	Overdriven!
	This is from Al Jazeera!
	This is when you were on Al Jazeera.
	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.
	No, folks, this is based out of England.
	It's like their World Service.
	Al Jazeera is in Qatar, which has the biggest military base of America outside of the United States.
	Qatar, Qatar.
	Qatar, which is where Al Jazeera is, America's ally.
	Qatar or whatever.
	I'm always saying it wrong.
	Okay.
	Now, you also have... Potato, potato.
	I should remind you, on November 28th, Alex, it looks like the first episode of The Oracle is going to be on BBC World.
	And last time I was on your show, I said I was going to invite you.
	If, in fact, we do the November 28th premiere show on BBC World, it goes out to 180 million people.
	Max Keiser presents The Oracle.
	I think I got it hooked up.
	I can bring you in a satellite, do a little, you know, three or four minute interview.
	I want it!
	Let's do it!
	Please put me on the Oracle, produced by Max Keiser and Alec Baldwin.
	I couldn't think of anything more exciting.
	But stay there.
	By the way, I forgot about your clip.
	And I'm not afraid to play your clip, but that's a great way to build it up.
	Max Keiser.
	MaxKeiser.com.
	Your phone call straight ahead with our guest.
	Stay with us.
	More than 700 chemicals... Now we're going to keep talking.
	Let me go ahead and talk to Keiser.
	Hey, Max?
	Yeah?
	Yeah, we're on the internet now.
	No, no, we will come back and play that clip.
	What, it's about three and a half minutes long?
	Yeah, not even.
	It's like three.
	Two and a half.
	Let me bring the culprit in.
	John, we are not making this up.
	John, it was telling me it was distorted, but I still said we're going to play it.
	Right, John?
	Yes, sir.
	You asked if I had it.
	I said yes, and I told them that it was a little distorted, but we can definitely play it.
	315.
	But that's just whoever loaded it up.
	Whoever uploaded it.
	Whoever uploaded it up on there.
	Well, let's do that.
	Alex, I don't come in until 35 seconds.
	So the first 35 seconds you can eliminate.
	Yeah, it's no big deal.
	Yeah, go ahead and eliminate and just cut right to Kaiser.
	Well, you know what?
	People won't know what it is.
	Just play the whole thing.
	Come in with it and play the music and we'll go back to Max Kaiser.
	And Max, I love having you on.
	I really appreciate you.
	And yes, I want to come on your BBC TV show.
	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.
	Well, we are, of course, just Alternative Radio, only on about 70 stations, but we are really honored to have you here.
	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.
	And so that's the exciting thing, is that the bankers think they're getting away with this.
	I don't think in the final equation they're going to get away with it.
	What do you say, Max?
	Well, as long as there's a spirit of freedom burning in the hearts of Americans, then the bankers are going to have trouble.
	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.
	The virtual specialist technology is a technology that allows for a virtual currency to trade on an exchange, and you can trade virtual securities.
	And the valuation is tied to something intangible, like awareness.
	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.
	And to match those orders in a way where all prices over all securities, the price is consistent, there's price parity.
	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.
	This is based entirely on people's awareness, but you still have price parity, so it's a completely fair system within the economy.
	So that system was sold to Cantor Fitzgerald, who moved the technology to the top floor of the World Trade Towers,
	Stay there!
	Stay there!
	We're about to go live.
	We'll finish that story.
	Here we go.
	It's very precise.
	This is a very complicated problem and we cannot fix it without some international rules.
	Notably absent from the summit's final statement, any detailed plan to help troubled homeowners or struggling workers in the developing world.
	That wasn't expected.
	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.
	Rosalind Horton, Al Jazeera, Washington.
	Well, let's get a European perspective on all of that.
	Max Keiser is a financial commentator based in Paris and joins us live.
	Max, positive words there from the world leaders.
	Will the financial markets be cheering on Monday morning?
	No.
	Bush misspoke.
	He said that the world's economies were hit hard.
	That's not true.
	The world's counterfeiting schemes were hit hard.
	The bond counterfeiting schemes from Wall Street and the City of London were hit hard.
	The counterfeiting schemes have been exposed.
	And the problem is that these G20 nations
	I don't know.
	He's not obeying the spirit of the Constitution.
	He's issuing counterfeit money, counterfeit bonds.
