in the financial sector max cause or looks deeper at the real roots of the crisis. it was that so much there's a huge decision on the market is it all over again united nations nuclear watchdog. claims in a new report that iran is moving ever closer. ties or this is a cause report so frauds get more brazen the amounts being stolen get bigger regulators are now just walking away as total financial chaos envelops the globe so you see yes max is the tale of the good the bad and the string string. i want to

cut to this little clip here that was made by our g be anarchy and to set the scene for you max jamie diamond is gathering up the silver to cover all his naked shorts and. sets or assume. if you would you would please if you caught me like. no joke it's a rope to go. and if you do. yes max it's sheriff string string keyser.

well you know there's another success in the whole good the bad and the string string market and that's congratulations occupy wall street you're officially making companies scared the c.m.e. group in their take you filing noted these risks. in connection with the continued economic uncertainties groups such as occupy wall street and anonymous have targeted the financial services industry as part of their protest against a perceived lax regulation of the financial sector and economic inequality yes exactly this is fantastic news because the occupy wall street movement on anonymous needs to get that word risk and risk adjusted in a risk factor in as many financial documents as possible the c.m.e. chicago they're not regulating anybody that they're supposed to be regulating that's incredible rest of the overall economy and of course i saw the headline of

business insider and i think that there the reason they put that up there was to suggest that oh wall street now you've gone and done it you've actually caused the poor c m e group to have to suffer some kind of disclosure that they are in fact terrorists own well we're going to go over to headlines now max bush will show that in fact they are ok because they mention that it's perceived lax regulation that these protesters perceive them as having an ax regulation well let's look at the reality m.f. global's missing funds may be massive ploy c.f.d. sees kill ten so the five hundred ninety three million dollars shortfall in client money at m.f. global holdings the broker that filed for bankruptcy on october thirty first appears to result from a massive hide and seek ploy says bart chilton a commissioner at the u.s. commodity futures trading commission well i've covered this on the show before i called peek a boo accounting this was the same thing in lehmann brothers and it's used all over

wall street all over the world when the regulators come in to record your end of the quarter liabilities you simply move it off your balance sheet for a few days with the complicity of another corrupt hedge fund or a broker or banker and then with the regulators move on to the next company move it back on to your balance sheet as a reciprocal arrangement with the other corrupt bankrupt. broker a corporation all corporations do this general electric does as i.b.m. does as warren buffett does as all the firms on wall street do their own gauge and accounting fraud pit bull counting and of m.f. global was caught right as they were in the process of committing accounting fraud and suddenly that all unraveled the little string was pulled and suddenly went bankrupt but you did exact same thing at almost every single company in america they're all basically based on accounting fraud it total string they all go to zero and why this relates to c.m.e. group of course is that they're supposed to be or they were supposed to have regulated and ethical but obviously they didn't and part chilton goes on to say this isn't just a lost and found inquiry it's a full on effort to get to the bottom of what appears to be

a massive hide and seek ploy as a distinct possibility some would say probability that somebody has done something with the money and that it's not going to be all of a sudden discovered and an innocent explanation well of course that money was just play in this massive shell game that is the cause of two thousand and eight crisis is the cause of the global financial crisis remember goldman sachs got greece to play shell game with their debt and now they've lost their sovereignty now you've got loss of sovereignty with italy coming up as other countries we're going to try and steal their gold so this whole ponzi scheme and counting is is endemic throughout the entire system and of course without any growth anywhere in the world to offset these massive debts this is only going to get worse now c.m.e. group blaine's occupy wall street and anonymous but i think you can blame it on the late and see and blatancy of corruption here because look at this m.f. global customers can't get cash or answers now this is from bloomberg and they're

looking at the top one percent the clients of m.f. global and therefore the c.m.e. group they talk to a forty eight year old new yorker ted mon juror who has had twenty seven thousand two hundred fifty two dollars. frozen in this m.f. global account and he says now that he's thinking about closing his three other brokerage accounts because he said quote i'm a high net worth person and i don't want to see a million dollars get smoked by another misunderstanding this is the thing about the high end the top one percent now they're getting their accounts a blitter rated by the same terrorists because there's nothing there's no barrier between them and the money that they're supposed to be the custodian of they're just completely stealing out of people's accounts now now this guy ted mon cher that they talked to he said he thought the securities investor protection corporation he thought it covered any losses due to a meltdown such as that m.f.

