hotel in the big old hotel. cringe in the steepness medicine this is. twenty two. come on. now so. if you're just joining the very warm welcome this is all t. night from the russian capital the top stories now this hours a day of remembrance for the victims of the chernobyl disaster exactly it's called of a century on as those who died as well as those who took part in the rescue and cleanup . that calls into question nato operation in libya saying the no fly zone is being used as a cover to disrupt the country's infrastructure and eliminate. fresh wiki leaks revelations depict britain as

a terrorism breeding ground with bombers trained in the mosques and masterminds funny safe haven in the country. i'll be back with more news for you motive out of this in less than thirty minutes from now in the meantime it's the cause report taking his future and the world's hunt for a replacement reserve currency that's next on our team. max kaiser this is because reports you know this show has single handedly moved the price of silver from twenty six and a half to over forty dollars in the last few months since november we make a market goldman sachs says their market maker j.p. morgan says oh we had liquidity there for hoops we've got to beat that out they don't know jack we make the market we're pushing the price of silver to five

hundred dollars an ounce and you know what now the rumor is that a russian billionaire of course somebody who watches the show is trying to corner the silver market like warren buffett tried in one nine hundred ninety eight like the hook brothers tried back in one nine hundred eighty what is this man and named the price is going a lot higher will it then drop you know because the dollar is being rejected as the world reserve currency we're going back to a precious metal standard and that high that gold and silver achieve will be the permanent plateau upon which the global economy will be reordered tech to be a major. it's a server talk to me the next we're going to get to those rumors but i think those rumors are actually being spread by the obama administration and to me geitner but because we're going to look at the globe fleeing the dollar flood and the dollar fraud so this is our first headline gotta love it i take this from max keiser dot

com you did a good some nation there but it's a picture of you holding up fraud and you did want this is you on some news program a few years ago and you were warning of exactly what we're seeing now insurance with the currency collapse and this is prior to the whole collapse the financial system when you were saying it was the likes of goldman sachs and j.p. morgan's fraud that you would see exactly the situation we're in as you see under your picture there with holden sign fraud we have a an image of silver soaring on thursday of last week these are part and parcel of the dollar being over printed and the dollar being backed by fraud yes that's correct. the bankers on wall street were pushing aligned well it was a liquidity problem or is it the nz solvency issue or is it a market historical change that we didn't see coming and i pointed out of the time that it was just basically fraud and now it's coming out clearly i mean goldman sachs is lloyd blankfein is want to before congress to testify for perjury because

as i said on the show unequivocally he's committed fraud theft are a huge the fraud there's no there's no debate about it he is a free. as in larson mystic. put other people in there full of bad word later and it will always be alleged because of course there will be no justice delivered the department of justice will never investigate these i'll give you a ledge it's thirty stories high i stepped on it like like. complete medicine of society the fact that he's allowed one extra breath in this world is obama's shame that will be on obama's legacy to do with computer programs obama will be the lead. breathe that's his legacy so anyway so everybody's like trying to come up with conspiracy theories and rumors to explain the soaring gold and silver prices

the soloing oil prices soaring commodity prices but the last three journal headline reads fleeing the dollar flood the world tries to protect itself from u.s. monetary policy so while americans are like worrying about planned parenthood and m.p.r. like five million dollar budget there the world is meeting behind their backs or actually out in the open and planning an alternative to the us dollar right the u.s. dollar will be rolled up into a new a new global currency and all that it'll it'll become extinct in the everything in america will be double triple quadruple in price and the world and the standard of living will be one of the lowest and then in the lowest in the lowest style of all countries in the world and i mention the dollar fraud so this brings me to this next headline chart of the day this is jeannie diamond's worst nightmare so this is joe wiesenthal business insider well known paper bug and he's saying that

