i'm franzi thanks for watching. more news today violence is once again flared up. and these are the images the

world has been seeing from the streets of canada. giant corporations rule the day. max kaiser this is the ca's 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 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 that's all we have

left fuss like a tax flag finance fell flat false flag so the first headline knocks gross debt deal fails to make significant dent in deficit so this is bill gross fund manager for pimco the largest bond fund in the world he says in addition to an existing nearly ten trillion dollars of outstanding treasury debt the u.s. has it 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 on our 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 interesting because ultimately barack obama is shirking his response of. to address the real problem so what is going to happen is this problem is going to be addressed by a global banking situation like the i.m.f. etc which means america loses its sovereignty as we've been saying all along and 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 here we've been talking about france 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 ial so that's a point nine three percent now if you take the eels on

a ten year treasury bond deduct the c.p.i. make it gives you the real rate of return and right now it's negative point nine three percent it causes 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 rates 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 this is 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 right 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. 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 harrison there he was tweeting that germany hit negative real rates as well for the first time since one thousand nine hundred fifty seven part of it is the volatility of how things happen so fast in this financial including economic meltdown so here was bill gross being interviewed oh 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 harris reporting germany is just going to give 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 a disaster capitalism they're just let 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's a perfect poster child for disaster capitalism he's got taking one proactive action at all he's 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 suggesting that jobs but i want to move on to the other safe haven that is. gold as you mentioned earlier gold coins sell out in lisbon biggest betsy's twenty two percent gain i remember we reported a few years ago that gold was selling out in germany so the germans were they sensed this negative real rates coming and they were buying gold earlier then but now the portuguese are now buying it and the article points out that gold has advanced fifteen percent this year and treasuries by comparison have returned four point two percent so those are the two safe havens gold has returned fifteen percent the treasury's four point two don't forget silver is up more than thirty percent this year it was up seventy percent last year you know it and this negative

real interest rate story again as relates to gold is very interesting because negative real interest rates people equate with the placement 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 in either the deflation which is really another word for hyperinflation hyperinflation or inflation so there's really a no lose situation there's no top on goal because there's no amount of destruction that one can imagine a won't visit the currencies around the world because if you have currency growth is going to go the way of the dodo that means that there's no top on goal ten thousand dollar amounts for gold now of course could go a lot higher because we are currencies are going to zero well according to bloomberg article basically 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 the survey of the four most accurate precious metals forecasters tracked by bloomberg over the past two years that may mean twelve consecutive annual games along. 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 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 discount much distress there is out there in the actual numbers and facts because our paper bugs you know they worship paper they are papers yardies they are paper streamer lists they believe the dollar is somehow connected to this never never land of all was great for braggers and we don't care about everybody else and it's run its course it has its owner as a twenty five year paper for market finished ok matts well i have one more gold headline here bank of korea buys gold first time since ninety seven ninety eight crisis they're taken for taking my voice obviously max they watch the kinds of 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 bought this at a value of one point two four billion and it apparently max they're actually storing. gould in london at the bank of england oh well that's not a good idea because the london boy in 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 the t.v. any gold you store in london you will lose ok you will lose so if you want to actually make the smart of demand physical delivery to your own country or you're never going to see that gold well in fact you might end up like greece because that's my next headline max greece begins fifty billion euro privatization

drive so the starting gun for one of the biggest fire sales in western history was fired as greek officials began appointing advisers for the country's ambitious privatization drive but greece lost its sovereignty and now they are selling the pieces of the corpse and the greek people need to understand that they no longer have a country there's a fire sale at grace they're selling off the family assets the family jewels but the greek people are no longer free they now are slaves for the i.m.f. and the global bankers good job here is a great quote after years of resisting privatizations the break neck speed at which athens has agreed to conduct the sales nearly won every fifteen days history spears this 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. 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 brittania 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 paper on an airplane report it immediately to the t.s.a. i gave thanks i have a story about bankers the last headline here goldman sachs traders 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 and this is just traders dry up another false flag is coming and there will be plenty of opportunity for you to rate the country financially again and all your christmas bonus wishes will come true all right stacy we're thank 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. a timer here broadcasting live from washington d.c. coming up today on the big picture.