	That's why the global economy is in such a sad shape.
	The man is a financial terrorist.
	The hyperbole aside... That's the reality of the situation.
	That's not the hyperbole.
	That's not the hyperbole.
	That's the reality of the situation.
	The solution is what?
	You have to go into a court of law and take Hank Paulson and Goldman Sachs up for financial terrorism, put them in jail.
	This is counterfeiting.
	They're issuing bonds that are absolutely non-collateralized.
	There's $500 trillion in licenses with no collateral.
	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?
	Should countries like China and India have a bigger say in regulation and moderation of the global markets?
	Did any of these get addressed, and are these the way forward?
	China, India, Europe, all the banks own
	Structured financial products sold to them from Wall Street.
	These are all counterfeit bonds that are exploding.
	They're worth zero.
	For example, they have no way of selling these bonds because they have zero value.
	As a result, they dump oil.
	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.
	Big brother.
	Well, he was speaking, I guess, to the Arabic audience there, though it's big worldwide, I don't know how far it was.
	But no, Ron Paul said here about a month and a half ago they should all be arrested.
	They are criminals.
	But they know that they're doing it out in the open, too big to fail, too big to be criminals.
	Well, either they fall or we fall.
	Max Keiser, I hadn't seen that clip.
	I just knew you'd sent it, and so I'd sent it on to the network.
	Actually, my producer had.
	Now I know why you wanted it played.
	That is some powerful stuff.
	You know, when I go on
	Al Jazeera or Press TV or BBC or Russia Today.
	I thought I was getting hardcore on these channels.
	My God, Max Keiser's like the gold standard of in-the-face, telling-the-truth boldness.
	I'm actually being put to shame here.
	I wonder if they'll let me get that wild on there.
	Well, I want you on the Oracle, Alex.
	Well, I guess you and Alec Baldwin are the producers of it.
	You think nobody will get upset if I go on there yelling and screaming, or is this going to be live?
	This show is going to rip the ball, you know, the cover off the ball.
	This is going to be the most watched television show in the world.
	We're going to have 100 million viewers.
	It goes out to 180 million households.
	A half-hour show every Friday night.
	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.
	Because the mainstream press, even Al Jazeera, is too timid.
	So Alec Baldwin is into all this stuff.
	Yeah, he's my co-producer.
	I've known him for 30 years.
	And we've been friends for a long, long time.
	And, you know, we're gonna have a blast.
	He's gonna be a guest.
	His friends are gonna be guests.
	We've got a satellite hookup.
	November 28th, we're hopefully going to get the first show on the air on BBC World.
	Well, hey, count me in.
	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.
	Yeah, that's cool.
	I mean, you know, the use of the word FOTWEB, for example,
	All that means is edict or fiat.
	No, I understand.
	I'm saying arrest them.
	Guilty, guilty, guilty!
	Go ahead.
	Hank Paulson and Ben Bernanke issue a FOFLA every day.
	It's called the U.S.
	dollar by fiat.
	The U.S.
	dollar only has value by Hank Paulson and Ben Bernanke's FOFLA.
	By the way, you're right about the stock market going down.
	It's down 85 points today.
	How far is it going to go down by next February?
	Well, it's going to go a lot lower in the stock market, because earnings for these companies are going to collapse.
	Obviously, unemployment is skyrocketing.
	Citibank just announced 50,000 layoffs.
	The auto industry is going to collapse.
	I'm not in favor of bailing out the auto industry.
	I think it's a farce.
	Unemployment is going to go to 10%, 11%, 12% at a minimum.
	And the earnings are going to collapse.
	These companies are going to trade down.
	The average yield in a bear market gets to 6% or 7%, which means you're talking $3,000 on the Dow Jones.
	Doesn't look good.
	You know, I want to jam in a few calls.
	The interview's almost over.
	Time just flies, as I promised to play these highlights of the amazing Kashkari committee hearings last Friday.
	But I want to go to Mike, David, Kevin, Daniel, Rob.
	Guys, just ask one question of Kaiser quickly, please, because I want to get you on.
	Mike, in California, you're on the air.
	Go ahead.
	Only one question, huh?
	Go ahead.
	Only one question, Alex?
	Oh, man.
	Um, let me pick my best one.
	Just ask them all over to spend time and figure out which one to ask.
	Go ahead.
