stacie tell is that the u.s. is still not just losing money but it sovereignty. we'll. read you the latest in science and technology from around the world. we go to the future covered. by max kaiser this is the kaiser report wait a minute before we get started i'm going to make a prediction based on this debt ceiling debate back all and the suggestion that the pentagon what have to get some cuts for today's financial it's i am predicting false flag terror attack in the next ninety days because remember you can't cut the

military budget in america because what's america without a military budget that exceeds all other military budgets of every country around the world let's get all the other great top story stacy herbert max that's all we have left fos flag tax false flag finance fell's flag false flag so the first headline max gross says debt deal fails to make significant dent in deficit so this is bill gross fund manager for pimco the largest bond trading fund in the world he says in addition to an existing nearly ten trillion dollars of outstanding treasury debt the u.s. has a near unfathomable sixty six trillion a future liabilities at present cost so he's saying that the debt deal that's been done does nothing to address it there still needs to be trillions more in cuts but also taxes which of course have not been mentioned at all right the debt is expanding and the attempt to cut the debt means by definition

cutting parts of the economy. that would be generating revenue and tax revenue to pay off debt so it's an impossible situation where the fact of the ultimate solution being that huge debt write off muster courage is not being taken and this is really in some states because ultimately barack obama is shirking as responsibility to address the real problem so what is going to happen is this problem is going to be addressed by a global banking situation like the i.m.f. etc which means america loses its sovereignty as we've been saying all along and as bill gross is absolutely correct the mathematics don't add up there's no way you can do any cuts in any combination that will create growth to pay off these debts and this is what we mean when we say america is losing its sovereignty not only have we been talked about thought slax but he talks about financial repression and this is another topic that we've discussed over and over and he mentions that

what's happened now is that this negative real email so that's a point nine three percent now if you take the eels on a ten year treasury bond deduct the c.p.i. they get gives you the real rate of return and right now it's negative point nine three percent he calls this financial repression and so he's selling some of his treasury bonds or at least increasing the percentage of his bonds they hold overseas including canada mexico brazil and germany that's right negative real race you've got to subtract the c.p.i. from what they offer down there at the federal reserve bank and end up with a negative number which is the same thing to say you've got negative purchasing power which is just as bad as hyperinflation so the results are in and people around the world are buying gold because they are trying to maintain their purchasing power this is why goal is hitting new highs in every currency

around the world except for the swiss franc this past couple of months but of course. swiss franc will top out at some point and gold will make a new all time highs against us was frank soon enough so this is the dynamics of a collapsing debt bubble is these negative real rates of return that bill gross talks about and it's surprising that now it's even in germany so that's a huge pent up buying interest in european markets in the german market now will be flooding into the gold bullion market and taking gold to incredible new highs against the euro well yes max you kind of jumped the gun here for me ben i was going to say yes and harrison there he was tweeting that germany hit negative real rates were out for the first time since the one nine hundred fifty seven part of it is the volatility happens things happen so fast in this financial include economic meltdown so here was bill gross being interviewed it was a tuesday morning and he's saying he was buying germany because there were real

rates of return there but within a few hours of this article appearing in bloomberg and harrison is reporting germany has just gone negative right and this is a trend that wall spread around the world as the crisis really becomes more pronounced around the world nobody in any of the g eight or g twenty countries is doing the right thing which would be to start to negotiate a new bretton woods agreement and to recalibrate the world's currency and for the dollar to take a massive devaluation against all these other currencies nobody's going to do that yet they're going to let the the crisis you know as naomi klein calls it a disaster capitalism they're just let the disasters happen and then they try to grab as much as they can after the disasters happen there's no proactive policies whatsoever and barack obama is a perfect poster child for disaster capitalism is not taking one proactive action at all is just letting this thing collapse which is great for bankers on wall

street because it increases their fees it increases the debt load and it just may. to them part of this emerging kleptocracy billionaires were really at the expense of everybody else yes that's another thing bill gross had said earlier which was that america is only dealing with the numerator not the denominator the denominator in the deficit problem being jobs and nobody's addressing the jobs but i want to move on to the other safe haven that is gold as you mentioned earlier gold coins sell out in lisbon biggest betsy's twenty two percent gain and remember we reported a few years ago that gold was selling out in germany so the germans were they sense this negative real rates coming and they were buying gold earlier then but now the portuguese are now buying it and the article points out that gold has advanced fifteen percent this year and treasuries by comparison have returned four

