the double standards that we see in terms of how america categorize is what democracy is and who has what kind of democracy and that was our t. correspondent unease and now we will that does occur now for more of the stories we covered go to our t.v. dot com slash usa and check out our youtube page at youtube dot com slash r t america you can also follow me on twitter atlas of also you back here at seven. stars or this is the kaiser report so fred get more brazen the amounts being stolen bigger regulators are now just walking away. so using yes max this is a tale of the good the bad and the string string and i want to cut to this little

clip here that was made by r g b anarchy and to set the scene for you max jamie diamond is gathering up the silver to cover all his naked shorts and incomes . are screwed. you. know. you. yes max it's sheriff string string kaiser.

well you know there's another success in the whole good the bad in 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 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 the poor c m e group to have to offer some kind of disclosure that they are in fact their wrists 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 pretty. lax regulation that these protesters perceive them as part of an ax regulation well let's look at the reality and after missing funds maybe 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 other show before i called peek a boo accounting this was the same thing in 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 with the regulators move on to the next company move it back onto your balance sheet as a reciprocal arrangement with the other corrupt bankrupt. broker a corporation of all corporations do this general electric does i.b.m. does as warren buffett does as all the firms are lost or do their own gauge and accounting fraud people counting and of 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 suddenly 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 postering and 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 that quote will 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 oh of course that money was just play in this massive shell game that is the cause of two thousand and eight crisis as to cause of the global financial crisis remember goldman sachs got agrees 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 were going to try and steal their gold so this whole ponzi scheme and counting is is endemic throughout the entire system and of course without any growth anywhere in the world to offset these massive debts this is only going to get worse now c.m.e. group blaine's occupy wall street and anonymous but i think you can blame it on a late unsee 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 c.m.e. group they talk to a forty eight year old new yorker ted moment juror who has had twenty seven thousand two hundred fifty thousand 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 a blitter raided 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 that this guy ted sure 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 fifteen years all these groups like septic or s.c.c. or f d c are all been undermined by new regulations i supersede them that make them socially ineffective and have no regulatory authority whatsoever and people are now finding this out they sought their accounts or insured against the broker stealing the money but now they find out enough global 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 christine basically leveraged the firm's capital by fifty to one or so pay themselves under a million dollars or so then extracted that out of the company and of course the ponzi scheme call collapsed he stole the guy's

a thief of course he used to be running goldman sachs and we went to like the professional school thieving now sipek i want to go over this for the audience here is a private government sponsored company that insures brokerage accounts for up to five hundred thousand dollars in securities with one hundred thousand dollars for cash in case. a brokerage firm goes bust while sipek covers losses in stocks and bonds however it doesn't cover commodity futures contracts unless 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 going 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

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 a panel of brokers if you have a complaint the track record for the industry is less than two percent of people who are paid their money stolen see anything back manjari is one of the many customers who can't access cash and the segregated accounts they once 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 well it goes back to junk or sign and vesting in global in bonds three 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 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 a 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 talk about the one percent of the one percent because everyone else in the categories are going to go bankrupt but 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. growth 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 beside 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's around to save

them and 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 imax is one of the primary planks that keeps to syndicate up and running this criminal organised. nation going so it's like you know you're 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 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 banks but not . if all of these traders if you even the nine x. can't trust the system and you know they can't trust the corys 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 solvent see crisis now it's becoming a systemic crisis the underlying fabric of the global markets the thing that keeps on running is now crumbling before our very eyes and this is a new chapter in this whole four year collapse that was completely ovoid a bull head 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 cars report thank you accept a way much more coming away so stay right there. and. get some closure see the story and the six so you think you understand it and then

you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't. charge is a big. deal social see how the case your money so called touch from the choose option. on the. video. omissions for you now with the kewl. on the call she told. a very warm welcome to you this is your news today protesters on the. streets they

have. decent chance of a good chance. to get a. sense of the human experiments good to. see if we pursue this rap music. be trying. to come to me and it's all keen flames i find. the link to me to you know confidence in hmong kids in long. island his reception looks to be the missions close to see his son look close. to fail sleep late sick and feel like he's a us crash seven it. seems. to. be. just programs increase the total economy.

