at seven thirty pm moscow time the top stories on our key outnumbered and beleaguered police struggle to restore order in major british cities locked in a spiral of violence and looting over five hundred people have been arrested after the riots. europe's top bankers of the continent is going through the worst financial crisis since world war two european markets have remained uncertain despite the central bank's move to buy bonds from the region's crippled economies.

and u.s. stocks claw back losses following their biggest slump in years the plunge was caused by fears the downgrade of america's credit rating could worsen the slowdown of the world's biggest economy. tex mex kaiser and his co-host stacy herbert go to new york to unveil what stands behind debt deals and privatization. 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 would have to get some cuts heard today's financial times i'm 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 thanks that's all we have left first leg tax false flag finance films flat fast lag so the first headline max group says debt deal fails to make significant dent in deficit so this is bill gross fund manager for compound 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 in future liabilities and at present cost so he's saying that the debt deal that's been done does nothing to address it there's still need to be trillions more in cuts but also taxes which of course have not been mentioned that are 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 in 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 courage is not being taken and this is really in some states 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 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 now we've been talking about toslink spain 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 ial so that's

a 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 to its 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 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 this was ripe 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 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 gall 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 and harrison there he was tweeting that germany hit negative real rates were out for the first time since one nine hundred fifty seven part of it is the volatility happened things happened so fast in this financial including economic meltdown so here was bill gross being interviewed oh it was tuesday morning and he was 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 reporting germany

is just gone a bit of. 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 very just let the disasters happen and then they try to grab as much as they can after the disaster is happened there's no proactive policies whatsoever barack obama's 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 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's 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 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 right 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 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 quite deflation with an environment that's poor for gold but historically a negative real interest rates are quote unquote deflation is actually the best time to be buying gold and gold is working and 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 in 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 dodo that means there's no top on gold ten thousand dollar amounts for gold yeah of course could go a lot higher because reoccurrences are going to zero well according to bloomberg article basin day gold will rise as high as one thousand seven hundred thirteen

this year one thousand nine hundred thirty eight and twenty twelve according to the median in the 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 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 bobble 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 they 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 month old headline here bank of korea buys gold first time since ninety seven ninety eight crisis they're taking my boys are taken my advice obviously max they watch the

kaiser report south korea's central bank but 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 of one point two four billion and but apparently max they're actually storing. pulled in london at 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 oil storage so more 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 a 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 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 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 greece and here's a great quote after years of resisting privatizations the break neck speed at which athletes has agreed to conduct the sales nearly one in every fifteen days has received 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 ground downgrades or that that's the point of paying off a son of the table he's a corrupt world leading slimeball that's the point of having had funds like paulson work with all the. sacks 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 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 papers on airplanes if you see a break or an airplane reported immediately to the t.s.a. . and i have

a story about bankers the last headline here gouldman sachs traders it was big bonuses 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 and bush's traders dry up another false flag is coming and there will be plenty of opportunity for you to write a play 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. will be. bringing you the latest in science and technology from around the world. we've got the future of coverage. the official.

people talk from the top story. life on the. video. cheesemonger rules. are issue. speech now in the palm of your. question on the call to come. as a 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 e-mails 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 a key swear bear stearns murdered streeter's led by an executive from right now is now the c.e.o. of risk our 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 rez can't rest cat is central asian an ally financial former g.-man ok so as all of these firms that we're caught in gave mass of securities fraud is that of any kind 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 bucket shop scheme wall street from

a few decades ago reinvented for the modern era using derivatives and in this recycling recycling the men who allegedly in this case actually this criminal acts of stealing are right but it without a criminal acts of fraud american economy would show a huge negative g.d.p. grow. because there's a negative negative accounting and fraud is that the basis of america is in the currently 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 he you know what i know you think that these residential securities aren't performing in 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 this bad product least we saw. it in the meantime then

they were they they knew they knew 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 put giving it back to the investors and then that's the heart of this kinks. if you don't want to kind of wanted to just get was going on now a few other publications like the bus street journal and bloomberg have started to pick up on the story. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation and interviewed people he's interviewed and that they were looking to use them are neck to charge time around oh jeff first allies are now works at goldman sachs and mike nuremberg who now works at break of america explain the martin act the martin act that as well it's 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 the masonic rybicki it's of a. the frog instead of bear stearns and he has hours whistleblower tapes and it entails the newly a.g. is looking at now. additionally what's more interesting is one of our whistleblowers his name is matt band and he's an might be an experience the next movie that actually creates test fake and spare stars in a few weeks before he went out and his deposition. he also was lawyer katie 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. the that