	Sorry about that, Alex.
	No, no, don't be sorry.
	I'm sorry I don't have enough time.
	Hell, hell, I'll just skip playing the Clemson plan tomorrow.
	We've got plenty of time.
	Go ahead.
	Yeah, just sit back and hear the questions.
	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?
	Oh, no.
	I mean, in the short term, perhaps.
	But look, the insurance companies are, part and parcel of this global credit crunch.
	They're running out of money.
	Even Warren Buffett, you know, his stock is down 50% this year.
	He's a big insurer.
	Look, what happened is they took the cop tuitions, the police, the teacher, retirement funds.
	It was all invested in derivatives.
	The bankers stole it all.
	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.
	Just like in Katrina disaster, everyone can't afford flood insurance in New Orleans anymore.
	The rates were jacked up.
	So the rates for insurance are going to go a lot higher with every single one of these disasters.
	So the insurance industry, which is the backbone of capitalism, is going out of business.
	Yeah, look, down the road, folks, you're not getting your Social Security, you're not getting your insurance.
	All you're getting is a forced labor camp, unless we throw these people out.
	Mike, anything else?
	Okay, I guess I'll ask this question for you, because I want to try to squeeze in some for both.
	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?
	No, because they had a... Well, I mean, listen, I'm going to let you go.
	I appreciate the call, Mike.
	You can call back later with other calls if you want tomorrow or so.
	That was an isolated incident.
	They had the cover of the disaster to do it.
	It was a beta test, a laboratory test, to see if they could do it and how it would sell to the public.
	It didn't go well for them.
	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.
	Max Keiser?
	Yeah, agreed.
	I have an idea for America, okay?
	Start a new 12-step program.
	It's called Goldman Sachs Anonymous.
	Everyone gets together in a church basement, and they go the 12 steps of Goldman Sachs Anonymous, then we are powerless over Goldman Sachs.
	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.
	So, get to know your neighbors.
	Get to know the people around you, because that's going to be key to your survival, I think.
	And, I mean, it could bring people together, unfortunately, in a crisis, but generally that's what happens.
	Absolutely.
	Let's go to one more caller here.
	David in Michigan.
	You're on the air with Max Keiser.
	Great discussion, guys.
	One question, I'll be brief with it.
	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?
	I mean, Alex, you know as well as I do that this country is New World Order's dream.
	They'd love to run every country like this.
	I mean, after all of a sudden, Donald Trump, are we going to be slaves to the Chinese Empire?
	I think this is going to hurt the Chinese as well.
	I think they're going to have their hands full there.
	I mean, most economists say if China ever gets down to 7% unemployment, they'd melt down.
	Or if their growth drops to 6%, they're dead meat.
	Max Keiser?
	Who took the Bank of China public two years ago on the biggest IPO in the history of the world?
	Answer?
	Goldman Sachs.
	Okay, Goldman Sachs.
	Hank Paulson is there.
	He made something like 14 trips to China during his last year at Goldman Sachs.
	He is completely in China's pocket.
	That's right.
	He was the Goldman Sachs guy.
	That was his first big job there decades ago, was Goldman Sachs' minion in China.
	You know, his first big job was he was working for Richard Nixon in Washington.
	And he was definitely with China.
	They've got that huge IPO.
	And, you know, I think that China has said that they're transitioning out of dollars into gold as well.
	They have to be careful because they... Well, Cheney got out of dollars two years ago.
	I mean, everybody's moving to Dubai, I guess.
	Why is Dubai, Max, the place to be for the elites?
	No extradition law.
	There goes your answer.
	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.
	But I promised I had people come in and edit this four hours down to 30 minutes so that is coming up.
	So we appreciate Max Keiser joining us, MaxKeiser.com.
	That's it for the full interview.
	We'll talk for four minutes behind the scenes and come out with the audio clip.
	Here we go.
	Okay, Max, again, let's take a few more calls here.
	Kevin, in New York.
	Kevin, you're on the air with Max Keiser.
	Go ahead.
	Come on, Kevin.
	Earth to Kevin.
	Yes.
	Go ahead, you're on the air.
	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.
	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.
	So, you know, just two images here.
	One is that the government is consolidating the corporations, and the other is that the corporations are consolidating or privatizing the government.
	And your comments, and I'll take them off air.
	It's just a mass raping.
