version to risk showing up on their balance sheets kaiser report next. year this is the kaiser report the frauds get more brazen the amounts being stolen get bigger regulators are now just walking away as total financial chaos envelops the globe 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.

you would if you would please educate me like. it's no joke it's a real do you want to know if you knew. yes max is sheriff spring string kaiser. well you know there is 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 have 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 is the same thing a 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 and move it back on to your balance sheet as a reciprocal arrangement with the other corrupt bankrupt. roker 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 can do the exact same thing in 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 bart 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 a 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 move in 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 in city 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 talked 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 is 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 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 accounts 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 i see 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 leverage the firm's capital by fifty to one or so pay them soft hundred million dollars or so then to extracted that out of the company and of course the collapsed he stole money in the guise of a thief 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 sponsor company that insures brokerage accounts for up to five hundred thousand dollars in securities with one hundred thousand dollars for cash in case the brokers. 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 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 sit back 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 want thought were

safer than 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 junk or sign and vesting in global in 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 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 quasi governmental not terribly regulated seal of approval that said these money market accounts are insured quote unquote and merrill lynch and other. why are 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 it 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 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 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't 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 organization go. 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 and you know they can't trust the coreys minds 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 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. well into the. technology innovation all the latest developments around russia we've. covered.

welcome back to the kaiser report imax keyser time now to go to sunny los angeles and speak with michael loney of gold silver dot com and protectin survive dot com where i'll be speaking next week and london mike love of the cars report how you do on there max fantastic like aloni across europe member nations are being urged to use their gold reserves to collateralize a euro bonds what are your thoughts on what role gold will play in the final resolution of our global debt crisis to see all that gold it 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 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 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. 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 world where two 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 oil 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 go 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 fall stuff of intrinsic value that fell apart during the great depression because it was a very poorly designed system it was a manmade system it fell apart and they came up with the bretton woods system from one nine hundred forty four to seventy one and there 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 was backed by gold thirty five dollars an ounce and then nixon stopped the converter to go into gold in one thousand nine hundred seventy one and the world has been on a dollar sists 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 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 it being broken the countries that still have some gold are going to end up being very rich right now john as 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 of 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 rest happens i mean i think you're going to see it go going like this and this and this and then suddenly bam you know there could be 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 the prices double what it was last night also unless you had 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 pember 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 that this over market was one three hundred the size of the gold market might or 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 allan's at this type of a level they would have thought probably tripled the price of silver yeah you'd have two hundred dollars over a 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 silver was four dollars and thirty cents an ounce for fifty five bucks an

ounce people thought i was. lunatic and now that it is already get forty eight bucks announcement back they're gone well 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 one other thing on this planet this is selling at a discount to its one nine hundred eighty christ macs computers but of course that's another story that's a that's a good one you got me there donek adjustments that keeping on 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 a c m a group an am after global story does this story have any significance for someone who may be invested in gold and silver via the paper market m.f. global of 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 nokia nokia currency has ever survived in one nine hundred seventy when we 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 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 rocks my target basically is goal should be higher in price then the points on the dow it should take fifty oxes or less probably this time around for gold to buy

a single family median price home in the united states so. currents one fiftieth of a single family median price home or one share of the doubt that's my price for 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. i want to 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 where the dow jones involved have recent one for one patty one thousand nine hundred eighty of course the dow jones was at eight hundred the price of gold was at eight hundred and i think go back into the one nine hundred thirty s. or the price of gold as something on the press of gold was twenty dollars and sixty seven cents an hour 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 the one to one parity using this rule of thumb you're saying gault with the dow jones at approximately eleven

and twelve thousand announced let's 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 go into a big diesel ation maybe go peaks at three thousand dollars an ounce but the dow will be fifteen hundred i believe you're going to see well day word go it 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 reverted

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 it 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 high rate 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 go away by the same amount of shares of the dow regardless of whether it's beef way sherry or inflation or gold purchasing power should rise

seven to fourteen times compared to stocks in the year two thousand gold was the most of and ignore then it had ever been throughout all of history for the first time in one nine 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 nine hundred eighty where it is a 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 one nine hundred eighty high and they've created about ten times more dollars i mean how many things are just dubbo in society what they were in one nine hundred eighty almost everything is up far far higher than that while certain layout you know the fifteen china thirty trillion it sounds like really absurd numbers but remember back in the y m r german days and the one nine hundred twenty s. the rice mark y. from a one to one ratio to the us dollar to five trillion to one to the us dollar so getting

into the australian numbers historically it do see that. from time to time loney route 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 mike maloney he's on twitter 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.

peaceful protest but a rougher response u.s. police move in to arrest the occupy activists invicta their camp in a new york part of the anti-corporate movement's two month anniversary. moscow steps up efforts to mediate peace in syria hosting members of the country's

opposition urging them to hold talks with the government. but this club says the kremlin slams western policy for inciting the violence in syria by cranking up the pressure on president the son to step aside. and are reaping the rewards of war british firms lining up to exploit libya's rich oil and gas reserves with lucrative contracts on offer from the transitional government. for pm in moscow i met good to have you with us here on r.t. our top story the birthplace of the anti-corporate occupy movement in new york's been raided and cleared out by police hundreds of protesters who've been camped out in zuccotti park for tomorrow.