welcome back to the kaiser report i'm nice guys are not a go to study last night maloney gold silver and protect in survived. well be speaking next week in london mike welcome of the cars report how are you doing there max fantastic not 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 that crisis the 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 this. central banks to some where gold is 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 or forty years the world has

a new monetary system and before world war one. for most countries they had a certain amount of gold in the treasury and the issued a quick an equivalent amount of notes in circulation a certain amount of units of currency that matched the number of units of gold they had. then world war one happened that countries in europe all stopped reading redemptions 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 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 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 goals

their 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 depression 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 there was no reserve requirement you can 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 a spectacle at thirty five dollars an ounce and then nixon stopped the converter go into gold in one nine hundred seventy one in the world. on a dollars this standard since then so we've gone from on baby steps from gold to personal go back into les gold back into noble back in work 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 gold to back debt what are they going to have well when the world monetary system sees this next shift and 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 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 and 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 break. venezuela asking for their gold or . when the rest happens i mean i think because the gold going like this and this mess and then suddenly bam you know it could be a gap up days where you see the price of gold go up thirty percent or even double you know you wake up in the morning the prices double what it was last time well certainly is even further into a ball market you have different dimensions of that market a current. and that kind of volatility i think is to be expected now speaking of wealth transfer set since september 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 each of these six hundred fifty thousand customers had bought just one ounce of silver well you know this over market i'm not sure deciders of it right now are used to be this over market was one three hundred the size of the gold market not my understanding is that there's a pot 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 ounce at this type of a level they would have thought probably triple the price of silver yeah 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 no brainer it will tell you when slover was forty four dollars and thirty cents announce there were fifty five corks announce people thought it was a lunatic and now that it is already get forty eight bucks announcement or back

they're going 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 is so in your discount to its nine hundred eighty price max computers but of course that's another story if it has occurred you've got to be there to do his donek adjustments that keep coming on the central processing unit of a computer is considered to be 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 this see any group and am after. lobel 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 carts was caught stealing customer money peers 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 nokia no fit currency just ever survived in one nine hundred seventy one 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 on backed currency dollar that will go to infinity dollars per ounce of person or x. my target basically is goal should be higher in price then the points on the dow it should take fifty anstice or west 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 priced home or one share of the dow that's my price or goal all of the things they're all going to have an impact but it's just one of the little jags on the way up to infinity ok so let's talk about that gold our a chef our second because that's got as says story 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 all those eight hundred 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 out. boy that was a good day to be a long without but it was so you're not the one to one not parity using this rule of thumb you're saying galt would have downtowns 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 big d. fallacious maybe gold pieces three thousand dollars an ounce but the dow 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 it ratio it goes into a boat 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 his reverting now it's down to about seven ounces so the gold for the dow or another is gold prices one seventh of without 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. and then we reverted back it was forty five ounces of gold by one sure it douse of course price was one

forty fifth the points on the dow it's curry 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 golet double the points on the dow or one day i think a high rate of equal is a very sane target that's best normal but if we're going to be fallacious you can see a gold at 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 gold would be thirty trillion dollars and now it's down about fifteen trillion points and still it's going to go. same amount of shares of the dow regardless of whether it's speciation airier inflation or gold purchasing power should rise seven to fourteen times compared stocks in the year two thousand gold

was the most unloved and ignore. that it ever been through 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 eight when it were brutal bear market from one thousand eight hundred fifty to the year two thousand when it was only two hundred fifty dollars and you know it's up to eighteen hybrid growth where you saw it's just barely over double from its nineteen eighty high and they've created about ten times more dollars i mean how many things are just double in society what they were in one thousand eight almost everything is up far far higher all right while certainly you know that it's fifteen trillion or thirty trillion it sounds like really absurd numbers but remember back in the i'm our german days and the one nine hundred twenty s. the price marked by from a one to one ratio to the u.s. dollar to five trillion to ones in the u.s. dollar so getting into those trillion numbers historically you do see that from time to time might loney rather time thanks so much for being on the kaiser report

thank you so much max and that's going to do it for this edition of the kaiser report with me max kaiser as they see here 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'm trying to get a say head of stacy harvard 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 nice guys are saying by a. philip . i asked.

you. if you please.