point two percent so those are the two safe havens girl has returned fifteen percent treasuries four point two don't forget so over it's up more than thirty percent this year it was up seventy percent last year and this negative real interest rate story again as relates to gold is very interesting because negative real interest rates people equate with the flesh and and they equate deflation with an environment that is poorer for gold but historically a negative real interest rates are quote unquote deflation is actually the best time to be buying gold and so gold is working in either the deflation which is really another word for hyperinflation hyperinflation or inflation so there's really a no lose situation there's no top on goal because there's no amount of destruction that one can imagine a won't visit the currencies around the world because if you have currency growth is going to go the way of the dodo that means that there's no top on goal ten thousand dollar amounts for gold yeah of course to go

a lot higher because we are currencies are going to zero well according to the bloomberg article they they said. gold will rise as high as one thousand seven hundred thirteen this year one thousand nine hundred thirty eight twenty twelve according to the median in this survey of the four most accurate precious metals forecasters tracked by bloomberg over the past two years that may mean twelve consecutive annual gains the longest winning streak since at least nineteen twenty right and we're going to be talking about this winning streak continuing for another ten years at least and the only bubble in this situation is the us dollar you know the u.s. dollars down and it's still in a massive bubble as all this debt ceiling debate débâcle proves there is no underlying growth scenario one can construct that would equal pay down on debt in any configuration but also max the other thing is gold would have the longest

winning streak since at least one nine hundred twenty german rates negative for the first time since one nine hundred fifty seven and yet none of the mainstream financial press or any of the mainstream politicians here in america address the historic nature of just exactly how extreme the situation is in america what we're going through globally and yet the real numbers that you're seeing the real fact of how just how much distress there is out there in the actual numbers and facts because our paper bugs you know they worship paper they are papers yalit is they are paper extremists they believe the dollar is somehow connected to the never never land of all was great for bankers and we don't care about everybody else and it's run its course it's fairness it's over as a twenty five year paper bull market finished ok maxwell i have one more gold headline here bank of korea buys gold first time since ninety seven ninety eight

crisis they're taking my was there to. in my rice obviously max they watched the kaiser report south korea central bank but twenty five tons of gold over the past two months and its first purchase of more than a decade so they added this to their fourteen tons of gold already held and they want this at a value of one point two four billion and but apparently max they're actually storing this gold in london at the bank of england oh well that's not a good idea because the london bullion market is extremely corrupt and if they are smart they'll demand physical delivery of this gold and oil storage somewhere safely in korea korea listen to me listen to max come closer to the t.v. come over here korea put your ear to the t.v. any gold you store in london you will lose ok you will lose so if you want to actually make the smart of demand physical delivery to your own country or

you're never going to see that gold well in fact you might end up like greece because that's my next headline max greece begins fifty billion euro privatization drive so the starting gun for one of the biggest fire sales and western history was fired as greek officials began appointing advisers for the country's ambitious privatization drive well greece lost its sovereign saying and now they're selling the pieces of the corpse and the greek people need to understand that they no longer have a country there's a fire sale at grace they're selling off the family assets the family jewels but the greek people are no longer free they now are slaves for the i.m.f. and the global bankers good job grace here is a great quote after years of resisting privatizations the break neck speed at which

athens has agreed to conduct the sales nearly one every fifteen days has. greece fears that state jewels will be sold at rock bottom prices that was the point that's the point of getting moody's and s. and p. to drownd downgrade their debt that's the point of paying off under the table he's a corrupt world leading slimeball that's the point of having had friends like paulson work with goldman sachs in your country last year to meet up to decide how to sell off your state assets that's the point of having steve forbes of the international chamber of commerce having a meeting over there at the hotel brittania a couple of months ago to decide how to sell your state assets that's what happens when you lose your sovereignty that's what happens when you sell your soul to the devil that's what happens if you let the i.m.f. india home if you ever see a banker on an airplane report of the middle of the pilot it's a dangerous situation don't let bankers on airplanes they're going to countries and they're going to blow those countries up with weapons of mass financial destruction

no bankers on airplanes if you sit back on an airplane report it immediately to the t.s.a. . i have a story about bankers the last headline here gouldman sachs traders quit with big blueness is drying up so more than a dozen traders according to this article have quit goldman sachs's north american government bonds and derivatives trading desk in new york in recent months as the bank takes fewer risks and big bonuses for ambitious traders drying up another false flag is coming and there will be plenty of opportunity for you to rape the country financially again and all your christmas bonus wishes will come true all right stacy error thanks so much for being on the kaiser report thank you max all right don't go away much more coming your way stay right there. for the full story we've got it for. the biggest issues get a human voice face to face with the news makers.

