Russia Today’s American financial guru Max Keiser tells me how to make myself $100 million and why he can libel me

Max Keiser in a London taxi in 2007, as the world financial markets headed for collapse

“I can tell you how to make $100 million right now,” RT’s Max Keiser told me over coffee at Bar Italia in London’s Soho.

“Join Al-Qaeda?” I asked.

“No, said Max firmly. “All you have to do is you call up someone like Jamie Dimon over at JP Morgan or call Goldman Sachs and say I want to open a Prime Brokerage Hedge Fund account and I need to borrow $100 million and then you sell short gold futures contracts in the open market along with all the other players who simultaneously sell gold every day at the same time.

“If you watch the chart of gold every day, at around 8.00am UK time, gold drops by about 3% or 4% – almost every single day at the exact same time.

“You do this repeatedly for a number of weeks. You bank your $100 million in profit. You pay back the loan to JP Morgan or Goldman Sachs. And you walk away. There’s nothing hard about it.”

“Unless,” I suggested, “it moves in the other direction.”

Today’s gold prices. The graph has the same drop at the same time each day

“Well,” said Max, “since they’re all colluding together and they do it together and there’s no law against it – or, if there is any law against it they don’t enforce the law – the risk is almost zero. Every day traders working together – colluding – slam the price of gold for a quick profit using money they borrow at 0% interest – all gains are 100% cost free – and since the government bails out any losing positions, these gains are also risk free.

“This is a well-documented occurrence in the gold and silver markets that many have tried to get regulators to stop – but it’s too profitable for the insiders who have control of the regulators.”

Price of gold drops on another day

“What’s that name you have for bankers?” I asked. “It’s not wankers, it’s…”

“Terrorists?” suggested Max.

“Banksters,” I remembered. “Banksters – a combination of bankers and gangsters.”

“They’re also terrorists,” said Max. “(A major British bank) just admitted they laundered money for Hezbollah. According to David Cameron, Hezbollah is on the list of terrorist organisations.

The price of gold on yet another day

“I mean, a lot of people don’t think Hezbollah is a terrorist organisation but according to Israel, according to the EU, according to the British administration, Hezbollah are terrorists and (a major British bank) just said Yeah, we do launder money for them. We will pay a little fine. That makes (a major British bank) financial terrorists. There’s no equivocation here. There’s no hyperbole. They are financial terrorists and they have no way to counter-argue what I just stated. If there was, they would.”

“Well, they would probably sue me for libel,” I said.

“But I get an American exception,” Max told me. “Under the Speech Act of 2010, no British person can sue me for libel. Any libel suit against me where you’re seeking damages would have to go through and comply with American free speech law. You’d have to persuade an American court I was violating free speech according to American law.”

“You can say I fuck sheep and I can’t sue you?” I asked.

“I can say you fuck sheep all day long,” said Max. “You can sue me in the UK, but you’d have to go to America and prove the libel to get at my American assets.”

“I can only imagine what those are,” I said.

Comedy scriptwriter unmasks capitalist economics as no better than voodoo

(This was also published on the Indian news website WeSpeakNews)

Mark Kelly turns his back on the police state (and the dog)

With Greece and Spain still teetering on the brink of financial collapse, the NatWest Bank’s computers refusing to transfer money to anyone for two days this week and comedian Jimmy Carr getting attacked by the Prime Minister for tax-dodging, it seemed like a good time to talk money with comedy scriptwriter Mark Kelly, not a man known to dislike Marxist-Leninism.

“It’s perfectly reasonable for economists not to know what to do,” Mark said to me in a cheap cafe in Soho (I was paying), “because Economics is not a science in the first place.

“If you have a problem with an aeroplane, then aerodynamics IS a science. There’s a cause and effect as to why a plane isn’t working and you can fix it. You can’t do that with Economics because there’s no verifiable cause and effect. Economics is essentially no different from voodoo. It’s all based on belief. Things only exist because you believe they do.”

“Well,” I said, “I was always crap at Economics at school. They forced me to do Economics for ‘A’ Level because they said I had to ‘do a science’ and I was even more crap at Chemistry and Physics. I was useless at factual subjects because I could never remember abstract facts like Sodium Chloride = NaCl and Methyl Chloride = CH₃Cl but I was good at conceptual subjects like British Constitution where you could discuss things. I was good at waffle.”

