go to some of the country house for the day in the blue hills gilman times the remembering the creamy that used to feel the insecure the to the world the ruben's original. seven thirty pm in moscow these iraqi headlights peaceful protest rough response u.s. police move into arrest occupy activists evicting their happen in new york park had to be anti-corporate movement's two month anniversary. moscow stepping up efforts to mediate peace in syria hosting members of the country's office urging them to hold talks with the assad regime. british firms lined up to exploit libya's rejoice and gas reserves with lucrative contracts on offer from the national transitional government foreign investors lining up to reap the rewards of war

since the ousting of former dictator moammar gadhafi. next on our team x. in stacy shed light on the corporate world or version to risk showing up on the balance sheet skies a report next. because reports so fraught get more brazen the amount being stolen get bigger regulators are now just walking away the financial chaos involves the globe so using yes max is the tale of the good the bad and the string string and i want to cut this little clip here that was made by or be anarchy and to set the scene for you max jamie diamond is gathering up the silver to cover all his naked shorts and

. this onus is on. you it would. be like. no joke it's a real. yes max it's 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 you know did 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 this is 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 the first post to be regulating that's incredible risk for the overall economy and of course i saw the headline of business insider and i think that they're 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 poor c m e group to have to suffer 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 missing funds maybe massive ploy c.f. he 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 of the u.s. commodity futures trading commission well covered us on this show before i called peek a boo accounting this was 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 live deliveries you simply move it off your balance sheet for a few days with the complicity of another corrupt hedge fund or broker or banker

and then the regulators move on to the next company and move it back 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 because the accounting and the m.f. global was caught right as they were in the process of committing accounting fraud and suddenly that all ravelled the little string was polled globally went bankrupt but you can do the exact same thing at almost every single company in america they're all basically based on accounting fraud and total throwing it all go to zero and why this relates to c.m.e. group of course is that they're supposed to be where 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 why of course that money was just

play in this massive shell game that is 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 move in to try and steal their gold so this whole ponzi scheme 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 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 mullen juror who has had twenty seven thousand two hundred fifty dollars. frozen is the 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 obliterated 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 i 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 fifteen years all these groups like said baker as c c or f.t. i see are all been undermined by new regulations that supersede them that make them socially ineffective 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 enough global that know 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 christine basically leveraged the firms accountable by fifty to one or so pay themselves hundred million dollars or so then extracted that out of the company and of course. 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 is sure is brokerage accounts for up to

five hundred thousand dollars in securities with one hundred thousand dollars for cash in case. the 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 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 to pick and 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 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 other money stolen see anything back montor is one of the many customers who can't access cash and the segregated accounts they once were safer than 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 junk or sign and vesting in global in bonds for european sovereign debt when you know everybody there thinks 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 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 clauses i go over mansoul not terribly regulated seal of

approval that says these money market accounts are insured quote unquote and merrill. another wire house for a big wall street firm siphoned billions from the banks because hot selling brokers would call people up and say oh your money is 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 of the support mechanisms that are supposed to keep this cash safe as safe as it in the bank are and fact salty 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 are 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 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 nine x. 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 went 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 end of global is like the mafia guy who turned state's evidence on the king pin 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 the 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 if you 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 here you know they can't trust the tank or his 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 and 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 year a 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 thank so much being on the cars report thank you max go a much more coming away so stay right there. twenty

years ago in the largest country in the. disappearance of the. police how did. you get a job. where did you take the. old . technology innovation called the police developments from around russia we've got the future of coverage. welcome back to the kaiser report imax guys are time now to go to sunny los angeles and speak with mike maloney of gold silver dot com and protect in survive dot com we're all be speaking next week in london mike one of the guys report i do on the air max fantastic like a loony 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 that 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 transferred out of the central banks to somewhere go he has to back the currency why is it now being used in repayment of debt i think is the worst thing that can possibly happen 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 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 it countries in europe all stopped reason. right so 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 world war two legally strange standard in the united states for instance. with the federal reserve act specified as a currency only had to be back forty percent baikal so in other words they would 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 claim checks for gold in circulation then goals the currency was the paper that circulated the money the real stuff was in the fog stuff of intrinsic value that fell apart during the great question because it was a very poorly designed system it was a manmade system it fell apart and they came up with a great and would system from one nine hundred forty four to seventy one and there was no reserve required that you could print as many dollars as the u.s.