the history of this place runs through the centuries. a paradise for archaeologists sue all exists logical tourists. but one fateful night shocks destroyed the harmony of life. how this republic good it's my spanx hoping dreaming and recreating. skies are welcome back to kaiser report time now to go to financial journalist

and blogger extraordinaire terry ball terry ball welcome back to the kaiser report and x. is great to see here terry we spoke to you last year and when your article in the atlantic came out made big news a mail suggest bear stearns cheated clients out of billions give us a bit of a summary and update the story if you can for us. this was a key piece where there stearns mortgage traders led by an executive tom marino who's now the c.e.o. of rezko him and his team were literally stealing billions from their own clients those clients happened to be. nano lines insurers and investors in residential mortgage backed securities certain out some around he's currently c.e.o. of what company a rez cap rest cap is a vision of our financial the former g.-mac ok so as all of these firms that

we're caught in gave in mass of. securities fraud instead of any kind of legal precedent being applied and anyone going to jail they simply had to change the name of the shop or go to a new shop or close a shop and re-invent the shop this is a classic bucket shop scheme wall street from a few decades ago it reinvented for the modern era using derivatives and in this recycling recycling the men who allegedly in this case are committing acts of this time criminal acts of fraud and stealing are right but it without the criminal acts of a fraud american economy would show a huge negative g.d.p. growth because as a negative action the negative accounting and fraud is that the basis of america is in a picker only variable. you might be right about that. in this case though this was the most egregious behavior we had seen come from executives senior executives

heads of mortgages heads of the whole group. literally telling their clients that he you know what i know you think that these residential securities aren't performing in the loans aren't working out i steer you but we disagree with you so we're not going to give you back your money for this bad product least we sold you it in the meantime then they knew that they knew the cut it was bad and then they went out and they actually got the money back from the other people that they bought some loans from and then the pocketed for themselves and said it could giving it back to the investors and that's the heart of this case. if you don't mind i kind of wanted to just it was going on now a few other publications like the wall street journal and bloomberg are certain to pick up on the story friendly. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation of interview people he's interviewed that they were looking to use them are neck to charge tom around oh jeff first lies are

now works at goldman sachs and mike nuremberg who now works at peak of america explain the martin. the martin act that that's what eliot spitzer was famous for that's what he went after he analysts they can rebut it it's very wide sweeping it's basically saying you know if you've committed any form of fraud. we're going to charge you with this and make it a criminal and then i can tell you that it's now the new york attorney general who is extremely active in his investigation and i've seen some of the evidence that he's collected from a documentary filmmaker who has just finished a movie called the confidence games theme is nick forbid ski it's about the frog instead of bear stearns and he has hours of whistleblower tapes and edited tapes that i know the a.g. is looking at now. additionally what's more interesting is one of our whistleblowers his name is matt bamako and he's in my at the atlantic story and he's in nick's movie man actually great to testify against bear stearns and

a few weeks before he went out and his deposition. he also was a lawyer at j.p. morgan said you have to have a lawyer because you work for us and there was a severance accent or etc he went into those depositions and he changed his testimony he said what he told me in the documentary filmmaker that he made. that that all the illegal activity he was whistleblowing on wasn't true what happened i know he was not i mean we double checked his information we had multiple sources we saw e-mails we know he's lying so we're trying to figure out right now is is this a case that the bears outside counsel al said lawyers the you know paid him off them to change her testimony did time around oh in his traders pamela so what the lawyers for these mana lines that that law firm is. based here in new york the lead attorney's name is eric haas what he was able to do is get a texas court were met then when lives to subpoena his e-mails and we saw in there that he liked. that that what he originally said was true we saw some e-mails about

covering up before you. going to go in to testify and so it's where this evidence has president presented to the new york attorney general and it's a for him to really bring map and when you know put him. in front of a lineup almost right in front of prosecutors and not skew who gets you to change your testimony how scared is cheap the market right attorney generals typically when they get a high profile case it's a political springboard it is that part of motivation here thank absolutely will the evidence is a strong so here's the next thing i think would be really interesting two weeks ago i mean cheeping martin is scared they filed motions like ok the fraud claims should be stayed they shouldn't be allowed and then judges will overrule those and there is a five year century limitations in new york and this case has now been moved to state court i know they're trying to do some weird maneuvering around so that it doesn't affect their ratings with the reading agencies if they do have to pay out you know billions in damages which i believe they will. then when it moved to two weeks ago

they own e.m.c. now because they bought bear stearns which is the mortgage servicer that illegal activity happened then they went in took all of the assets out of e.m.c. and put it into like a bring out to a g.p. morgan chase bank and what that effectively did is any of the plaintiff it would make them hard to recover money in judgments by taking the cash and the assets out of e.m.c. now now that's a legal there's a contract that says that they're not to do that the desperation to me it's these kind of moves that we can see a cheap market is scared they know this is real and i think tom around one. hundred thirteen percent witnesses yeah it's funny to say some of the techniques is by bucket shop operators used by a firm like j.p. morgan by renaming accounts remembering accounts changing from margin accounts the cash accounts to make it impossible for these accounts to be in their peer in order to have any kind of paperwork associated with them so what this is really associate

