oh about half past the hour and here's a look at the top stories on our t.v. britain is on a full scale alert as scenes of violence and destruction they are beyond wanted after three days of clashes between rioters and police the prime minister has cut short his holidays of all the emergency government talks on how to deal with the mayhem. wall street hits a new low since the year two thousand a financial crisis and abouts despite a public message of defiance from president obama that as the u.s.

credit downgrade triggers a freefall on global markets india claims its economy could actually benefit from the situation. as the euro zone tries to whether its economic storm of poland's shelving up last to adopt a single currency highlights a broader european desire to stay out of the euro crisis. and next max kaiser and his co-host stacy herbert go to new york to unveil what stands behind debt seals and privatization drives you stay with us. 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 to back all and the suggestion that the pentagon would have to get some cuts per today's financials i am predicting false

flag terror attack in the next ninety days because remember you can't cut the military budget in america because let's america without a military budget that exceeds all other military budgets of every country around the world but get all the other great top story stacy herbert franks that's all we have left false flag attacks finance films flag false flag so the first headline max groups says debt deal fails to make significant dent in deficit so this is bill gross the fund manager for the largest country in front of the world he says in addition to an existing nearly ten trillion dollars outstanding treasury debt the u.s. has a near unfathomable sixty six trillion of future liabilities and 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 huge debt right off muster courage is not being taken and this is really answering stacy because ultimately barack obama is shirking as responsive. 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 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 talking about thought slax but he talks about financial repression and this is another topic that we 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 eel down a ten year treasury bond to get the c.p.i. back it 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 he holds over seas 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 for inflation 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 the swiss franc will top out at some point and gold will make a new all time highs against us was francs enough so this is the dynamics of a collapsing debt bubble these are negative real rates of return of bill gross thoughts 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 but i was going to say gas and harrison there he was tweeting that germany hit negative real rates as well 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 included economic meltdown so here was bill gross being interviewed 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 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 is no proactive policies whatsoever barack obama is a perfect poster child for disaster capitalism is that 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 makes them a part of this emerging kleptocracy billionaires 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 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 game 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 goold has returned fifteen percent treasuries four point two rego forgets 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 of the deflation which is really another word for hyper inflation hyper inflation 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 had currency growth is going to go the way of the gotoh that means there's no top on goal ten thousand

dollar amounts for gold now of course you go a lot higher because we are currencies are going to zero well according to the bloomberg article they said big gold will rise as high as one thousand seven hundred thirteen this year one thousand nine hundred thirty eight and twenty twelve according to 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 for a long. 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 god wall in this situation is the u.s. dollar you know the u.s. dollars down and it's still in a massive bubble as all this debt ceiling debate back all proves there is no underlying growth scenario one can construct that would equal pay down debt in any

configuration but also max the other thing is gold would have the longest winning streak since at least one thousand 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 paper yardies they are paper extremists who believe the dollar is somehow connected to this 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 bond market finished ok maxwell i have one more gold

headline here bank of korea buys gold first time since ninety seven ninety eight crisis but taken my case taken my advice obviously max they watched the kaiser report south korea's central bank what twenty five tons of gold over the past two months and its first purchase in more than a decade so they added this to their fourteen tons of gold already held and they want this at a value one point two four billion and put apparently max they're actually storing . this gould in london at the bank of england oh well that's not a good idea because the london billion market is extremely corrupt and if they are smart they'll demand physical delivery of this gold and they'll store it somewhere safely in korea korea listen to me listen so 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 in fact you might end up like greece because that's my next headline max greece begins fifty billion euro privatization drive sued the gun for one of the biggest fire sales in western history was fired as greek officials began appointing advisers for the country's ambitious privatization drive but greece lost its sovereignty 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 here's a great quote after years of resisting privatizations the break neck speed at which

athens has agreed to conduct the sales nearly one in every fifteen days has received 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 downgrade their debt that's the point of paying our under the table he's a corrupt world leading slimeball that's the point of having had friends like paulson work with all my. sites 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 lead bankers on airplanes they're going to countries

and they're going to blow those countries up with weapons of mass financial destruction no papers on their claim to the supercard an airplane reported immediately to the t.s.a. i gave myself i have a story about bankers the last headline here goldman sachs traders quit with big louis is drying up so more than a dozen traders according to this article have quit goldman sachs's north american government bonds in three minutes 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 rate the country financially again and all your christmas bonus wishes will come true all right say sarah 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.

will be. real you believe just in science and technology from the realms where. we go to the future of coverage. you're welcome back to the report time now to go to financial journalist and blogger extraordinary terry ball terry ball welcome back to the kaiser report access screen see here terry we spoke to last year and when your article in the atlantic came out made big news e-mail suggest bear stearns cheated clients out of billions here's

a bit of the summary and update the story if you can for us. this was the key swear there stern's ears led by an executive mean tom marino is now the c.e.o. of risk out him and his team are literally stealing billions from their own clients this clients happen to be. nonaligned insurers and investors in residential mortgage securities certain out some around and he's currently c.e.o. what company a rez cap press cap is sent to vision of an ally financial the former g.e. nack ok so as all of these firms that we're caught in gazed in mass of securities fraud is that of any kind of legal precedent being applied in anyone going to jail they simply change the name of the shop or go to a new shop or a closer shop and re-invent the shop i mean this is a classic got to shop scheme wall street from

