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 debate back all and the suggestion that the pentagon what have to get some cuts per 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 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 that's all we have left first leg tax false flag finance fell's flag fos lag so the first headline max gross says debt deal fails to make significant dent in deficit so this is bill gross fund manager for pimco 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 a future liabilities at 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 answering stacy because ultimately barack obama is shirking as responsibility 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 talked about false flags 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 emails so that's of point nine three percent now if you take the eleven the ten year treasury bond deduct the c.p.i. they get gives you the real rate of return and right now it's negative point nine three percent he calls this financial repression and so he's selling some of his treasury bonds or at least increasing the percentage of his bonds they hold 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 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 frank soon 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 marc. and taking gall to incredible new highs

against the euro well yes max you kind of jumped the gun there for me but i was going to say yes and harrison 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 happened things happen so fast in this financial in global 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 in bloomberg and harrison is reporting germany has just gone negative right and this is a trend that wall spread around the world as the crisis really becomes more pronounced around the world nobody in any of the g eight or g twenty countries is doing the right thing which would be to start to negotiate a new bretton woods agreement and to recalibrate the world's currency and for the dollar to take a massive devaluation against all these other currencies nobody's going to do that

yet they're going to let the the crisis you know as naomi klein calls it 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 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 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 suggesting that jobs but i want to move on to the other safe haven that is gold as you mentioned earlier gold coins.

sellout lisbon biggest betsy's twenty two percent game i 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 girl has returned fifteen percent and treasuries four point two right now forgets over it's up more than thirty percent this year it was up seventy percent last year and this negative real interest rate story again as relates to gold is very interesting because negative real interest rates people equate with the flesh and and they equate deflation with an environment that is poorer for gold but historically a negative real interest rates are quote unquote deflation is actually the best time to be buying gold and so gold is working and i there are 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 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 to go a lot higher because we are currencies are going to zero well according to the bloomberg article they said they gold 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 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 longest 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 débâcle 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 nine hundred 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 yalit is 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 more gold headline here bank of korea buys gold first time since ninety seven ninety eight crisis they're taking my voice they're taking my loyce 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 bought this at a value of one point two four billion and but 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 bullion 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 come closer to the t.v. come over here korea put your ear to the t.v. any gold you store in london you will lose ok you will lose so if you want to actually make the smart of demand physical delivery to your own country or you're never going to see that gold 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 well greece lost its sovereignty and now they're selling the

pieces of the corpse and the greek people need to understand that they no longer have a country there's a fire sale at grace they're selling off the family assets the family jewels but the greek people are no longer free they now are slaves for the i.m.f. and the global bankers good job grace here's a great quote after years of resisting privatizations the break neck speed at which athens has agreed to conduct the sales nearly one every fifteen days history's fears 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 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 goldman sachs in your country last year to meet up to decide how to sell all. they're 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 lead bankers on airplanes they're going to countries and they're going to blow those countries up with weapons of mass financial destruction no bakers on airplanes if you sit back on an airplane report it immediately to the t.s.a. i gave my son 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 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 rape the

country financially again and all your christmas bonus wishes will come true all right stacy error 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. to be frightened. from friends to pressure. whose please don't talk t.v. don't come.

max kaiser welcome back to kaiser 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 a mail suggest bear stearns cheated clients out of billions give us a bit of the summary and update the story if you can for us. this was a key swear there stearns mortgage streeters led by an executive tom marino 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 investors in residential

mortgage securities certain out some around he's currently c.e.o. of what company a rez capra's cap is sent to a vision of financial the former g.-mac ok so as all of these firms that we're caught in gave in mass of securities fraud instead of any kind of legal precedent being applied in anyone going to jail they simply had to change the name of the shop or go to a new shop or a closer shop and reinvent the shop i mean this is a classic bucket shop scheme of 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 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 for. rod is that

the basis of america's in a panic ali variable. you might be right about that. in this case though this was the most agree just behavior we had seen come from executive 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 aren't performing in the loans aren't 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 which we sold you at in the meantime and then they would say they knew 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 then they pocketed it for themselves and said it could giving it back to the investors and that's the heart of this case . if you don't mind i kind of wanted to just update was going on now a few other publications like the wall street journal and bloomberg have started to

pick up on the story rightly. i reported a few months ago that the manhattan d.a. was finally stepping up the investigation have interviewed people he's interviewed and that they were looking to use them are neck to charge tom around oh jeff first lies are now works at goldman sachs and mike 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 the analysts 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 you know 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 theme is nick forbid ski it's about the frog instead of bear stearns and he has hours whistleblowers. tapes unedited tapes that

