hello my name is kevin owen here at r.t. h.q. in central moscow tonight let me take you through if you will our top stories thousands of police move on to the streets of london to prevent new violence and looting after three days of you saw them hunted outbreak of on rest has been reported in the northern english city of manchester tonight where hundreds of people enjoying rioters. u.s. federal reserve's admits it the u.s. economy is not as strong as it thought the fed's comments were enough to push the u.s. market back into the red after a day of modest gains. and europe's top blanket says the continent's going through the worst financial crisis since world war two european markets sudden uncertain

day today despite the central bank's move to buy bonds from the region's crippled economies let's talk more money now about sky's room co-hosts here on the international. 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 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 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 so we have left first like a tax pledge finance fell flat false flag so the first headline max gross says debt

deal fails to make significant dent in deficit so this is bill gross the fund manager for the largest on treating 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 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 that

huge debt write off muster courage is not being taken and this is really in some states 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 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 talking about false lacks 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 eel down a ten year treasury bond to get the c.p.i.

make it gives you the real rate of return and right now it's negative point nine three percent because this financial repression and so he's selling some of his treasury bonds or at least increasing the percentage of his bonds they hold over seas including canada mexico brazil and germany that's right negative rail trace it 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 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 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 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 gas and enhance and 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 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 period bloomberg and harrison reporting germany is just going to give right. 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 disaster capitalism they're just let the disasters happen and then they try to grab as much as they can after the disaster is happened there is no proactive policies whatsoever barack obama is the 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's

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 at lisbon biggest betsy's twenty two percent game i remember we reported a few years ago that gold was selling out in germany so that 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 every turn four point two percent so those are the two safe havens gould has returned fifteen percent treasuries four point two right now forgets over as 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 and negative real interest rates are quote unquote the flesh and 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 the currency growth is going to go the way of the dodo that means that there's no top on gold ten thousand dollar amounts for gold yeah of course you go a lot higher because we are currencies are going to zero well according to the bloomberg article they said a 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 going back all 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 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 actual numbers and facts because our paper bugs you know they worship paper they are papers yardley's 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 bull market finished ok maxwell i have one my gold headline here bank of korea buys gold first time since ninety seven ninety eight crisis they're taking my boys were taken my nice obviously max they watch the kaiser report south korea's central bank what twenty five tons of gold at 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 bought this at a value of one point two four billion and put 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 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 to max concourse of the t.v. come over here korea put your air 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 the man physical delivery to your own country or you're never going to see that cold in fact you might end up like greece because that's my next headline acts greece begins fifty billion euro privatization drive so this 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 well 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 history spears state jewels will be sold there 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 worked with dawn. 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 happened to be at the i.m.f. india home if you ever see a banker on an airplane report to the middle of the pilot it's a dangerous situation don't let bankers on airplanes there are going to college trees and they're going to blow those countries up with weapons of mass when it'll destruction no papers on airplanes if you supercross an airplane report it immediately to the t.s.a. i gave myself i don't have a story about bankers the last headline here goldman sachs traders quit was big louis is drying up so more than

a dozen traders according to this article have quit goldman sachs's north american government bonds and to rebuild its 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 gann 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. review the latest science and technology from the realm before. we go to the future coverage. critic three times pushes. the retirement three.

three. three. three books video for your media project a free video done to hearty dot com. guys are 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 you 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 a key swear bear stearns mortgage traders led by an executive at me tom marino now

who's now the c.e.o. of risk out him and his team are literally stealing billions from their own clients those kinds happen to be one of the lines insurers and investors in residential mortgage backed securities certain out some around and he's currently c.e.o. what company rez capra's cap is is sent to mission of ally and financial the former g.-mac ok so as all of these firms that were caught in gave massive security instead 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 close a shop and re-invent the shop this is a classic bucket shop scheme wall street from a few decades ago reinvented from. modern era using the revenue of this recycling recycling the men who allegedly in this case are committing acts of this time