keeping morgan is warning about the domino effect of a u.s. treasury technique called the fault so j.p. morgan is is warning america that they'll be crisis if you don't raise the debt ceiling and the chart of course is. in two thousand and eight post lehman collapse when the money market funds were like fled and there was a basically a run on the banks and he thinks that kimi diamond's worst nightmare i posit this image of silver and this image of max geyser. jamie gun. let me explain something anyone holding a u.s. treasury bond is doing so because they want to be a martyr but they want their net worth to be eviscerated by jamie gaiman the terrorist and as i've said many times before now you've got not only bill gross over a pimp though who shorting u.s. treasury bonds he's just not selling what he's got he's selling them short which means he's making a huge negative bet against him i just saw that jim rogers another you know big

time world famous money manager extraordinary saying you know i'm going to start selling u.s. treasury bonds when the cold globe gangs up and starts to sell short u.s. government treasury bonds forcing interest rates up five six percent five points in a matter of you know a couple of weeks then of course you know it'll be time to say. america. so as that happens you see the precious metals and commodity prices shooting up but it's also the dollar collapse and you saw on the dollar index it's down below seventy four so instead of looking at that however people come up with this conspiracy theories like we see here ahead reporting on the theories silver surges over forty six twenty five per ounce as rumors of a short squeeze and cornering markets again creedence so apparently zurich in london are abuzz with rumors that a russian billionaire is buying up huge quantities of silver and yuri sergei filin the russian billionaire they're all interested because it's a natural corner it's

a natural play because there's very limited supply of silver you can for thirty or forty billion dollars which for the average russian billionaire is amount of money they carry around in their sock they can corner this entire market and double or triple their money until it's of course going to do that you listen to my show of course and you're going to make a lot of money so that some of the must go you owe me some borsch well on the other side of the creation so it's ironic that the very people perpetrating this myth that there is that there is somebody cornering the market on the other side of the equation. j.p. morgan with naked shorts which is cornering the market on the other side embry j.p. morgan short position causing massive silver spike so this is john embry from sprott asset management and the biggest buyers of silver in the world are last few years and they argue that the massive short position that is held by j.p. morgan chase in particular is the cause for the spike this is a quote from john embry i mean this is becoming i think

a huge millstone around their neck and if you don't understand that i don't think you can appreciate the upside thrust and that's great just to break this down for folks or i haven't been up to speed on this in other words j.p. morgan in the futures market for every order of announced that comes in to buy they sell ten but they don't have it and they could short sell it's sell so of doesn't exist in an attempt to force the market down keep it down artificially now when guys like john embry and eric sprott of figured out is that well every month that the comex and other exchanges they've got to do the delivery of the contracts that are not in fact going to roll over into the next futures month and they have been taking physical delivery as well as a silver liberation army that we started on this show taking physical delivery so every single month it gets more to the point where the ability for j.p. morgan to keep the price artificially cheap with these mammoth short sales are financed with the artificially cheap interest rates thanks to ben bernanke and sam gagner that's why interest rates are so cheap to start to create jobs they don't

give a fig about your fricken job is to help j.p. morgan keep things cheap artificially low so they can pay themselves a big fricken christmas bonuses at your expense but the game is up and so here's my prediction stacey herbert remember enron for a week after week after week people said this company's an eight billion dollar company they're geniuses they're the smartest guys in the room and then one day somebody said. and it's nothing but a big shell game and the stock collapsed and the date is zero eighty billion wiped out in the day. j.p. morgan is one hundred thirty six billion dollars shell game once this is totally exposed that's stocks going to zero in one day mark my word if you are trying to sell j.p. morgan stock naked short until your hands bleed forced the sucker down put terrorism out of business put jamie time in the men's room doing you know fluff jobs for the executives for two cents a crack that's always worth well on top of that there is the collapse of the u.s.