	I mean, government, corporations at the top, it's all one animal, and it's just total booty.
	It's total just grabbing, stealing, gobbling, laughing, giggling.
	It's just Nero-esque insanity.
	Max Keiser?
	Well, it's balance sheet consolidation, you know.
	For example, when Bear Stearns blew up, the fact is that Bear Stearns wasn't the problem case.
	J.P.
	Morgan was the problem.
	J.P.
	Morgan had unbelievable amounts of
	Derivative contracts with no counterparty able to satisfy.
	And so what they did was they blew up Bear Stearns to get rid of the counterparty that can make claims against J.P.
	Morgan.
	J.P.
	Morgan assassinated Bear Stearns for their own good.
	That company was assassinated.
	That's what a lot of experts... You see a lot of this consolidation of balance sheets in the banking industry.
	So Bank A goes to Bank B and says, oh, we've got these risks, you've got those risks, these assets.
	You know, when I was working on Wall Street, we used to do a thing called swapping dead books.
	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.
	Then I call up his blown-up customers and I say, hey, you know, I got a great stock tip for you.
	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.
	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.
	That was last year's loser.
	And meanwhile, this broker who I swapped dead books is doing the same thing at his firm.
	So now you're seeing banks do that with each other.
	They're swapping each other's dead clients and dead bonds for fees, and it's just another chapter in this huge Ponzi scheme.
	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.
	Daniel in Texas, last caller for Max Keiser.
	These callers are really taking their time today.
	Daniel, go ahead.
	They're in shock!
	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?
	Who's going to be buying all the goods that they ship in?
	Well, after they consolidate everything, they'll start the economy back over again.
	They want to tax all the roads and those will be multinational corridors, Mr. Kaiser.
	Right, but the toll booths on those roads are not going to be owned by Americans.
	And Americans spent generations building an infrastructure, roads, bridges, and tunnels.
	And they should get the fees on the tollbooths, but those tollbooths are being sold to our foreign creditors in China.
	Hey, we're out of time, Daniel, and I'm sorry to Rob and George and everybody else.
	Call back next time Kaiser's on.
	You'll go to the head of the line.
	MaxKaiser.com.
	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.
	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.
	And thanks for spending time with us, Max.
	Thanks Alex, great show.
	Appreciate you coming on.
	MaxKaiser.com, take care.
	Alright, there goes Max Kaiser from Paris, where my wife wants to move, where we never will move.
	Alright, here we go.
	Okay, we're going to go ahead and go for this segment for the rest of the show, with 30 minutes.
	We may not even get to all of this.
	Yeah, I really should just play this tomorrow and then stop and comment on it, because there's so many facets to it.
	But this is Kashkari being grilled.
	This is only 30 minutes of four hours of the hearings last Friday.
	Tomorrow I'm going to play some more of this in the end of it, and then comment more on it.
	But here it is, ladies and gentlemen, so stay with us.
	Now, I heard your testimony, and I have to say that I'm a little bit surprised because
	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.
	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.
	Do you have a response to that?
	We worked very hard with both houses of Congress to design the legislation to provide a lot of flexibility.
	And we and the other regulators are using every tool at our disposal to get at this problem.
	Stabilizing the financial system as well as helping homeowners.
	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.
	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.
	But that doesn't mean that we don't care about other aspects that are very, very important.
	We're trying to use the right tool to solve the right problem.
	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.
	How do you reconcile this policy reversal with Congress's expectations laid out in the statute?
	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.
	So let me give you an example, Congressman, because this point is very important.
	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.
	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.
	There are 55 million residential mortgages in America.
	It could touch 3 million or 55.
	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.
	I mean, even though you may maintain, oh, this is in there.
	I've got the act.
	Here's the purposes.
	I want to spell them out.
	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.
	And then it goes on to section B, preserves home ownership.
	Now the Treasury just basically cut that out of the bill.
	And what we have here is a situation where banks are hoarding the money,
	That they're getting from the TARP.
	They're using the money to purchase other bags.
	We still have a credit freeze.
	I'm looking at your testimony.
	You're saying credit markets were largely frozen, denying financial institutions, businesses, consumers access to vital funding and credit.
	Financial institutions were under extreme pressure.
	Investor confidence in our system was dangerously low.
	Hello?
	Are we in a different universe here?