download the official r t how to get your high phone or i pod touch from the i.q. saps to. see life on the. video on demand on our t.v.'s mine broadcasts and r.s.s. feeds now an apology. question on the

dot com. max 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 a summary and update the story if you can for us this was a key swear bear stearns streeter's led by an executive clamoring now the c.e.o. of risk out him and his team are literally stealing billions from their own clients those clients happened to be one of the lines insurers and investors in residential mortgage securities certain out some around and he's currently c.e.o. what company a rez capra's cat is centralization of our line financial performance ok so as all of these firms that we're caught in gave in mass of securities fraud instead of any kind 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 criminal acts of steve are right but it without a criminal acts of fraud american economy would show a huge negative g.d.p. growth because it isn't negative action negative accounting 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 agree just behavior we had seen come from executive senior executives heads of mortgages the 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 aren't working out by syria but we disagree with you so we're not going to give you back your money for this bad products we sold you. it in the meantime then dave 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 case. if you don't want to kind of wanted to just get was going on now a few other publications like the wall street journal and bloomberg a certain pick up on the story only. 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 them are not to charge tom around oh jeff first allies are now works at goldman sachs and mike nurenberg who now works at break of america explain the martin act the martin act that's well it's because it 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 came in as nick verbinski it's about the fraud instead of bear stearns and he has hours whistleblower tapes and edited tapes and i know the a.g. is looking at now. additionally what's more interesting is one of our whistleblowers his name is matt bando and he's in might be a land experience and next movie and then actually agreed to testify against bear stearns and a few weeks before he went out and is 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 what he told me in the documentary filmmaker that he. the 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 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 now say lawyers you know am off to change a test really didn't time around when his traders pay him up so what the lawyers for these model 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 order met their new lives to subpoena his e-mails and we saw in there that if you like. what you originally said was true we saw e-mails about covering up before he was going to go in to testify and so it's where this evidence

has been presented to the new york attorney general and it's a for him to really bring me down when you know put him in in front of a lineup bombers right in front of prosecutors and ask you know who could actually change their testimony how scared is cheating mark right there in general typically when they have a high profile case it's a political springboard is that part of a lot of asian heritage thank absolutely will the evidence is that strong so here's the next thing i think would be really interesting two weeks ago i mean keeping morning is scared me they file motions like ok the fraud claim should be stayed they shouldn't be allowed and then judges will overrule this 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 weird maneuvering around so that it doesn't affect their ratings with the rating agencies that they do you 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 and the illegal

activity happened and they went in truck all of the assets out of e.m.c. and put it into like a ring out of a g.p. or in chase bank what that effectively did. it is any of the plane has it neat and hard to recover money in judgments in the cash in the us it's out of e.m.c. you know that's illegal there's a contract that says that they're not going to do that and desperation to do and it's nice kind of news that we can see a cheap scared you know this is real and i think. just personalized or very pretty to witness this yeah it's funny to see some of the techniques used by bucket shop operators used by a firm i j.p. morgan by renaming accounts remembering accounts changing from margin accounts 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 associated with i remember what you know austrade back in the near early one nine hundred eighty s. there were some newer torrijos got in 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's balance and do you see anybody now starting to short j.p. morgan start the head of the revelations of these scandals and the proof that the company is basically insolvent yes so they actually reaches a just that just check on this between three mana line ensures you know suing j.p. morgan it's one little over one point seven billion or so in this case there are fraud claims which equals punitive damages in trust me they want to go to trial on a city not want to settle so the. billion dollar hit keeping more instruments chic yeah absolutely nuts on top of the liability associated with their own head silver naked short position that's probably another forty or fifty billion you're talking

one point six one point seven billion hair plus period damages so what about the head trying to mediate or the hedge fund sort of i so i have constantly it's it's prime. really. equity shops. who are certain they send out. documentation in court cases to reporters and there you know they could get short positions on anybody's going to get hit with these mortgage backed security front clinton aren't really silly surely she can or you should reimburse them they're going long and actually are long assured that you will get a windfall from lucent 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 of the world and so you've got your ear pretty close to the street out there in terms of what the head break 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 we it me it's you know it's a few friends who had a very you know. very strange year my teeth in the ear for this to play you know yeah well i mean the interest of course is anyone 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 with 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 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 of 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 or commit securities fraud. all day long and you can be of that slave to so annoyed forward actually next i think this is more about the cover that the g.p. morgan has executed in the last year and i think the american mean street investor or less to see if the government the us government ever wants to restore the means treat 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 sell you don't keep say cannot not charged criminally well they know of in essence and other countries whistleblowers have 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 the goddess to take they take the case to its legal conclusion we only have a few seconds left and a closing thoughts yes next season to let you know next month i'm reporting there is a significant development in this case with new evidence that's come forward. i think of the case open in this new brain 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 it's over in just over a dozen yes ok well for 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 max thanks for having me all right and that's going to do it for this edition of the pfizer report with me nice keyser and stacy herbert i want to thank my guest terry

bull 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 some ask i was going by i'll. give you. you. couldn't take three. more charges.