dollar geitner down creates its own credibility to junk says bloomberg treasury secretary tim geithner was on fox business news and he was asked is there a risk that the united states could lose its aaa credit rating yes or no he responded no risk of that well that's false he's lying but when you lie in front of congress like either of those every other week or paulson does or ben bernanke you become inured to the consequences of like the lying the whole extent this reminds me of enron as well when enron there was one single analyst i forget her name it was a woman who was saying enron is a black box of nothingness paul fraud and she was attacked by everybody else in the mainstream media all the powerful people like ken lay and they they said it was the strongest company that friends with bush is their powerful political force and it evaporated to one day in the same thing here is he's he's attacking the people who point out that it's a fraud it's the lesser dollar classic ikarus flying too close to the sun one blank

line saying that they're doing god's work tim geitner thinking the u.s. treasury bond is somehow worth something that it's not and they believe that they are in league with their god because there is tim geithner and heaven slurping on the ambrosia of his own mel seasons that he and hell's it cool previously to give themselves the voluminous attitude of the god in his own mind not realizing that he's actually lying in the gutter drinking bad dog twenty twenty and being kicked. the head by some poor person he's bankrupted that's who's running the treasury in america and then finally i talked about the dollar fraud in the fraud as the system of america and rumor becomes reality ratings action tipoff question mark this is karl denninger and he's asking about this headline from washington post where obama administration officials try to keep s. and p. rating at stable so apparently s. and p.

was meeting with the treasury department officials on the apology ministration and they were arguing whether or not the u.s. outlook would be downgraded so the question is there was action like pimco got big news last week when they were shorting u.s. treasuries with seismic event but were they tipped off by the likes of timothy geitner a member of the leading up to the iraq war invasion the colin powell before the un with a vial full of talcum powder and said this is going to kill everybody and i was all prearranged stagecraft to get how a bird in a bunch of contracts to murder people subtly in iraq so now system geitner decided to murder people's senselessly with inflation and they prearrange all these s. and p. ratings and they cooked the books and the proof is in the dollar which is collapsing and they're going also a baby if you have anything in us dollars prepare to lose it all it's all going to . i'm so sorry anyway stacey never thanks so much for playing the cards are in for when i come back i'll be speaking with that so don't go away.

listening to the latest in science and technology live from the realms of rush limbaugh the future covered. well i go back to the kaiser and for a time now to go to new york and talk with rolling stone journalist matt taibbi matt welcome back to the kaiser report are you doing next all right matt i want to talk to you about your piece the real housewives of wall street but first tell us

what is tell for it's the term asset backed lending facility it's a bailout program that was created by the fed and it was awesome to be designed to help spur consumer lending you know it sort of at the end of two thousand and eight after the crash there was a whole bunch of panic on wall street and it really actually started with car dealerships that were unable to get financing from. from the banks as usual because the parents were just afraid to invest in any kind of asset backed securities so the government came up with this program the talf and it essentially provided a government backstop for the banks to lend to consumer outlets like car dealerships and it was eventually expanded to student loans and commercial mortgages and basically everything else under the sun ok so flash back to two thousand and eight the economy in the world is about to crash hank paulson goes before congress extort seven hundred fifty billion dollars with a one page memo or crashed the market got all that money introduced us to something called tarp and then this was followed up by talf and now pick up

a story with what you're writing about the real housewives of wall street and how they fit into this story matt taibbi the back story here is you know i was sleepy people in congress for ages of been trying to get the feds books open and in the debate over the dodd frank bill last year there was a sort of a bipartisan coalition with bernie sanders and ron paul and alan grayson and they were kind of fighting just generally the death of the feds books open in the end they weren't able to completely open the feds accounting but they were able to get a small window of numbers from the feds activities from the. end of two thousand and seven through say the middle of two thousand and nine this basically covered the entire bailout it was a very limited look at the fed's books but one of the things they were allowed to see was who had received health loans it was really talf and feds the feds emergency landing so they ended up with this list of twenty one thousand transactions that showed you who received financing through the talf there are so

