cause how did he treat. each began a journey. where did it take. his arty moscow is kevin knowing it's not in our top stories for you peaceful protests in a rough response u.s. police move in to arrest occupy activists a big thing they can continue your party head of any corporate movement two month anniversary but of course now over rule the decision saying that protest has a right to return to tents in. moscow steps up its efforts to mediate a diplomatic deal in syria hosting members of the country's opposition urging them to hold talks with the government it comes as a day of violence reportedly claims nearly one hundred lives in syria including schools in the regime's troops. british

lined up to exploit libya's rich oil and gas reserves lucrative contracts on offer from the national transitional government foreign investors have been queuing to reap the rewards of war since the ousting of former dictator moammar gadhafi. thanks a lot of t.-max and stacy shed light on the corporate world's a version to risk showing up on the balance sheets. because reports so frauds get more brazen the amount being stolen get bigger regulators are now just walking away total financial chaos and the globe so using yes max is the tale of the good the bad and the string string and 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. you know it would be would please you caught me like a. good joke it's a real. 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 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 the c.m.e. out of chicago they're not regulating anybody that they're supposed to be regulating that's incredible risk of 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 offer some kind of disclosure that they are in fact terrorists oh oh 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 maybe massive ploy see if 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 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 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 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 pickable counting and the m.f. global was caught right as they were in the process of committing accounting fraud and suddenly that all unraveled the little string those polled suddenly went bankrupt if you could exact same thing that almost every single company in america for all basically based on accounting fraud it pulled the string and 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 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 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 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 and see and blatancy of corruption here because look at this and the 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 see any 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 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 obliterated by the same terrorists because there's nothing there's no barrier between venom and the money that they're supposed to be the custodian of they're just completely stealing out of people's accounts 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 a futures account and faces months of uncertainty as he files a claim seeking recoveries fight over the past 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 were insured against the broker stealing the money but now they find out enough lowball that no the brokers can steal your money and you have very little recourse and the broker by the way has been using your money to make these incredible bets i mean coristine basically leverage the firm's capital by fifty to one or so pay themselves hundred million dollars or so then extract that that out of the company and of course the. collapsed they stole money in the guise of thieves of course used to be running goldman sachs and we want to like the

congressional school thieving now sipek i want to go over this for the audience here is a private government sponsored company that stirs 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 to find 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 don't fulfill are 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 under my stall and see anything back montor is one of the many customers who can't access cash and the segregated accounts they once caught 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 john course line and best thing in global in 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 what they're that 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 clauses i go over mansoul not terribly regulated seal of approval that said 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'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 of the support mechanisms that are supposedly keep this cash safe as safe as it in the bank are of fact faulty fact you don't have access to these funds but 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 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 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 and of global is like the mafia guy who turned state's evidence on the campaign of the mafia because you can freeze out the nine backs from the underlying

criminal racket that's going on because the you know 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 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 if you 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 but not. if all of these traders if even the nymex can't trust the system and you know they can't trust the minds of the world to not steal from them you know they count on a system which you only steal from the pension funds in 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 thank so much for being on the kaiser report thank you max go a much more coming away so stay right there. the

official policy of the commission joining so called talk from the queue sampling. on the. video. speech now in the palm of your. on the. hill. welcome back to the kaiser report i'm nice keyser time now to go to sunny los angeles and speak with michael loney of gold silver dot com and protect insider vive dot com where i'll be speaking next week in london mike love of the cars report how you're on air max fantastic like aloni across europe member nations are being urged to use their gold reserves to collateralize euro bonds and 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 transferred out of the central banks to somewhere go to use the fact that 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 will run. out 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 that matched the number of units of gold. then world war one happened it countries in europe all stopped really 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 world war two legally strange standard in the united states for instance. with the federal reserve act specified that the currency only had to be back forty percent reichl so in other words they could put fifty dollars in circulation for every twenty dollar gold piece in the box and those fifty dollars all promised to pay all so we were putting more receipts for gold or claim checks for gold in circulation then go. 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 question because it was a 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 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 respect michael thirty five dollars an ounce and then nixon stopped the convert to go into gold in one nine hundred seventy one in the world it's been on a dollar sists standard since then so we've gone from and baby steps from gold to partial go back into less gold backing to no gold backing were where currencies are all backed by iou spawn'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 and i think the countries that do that are going it be broken 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 be a bit of a wealth transfer going on from the west to the east and here 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 to best direction in regards to gold you know for years western central banks were suppressing the price of gold best selling it into the market now we've got you know. the past couple of years central banks are net buyers of gold this is a huge game changer and i wrote an article long time ago and one country away that is happening right now countries are you know they're in a showdown countries are starting to blink. venezuela asking for their go or we go in the rest happens i mean i think you're going to see you go like this and