global he's now been told sipek may not cover the money because it wasn't a futures account and faces months of uncertainty as he files a claim seeking recoveries but over the past ten fifteen years all these groups like said baker as c c or f d c are all been undermined by new regulations as supersede them that make them essentially ineffective and have no regulatory authority whatsoever and people are now finding this out they thought their accounts or insured against the broker stealing the money but now they find out at m.f. global that no the brokers can steal your money and you have very little recourse and the broker by the way when using your money to make these incredible bets i mean coristine basically leveraged the firm's capital by fifty to one or so pay themselves hundred million dollars or so then to extract that that out of the company and of course the ponzi scheme collapsed he stole money in the guise of

being if of course he used to be running goldman sachs and we want to like the professional school thieving now sipek i want to go over this for the audience here is a private government sponsored company that insures brokerage accounts for up to five hundred thousand dollars in securities with one hundred thousand dollars for cash in case. a brokerage firm goes bust while sipek covers losses in stocks and bonds however it doesn't cover commodity futures contracts unless defined a specific property under certain conditions right under certain conditions i mean the difference between stocks bonds and commodities and futures contracts is now virtually impossible to distinguish because they've all blended into hybrid securities and hybrid trading done on dark exchanges so now sipek and say well we technically don't cover that because by definition the securities that we do cover it don't fulfill our our particular definition and your recourse by the way when

every time you sign up a new account at any of these brokerage firms i know when i was working on wall street the second you sign off and become a client of a brokerage firm it binds you to arbitration by panel of brokers if you have a complaint the track record for the industry is less than two percent of people who are had their money stolen see anything back montor is one of the many customers who can't access cash and the segregated accounts they once thought were safe for them bank deposits and just as accessible so this insurance product the sipek this private government sponsored insurance they thought made them safe just like all of these investors while it goes back to trunk or sign and vesting in global in bonds for european sovereign debt when everybody there thinks they have credit default swaps this is another insurance product that people think protects them from well they're bets it goes back to merrill lynch because during the late seventy's early eighty's they created this. merrill lynch combined account of

a money market the whole krishna the money market account was a way for brokers like merrill lynch to compete with banks and then they got the government to create those quasi governmental not terribly regulated seal of approval that said these money market accounts are insured quote unquote and merrill. another wire house for as big wall street firms siphoned billions from the banks because hot selling brokers would call people up and say oh your money's stagnating at the bank you've got to be in the stock come over to merrill lynch so now we're finding out that all the support mechanisms that are supposedly keep this cash safe as safe as a in the bank are in fact faulty that in fact you don't have access to these funds that the brokers have a license to steal and this guy's never going to get his money back and he should be unemployed soon he's one of the one percent now we have to move from talking about the one percent to talking about the one percent of the one percent because everyone else in the categories are going to go bankrupt well i'm going to talk about the one percent of the one percent because in fact they aren't protected

either when the whole system is fraud when they exist in a system of fraud and they themselves perpetrate the for fraud they ultimately end up becoming victims of the fraud themselves because they they talk about all their clients of m.f. global and therefore the c.m.e. group and they also have been frozen out including the nymex nine max brokers here so they speak to a new york mercantile exchange trader david rose and he said quote we didn't think we were just customers we're the ones in the pits providing liquidity so everyone around the world can trade these products so there you go max they stood aside these nymex traders they throw things at you know occupy wall street protesters and they get a job and they don't do anything when those guys had their pension funds all their job and you don't that's money stolen and when so when they come for their money when they come from the top one percent of the one percent who is around to save them yeah m.f.

global is like the mafia guy who turned state's evidence on the kingpin of the mafia because you can freeze out the nymex from the underlying criminal racket that's going on because the and i'm ex is one of the primary planks that keeps to syndicate up and running this criminal organised. nation going so it's like you know you if you turn in and you tattletale on the dawn of the mafia you know you're going to ruin the whole moneymaking enterprise of the mafia so you can't let the nymex leave it out and hanging it just shows you how bad the situation is that m.f. global would in effect put a knife in the back of its very own criminal syndicate operator nine max but max if all of these traders if even the imax can't trust the system any and they can't trust the corys eyes of the world to not steal from them you know they count on a system which you only steal from the pension funds and the passive trader is not stealing from the active traders and that's where they're going after the active

funds now it appears yes this is a very important story because it marks a new chapter in this crisis in my opinion member the first it was a liquidity crisis then it became a solvency crisis now it's becoming a systemic crisis the underlying fabric of the global markets the thing that keeps them running is now crumbling before our very eyes and this is a new chapter in this whole four year collapse that was completely ovoid of all had somebody in any government any of the g. twenty simply stood up and said we are going to apply the existing regulatory laws to keep these guys in line aristide's never thanks so much for being on the kaiser report thank you max go and much more coming away so stay right there.

please.