with a member working on wall street back in the early one nine hundred eighty s. there was. nor torrijos bucket shops working at that time and they're out of business now but they were put out of business by folks like j.p. morgan that have taken the whole bucket shop mentality and fraud and securities fraud to just a wholesale level that's one hundred fifty six billion dollar company so what could potentially be the head to j.p. morgan's balance sheet and do you see anybody now starting to short j.p. morgan stock the head of the revelations of these scandals and the proof that the company is basically insolvent yes so the actual images i just i just checked on this between three mano lines shirts you know suing j.p. morgan is one a little over one point seven billion so in this case there are fraud claims which equals punitive damages in trust me they want to go to trial and the city not want to settle so that the men who continue million dollar hit to g.p.

more can spend much yeah absolutely and that's on top of the liability associated with their own head silver naked short position that's probably not a forty or fifty billion they're talking one point six one point seven billion hair plus period damages so what about the heads trying to relate to the hedge funds so i have got to mean it's it's primarily. equity shops but he had a chance who are certain they send out. documentation in court cases to reporters and they're you know they have big short positions on anyone who's going to get hit with these mortgage backed securities fraud claims or liability so the shorting j.p. morgan the surety bear stearns they're going long actually or long shared guarantees that people who think will get a windfall from the suit right so you're pretty close to the hedge fund community out there in in connecticut or i think that's actually the hedge fund capital of the world and so you've got your ear pretty close to the street out there in terms

of what the head big headphones are doing so you're hearing whisperings from the from the head for. on street that the time is short j.p. morgan stock is upon us absolutely me it me it's him you know it's a few friends who have a very you know. very focused energy it might take me year for this to you know what i mean the interest of course is anyone who is hoping to have america avoid the kind of sovereignty that we've seen in greece or we've seen in ireland of anyone who wants the american sovereignty to remain intact and not be taken over by the likes of the i.m.f. working with j.p. morgan then they they would want to see j.p. morgan stock go the way enron down to zero and of course the comparison to enron is a good one because enron of course said eighty billion parked off their balance sheet when it was revealed the stock went to zero j.p. morgan's got by some estimates over

a trillion dollars in liabilities off the balance sheet once that's put back on the balance sheet then the stock is insolvent the stock goes to zero which is something people should be rooting for if they want to maintain sovereignty in america if they want to be debt slaves of course then just give j.p. morgan free reign to write laws and commit securities fraud all day long and you can be a debt slave too so going forward actually next i think this is more about the cover the g.p. morgan has executed in the last year and i think the american mean street investor let's see if the government the u.s. government ever wants to restore her means to do better to go back and invest in equities and invest in wall street companies they have to bring some criminal charges and this this is an easy slam dunk keyset do not know these guys are not church crim well they know that in instances in other countries whistleblowers been assassinated when they have revealed some of the banking

terrorists that were. in these foreign countries i would imagine people are afraid of the assassins in the employ of banks like j.p. morgan to take them out but i think at some point. one has an obligation if one has information and the attorney general certainly hopefully he's got the whole mess to take they take the case to its legal conclusion we only have a few seconds left any closing thoughts yes max eight hundred next month i'm reporting there is a significant development in this case with new evidences come forward. i think will blow the case open and make this in no brainer for this team to be charged more people have contacted me more with simple owners and i know the. how many. let's just say it's over just over a dozen yes ok well fully one of them will actually come forth and do the do all

right sorry both thanks so much for being on the kaiser report great to see you max thanks for having me all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest terry bull you want to send me an e-mail please do so at kaiser report of r t t v dot are you it's all next on the subject guys are saying by all.

means we're. just.

welcome back this is all see they have. london's engulfed in violence for the third night as riots please try to control what the government calls a shared criminality the rest is also reported to have spread to britain second largest city babbling and authorities say a peaceful protest against the deadly police shooting of a twenty nine year old man was by troublemakers. that sinking feeling in u.s. stocks and deep champagne the first trading session after america's credit rating downgrade and says euro zone debt continues to wreak havoc with investors fearing it's a me and spain could be the next economist to pay this despite president obama and the european central bank is trying to reassure the vulcans. are three years after georgia has a type of song to set a remembrance ceremonies are held for the victims of the conflict which will to the people still bearing the scars of war that close.