	The same situation prevails today!
	And yet, your testimony
	Acts as though, well, you know, we're just merrily skipping along our way here.
	We've got millions of people threatened with losing their homes.
	And the underlying problem is that banks are now increasing their interest rates in order to get more customers.
	Think about this now.
	It's counterintuitive to your troubled asset relief program.
	You're now saying we're going to put the money into the banks.
	Into these financial institutions.
	Shore up finance capital.
	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.
	At the same time, you're picking winners and losers.
	How do you reconcile these policy reversals?
	And why won't Treasury act swiftly and forcefully to maximize the system?
	We're on the march.
	The empire's on the run.
	Alex Jones and the GCN Radio Network.
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	At the same time, you're picking winners and losers.
	How do you reconcile these policy reversals?
	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?
	Why not?
	Congressman, I personally have spent most of the past year and a half focused on ways to try to reach and help homeowners.
	That's been my
	That's the primary focus within Treasury.
	Hasn't the Secretary listened to you?
	Do you feel frustrated that your position isn't being vindicated?
	Congressman, the Secretary is passionate about this as well.
	Passionate about what?
	Helping homeowners, Congressman.
	He is?
	Where?
	What country?
	Congressman, we are using all the tools available to the federal government to get at the credit crisis and try to help homeowners.
	Let me give you an example, please.
	We have different tools.
	Mr. Kashkari, I really respect you being here, but I'm looking at a bill, section 109, that spells all this out.
	The Secretary just essentially took some scissors and cut it out and threw it away.
	Now, you know, maybe this is just some kind of a game to some people in the administration.
	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.
	We've got millions of people losing their homes.
	Mr. Issa came to my district
	And saw some of our old neighborhoods, how they're just falling apart.
	And we've got people that are holding on, hoping against hope that somebody's going to help them.
	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.
	And all of a sudden the Treasury sent a signal to the banks, forget about it!
	We're going to give you the money that you want and you do what you want with it.
	Unless you directed
	Specifically, it's not going to happen.
	So tell me again, why isn't it happening?
	Not how passionate the Treasury Secretary is.
	Congressman, I believe it is happening.
	If you'll permit me, I'll walk you through.
	Please go ahead.
	The four banking regulators, the Treasury is not a regulatory agency.
	The banking regulators supervise the banks that are getting this capital.
	The four banking regulators put out a joint statement that's going to govern how they supervise these banks.
	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.
	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.
	There is no one better positioned in the country than the banking regulators to do that.
	Treasury's not in a position to do that, but the bank and regulators absolutely are.
	We've done numerous, had numerous initiatives to try to get at the root of this problem.
	But the most important benefit, Congressman, for homeowners is that we didn't allow the financial system to collapse.
	Imagine how many foreclosures we would have
	If the banking system had collapsed and mortgage finance was not available to our homeowners.
	That's the biggest benefit that we've been able to achieve.
	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.
	Well, maybe, you know, see again, this might be a philosophical divide here.
	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.
	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.
	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.
	See, you're talking about an IFCOM model that's based on the charitable sentiments, seemingly, of major Wall Street banks.
	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 at the end anyhow, because one model per
	I think?
	Regulators?
	Look, Treasury's been given almost omnipotent power here.
	And you have, unfortunately, you know, not exercised in the interest of homeowners.
	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?
	I mean, this looks like classic bait-and-switch, Mr. Issa.
	Thank you, Mr. Chairman.
	Mr. Kashkari, I appreciate that you were in on those negotiations with leadership.
	The majority of Republicans voted against it once and twice.
	Mr. Kucinich wasn't in the meeting where Secretary Paulson came in with the Vice President and Fed Chairman Bernanke.
	And made all these assurances that there was absolutely a critical, immediate need to get rid of the corrosive derivative products.
	You know, all the different names for this, you know, ubiquitous, you know, uh, sub S retraded credit default swap, blah, blah, blah, blah.
	Okay.
	But they, they talked about them as though they knew what the hell they were.
	You got the money and you immediately said, what items?
	What auction?
	Would you please respond to under oath?
	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.?
	Those assets were what you said was locking up and destroying the market.
	When did you first hear that that money was not going to be spent that way?
	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.
	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.
	Congressman, forgive me, on October 3rd, we created a team.
	No, no, that's not answering the question.