this miss mentally bam you know there could be gap up days greasy 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 night also 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 some sense of temper twenty ninth in the us 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 it of these six hundred fifty thousand customers had bought just one ounce of silver well you know this silver market i'm not sure disguise it right now or used to be that the silver market was one three hundred the size of the gold market my understanding is that this aboveground 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 propped probably triple the price of silver that you'd have two hundred dollars to over one hundred fifty dollars silver something like that how 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 slaughter was four dollars and thirty cents an ounce for fifty five bucks an ounce people thought i was a lunatic and now it is already get forty eight bucks announcement. back they're gone wrong maybe not maybe it's not a lunatic now it only takes a tripling of sober well sober was fifty dollars back in one thousand eight and then one other thing on this planet there's so many to discount to its nine hundred eighty price macs computers but of course that's another story that's a that's a good one you got there due to pay donek adjustments that keep putting on the

central processing unit of a computer is considered to be a deflationary and in the mix of that the government reports there for 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 lobel story there's a story have any significance for someone who maybe invested in gold and silver via the paper market m.f. global of course was caught stealing customer money pissed are 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 if your currency has ever survived in one nine hundred seventy one 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 would go to infinity dollars currents as far as the rocks my target basically is goal should be higher in price then the points on the dow it should take fifty answer west probably just time around for gold to buy a single family median price home in the united states so what grants one fiftieth of a single family be in price home or one share of the doubt. chrysler girl all of the things they're all going to have an impact but it's just one of the little jags on the way up to infinity. i want to talk about that gold our a chef our second because that's caught as a story claims are saying there are two times in the past where the dow jones and gold have recent one for one patty one nine hundred eighty of course the dow jones

was at eight hundred the price of gold was at eight hundred and 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 a long adap but it was so you're the one to one that parity using this rule of thumb you're saying ball with the dow jones at approximately eleven to twelve thousand announced 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 that there are will 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 bubble and then it overshoes to the opposite extreme it goes into

a bigger 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 doubt but since we're coming off of the point where paper assets were more overvalued in the year two thousand it any time in all of history p.v. ratios were insane and dividend yields were nonexistent. then we reverted back it was forty five ounces of gold by one sure and doused with price was one. forty fifth's 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 it double the points on the dow up one day i think a target of equal is a very sane target that's that's normal but if we go into

a deep lation you can see a gold at three thousand and the dow at three thousand or even fifteen hundred if it goes to double or it's the dow if we're going to hyperinflation maybe gold would be thirty trillion dollars and now it's the dow it's fifteen trillion points and still it's going to go a little by this same amount of shares of the dow are we garlits of whether it's the place mary 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 ignored then it had ever been through our 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 he 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 at eighteen hybrid roughly so it's just barely over double from its one thousand nine hundred

eighty high and there's created about ten times more dollars i mean how many things are just double in society what they were in one nine hundred eighty almost everything is up far far higher. well certainly you know that it's fifteen trillion or thirty trillion it sounds like really absurd numbers but remember back in the why margarine 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 and the u.s. dollar so getting into those trillion numbers historically do see that from time to time loney rata 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 stacy herbert i want to thank my guest mike maloney he's on twitter that 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 nice guys are saying

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