criminal acts of fraud and stealing all right but it without the criminal acts of a fraud american economy would show a huge negative g.d.p. growth because there's a negative actual 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 the heads of the whole group. literally telling their clients that hey you know what i know you think that these presidential securities aren't performing in a loans are working out i seriously 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 knew that they knew the put it was bad in there 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 getting 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 what's going on now a few other publications like the buster journal and bloomberg have started to pick up on the story and. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation and interviewed people he's interviewed and they were looking to use the martin act to charge time around oh jeff first lies are now works at goldman sachs and mike nuremberg who now works and make america explain the art lacked the money 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. i can tell you that it's now the new york attorney general who is extremely active in his investigation and there seems to be 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 pride in stead of bear stearns and he has hours whistleblower tapes and edited tapes that i know the agency is looking at now. additionally what's more interesting is one of our whistleblowers names now bando and he's in my in the atlantic story and he's in nick's moving now and actually agreed to testify against bear stearns in a few weeks before he went out and his deposition. he also was 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. that 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 like so we're trying to figure out right now is is this a case that bears out say council well said lawyers you know pay them off don't change or test weighted time around on his traders. so let the lawyers for these model 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. to subpoena his e-mails and we saw in there that he liked. 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 has been presented to the new york attorney general and it's a for him to really green map and win and you know put him in the final i doubt it's aren't going to prosecutors and not change their testimony how scared is cheating mark right. attorney generals typically when they get a high profile case it's a political springboard is that part of motivation here to thank absolutely will

the evidence is so strong so here's the next thing i think would be really interesting two weeks ago i mean cheeping morning is scared he they put on the oceans like ok the fried claims should be stayed 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 has now been moved to state court and they're trying to do some maneuvering around so they doesn't affect their readings with the reading agencies that they do you have to pay out over billions in damages which i believe they will. 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. can pretty until they can bring out to a g.p. or 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 and desperation to me it's

nice kind of news that we can see a cheap marketing scared they know this is real and i think. personalized are very a pretty good witnesses yeah it's funny to see some effect next year by bucket shop operators used by a firm like j.p. morgan right renaming accounts remembering accounts changing from margin accounts the caf 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 associated with i remember working our last three back in the early one nine hundred eighty 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. to j.p. morgan's balance and do you see anybody now starting to short j.p.

morgan start the head of the revelations of the scandals and the proof that the company is basically insolvent yes so the actually reaches a just just check on this between three mana lines shirts 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 seeking not want to settle so the film in the kitchen billion dollar hit to g.p. more instruments sheet absolutely not on top of the liability associated with their on head silver naked short position that's probably another forty or fifty billion it talking one point six one point seven billion hair plus period damages so what about the heads right from yesterday trying to say i have constant events it's primarily. equity shops. who are certain they send out. documentation in court cases to recorders 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 will at least solution. they're going long and actually are long shared guarantees that people 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 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 hedrick headphones are doing so you're hearing whisperings from the from the hedge fund street that the time is short j.p. morgan stark is a part of us absolutely me it's you know it's a few friends who have a very you know very close strategy of my teeth and here are this to play oh yeah well i mean the interest of course is any. and his 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 what j.p. morgan then they 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 balance sheet when it was revealed the stock went to zero and 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 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 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 to so doing forward actually next i think this is more about the cover the g.p. morgan has executed in the last year and anything in the american mean

street investor burtless to see if the u.s. government ever wants to restore the crimean street investors to go. on street companies he have to bring some criminal charges and this this is an easy slam dunk keesey do not see how these guys are not church graham well they know that in instances and other countries whistleblowers been 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 this to take they take the case. as to it's legal conclusion we only have a few seconds left any closing thoughts yes max

a sandwich in the next month and reporting there is a significant development in this case with new evidence since come forward and i think the case open and this no brainer for this team charged more people have contacted me more whistleblowers and i know the. how many less to say it's over and over a dozen yes ok well for one of them will actually come forth and do the do all right terry roth thanks much for being on the kaiser it was great to see max thanks for having me and that's going to do it for this edition of the pfizer report with me max kaiser and stacy herbert our thank my guests terry ball going to send me an e-mail please do so at kaiser reported r.t. t.v. dot are you it's all next on the select guys like by our.

in india all she's available games the magog mom joy steve jones d m a v let's take a photo of brandon parents trying to talk with him first coromandel.