	And here's the reason I'm asking a very directed question.
	You can create the team, you can put together all that.
	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.
	Circuit City announced that they were closing 155 stores and began that process.
	They never announced they were filing Chapter 11.
	But all of us looked and said, look, they're not going to renegotiate walking away from 155 leases without a bankruptcy.
	So in our minds, we knew, you know, it's a question of time.
	Well, they don't tell you one thing, they do tell you another.
	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.
	You can't have the success for doing something different than you said without explaining why you didn't buy one of those assets.
	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?
	First of all, Congressman, it's not a question of our ability to value them.
	The decision was made by Secretary Paulson very recently, as early as earlier this week, late last week.
	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.
	Tell me why I'm to believe for a minute that those preferred stocks that you bought, you could resell today for anything close.
	Remember, the market has improved.
	You've said that.
	Tell me what the profit would be on those preferred stocks if you began putting even $1 of them into the market today.
	Congressman, I don't know what the price would be.
	Okay, well, you're from Goldman Sachs.
	I used to work there.
	Okay, well, I'm from Directed Electronics.
	You're from your last job.
	If you tell me that you've improved the market, then by definition, those assets, if bought at par, have appreciated.
	Isn't that true?
	Well, there are many, again with deep respect, Congressman, there are many different markets.
	There's the equity market, there's the credit markets.
	I think there are strong signs.
	I can walk you through data showing the credit markets improving.
	The equity markets, we purchase equity.
	You purchased a debt instrument.
	Well, it's tier one capital, Congressman.
	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.
	But let's just try to go to the fundamentals.
	You bought preferred stock.
	Yes, sir.
	Preferred stock is a dead instrument.
	You're capitalizing the company, but you're capitalizing with a dead instrument.
	Those instruments trade.
	I have BB&T.
	I have a number of dead instruments of that sort.
	They have, in fact, appreciated from the time you bought till today.
	In various portfolios.
	So I'm looking at those and I'm following a lot more of those kinds of instruments.
	They have appreciated.
	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?
	Candidly, Congressman, I don't know.
	We have independent valuation firms that are going to provide regular reporting on the current valuations.
	Regular reporting starting when?
	You're here today.
	Do you have any regular reporting from the day you bought them until today?
	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.
	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?
	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?
	I think they'd be reasonable relative to the day that we bought them.
	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?
	Well, again, it depends, Congressman, what our objective was.
	Our objective was to create a program that would encourage
	Thousands of banks across our country to voluntarily apply and to use the capital.
	And so we intentionally made it attractive for them to want to apply.
	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.
	Well, Congressman, as you know, the market when we did this
	There was no market.
	Most banks couldn't raise private capital.
	But we're in a better market today.
	One of the reasons for the question is you've thrown $350 billion, including AIG and so on, out there.
	You're coming back for another $350 billion.
	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.
	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.
	Now, the reason I ask that is, how large is the capital base necessary for the banking industry in America?
	Do you have any idea?
	Isn't it about 55 trillion, plus or minus?
	In terms of assets or capital?
	The size of the market, if you will.
	That sounds about right.
	So you'd have to put several trillion dollars in to be the owner, if you will, of that base, even with the multiple.
	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
	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
	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.
	So yes, we did offer attractive terms to stabilize the market.
	Mr. Chairman, I might note that Warren Buffett weighed into this with billions of dollars.
	Wells did a deal.
	There have been dollars done.
	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.
	I thank the gentleman, and there was a reason why I
	I voted with the gentleman twice on this same question, the bailout.
	We now recognize for a period of ten minutes, Mr. Cummings of Maryland.
	Mr. Cummings, you can proceed with your question.
	Thank you very much, Mr. Chairman.
	Mr. Kush, Kerry, I must say that as I have sat here listening to your answers, I have been disappointed.
	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.
	So I'm going to ask you some questions, sir.
	And I don't say that trying to embarrass you.
	I say it because life is short and I don't have time to hearing around the rosy answers.
	Let me go back to something that the Chairman said.
	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?
	In other words, you sell a foreclosed house, it's lower price, price value goes down.
	Let me ask you this follow-up question to that.
	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.
	And it just goes on and on and on.
	So it's a very serious problem that we are dealing with here.
	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.
	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.
	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.
	And they're going to ask the question.
	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.
	And we heard that guy, Kashkari.