many crazy news on this list you know i got a call from senator sanders office and as i do you have to look at this you won't believe the people who got money from the federal government during the bailouts and so what we do is we just went through the list and we found the craziest names we could find and the craziest name was was christine mack who is the the wife of john mack the then c.e.o. of morgan stanley who was involved with a company they got a two hundred twenty million dollars loan from from the telfer at a time when everybody else is getting foreclosed on and not being able to get financing and so on and so on all right but matt taibbi correct me if i'm wrong but these are non-recourse loans which means that if they can't pay it back they don't have to pay it back clearly that's a deal that everybody in the world would like to have a deal like that unless of course i'm taking advantage of the artificially cheap interest rates that are engineer ben bernanke the side of the fence and wall street to keep this market the scam going where you can borrow money for close to nothing and even if you screw up you don't have to pay any back right so non-recourse loans

correct right yeah the way this works is basically if you're christie makar or wayne izing to you know the owner of the miami dolphins at the time you go to the fed you sign up for the tell program they give you a big chunk of money you know two hundred million dollars they say you know go with god go out and buy a whole bunch of securities student loans commercial mortgages whatever it is given to us if they go up in value you take them back and you keep the profits if they go down in value you leave them with us and we eat the losses and that's basically the way the steel works now they had to they do have to pay a slight premium what they call the haircut. to make sure that they all had some skin in the game but it was generally less than ten percent so you know people at this time they were buying asset backed securities for thirty and forty cents on the dollar so people you know it was a great deal you centrally got to go out and buy a whole bunch of the stressed undervalued securities with the government's money give it to the fed and if it went up you took them back cashed it in made

a great profit if it went down it was the taxpayers it now the loans the total loans in the system they're increasing the total indebtedness all of the economy as a whole doesn't anyone get it that the debts are only going up and not down what why is that message not getting through to people mentality it doesn't really make any sense you know the funny thing is the defenders of this program are going to say what are you complaining about the program works you know they were they had to there were the credit markets were frozen in late two thousand and eight and and now after talf the credit markets run frozen so the program works why are you complaining well of course the program works if you throw a trillion dollars of public money at a lending problem you're going to have more lending it's not it's not a secret that that's going to be effective the two things that are a problem here is the ascension this is a massive government lending program that they essentially allowed billionaires and millionaires to to be middlemen in debt in the middle of these transactions and

make gigantic commissions on all of them risk free and then just as you said it added to the overall indebtedness of the system and couldn't possibly be a stabilizing force i mean originally the bailouts were designed to remove existing . toxic mortgage backed securities from the market but this just created a whole bunch of new loans that now had to be paid back and it just allowed all these people to step in and become middlemen who were servicing these loans with with no risk at all right and as the debts keep on going growing the feds keep throwing more money at it which is causing inflation so people are paying five six dollars a gallon gas this. summer they're paying astronomically high prices for food as a result of this ridiculous came to throw money at debt that they borrow to begin with they just increasing the total indebtedness and bankrupting the country by definition there's no other result but let's move on to this carl levin report senator carl levin says in no uncertain terms that goldman sachs lied to clot

congress and to the clients your thoughts on this and what as you describe it something remarkable again using your gift for prose you talk about the hudson collateralized debt obligation the c.d.o. brilliant writing on this one talk about this please my tie i mean well the amazing thing about this is this is a lot worse than anybody really thought you know a couple of years ago i put out a report in the clutch newspapers put out a report and all we really said was that goldman was short mortgages at the same time that they were selling mortgages to people so there was a suggestion that this was securities fraud because they knew that they had these loser toxic mortgages that they were dumping on people the same time they were betting against them but they have eleven report goes far beyond that it shows that goldman actually sort of at the end of two thousand and seven a very senior executives in the company had kind of

a come to jesus moment where they realized that mortgages were going in the tank and that they at the time they were net long mortgages solicit let's get close to home first let's let's get even but then they went on from there after they after they got out of their long position and they bought. a number of these enormous mortgage deals like timberwolf and hudson and abacus the notorious advocates deal and they immediately shorted one hundred percent of those deals as they were aggressively marketing them to their clients or other words they knew the stuff was bad it was toxic it was going to blow up and they were betting against it immediately and aggressively marketing it to their clients at the same time that's . it's much worse than that even i thought back then right now as the product was diminishing in value in the clients were losing money my understanding is that goldman made it impossible for clients to get out so that they trapped them in this toxic burning fire of trash and then they say they prevented them from getting to the exits and they just kicked them in the head over and over and over again is