all the illegal activity was whistleblowing on wasn't true what happened he was like. 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 a case that the bears out say counsel now say lawyers you know him are done to change your testimony didn't tom moran know in his traders pamela so let the lawyers for these monell minds that the 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 lives to subpoena his e-mails and we saw in there that he like. what he originally said was true we saw some e-mails about covering up before he was going to go in to testify and so it's where this evidence is present presented to the new york attorney general and it's up for him to really bring map and knowing in you know put him in in front of a light out pass right in front of prosecutors and not good to change their

testimony how scared is cheap kmart right there in general typically with a high profile case it's a political springboard it is that part a lot of asian heritage thank absolutely will the other is a strong so here's the next thing i think would be really interesting two weeks ago morgan is scared if they play on notions like ok the pride claim should be stay. they shouldn't be allowed and then judges will rule the us and there is a five year century limitations in new york and this case is now going to state court and they're trying to do some weird maneuvering around so they doesn't affect their readings with the reading agencies at least you have to pay out billions in damages which i believe they will. they money and move to two weeks ago. because they bought bear stearns which is the mortgage servicer and the illegal activity happened and then when it took all of the assets out of e.m.c. and put it in chile comparing out to jean king were in chase bank what that effectively did is any of the plaintiff would meet them hard to recover money in

judgment speech he can the cash in the assets 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 in desperation to do and he said this is kind of news that we can see a cheap skerrick you know this is real and i think. are very a party to witnesses does funny to see some effect makes is by pockets shop operators used by from my j.p. morgan by remaining accounts remembering accounts changing from margin account the cash accounts to make it impossible for these accounts to be either peer into or to have any kind of paperwork associated with them so what this is really fascinated with i remember working on wall street back in the early one nine hundred eighty s. there were some not tory s. bucket shops working at the 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 out mentality and fraud and securities fraud to just the 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 these scandals and the proof that the company is basically insolvent yes so the actual damages they just i just checked on this between three model line and. you know suing j.p. morgan is one a little over one point seven billion or so in this case there are a fraud claims which equals punitive damages in trust me they want to go to trial honestly do not want to settle so the. billion dollar keeping more instruments sheet yeah absolutely not on top of the liability associated with their own head silver naked short position that's probably another forty or fifty billion in one point six one point seven billion here plus period damages so what about the heads trying to mediate or the hedge fund sort of i so i have constantly it's it's primarily. equity shops months who are starting to send out.

documentation in court cases to reporters and they're you know they had big short positions on him and he's going to get hit with these mortgage backed securities fraud claims or liability solution. 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 it's actually the head from capital of the world and so you've got your ear pretty close to the street out there in terms of what the head great had friends are doing so you're hearing whisperings from the from the head front street that the time is short j.p. morgan stock is a part of us absolutely we it means it's you know it's a few funds who have a very you know a very focused energy it might take and year for this to play out yeah but i mean

the interest of course is anyone who is hoping to have america avoid the 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 they they would want to see j.p. morgan stock all 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 a start or desirable j.p. morgan's got by some estimates over a trillion dollars of liabilities off the balance sheet once that's put back on the balance sheet then the stock is 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 that 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 death 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 or let's say if the government in the u.s. government ever wants to restore the crimean street investors to go back and invest in equities the best among street companies they have to bring some criminal charges and this this is an easy sell you don't keep say cannot see it's not church crime well they know that in instances and other countries whistleblowers assassinated when they have revealed some of the banking terrorists that work 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 to go home to

take they take the case to its legal conclusion we only have a few seconds left any closing thoughts yes max is going to let you know next month i mean reporting there is a significant development in this case with new word instance come forward and i think. this new printer for this team to be charged more people have contacted me and they're whistleblowers and i know the them 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 sorry gore thanks 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 surprise a reporter r t t v are you it's all next on the some exposing bio.

and. in india all she's available.