if even. there it's hard to look at the headlines now haron r.t. police had begun clearing out anti corporate protest camps in new york raid comes after occupy activists about induction this coming thursday to mark two months since the movement began tents were also dismantled a society no clinton california. russia hits out of the arab league for deciding to expel syria and imposing sanctions source mass rallies in the troubled country as the pressure piles on the regime in syrian opposition leaders are coming to moscow to support the green peace at home. and are

elected bankers and economists to take the reins in greece and italy to tackle the ever rising debt levels tyrion premier doesn't see his job as a temporary fix close to steyn channels in the twenty thirteen election greece's new leader is focusing on securing the next bailout. in our team roxanne stacy shed light on the corporate world of versions of risk showing up on their balance sheets . styles are there because the report the fraud get more brazen the amounts being stolen get bigger regulators are now just walking away as cool thunder and bolts the globe so using yes my 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 b and to set the scene for you max jamie diamond is gathering up the silver to cover all his naked shorts and. shorts. you look you would you would please me like. no joke it's a rope do you want to know if you. yes my sheriff's ring string kaiser.

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 this 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 this bore c m e group after sought for some kind of disclosure that they are in fact terrorists oh oh well we're going to go over to headlines now max which will show that in fact they are ok because they mention that it's perceived lax regulation that these protesters perceive them as have an ax regulation well let's look at the reality and after global's missing funds maybe massive ploy c.f.p. sees tilton 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 covered as others before i call peek a boo accounting this is the same thing a lehman 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 the regulators move on to the next company and 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 people counting and the m.f. global was caught right as they were in the process of committing accounting fraud and suddenly that all rattled the little string was pulled globally went bankrupt but you could do the exact same thing at almost every single company in america are all basically based on accounting fraud and puzzle string that 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 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 of course that money was just play in this massive shell game that is because of two thousand and eight crisis is the cause of the global financial crisis remember goldman sachs agreed 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 move in to try and steal their gold so this whole ponzi scheme and people are 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 a late n.c. 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 dollars. frozen in his 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 and now they're getting their accounts of glitter 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 will ensure that they talked to he said he thought the securities investor protection corporation he

thought it covered and the 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 futures accounts and faces months of uncertainty as he files a claim seeking recoveries but over the past fifteen years all these groups like said baker as c c or f.t. i see are all been undermined by new regulations as supersede them that make them socially introspective and have no regulatory authority whatsoever and people are now finding this out they thought their accounts were 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 leverage the firm's capital by fifty to one or so pay them soft hundred million dollars or so then extract of that out of the company and of course the ponzi scheme cole collapsed he stole money in the guise of if of course

he used to be running goldman sachs and we want to like the suppression of school thieving now sipek i want to go over this for the audience here is a private government sponsored company that sure is brokerage accounts for up to five hundred thousand dollars in securities with one hundred thousand dollars for cash in case. brokerage firm because last well sipek covers losses in stocks and bonds however it doesn't cover commodity futures contracts unless to find 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 simply can say well we technically don't cover that because by definition these securities that we do cover it don't fulfill our our particular definition and your recourse by the way

with 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 cite often 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 have 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 sipek this private government sponsored insurance they thought made them safe just like all of these investors while it goes back to john course line and best thing in global in in bonds for european sovereign debt when you know everybody there are things they have credit default swaps this is another insurance product that people think protects them from their 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 and the whole creation of 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 claws i government sold 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 brokers would call people up and say oh your money's going to get put back you've got to be in the stock come over to merrill lynch so now we're finding out that all of the support mechanisms that are supposedly keep this cash safe as safe as it in the bank are and 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 bankrupt well i'm going to talk about the one percent of the one percent because in fact they are protected either when the

whole system is fraud when they exist in a system of fraud and they themselves perpetrate the four 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 go in for his now including the nine x. nine x. 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 know it's money stolen and once 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 then of global as like a mafia guy who turned state's evidence on the kingpin of the mafia because you can't freeze out the nymex from the underlying criminal racket that's going on because the and i mix is one of the primary planks that keeps the syndicate up and running this criminal organised. nation going so it's like you know you if you turn in any tattle tale 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 to show 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 max if all of these traders if you've been in the nine x. can't trust the system here you know they can't trust the conchords 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 remember 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 year a collapse that was completely ovoid of all 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 thank so much for being on the kaiser report thank you max go and much more coming away so stay right there.