wanted to print and only have a certain amount of all the other countries on the planet with back their currencies with u.s. dollars and the u.s. dollar respect my goal thirty five dollars an ounce there and then nixon stops the converter go into gold in one nine hundred seventy one in the world is beyond dollars just standard sense spencer leave gun from on baby steps from gold to personal go back into les gold back into noble back in where where currencies are all backed by iou spawn's well every thirty to forty years this all is a part 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 broken the countries that still have some gold are going to end up being very rich right now china's you know their. massively importing galled and it

seems to be a bit of a wealth transfer going on from the west to the east would you 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 mice first 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 not buyers of gold this is a huge game changer i wrote an article one time ago in one country away that is happening right now countries are you know they're in a showdown and countries are starting to blink. venezuela asking for their gold or we're going to russia happens i mean i think you're going to see gold going like

this in this mess and then suddenly bam you know it could be gap up days where you see the price of gold go up thirty percent or you can go you know you wake up in the morning the price is double what it was last also and lazy and further into a bond 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 some sense a plan where 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 would this protest have made its of these six hundred fifty thousand customers had bought just one ounce of silver well you know this over market i'm not sure the size of it right now are used to do this over market was one three hundred the size of the gold market not my understanding is that this is above ground so oversupply is. 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'd have two hundred dollars silver hundred fifty dollars silver or 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 go greater and also it went slower was four dollars and thirty cents an ounce for fifty five bucks an ounce people thought it was a lunatic and now that it is already hit 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 whatever thing on this planet has so many at a discount to its nine hundred eighty price max computers but of course that's another story if it has a new guy there due to pay donek adjustments that keeping of the central processing

unit of a computer is considered to be the place 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 speaking of fraud what are your thoughts on a c m e group an 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 m.f. global of course was caught stealing customer money piers 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 one we we began it ran the 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 for your currency before nine. the seventy one surviving they all eventually fail so my real

target for goal eventually is infinity dollars of the type of dollar that exists now on back spirit currency dart now we go to infinity dollars per ounce of person x. my target basically is goal should be higher in price then the points on the dow it should take fifty answer west 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 price com or one share of the doubt that's my price for gore . 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 aberration have for a second because that's bad as a story clay interesting there are two times in the past where the dow jones and gold have reached one for one parity one nine hundred eighty of course the dow

jones was at eight hundred the price of gold was eight hundred but i think you go back into the one nine hundred thirty s. where the price of gold was as something for the best 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 was at forty boyo 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 gold what about jones at approximately eleven to twelve thousand ounces 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 piece lation maybe gold pieces three thousand dollars an ounce but the dow will be fifteen hundred i believe you're going to see well they were gold will be double the points of the dow because simply because if you look at the dow all ratio it goes into a. well and then it overshoots 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 his reverting now it's down to about seven ounces of gold for the dow or another is going to crisis one seventh of without but since we're coming off of the point where paper assets were more of overvalued in the year two thousand and at any time in all of history p.v. ratios were insane and dividend yields were nonexistent. and we reverted back it was forty five ounces of gold by one share everything else was priced just one forty fifth the points on the dow it's currently one step and so the whole 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 a doubt one day i think a high rate of it will is the very same target that's best normal but if we're

going to be places you can see it go that three thousand and the dow at three thousand or even fifteen hundred if it goes to double the price that you know if we're going to hyperinflation maybe go it would be thirty trillion dollars and now it's the dow fifteen trillion points and still it's going to go low by the same amount of shares of the dow are we garlits of whether it's before a 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 unloved and ignore then it had ever been through are all of history for the first time in one thousand seven hundred 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 fifty to the year two thousand when it was only two hundred fifty dollars and you know this is up to eighteen hybrid rough. so it's just barely over from it's nineteen eighty all right there's

created about ten times more dollars i mean how many things are just go in society what they were initiated almost everything is up for a four iron all right while certainly you know the fifteen trillion or thirty trillion is sounds like really absurd numbers but remember back in the lamb 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 rather 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 they see her but i want to thank my guest mike maloney he's on twitter that mike underscore moloney you can follow me on twitter and please follow me on twitter i'll try to get a stay ahead of stacey herbert on twitter and then 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 send

bio. home.