welcome back to the casa report i'm max kaiser time now to go to sunny los angeles and speak with mike maloney of gold silver dot com and protect and survive dot com we're all be speaking next week and london mike welcome to the kaiser report how you doing there max fantastic like aloni across europe member nations are being

urged to use their gold reserves to collateralize euro bonds what are your thoughts on what role gold will play in the final resolution of our global debt crisis see all that gold was originally owned by the people that was the people's goal the central banks got it all and now it's going to get. transfer it out of the central banks to somewhere go through some back to currencies why is it now being used in repayment of debt i think is the worst thing that could possibly happen next i think that you know every thirty to forty years the world has a new monetary system and before world war one. for most countries they had a certain amount of gold at the treasury and the issued equipment equivalent amount of notes in circulation a certain amount of units of currency that matched the number of units of gold that they had. then world war one happened countries in europe all stopped reading redemptions rights you could no longer turn in your currency and request gold and

then they split up the printing presses and so between the war we had something called the gold exchange standard where between the two wars were one what were to the goalie strange standard in the united states for instance. with the federal reserve act specified that the currency only had to be back forty percent by pool so in other words they could put fifty dollars in circulation for every twenty dollar gold piece in the vaults and those fifty dollars all promised to pay goal so we were putting more receipts for gold or clean checks for gold in circulation then gold the currency was the paper that circulated the money the real stuff was in the fall stuff of intrinsic value that fell apart during the great depression because it was very poorly designed system it was a man made system it fell apart and they came up with the bretton woods system from one nine hundred forty four to seventy one and there was no reserve requirement you

could print as many dollars as the u.s. wanted to print and only have a certain amount of oil all the other countries on the planet would back their currencies with u.s. dollars and the u.s. dollar is backed by gold thirty five dollars an ounce and then nixon stops the converter go into gold in one thousand seven. what in the world has been on a dollar cysts standard since then so we've gone from on baby steps from gold to personal go back into less gold backing to no gold back in work where currencies are all backed by ious bonds well every thirty to forty years this falls apart now we've got to go back to something from nothing if the central banks are going to use their gold to back debt what are they going to have wef when the world monetary system sees this next shift i think the countries that do that are going to being broke in the countries that still have some gold are going to end up being very rich right now and china's you know that they're massively importing galled and it

seems to be a bit of a wealth transfer going on from the west to the east and here concur with that what are your thoughts absolutely this is part of something called the five hundred year east west cycle. every five hundred years roughly prosperity and technological advancements shift from the east so the west and vice versa a lot of people don't believe in the five hundred year cycle some do i just say that people can feel it happening today and wealth is being transferred that direction in regards to gold you know for years western central banks were suppressing the price of gold by selling it into the market now we've got you know past couple of years central banks are net buyers of gold this is a huge game changer i wrote an article one time ago when one country wakes that is happening right now countries are you know they're in a showdown and countries are starting to blink. venezuela asking for their goal when the russian happens i mean i think you're going to see go going like this and

this and this and then suddenly bam you know there could be a gap of days where you see the price of gold go up thirty percent or even double you know you wake up in the morning the price is double what it was last night also and lazy and further into a ball market you have different dimensions of that market. occur and that kind of volatility i think is to be expected now speaking of wealth transfer us a sense of temper twenty ninth in the u.s. six hundred fifty thousand customers have transferred four point five billion dollars out of big banks into credit unions and community banks how much more impact on the fraudulent banking system would this protest have made if each of these six hundred fifty thousand customers had bought just one ounce of silver well you know this silver market i'm not sure the size of it right now used to be the sober market was one three hundred the size of the gold market my motor standing is that this is above ground so oversupply is roughly worth about

a billion dollars so here you have a six hundred fifty thousand people if they each bought one at this type of a level they would have probably tripled the price of silver that you'd have two hundred dollars silver hundred fifty dollars silver or something like that what would that have made a huge impact on the psychology of this market yes it would i've been saying since two thousand two hundred dollars silver is an absolute no brainer and i'll tell you when so over was forty four dollars and thirty cents an ounce for fifty five bucks an ounce people thought i was a lunatic and now i'm a bit it is already get forty eight bucks an ounce and then back they're gone well maybe not maybe zona tech now it only takes tripling of silver well silver was fifty dollars back in one thousand eight may whatever thing on this planet is selling at a discount to its nine hundred eighty price max computers but of course that's another story that's a good you got there due to donek adjustments that the keeping of the central

processing unit of a computer is considered to be a deflationary in the mix of that the government reports therefore the price of food and energy the fact that they're going up don't don't pay any attention to that but speaking of fraud what are your thoughts on the c.m.a. group. am after global story does this story have any significance for someone who maybe invested in gold and silver via the paper market m.f. global carts was caught stealing customer money is all going to have an impact but i consider all of the things that are currently going on short term noise in the big picture the big scheme of things no no see it currency has ever survived in one nine hundred seventy when we began it ran experiment where all the world's currencies became fear all at once this is proven thousands and thousands of times that this does not work there is no example of any figure currency for nine hundred seventy one surviving they all eventually fail so my real target for gold

