oh sorry we are out of time greg mitchell author of the age of wiki leaks from collateral murder to cable gate and beyond thanks so much for sharing your insight with us i'm going to do it now for more on the stories we covered go to our t. dot com slash usa or you tube dot com slash r t america and christine for sound thanks for watching. the. news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. corp through the day.

max kaiser this is a 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 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 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 next so we have left first light attacks finance false flag false flag so the first headline max gross debt deal fails to make significant dent in deficit so this is still going to fund manager for the largest on treating fund in 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 future liabilities and net 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 in taxes which of course have not been mentioned at all right the debt is expanding. 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 maastricht her 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 fos lank speak 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 eleven the ten year treasury bond to the c.p.i. beckett gives you the real rate of return and right now the it's negative point nine three percent and he calls this financial repression and so he's selling some of his treasury bonds or at least increasing the percentage of his bonds they hold overseas including canada mexico brazil and germany that's right negative rail

raise 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 is these negative real rates of return that bill gross talks about and it's surprising that now it's even in germany so that's a huge pent up buying interest in european markets in. the german market now will be flooding into the gold bullion market and taking gold to incredible new highs

against the euro well yes max you kind of jumped the gun here for me but i was going to say gas and enhanced and there he was tweeting that germany hit negative real rates as well for the first time since one nine hundred fifty seven part of it is the volatility happens things happen so fast in this financial include economic meltdown so here was bill gross being interviewed it was a tuesday morning and he's saying he was buying germany because there were real rates of return there but within a few hours of this article appearing bloomberg and harrison is 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 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's no proactive policies whatsoever barack obama is the 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 increases their fees and 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's addressing the jobs but i want to move on to the other safe haven that is. gold as you mentioned earlier cool queen's sell out in lisbon biggest betsy's twenty two percent game i 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 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 what the flash 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 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 gold because there is 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 goto that means there's no top on gold ten thousand dollar amounts for gold yeah of course it go a lot higher because we are currencies are going to zero well according to the bloomberg article they something 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 a 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 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 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 the actual numbers and facts because our paper bugs you know they worship paper they are paper yardies they are

paper extremists 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 famous it's over as a twenty five year paper ball markets finished ok maxwell i have one more gold headline here bank of korea buys gold first time since ninety seven ninety eight crisis were taken by taken my voice obviously max they watch 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 of one point two four billion and put apparently max they're actually storing. old 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 concourse or the t.v. come over here korea put your 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 the man 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 soon 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 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 in every fifteen days history spears this state jewels will be sold at rock bottom prices that was the point best a point of getting moody's and s. and p. to 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 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 sit back on an airplane report it immediately to the t.s.a. i gave my son and i have a story about bankers the last headline here gouldman sachs traders quit with big blueness is drying up so more than a dozen traders according to this article have quit goldman sachs's north american government bonds and derivatives trading desk in new york in recent months as the bank takes fewer risks and big bonuses for ambitious traders drying up another false flag is coming and there will be plenty of opportunity for you to play

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 all right don't go away much more coming your way stay right there. is a cable from the u.s. embassy in colombo this hour to talk about here it appears june seventh incident of extrajudicial executions the military order to suppress that they still deny your religion the suggestion right construction could have you know and there could have been strongly suggest however that the nine were executed by the army and then dressed in military fatigues. display tell you know this kind of phenomenon where priorities are dressed up as

gorillas and presented as killed in action and this and this the idea that you need to produce these actually encouraged paramilitary collaboration this is a cia document central intelligence agency they knew about these activities they knew they were happening they knew about links to paramilitary groups and yet usaid continued to track. down the official anti outlook and your own phone pulled touch from the stops to. launch all she life on the go. video on demand policies in mind broadcasts. are a chance feeds in the palm of your. questions on the call to calm.

skies are welcome back to the report time now to go to financial journalist and blogger extraordinaire terry holt terry ball welcome back to the kaiser report and. great see here terry we spoke to last year and when your article in the

atlantic came a big nears e-mail suggest bear stearns cheated clients out of billions give us a bit of a summary and update the story if you can for us. this was a key swear. turns murdered streeters led by an executive mean time around now is now the c.e.o. of risk him and his team are literally stealing billions from their own clients those clients happen to be. nonaligned insurers and asters and residential mortgage backed securities certain out some around he's probably c.e.o. of what company rez can't rest cap is sent to vision of our line financial the former g.-mac ok so as all of the firms that were caught in gave in mass of securities fraud etc any kind of legal precedent being applied in anyone going to jail they simply change the name of a shop or go to a new shop or

a clothes shop and reinvent the shop i mean this is a classic bucket shop scheme of wall street from a few decades ago it reinvented for the modern era using derivatives and in this recycling recycling the men who allegedly in this case are committing acts of this and 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 is a negative action negative counting and fraud is that the basis of america's g.d.p. currently variable. you might be right about that. in this case though this was the most egregious behavior we had seen come from executives senior executives heads of mortgages the heads of the whole group. literally telling their clients that he you know what i know you think the. these residential securities are performing in the loans aren't working out i see here you but we disagree with you