Mark quite rightly ignored this (and I added in those chemical system details when I was writing this blog). I was waffling.

“I think,” Mark said, “that the best essay on economics – but I would think this – is one by Lenin on fictitious capital. The idea of capitalist economies creating fictitious capital. Money breeds money. The history of capitalist economics is primarily the history of debt and debt itself can ultimately only be collected by force.

“So America has a phenomenal level of debt, but no-one has the nerve to call in America’s debt because, if you do, they’re suddenly going to find that you’ve got a very oppressive regime and it has to be overthrown. America can’t be ‘called’ on its debt, despite the fact it has an enormous debt… but other countries can.

“If you have a big enough debt, one of the ways of dealing with it is to get rid of the person you owe the debt to… in other words War. Bourgeois economists would never include War as an economic strategy; but it is.”

“So,” I said, “Greece should basically declare war on Germany and France?”

“It’s their best bet,” Mark replied. “No, seriously, what they should do is build an enormous horse, push it over the border and then, at night, the horse opens and all the Greek Communists come out and fiddle with the other bank’s computers.”

“Computers are the soft underbelly,” I said, “The NatWest computers have been in chaos the last two days and transactions were not being processed. A friend of mine who has been involved in banking computers said it sounded to him as if someone had tried to hack into the main computer system or its twin – because they presumably have a back-up system somewhere in some un-marked building.”

“Well, as for computers…” said Mark, “with the very very sophisticated credit default swaps, the parcelling-up of debt and stuff… basically people like Goldman Sachs have been employing for 20 years or so – well, really since Reagan became US President – they’ve been employing enormously highly-rated mathematicians and some of the formulae they come up with in credit default swaps and so on are so sophisticated that there are literally only a handful of people who understand the formulae.

“So banks have been operating on the basis of formulae which they’re quite happy to admit they themselves don’t understand. It’s ultimately no different from voodoo. You’re just taking the word of other people and everyone has a vested interest in taking everyone else’s word and that, itself, is the essence of a bubble. So you have a housing bubble or you go back to the 18th century and you have the South Sea Bubble and the Tulip Bubble in the 17th century.”

“The Tulip Bubble?” I asked.

Mark quite rightly ignored me.

“People,” he continued, “talk about The Market now as if The Market were a human being. What would The Market say? How would The Market react? As if The Market were a rational person with an identity, whereas it’s not. It’s composed of an enormous number of irrational, deeply avaricious fuckwits all racing around saying Buy! Sell! Buy! Sell! 

“The choice is between a rational, planned economy – which is what Lenin was after – and… and… the irony is that capitalist economics is actually anarchy in the worst sense of the word: it’s utterly chaotic.”

“Well, yes,” I said. “Pure capitalism without any restraints is pure anarchy because the strongest person wins.”

“It’s not a science at all,” Mark said, “It’s no different to voodoo. The basic problem isn’t how to fix the system. The problem is the system itself.”

Then we carried on talking about comedy clubs.

It seemed the best thing to do.

Charlie Chuck, comic and cook + Janey Godley, comic and football manager

Charlie Chuck in Leicester last night

Yesterday, I drove up with a friend to see the first of Charlie Chuck’s two shows at the Leicester Comedy Festival. The Looking Glass venue was a bit like the Black Hole of Calcutta with laughs. The venue was filled to the brim.

Charlie Chuck is one of those comedians with a fan base that just goes on and on. I think it is because his first TV fame with James Whale and Reeves & Mortimer was among impoverished students who have grown up and now have the money to go out and see him live on stage.

Before he set off for the show, he cooked us one of his speciality spaghetti Bologneses. After the show, my friend and I scoured late night shops for a doughnut, a cream bun and a sliceable cake to share with him. Eventually, we got a cake and doughnuts filled with custard. Close enough.

He should be in the Celebrity Big Brother house. He can cook, he can hit annoying twats with his plank of wood and he could nurture ducks in the jacuzzi.

By the time I got home to Borehamwood, it was almost 4.00 am – just enough time to sleep, get up and listen to Janey Godley on Al Murray’s BBC Radio 5 Live show 7 Day Sunday where he introduced her as a “stand-up comedy actress and Groucho Club barfly”. Hardly a barfly, as she does not drink. They talked, among other things, about who should be the new England football manager.