a few decades ago reinvented for the modern era using derivatives in this recycling recycling and then who allegedly in this case actually this time criminal acts that front stealing right but it without the criminal acts of fraud american economy would show a huge negative g.d.p. growth because it isn't negative action negative accounting and fraud is that the basis of america's the n.e.p. currently variable. you might be right about that. in this case though the. this was the most agree just behavior we had seen come from executives senior executives heads of mortgages heads of the whole group. literally telling their clients that hey you know what i know you think that these residential securities are performing a loans are working out i steer you but we disagree with you so we're not going to give you back your money for these bad products we soldier. 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 they pocketed for themselves instead of pro giving it back to the investors and then that's the heart of this case. if you don't mind i kind of wanted to just get what's going on now a few other publications like the wall street journal and bloomberg has started to pick up on the story. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation are going to be the people he's interviewed they were looking to use them are neck to charge time around oh jeff first lies are now works at goldman sachs and mike nuremberg who now works at break of america explain the martin act the martin act that's what eliot spitzer was famous for that's what he went after he unless 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 there seems some of the evidence that he's collected from a documentary filmmaker who has just finished a movie called the confidence games name is nick verbinski it's about a fraud instead of bear stearns and he has hours 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 bama. and he's in my in the atlantic story and he's in nick's moving man actually agreed to testify against bear stearns in a few weeks before he went out and does deposition. he also was a lawyer j.p. morgan said you have to have a lawyer because you work for us and there is a severance successor etc he went into those depositions and he changed his testimony he said what he told me in the documentary filmmaker that he. that that

all the illegal activity was whistleblowing almost untrue what happened he was lucky. i mean we double checked his information we had multiple sources we saw you miles we know he's like so we're trying to figure out right now is is this a case that bears out say council al said lawyers you know paid him are going to change your testimony did time around zero in his traders. so let the lawyers for these mana winds that the law firm is. based here in new york the lead attorney's name is eric haas where he was able to do is get a texas court. to subpoena his e-mails and we saw in there that he liked. that what he originally said was true we saw us e-mails about covering up before he was going to go in to testify and so it's where this evidence has been presented to the new york attorney general and it's a for him to really bring map and knowing in you know put him in in front of a line out of us aren't going to prosecutors and am asking you to change your

testimony how scared is cheating mark right there in general typically with a high profile case it's a political springboard if that part a lot of asian heritage thank absolutely will the evidence is strong so here's the next thing i think will be really interesting two weeks ago in shipping working is scared me they pile motions like ok the fried claim should be stayed there shouldn't be allowed and then judges will overrule the us and there is a five year century limitations in new york and this case has now been moved to state court and they're trying to do some weird maneuvering around so that it has an effect. and the readings with the reading agencies that they do you have to pay out over billions in damages which i believe. the union moved to two weeks ago they own e.m.c. now because they bought bear stearns which is the mortgage servicer and the illegal activity happened and then when he took all of the assets out of e.m.c. included in chile comparing out to a cheap humor in chase bank what that effectively did is any of the plaintiff would

meet them hard to recover money in judgments in the cash in the absence out of e.m.c. now you know that's a legal there's a contract that says that they're not allowed to do that the desperation to do and he said this is kind of news that we can see a cheap market of scared they know this is real and i think. are in jeopardy or very afraid if they're tampering witnesses now it's funny to see some of the techniques is by bucket shop operators used by a firm like j.p. morgan by remaining accounts remembering accounts changing from margin accounts the calf accounts to make it impossible for these accounts to be it appear in order to have any kind of paperwork associated with them so what this is really associated with i remember working on wall street back in the early one nine hundred eighty s. there were some notorious got good 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 buckets up 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 ahead of the revelations of these scandals and the proof that the company is basically insolvent yes so the actual damages they just they just said thomas between three mano line and shirts you know suing j.p. morgan is one a little over one point seven million or so in this case there are fraud claims which equals punitive damages in trust me they want to go to trial. city not want to send so. billion dollar hit to g.d.p. more instruments sheet yeah absolutely nuts on top of the liability associated with their own head silver naked short position that's probably another forty or fifty billion you're talking one point six one point seven billion hair plus period damages so what about the hedge funds related the hedge fund i have constant events it's primarily. equity shops. who are certain they

send out. got to me in court cases to reporters and you know they had big short positions on him and he's going to get hit with these mortgage backed securities fraud claims will at least solution. they're going long and actually very long shared steves that people will get a windfall of suit right so you're pretty close to the hedge fund community out there in in connecticut or i think it'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 has friends are doing so you're hearing whisperings from the from the hedge fund street that the time to short j.p. morgan stock is upon us absolutely we it needs it's you know it's a few funds who have a very you know. very focused energy and be here for this to put them in the

interest of course as anyone who is hoping to have america avoid the kind of loss 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 it made they would want to see j.p. morgan stock go the way of 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. allan what it was revealed the start what does erode 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 then the stock of insolvent the start of the 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 or commit securities fraud all day long and you can

be a death slave too so going forward actually next i think this is more about the cover the g.o.p. morgan has executed in the last year and i think the american mean street investor let's see if that doesn't mean you just haven't ever much to restore her mean street investors to go back and invest in equities the best and most treat companies they have to bring some criminal charges and this this is an easy slam dunk keep state cannot see how these things are not charged criminally well they know of in instances in other countries whistleblowers been assassinated when they have revealed some of the banking terrorists that work in these foreign countries so i would imagine people are afraid of the assassins and the employer banks like j.p. morgan to taper now but i think at some point. one has an obligation if one has information and the attorney general certainly hopefully he's got the colonists to

take they take the case to its legal conclusion we only have a few seconds left any closing thoughts yes next season to let you know next month and reporting there is a significant development in this case with new word since come forward. i think. in this new printer for these teams in charge more people have contacted me and they're whistleblowers and i know the. how many. ok let's just say. over a dozen yes ok well for one of them will actually come forth and do the do all right terry go thanks much for being on the kaiser report great to see max thanks for 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 guests terry ball you want to send me an e-mail please do so at kaiser reporting r t t v dot are you it's all next on the scene that goes on by all.

get in your hole she's afraid of being the man.