so so we're not going to give you back your money for this bad product least we soldier. in the mean time then they would say they knew that they knew the product was bad and then they went out and they actually got the money back from the other people that they got some loans from and in the pocket for themselves instead of print giving it back to the investors and that's the heart of this kinks. if you don't want to kind of want to just get was going on the hour a few other publications like the wall street journal and bloomberg have started to govern the story. 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 of goldman sachs and mike nuremberg who now works at bank of america explain the martin act and the martin act that that's well it's it was famous for that's what he went out for you 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 you get 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 demons nick rybicki it's about the fraud instead of bear stearns and he has hours whistleblower tapes and it tapes and i know the a.g. is looking at now. additionally what's more interesting is one of our whistleblowers his name's matt them though and he's in my in the atlantic story and he's the next movie that actually creates testify against bear stearns and 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 was a severance accent or etc he went into those depositions and he changed his

testimony he said when he told me in the documentary filmmaker that he. that all the illegal activity he was whistleblowing on wasn't true what happened he was like . i mean we double checked his information we had multiple sources we saw you know as we know he's like so we're trying to figure out right now is is this a case that there's out say council now said lawyers you know paid off them to change or test really didn't harm maranoa and he's traitors 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. to subpoena his e-mails and we saw in there that he liked. that what he originally said was true we saw e-mails about covering out 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 use of her him to really bring nap and when you

know put him in in front of a lineup of those aren't going to prosecutors and ask you know who got you to change your testimony how scared is cheap the market right general typically when they get a high profile case it's a political springboard that part a lot of asian heritage thank absolutely will the evidence assess from so here's the next thing i think would be really interesting two weeks ago i mean teaching morning is scared me they filed motions like ok the fraud claims should be stayed they 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 not trying to do some weird maneuvering around so that it doesn't affect their ratings with the rating agencies that they do have to pay out over you know billions in damages which i believe they will. they win and move to ten weeks ago they own e.m.c. now because they bought bear stearns which is the mortgage servicer there. illegal activity happened then the money took all of the assets out of e.m.c.

and put it intil they can bring on a cheap camera in chase bank and what they're effectively did is any of the plane has hit me hard to recover money in judgments in the cash in the absence out of me and see now you know that's illegal there's a contract that says that they're not allowed to do that and desperation to do that and he said it's nice kind of news that we can see a jeep scared they know this is real and i think. we are interpersonal are very pretty to tampering witnesses does funniness say some i think mix is by bucket shop operators used by a firm like j.p. morgan by renaming accounts remembering it down strange thing from margin accounts they pass accounts to make it impossible for these accounts to be in their 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 north korea's 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 out mentality and fraud securities fraud to just the wholesale level that's one hundred fifty six billion dollar company so what could potentially be the head of j.p. morgan is 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 that i just checked on this three mano line and shirt you know suing j.p. morgan it's one little over one point seven billion so in this case there are fraud claims which equals q-tip to humans is what interests me they want to go to trial and say gee not want to settle so that then you would get two million dollars d.g.p. more instrument sheet yeah absolutely and that's on top of the liability associated with their own head silver naked short position that's probably another forty or fifty billion it's. one point six one point seven billion hair plus period damages

so what about the head french mediator the hedge fund sort of like i said i have gotten e-mails it's crime merely. but in shops. who are certain they send out. documentation in court cases to reporters and you know they are big short positions on even when you're going to get hit with these mortgage backed security front clinton at least so the short. term they're going long actually are long shared piece that people will get a windfall from the city. right so you're pretty close to the head from a community out there 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 greg has 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 upon us absolutely me it's new it's a few friends who have

a very you know. a very focused energy in the year for this to yeah well 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 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 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 insolvent the stock 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 and commit securities fraud all day long and he can be a dead slave too so going forward actually next i think this is more about the cover the g.d.p. morgan has executed in the last year and i think the american mean street investor or less to see if the government the u.s. government ever wants to restore for me street investors to go back and listen equities and invest in most companies they have to bring some criminal charges and this this is an easy slam dunk case they do not see it's not charged criminally well they know of in instances and other countries were so blowers 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 the kahala to take they take the case to its legal conclusion we only have a few seconds left any closing thoughts is maxie's one direction or next month i mean reporting there is a significant development in this case with new evidence since come forward and i think. this is a no brainer for this team to be charged more people have contacted me and are whistleblowers and i know the them how many. ok let's just say it's. over a dozen yes ok well fully one of them will actually come forth and do the do all right sorry go thanks so much for being on the kaiser report great to see you max thanks for having me all right and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest terry bull we want to send me an e-mail please do so at kaiser reporting r t t v dot are

you so next time this is life causing by all. in here broadcasting live from washington d.c. coming up today on the big picture. here.