Not mentioned on the programme was that, back in November 2009, when Scotland was looking for a manager and the press were semi-seriously touting Sean Connery for the post, Janey phoned up the Scottish Football Association and applied for the job

According to her blog at the time, she told them that she scored over Sean Connery “because I actually live in Scotland”. But her main qualifications, she argued to Scottish FA boss Gordon Smith, were that “I can order men about, I can actually play football and I am great at strategy – What’s not to like?”

“Do you have a valid coaching licence?” Gordon Smith asked her.

“No, but I do know ’Hologram’ Tam and he is the world’s best forger and he can get me one,” she told him.

The much-admired ‘Hologram’ Tam (I have a T-shirt) used to produce Janey’s Edinburgh Fringe posters before he was caught red-handed in his small Glasgow printshop which reportedly “had the ability to churn out £1 billion a year in fake cash”

Sadly, Janey’s football managing ambitions were dashed to much the same extent as ‘Hologram’ Tam’s hopes of grabbing as much money as the UK’s top bankers.

Ironically, Tam got a six year prison sentence for making money; but top bankers now get bonuses for losing money; and, with ‘quantitive easing’, the Bank of England is now in the business of printing funny money.

The Scottish FA accepted Janey’s application but foolishly never called her for interview.

I feel it was their loss.

Bankers, Cockney rhyming slang and a very wise woman

There’s a report out today about the British banking system. About whether the banks are too big. The problem for me isn’t size, it’s efficiency – and I wish I could say that in reference to other areas of my life.

The words “piss-up”, “brewery”, “in”, a”, “organise” and “couldn’t” spring to mind and the Cockney rhyming slang for “wankers” comes as no surprise to me.

For many years, my current account has been with Bank of Scotland; I also have an account with Halifax, which is part of Bank of Scotland. Both are now owned by Lloyds Bank.

Because of the lack of Bank of Scotland branches in London, I have long paid money into my BoS account via Halifax: I just walk into any Halifax branch with my BoS Cashcard and pay money into my BoS account.

If I want to pay a bill – a gas or electricity bill or anything else, I can now just go into any branch of Lloyds Bank with the appropriate paying-in slip and pay the bill using a Bank of Scotland cheque.

Yesterday, I attempted to pay a Virgin Media cheque into my own Bank of Scotland current account at a Lloyds branch.

I was told I could not pay anything into my Bank of Scotland current account – not a cheque, not cash – because, although Lloyds own Bank of Scotland, it is “a separate bank”.

Well, chums, Bank of Scotland and Halifax are equally separate, but I can still pay money into BoS via Halifax – and I can still pay a bill via Lloyds using a Bank of Scotland cheque.

So I can pay money into other people’s accounts with other banks via Lloyds, but I cannot pay money into my own Bank of Scotland account, despite the fact Lloyds own Bank of Scotland.

We appear to have entered a surreal parallel universe here.

So I am moving my account to Royal Bank of Scotland. They have not-a-lot of branches in London, but they do own NatWest Bank and I can simply walk into any NatWest branch and pay money into a Royal Bank of Scotland account. No problem.

Lloyds may not be too big to survive. But it is certainly too incompetent to survive.

I remember standing in Liverpool Street station in the heart of the City of London one Friday afternoon at 4.30pm watching City workers going home, early, paralytically drunk. Not just swaying but staggering, their limbs jerking erratically like headless chickens with Parkinson’s Disease wearing dark business suits.

These were not old drunken men; they were bright young City dudes in their twenties and early thirties and they must have been drinking all afternoon, while foggy-mindedly running the UK economy in the financial powerhouse that is the City of London.

I had money in two Icelandic banks when their entire financial system disintegrated in 2007. Those two banks were each more efficient than Lloyds Bank – and they both crashed. I suspect those Icelandic bankers did not drink ‘on the job’.

British bankers do.

Whither the British banking system?

Whither Lloyds?

The mother of a friend of mine used to live in various dodgy foreign countries (her husband was in the RAF and she later worked for NATO). She wore a series of thin but pure gold bracelets on her wrists because she knew, with them, she could buy her way out of any country if it suddenly collapsed.

A very wise woman.