i know the a.g. is looking at now. additionally what's more interesting is one of our whistleblowers his name is matt bamboo and he's in my at the atlantic story and he's in nick's movie man actually agreed to testify against bear stearns in a few weeks before he went out and is deposition. he also was a lawyer at j.p. 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 what he told me in the documentary filmmaker that he made. that all the illegal activity he was whistle blowing on wasn't true what happened i know 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 is this a case that the bears outside counsel al said lawyers you know paid off them to change or test way did tom moran know in his traders pamela so what the lawyers for these mana lines that that 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 where many of them knew and lives to subpoena his e-mails and we saw in there that he liked. that 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 bring map and knowing in you know put him in in front of a lineup on what's right in front of prosecutors and not sick you know who get you to change your testimony how scared is cheap the market right general typical a when they get a high profile case it's a political springboard it is that part of a lot of a shared a thank absolutely will the evidence is a strong so here's the next thing i think would be really interesting two weeks ago j.p. morgan is scared they file motions like ok the fraud claim should be stayed they shouldn't be allowed and then judges will overrule those. there is

a five year century limitations in new york and this case is now being moved to state court and they're trying to do some rude maneuvering around so that it doesn't affect their readings with the reading agencies if they do have to pay out billions in damages which i believe they will. then when it moved to two weeks ago they own e.m.c. now because they bought bear stearns which is the mortgage servicer that a lot of the illegal activity happened then they went in took all of the assets out of e.m.c. and put it into like a bring on to a g.p. marine chase bank and what that effectively did is any of the plaintiff would meet them hard to recover money in judgments but keep in the cash in the assets out of e.m.c. now now that's a legal there's a contract that says that they're not to do that the desperation to do. this is kind of moves that we can see a cheap market is scared they know this is real and i think tom around one. hundred thirteen percent witnesses yeah it's funny to see some of the techniques is 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 their peer into or to have any kind of paperwork associated with them so but this is really associated with a member working on wall street 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 out mentality and fraud and securities fraud to just a wholesale level that's one hundred fifty six billion dollar company so what could potentially be the head to j.p. morgan's balance sheet and do you see anybody now starting to short j.p. morgan stock ahead of the revelations of these scandals and the proof that the company is basically insolvent yes so the actual damages i just i just checked on this between three mana line insurers you know suing j.p. morgan is one. well 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 city not want to settle so the main billion dollar hit to g.p. morgan's family sheet yeah absolutely and that's on top of the liability associated with their own head silver naked short position that's probably not a forty or fifty billion they're talking one point six one point seven billion hair plus period damages so what about the heads trying to relate to the hedge fund sort of i so i have got to mean it's it's primarily. equity shops but he had a chance who are students they send out. documentation in court cases to reporters 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 or liability so the shorting j.p. morgan the surety bear stearns they're going long actually are long shared guarantees that people think will get

a windfall from the suit right so you're pretty close to the head from a community out there in in connecticut or i think that'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 bridge has friends are doing so you're hearing whisperings from the from the hedge fund street that the time is short j.p. morgan stock is upon us absolutely me it's you know it's a few funds who have a very you know very focused energy and might take the meteor for this to play 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 when it was revealed the stock went to zero j.p. morgan's got by some estimates over a trillion dollars on 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 debt 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 debt 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 just say if the government the u.s. government ever wants to restore the crimean street investors to go back and invest in equities and invest in wall street companies they have to bring some criminal

charges and this this is an easy slam dunk kisa do not know these guys are not church criminals well they know that in instances in other countries whistleblowers been assassinated when they have revealed some of the banking terrorists that work in these foreign countries so i would imagine people are afraid of the assassins 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 has to take they take the case to its legal conclusion we only have a few seconds left and a closing thoughts yes max is under the next month i mean reporting there is a significant development in this case with new evidences come forward. i think the key so and meet this no brainer for this team to be charged more people have

contacted me more with simple owners and i know the. how many. let's just say it's an over a dozen yes ok well fully one of them will actually come forth and do the do all right terrible thanks 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 reported r t t v dot are you it's all next on the subscribers and bio.

in india old geezer made ability to move joined people to the village a great way to go to the grand imperial truly george was. you can a letter to. say don't need to go and. read this the colonel was her job as used to retreat. writing breaks out in central and northern england at sixteen thousand police are deployed in the british capital

i made fears london to face and for its night of riots. u.s. markets recover their losses in the turbulent day of trading despite some predictions from the federal reserve. the federal reserve admits the u.s. economy is weaker than originally thought and risks are only increasing more details from new york coming up. on europe's top find it says the continent suffering the was financial or deal since world war two as the central bank moves to shore rob crippled economy. and a very welcome from all of us here in moscow this is with me thanks for joining us some sixteen thousand police officers up patrolling the streets of london in a bid to prevent more rioting.