eventually is infinity dollars of the type of dollar that exists now backed currency dollar that will go to infinity dollars per ounce of as far as the gold racks my target basically is goal should be higher in price then the points on the dow it should take fifty oxes or west probably this time around for gold to buy a single family median priced home in the united states so per ounce one fiftieth of a single family median priced home or one share of the dow that's my price or goal all of the things they're all going to have an impact but it's just one of the little jags on the way to infinity ok so let's talk about that gold our a chef our second because that's caught as says storage plants are saying there are two times in the past for the dow jones and gold have recent one for one perry one

nine hundred eighty of course the dow jones was at eight hundred the price of all those eight hundred and i think go back into the one nine hundred thirty s. or the price of gold as something on the crest of gold was twenty dollars and sixty seven cents announced on a day where the dow was at forty eight point two two points forty forty. dow jones is at forty boy that was a good day to be a long adap but it was that so you're the one to one parity using this rule of thumb you're saying vault with the dow jones at approximately eleven to twelve thousand an ounce let's say the dow jones comes saying and we have a one for one parity anywhere between five thousand and ten thousand on the dow kind of is that what you're saying yes we go into a big diesel ation maybe gold peaks at three thousand dollars an ounce but the dow be fifteen hundred i believe you're going to see why they were gold will be double the points of the dow because simply because if you look at the dow go ratio it goes into a bow and then it over shoes to the opposite extreme it goes into

a bigger bubble overshoots to further to the other side and then we went into the biggest bubble in history recently and it's reverting now it's down to about seven ounces of gold for the dow or in other words gold prices one seventh of the dow but since we're coming off of the point where paper assets were more overvalued in the year two thousand and at any time in all of history p. ratios were insane dividend yields were nonexistent. and we were diverting back it was forty five ounces of gold by one share of the dow so gold price was one forty fifth the points on the dow it's currently one seventh so gold is catching up but we've been so far out of whack that it's going to overshoot further to the opposite extreme i think you're going to see gold at double the points on the dow one day i think a target of equal is a very sane target that's that's normal but if we're going to deflation you can see

a gold at three thousand and the dow at three thousand or even fifteen hundred if it goes to double points the dow if we're going to hyperinflation maybe go it would be thirty trillion dollars an ounce the dow fifteen trillion points and still it's going to. goal of the same amount of shares of the dow regardless of whether it's speciation ery or inflation or gold purchasing power should rise seven to fourteen times compared to stocks in the year two thousand gold was the most and ignore that it had ever been throughout all of history for the first time in one thousand nine hundred eighty one from then on it was no nation's money from nineteen eighty it went into a brutal bear market from one thousand nine hundred fifty to the year two thousand when it was only two hundred fifty dollars and you know it's up at eighteen hundred roughly so it's just barely over double from its nine hundred eighty high and

there's created about ten times more dollars i mean how many things are just go in society what they were in one thousand eight almost everything is up far far higher all right well certainly you know the fifteen trillion or thirty trillion it sounds like really absurd numbers but remember back to why our german days in the one nine hundred twenty s. the price mark went from a one to one ratio to the u.s. dollar to five trillion to one to the u.s. dollar so getting into those trillion numbers historically you do see that from time to time loney rata time thanks so much for being on the kaiser report thank you so much max 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 mike maloney he's on twitter at mike underscore maloney you can follow me on twitter and please follow me on twitter i'm trying to get a stay ahead of stacy herbert on twitter and you can send me an e-mail right here at kaiser report at r t t v are you until next time this is max keiser saying bio.

insipidus book the tease available. in grown to till you're a grand total in root. of a club school who turns circles photo live to gold. corinthian escaped from it's a serious ruin kempinski more good twenty two look you think of school for you. know so it's a. very warm welcome to you half past the hour here and as we head to your headlines russia

condemns foreign powers for inciting the opposition in syria in an attempt to topple president assad and this comes after the u.s. and jordan called for him to step down and the arab league suspended damascus as membership of the organization demands assad starts talks with the syrian opposition and implements up use a plan they brokered to end the bloodshed that's claimed thousands of lives. changing of the guard as new prime ministers take over in italy and greece hoping to tackle their country's overwhelming debt critics say the new year of craddock's prime ministers could end up putting brussels and the euro before the interests of their own people. and the police in the u.s. ramp up pressure on the occupy movement as they crack down on peaceful protest camps and marchers across the country in oakland officers in riot gear raided a city park tearing down tents and arresting activists this comes almost two weeks after protesters shut down the city's support after an iraqi war veteran sustained .