you're watching our the line from moscow on news now i believe our top stories britain is on full scale alert as scenes of violence of the suction flared beyond london after three days of clashes between rioters and police the prime minister has concert of his holiday to hold emergency government talks on how to deal with the mayhem. european stock markets are driving after wall street hits a low not seen since two thousand and eight as kind of investors have been global

stocks and the deepening euro crisis is fueling antagonism towards the single currency. america's latest economic slump comes despite a public message of defiance from president obama from the u.s. credit downgrade triggered freefall on global markets india claims its economy could actually benefit from the situation. next is the kaiser report here on our team 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 debacle and the suggestion that the pentagon will have to get some cuts heard today's financial times 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 let's get all the other great top story stacy herbert max that's all we have left tax finance false flag false flag so the first headline knocks gross debt deal fails to make significant dent in deficit so this is bill gross fund manager for at pimco the largest bond 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 of future liabilities at present cost so he's saying that the debt deal that's been done there's nothing to address it there's still going 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 the huge debt write off muster her is not being taken and this is really interesting because ultimately barack obama is shirking his response of. 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 false landscape 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 of point nine three percent now if you take the eel down a ten year treasury bond deduct the c.p.i. take 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 they told overseas including canada mexico brazil and germany that's right negative rail trades you've got to subtract the c.p.i. from what they offer down there at the federal reserve bank you end up with a negative number which is the same thing as 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 this was frank 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 right soon enough so this is the dynamics of a collapsing debt bubble these negative real rates of return of 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 vault 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 yes that any parents in there he was tweeting that germany hit negative real rates were out for the first time since one thousand nine hundred fifty seven part of it is the volatility happened things happen so fast in this financial including 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 that this article appearing in bloomberg and harris reporting germany is just gone negative. 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 what 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 he's not taking one proactive action at all he's just letting this thing collapse which is great for bankers on wall

street because increases their fees it increases the debt load and it just makes them a 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's only dealing with the numerator not the denominator denominator in the deficit problem being jobs and nobody suggesting the jobs but i want to move on to the under safe haven that is. gold as you mentioned earlier gold coins sell out at lisbon biggest betsy's twenty two percent game and remember we reported a few years ago that gold was selling out in germany so if the germans were they sensed 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 gold has returned fifteen percent and 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 and 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 is 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 now of course could go

a lot higher because we are currencies are going to zero well according to bloomberg article they said they pulled 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 mean mean twelve consecutive annual gains the 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 ball ball 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 to pay 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 art is 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 ball market finished ok maxwell i have one more goal headline here bank of korea buys gold first time since ninety seven ninety eight

crisis they're taking my base for taking my voice obviously max they watch the kaiser report south korea central bank what twenty five tons of gold over the past two months and it's first purchase in more than a decade so they added this to their fourteen tons of gold already held and they bought this at a value of one point two four billion and but apparently max they're actually still worrying. the school in london and the bank of england oh well that's not a good idea because the london going 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 to max concourse of the t.v. korea butcher air 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 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 are 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 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 received fears that steep 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 ground 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 funds like paulson work with gone. 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 britannia 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 got 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 there is they're going to call a truce and they're going to blow those countries up with weapons of mass financial

destruction no papers on airplanes if you see a paper on 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 bonuses drying up so more than a dozen traders according to this article it 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 and vicious traders dry 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 ever 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.

max kaiser 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 says great see here terry we spoke to last year and when your article in the atlantic came out made big news email suggest bear stearns cheated clients

out of billions here's a bit of a summary and update the story if you can for us. this was a key swear bear stearns streeter's led by an executive. who's now the c.e.o. of risk out him and his team are literally stealing billions from their own clients those clients happened to be. nano lines insurers and investors in residential mortgage securities certain out some around and he's currently c.e.o. what company a rez capra's cap is essential vision of ally financial the former g.-mac ok so as all of these firms that we're caught in gave us of securities fraud instead of any kind of legal precedent being applied in anyone going to jail they simply change the name of a shop or go to a news shop or a closer shop and re-invent the shop i mean this is

a classic got good 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 actually this time criminal acts of stealing are right but it without the criminal acts of a fraud american economy would show a huge negative g.d.p. growth because it isn't negative action negative accounting and fraud is not the basis of america's leading. probably variable. you might be right about that. in this case though 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 in a loans are working out as here you but we disagree with you so we're not going to give you back your money for this bad products we soldier. in the meantime then