twenty years ago the largest countries in. the suitcases of the city. was how did. you get a job. where did it take to. welcome back to the kaiser report imax kaiser time not to go to sunny los angeles and speak with michael loney told someone that come and protect in survive dot com where i'll be speaking next week and london might welcome the kaiser report hi you're on the air max fantastic michael only 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 gold the central banks got it all and now it's going to get transferred 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 i think this you know every thirty to forty years the world has a new monetary system and before world war i. for most countries they had a certain amount of gold at the treasury in the issue of quid an equivalent amount of notes in circulation a certain amount of units of currency to match the number of units of gold that they had. then world war one happened countries in europe all star redemption right so you could no longer turn in your currency and request gold and then they split

up a printing presses so between the war we had something called the gold exchange standard where between the two wars we're going to war were to go with a strange standard. in the united states for instance. with the federal reserve act specified that the currency only had to be back forty percent baikal 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 gold so we were putting more receipts for gold or claim checks for gold in circulation then gold the currency was the paper that circulated the money the real stuff was in the faux stuff of intrinsic value that fell apart during the great depression because it was a very courtly designed system it was a manmade system it fell apart and they came up with a bretton woods system from a few forty four to seventy one and there was no reserve requirement you could

print as many dollars as the u.s. wanted to grant and only have a certain amount of gold all the other countries on the planet would back their currencies with u.s. dollars and the u.s. dollar is backed by gold at thirty five dollars an ounce and then next and stops the convert go into gold in one nine hundred seventy one and the world has been on a dollar cysts standard since then so we've gone from on baby steps from gold to personal or back into less gold backing to no gold back to where currencies are all back to ious on it's 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 goals to back debt what are they going to have left when the world monetary system sees this next shift i think the countries that do that are going to be broke and the countries that still have some gold are going to end up being very rich right now china's you know they're massively importing galled and it seems to

me even 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 youth quest 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 wealth is being transferred better action 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 rest happens i mean i think you're going to see it go big going like this

and this mess and then suddenly bam you know there could be a gap up days where you see the price of gold go up thirty percent or you can double you know you wake up in the morning prices double what it was last time well certainly is going 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 plan for twenty nine 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 with this protest have made it each of these six hundred fifty thousand customers had bought just one ounce of silver well you know this is over market i'm not sure the size of it right now i used to do this over market was one three hundred the size of the gold market my understanding is that this above ground server supply is roughly worth about a billion dollars so here you have

a six hundred fifty thousand people if they each bought one ounce at this type of a level they would have thought probably triple the price of silver that you have two hundred dollars over a hundred fifty dollars. over something like that what would that have been 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 slower was poor four dollars and thirty cents an hour or fifty five bucks an ounce people thought i was a lunatic and now a bit it has already hit forty eight bucks announcement back there go wrong maybe not maybe it's not a lunatic now it only takes a 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 one thousand nine hundred price max m.p. enters but of course that's another story that's it that's got to be there donek

adjustments that the keeping of the central processing unit of a computer is considered to be the flesh unary and 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 it's making a fraud what are your thoughts on the c.m.e. group and i am after global story there's a story of any significance for someone who may be invested in gold and silver via the paper market end of 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 keep current no shit currency has ever survived in one nine hundred seventy when we began a grand 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 anything yet currency before 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 on back to fear currency dollar that will go to infinity. dollars per ounce of first quarter x. my target basically is goal should be higher in price then the points on the dow it should take fifty answer or less probably this time around for gold to buy a single family median priced home in the united states so currents one fiftieth of a single family median priced home or one share of the doubt that's my price for gore all of the face there are going to have an impact but it's just one of the little jags on the way to infinity so let's talk about that gold hour a chef our second because that's not as says storage plants are saying there are two times in the past where the dow jones and gold have reached one for one perry

one nine hundred eighty of course the dow jones was at eight hundred the price of gold was at eight hundred but i think you go back into the one nine hundred thirty s. or the price of gold as something on the progress 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 the dow jones is at forty boy that was a good day to be along the dow but it was so you're not the one to one not parity using this rule of thumb you're saying gold with the dow jones at approximately eleven to twelve thousand announced a say the dow jones comes in 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're going to big deviation maybe go peaks at three thousand dollars an ounce but the dow will be fifteen. 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 bubble and then it overshoots to the upside 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 so gold for good. in other words going to crisis 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 any time in all of history p.v. ratios were insane and dividend yields were nonexistence. and we were diverting back it was forty five ounces of gold by one share of the dow's lowest price was one forty fifth the points on the dow it's currently one seventh so gold is catching up but we've been it so far out of whack that it's going to overshoot further to the opposite extreme i think you're going to see him call it double the points on the dow or one day i think a high rate of equal is the very same target that's that's normal but if we're going to be fallacious you can see at all that three thousand and the dow at three

thousand or even fifteen hundred if it goes to double the price that not if we're going to hyperinflation maybe go it would be thirty trillion dollars and now it's. fifteen trillion points and still it's going to go a little by the same amount of shares of the dow are we gartner so whether it's the play sherry or inflationary hold purchasing power should rise seven to fourteen times compared to scotts in the year two thousand gold was the most unloved and ignore then it had ever been throughout all of history for the first time in one hundred seventy one from then on it was no nation's money from one nine hundred eighty it went into a brutal bear market from one thousand nine hundred eighty fifty to the year two thousand when it was only two hundred fifty dollars and you know this is a bit eighteen hundred roughly so it's just barely over double from its nineteen

eighty high and has created about ten times more dollars i mean how many things are just in society what they were in one thousand eight almost everything is up far far higher than that. right well certainly you know the fifteen trillion or thirty trillion is sounds like really absurd numbers but remember back to why more german days and the one nine hundred twenty s. the russian 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 right of time thanks so much for being on the kaiser report thank you so much max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert i want to thank my guest michael noni he's on twitter and mike underscore. 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.