that correct that's exactly what happened out in the hudson this bad hudson deal that you referenced here's the thing goldman was one hundred percent short this deal so the more this deal went down in value the more these these mortgages lost value the more money they made so as it started to lose value and it started to lose value almost immediately their clients were included incidentally morgan stanley were getting on the phone the goldman and saying you know hey guys let's get out of this stuff liquidate it you know get what you can for it so we don't completely lose our shirts and goldman kept kind of dilly dallying installing and not really giving them an answer and they just didn't sell the stuff you know here's just as you said this the ship is sinking these people are trying to get into the lifeboats and goldman is keeping them from from getting their life jackets basically they kept them in these awful deals because the longer they held on for them the more money goldman made on the other side they were they were crushing these guys as they were going underwater it's it's unbelievably ruthless activity right again it's a little activity to put it more succinctly the law says best best price according

the s.e.c. is mandatory and you can't trade had your client so here you have lloyd blankfein a bunch of goldman sachs effectively gang raping their clients and laughing about it ok let's move on to what you describe as the peasant mentality doesn't this have much to do with wall street criminals being above the law the bottom ninety nine percent see the bankers as somehow special and above the law act on the split in the psyche in america where they accept or bang rapists like lloyd blankfein as being godlike and at their own expense while they're going bankrupt what happened to the american psyche are they on drugs what's going on it's a really quote interesting. shit it's really really hard to explain i think there's just been so much relentless propaganda you know especially on the right i think that there's there's a lot of this. rhetoric out there that says that rich people and people on wall street are the producers of society and we have to do whatever we can to enable them and prevent them from having any difficulty in paying taxes because without

them we won't have any jobs and cetera et cetera therefore when goldman sachs commits you know securities fraud or worse we should look the other way because these people are really the producers of producers of society and it would be counterproductive to put them in jail you know what good are they going to do in jail etc etc and this is the kind of thing you actually hear from people and you know and i've actually even heard this from government officials who are s'pore supposed to be prosecuting these matters you know they'll actually say to me well you know it's good enough that we find them because that sends a message you know in this world you know the humiliation is really bad enough being outed as somebody who's committed a you know an offense is bad enough we don't say that about drug dealers or murderers you know we don't say oh the humiliation is bad enough we put them in jail and i think we have to get to a place where crime is crime and people who commit crimes go to jail whether they're rich or poor and we're just not at that place right now ok you mentioned propaganda clearly the propaganda is enforced i mean the big business owns the

mainstream outlets and they put out this trash to convince people that it's their fault that they're getting raped i mean a blame the victim right but beyond that it seems like in the united states what used to be a mentality of free market capitalism and competition has given way to what i would call market fundamentalism or market theology extremist view is where the profits are worshiped in an extremist matter it seems like america has become a nation of extremists when they worship and like i find themselves said well i'm doing god's work it's become this radical. theocracy of market fundamentalists you begin to wonder if that's that's maybe the case and i think from move the general public's point of view but i think there is an undercurrent of sympathy for people who run banks like goldman sachs and j.p. morgan chase because these guys are smart enough to make money and so therefore

they must be doing something right it just doesn't matter whether they got their money you know illegally or not but i think that there's just an east coast right now in the united states that profit is to be sought at any cost and you know regulations and laws are really not something to be taken terribly seriously well clearly the demand for explanation will increase exponentially as the price of gas keeps going up thanks to you and flay ssion engineer by these larcenous to criminals all right that's a b. thanks again for being on the kaiser report thank you so much max take care all right enough going to do it for this edition of the kaiser report with me nice guys or and stacy herbert and we thank my guests that's a b. of rolling stone magazine if you want to send me an e-mail please do so at kaiser report in r t t v dot ru and so next on this next guys are saying back.

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