they they knew that they knew the put 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 in the pocket for themselves instead of credit giving it back to the investors and that's the heart of this case. if you don't matter i kind of wanted to just it was going on now a few other publications like a bus or a journal and bloomberg have started to cover the story mentally. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation of interview people he's interviewed and that they were looking to use the martin act to charge time around oh jeff first lies are now works at goldman sachs and might nuremberg who now works at bank of america explain the martin act the martin act that 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 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 name is nick verbinski it's about the fraud instead of bear stearns and he has hours whistleblower tapes and it tapes the newly . he is looking at now. additionally what's more interesting is one of our whistleblowers his name is matt bando and he's in my at 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 that position. 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 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. the that

all the illegal activity was whistleblowing on wasn't true what happened he was not . i mean we double checked his information we had multiple sources we saw you know as we know he's like the rich trying to figure out right now is a case that bears out say council now say lawyers you know paid him off don't change or test raided time around zero in his traders. so what the lawyers for these monell lines 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 were met then lives to subpoena his e-mails and we saw in there that he like. what he originally said was true we saw 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 matt brown when you know put him in in front of all i doubt bombers aren't going to prosecutors and ask you know who got you to change

your testimony how scared is cheap the market right very general typically when they get a high profile case it's a political springboard it is that part a lot of asian heritage thank absolutely will the other is that strom so here's the next thing i think would be really interesting two weeks ago in shipping martin is scared they play on the oceans like ok the pride claim should be stayed they shouldn't be allowed in then judges will overrule this and there is a five year set your limitations. new york in this case has now been moved to state court and they're trying to do some maneuvering around so that it doesn't affect their readings with the reading need to seize it that you have to pay out over billions in damages which i believe they were. the money and moved to two weeks ago they own e.m.c. now because they bought bear stearns which is the mortgage servicer and then a lot of the illegal activity happened then the money truck all of the assets out of e.m.c. and put it into a cheap humor in chase bank what that effectively did is any of the plaintiff would

meet them hard to recover money and judgments be taken the cash in the absence out of e.m.c. you know that's a legal there's a contract that says that they're not to do that in desperation to do that and he said this is kind of news that we can see a cheap marketed scared they know this is real and i think tom. personalized are very afraid if their champion witnesses. say some of the techniques used 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 a peer into or to have any kind of paperwork associated with them so what this is really associated with i remember working i was three back in the early one nine hundred eighty s. there were some notorious 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 buckets up mentality and fraud 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 and do you see anybody now starting to short j.p. morgan stock and head of the revelations of the scandals and the proof that the company is basically insolvent yes so the actual images i just i just checked on this between three mana lines shirts you know suing j.p. morgan is one a little over one point seven billion or so in this. they're fried claims which equals punitive damages in trust me they want to go to trial city not want to settle so the. billion dollar kids heaping 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 here plus period damages so what about the heads right related so i have got some events it's primarily. equity

shops. who are certain they send out. documentation in court cases to reporters and there you know they are big short positions on anyone who's going to get hit with these mortgage backed security front clinton solution. they're going long and actually are long assured that people will get a windfall from the city. right so you're pretty close to the hedge fund community out there in in connecticut or i think it's actually the headphone 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 home front street that the time is short j.p. morgan stock is upon us absolutely me it me it's you know it's a few friends who have a very you know. they're very focused on energy and might hate to be here for this

to you know what i mean the interest of course is 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 may 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 a billion are dark their balance sheet what 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 unsolvable starkers 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 and commit securities fraud all day long and he can

be a death slave too so going forward actually next i think this is more about the cover up the g.d.p. morgan has executed in the last year and i think the american mean street investor let's see if the government u.s. government ever wants to restore any for me street investors to go back and listen equities and invest in wall street companies they have to bring some criminal charges and this this is an easy sell you don't keep saying cannot see how these guys are not church. well they know that in essence and other countries whistleblowers been assassinated when they have revealed some of their banking terrorists work in these foreign countries so 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 to go home it has 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 i mean reporting there is a significant development in this case when you are going to since come forward and i think the key so. for this team to be charged more people have contacted me and they're whistleblowers and i know. them how many. let's just say it's the two over a dozen yes ok well for one of them will actually come forth and do the do all right terry will thank so much for being on the kaiser report great to see max thanks for having me 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 the next time this a mascot is a bio.