	We know he's in charge of the $700 billion.
	What can he tell me today?
	I do not want a handout.
	I just want a hand.
	I want to pay my mortgage.
	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.
	Or I'm now working a part-time job.
	Help me, did I miss something, Cummings?
	What can Mr. Kashkari, did he say something to help me know how I can help my family?
	That's what they're asking.
	They are in pain.
	Now I'm giving you your, you're on TV.
	You're the man.
	I don't know how much we're paying you, but you're our employee.
	And I'm asking you to look in the camera, somebody back here, and tell those people what you are doing.
	They hear about the bailouts of Wall Street.
	They hear that their tax dollars are being paid to AIG and these people going on these junkets and all that.
	They hear all of that.
	But they feel like it's ring around the rosy.
	They hear a lot of nice talk,
	But they're still being put out of their houses.
	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.
	Those are the people that I represent.
	So I'm begging you to please tell me exactly what is being done.
	And then I want you to do something else.
	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.
	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?
	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.
	These people that are being thrown out of their houses, it's like a bucket with a hole in it.
	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.
	And so, help me with that.
	Because my people don't believe that you all care about them.
	And I hate to tell you that, but they don't.
	And they're angry.
	Let me say two things, please.
	Alright folks, we just rolled through the breaks for the InfoWars.com and PrisonPlanet.tv viewers.
	But, uh, this will go about a minute or two over.
	When the radio show ends, on the internet only, we'll finish up the clip with a percentage.
	There's even more I'm going to play tomorrow, and then we'll be able to take your calls on it and comment.
	One thing I keep forgetting to plug, um...
	PrisonPlanet.tv for this month into December.
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	But that said, let's go back to the hearing, and then when it's over, rebroadcast will start at InfoWars.com.
	With Max Keiser today, we also had Gerald Salente, it was amazing on.
	So that's all coming up in the refeeds at InfoWars.com.
	But we're going to go out of the show with the clip and into overdrive for the InfoWars.com listeners.
	Here we go.
	Let me say two things, please.
	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.
	And that was not to help Wall Street.
	That was to help every American.
	Please, sir.
	No, let me tell you something.
	I understand that.
	That's why I voted for it.
	Yes, sir.
	But let me tell you, when we gave them money, when we gave the banks money, they still weren't loaning any money.
	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.
	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.
	I think we're going to approve another 20 banks today, large and small, across the country.
	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.
	So we're working as fast as we can.
	We're working around the clock to process all these to get the money in our community banks.
	It's not a stimulus.
	It's not an economic
	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.
	And what Chump meant was that you didn't want people to see you as just somebody they could get over on.
	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.
	You know, because I'm trying to get, I'm trying to make sure you get it.
	You know?
	I mean, and you know what, what really bothers me?
	Is because all these other people who are lined up.
	They say, well, is Kashkari a chump?
	We can just go in there, and I'm not saying they are, I don't know.
	We can go in there, we'll get some money, and you know what AIG did?
	They even will tell you they're coming back for some more.
	And they have the nerve, the nerve, to grant some 503 million dollars worth of bonuses.
	I'm just wondering, do you all say to yourself, boy this doesn't look too good.
	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.
	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.
	There's absolutely something wrong with that picture.
	And so I wonder, do you all, I mean, does that go through your head?
	Or is it just me?
	Am I missing something?
	No, Congressman, I saw the same images that you saw of the parties, and I share your frustration with that.
	What about the $503 million worth of bonuses?
	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.
	I said, what is this?
	Because I was outraged when I saw the headlines.
	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.
	And we need AIG to keep running as a company so that it can sell off its assets and pay back the taxpayers.
	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.
	Because we need them to keep working so that they can sell off the assets and pay back the taxpayers.
	We need them to keep working, but guess what?
	There are a whole lot of people that can replace them because there are so many people losing their jobs.
	This is an employer's market today.
	That's true, sir.
	Come on now.
	There are people, I guarantee you, there are people who are lined up saying, please quit.
	So I can get a job!
	If I may take the prerogative as chair to say, I don't think anyone questions Mr. Kashkari that you're working hard.
	Our question is who you're working for.
	Alright folks, that is it for this transmission.
	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.
	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.
	I'm Alex Jones signing off.
	Great job with the crew and the sponsors.
	The resistance will continue.